Providence Service Corporation to Utilize Excess Free Cash for $20 Million Voluntary Prepayment of Senior Debt

Providence Service Corporation to Utilize Excess Free Cash for $20 Million
Voluntary Prepayment of Senior Debt

TUCSON, Ariz., Oct. 8 /PRNewswire-FirstCall/ -- The Providence Service
Corporation (Nasdaq: PRSC) today announced that given the substantial free
cash generated in the Company's record operating performance in the first half
of 2009, as well as its expectations of additional free cash generation for
the remainder of the year, the Board of Directors has authorized a total
voluntary prepayment on its senior debt of $20 million.

The $20 million voluntary prepayment, in addition to regularly scheduled
amortization of $13 million in 2009, is expected to bring the balance of the
Company's senior debt to approximately $131 million at December 31, 2009, down
from $173 million at December 31, 2007. Including outstanding convertible
indentures, total debt at December 31, 2009 is expected to be approximately
$204 million.

"With the strong turnaround in our operating results and the voluntary debt
prepayment, we expect to see a significant improvement in the Company's
leverage ratio by the end of 2009," said Fletcher McCusker, Chairman and CEO.

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 78,000 clients through 925 contracts at June 30,
2009, with an estimated 6.7 million individuals eligible to receive the
Company's non-emergency transportation services. 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