Providence Service Corporation Does Not Expect California Budget Issues to Materially...

Providence Service Corporation Does Not Expect California Budget Issues to
Materially Impact Its Business in the State

TUCSON, Ariz., July 7 /PRNewswire-FirstCall/ -- The Providence Service
Corporation (Nasdaq: PRSC) today commented on recent budget discussions in
California as part of the state's attempt to close its large budget deficit.

"As we have stated previously, given that our programs in California are
primarily funded by Medicaid and the Mental Health Services Act (Proposition
63 of 2004), we do not expect to experience material funding issues for our
California book of business," said Fletcher McCusker, Chairman and CEO.
"Also, any delay in payments from the state to our county payers should
typically not impact our recognition of revenue for services we provided."

As previously reported, in May 2009, California voters rejected several of the
Governor's budget propositions. Chief among these special election
referendums was Proposition 1E, which would have amended the Mental Health
Services Act to allow the Governor to redirect funds, for a two-year period,
from mental health services for children and young adults. The Federal Court
has also issued a permanent injunction preventing Medicaid cuts in the state.

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