Providence Service Corporation Rebuts False and Misleading Statements Contained in...

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Wed May 27, 2009 8:30am EDT

Providence Service Corporation Rebuts False and Misleading Statements
Contained in Proxy Statement Filed by the Avalon Group

TUCSON, Ariz., May 27 /PRNewswire-FirstCall/ -- The Providence Service
Corporation (Nasdaq: PRSC) today announced that, after a careful review of the
proxy statement filed last week by the Avalon Group with the Securities and
Exchange Commission, it believes that the Avalon Group's proxy statement
contains numerous false and misleading statements. Accordingly, Providence
believes that it is necessary for it to correct the public record with respect
to certain fundamental issues and has publicly filed with the Securities and
Exchange Commission a non-exhaustive list of the numerous false and misleading
statements that it believes are contained in Avalon's Proxy Statement.

"We are disappointed that the Avalon Group has chosen to fill their proxy
statement with numerous false and misleading statements, innuendo,
half-truths, and facts and data taken completely out of context and presented
in a false and misleading manner," said Fletcher Jay McCusker, Providence's
Chairman and CEO. "We believe that the Avalon Group's use of false and
misleading statements to buttress their arguments shows the level of
desperation that they have reached to justify their costly and disruptive
proxy contest and to distract our stockholders from focusing on the
significant and substantial progress we are making. As our record revenues and
earnings for the first quarter of 2009 demonstrates, with earnings per share
up 50% over the comparable prior year period, we are starting to realize the
benefits of many of the actions we have implemented to enhance Providence's
prospects and profitability. Given such progress, it is unfortunate that we
have to spend time and money on the Avalon Group's costly and distracting
proxy contest."
 
Important Information

On May 5, 2009, The Providence Service Corporation (the "Company") began the
process of mailing its definitive proxy statement, together with a WHITE proxy
card.  Providence's stockholders are strongly urged to read Providence's
definitive proxy statement as it contains important information. Stockholders
may obtain an additional copy of Providence's definitive proxy statement and
any other documents filed by Providence with the Securities and Exchange
Commission for free at the SEC's website at http://www.sec.gov and the
Company's website at http://www.provcorp.com. In addition, copies of
Providence's proxy materials may be requested by contacting Providence's proxy
solicitor, Innisfree M&A Incorporated, at (888) 750-5834. Detailed information
regarding the names, affiliations and interests of individuals who are
participants in the solicitation of proxies of Providence's stockholders is
available in Providence's definitive proxy statement filed with the SEC on May
1, 2009.

About Providence

The Providence Service Corporation, through its owned and managed entities,
provides home and community based social services and non-emergency
transportation services management to government sponsored clients under
programs such as welfare, juvenile justice, Medicaid and corrections.
Providence does not own or operate beds, treatment facilities, hospitals or
group homes, preferring to provide services in the client's own home or other
community setting.  The Company provides a range of services through its
direct and managed entities to over 81,000 clients through 1,019 contracts at
March 31, 2009, with an estimated 6.7 million individuals eligible to receive
the Company's non-emergency transportation services related to its LogistiCare
operations.  Combined, the Company has a nearly $1 billion book of business
including managed entities.

Forward-Looking Statements

This press release contains ""forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. Words such as
"believe," "demonstrate," "expect," "estimate," "anticipate," "should" and
"likely" and similar expressions identify forward-looking statements.  In
addition, statements that are not historical should also be considered
forward-looking statements. Readers are cautioned not to place undue reliance
on those forward-looking statements, which speak only as of the date the
statement was made. Such forward-looking statements are based on current
expectations that involve a number of known and unknown risks, uncertainties
and other factors which may cause actual events to be materially different
from those expressed or implied by such forward-looking statements. These
factors include, but are not limited to the global credit crisis, capital
market conditions, and other risks detailed in Providence's filings with the
Securities and Exchange Commission, including its Annual Report on Form 10-K
for the fiscal year ended December 31, 2008. Providence is under no obligation
to (and expressly disclaims any such obligation to) update any of the
information in this press release if any forward-looking statement later turns
out to be inaccurate whether as a result of new information, future events or
otherwise.



SOURCE  The Providence Service Corporation

Fletcher McCusker - Chairman and CEO, or Kate Blute - Director of Investor and
Public Relations, both of The Providence Service Corporation, +1-520-747-6600;
or Alison Ziegler of Cameron Associates, +1-212-554-5469, for The Providence
Service Corporation
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