CHILDREN'S COMPREHENSIVE SERVICES ANNOUNCES CONSUMMATION OF ASSET PURCHASE FROM VENDELL HEALTHCARE; PURCHASE INCLUDES SEVEN RESIDENTIAL FACILITIES.

MURFREESBORO, Tenn.--(BUSINESS WIRE)--June 2, 1997--William J Ballard, Chairman and Chief Executive Officer of Children's Comprehensive Services, Inc. ("CCS") (Nasdaq/NM:KIDS), today announced that CCS consummated the acquisition of substantially all the assets of Vendell Healthcare, Inc. ("Vendell"). In the transaction, CCS acquired seven residential facilities with a total current capacity of 564 licensed beds in approximately 390,000 square feet, located on 220 acres of land. In addition, CCS acquired 13 day treatment facilities that are associated with the seven residential facilities. The purchase price included approximately $18 million in cash and $7.6 million in shares of CCS common stock consisting of approximately 643,000 shares at $11.82 per share.

Mr. Ballard commented, "We are very pleased to announce the consummation of the Vendell acquisition. This transaction is expected to add in excess of $40 million to CCS's revenues for fiscal 1998, creating an organization with annual revenues approximating $80 million. The transaction is also expected to be immediately accretive to earnings per share. The Vendell facilities will provide CCS with a presence in five new states, Arkansas, Kentucky, Michigan, Montana and Utah, and significantly strengthen CCS's position in two others, Florida and Texas.

"Although certain of CCS's and Vendell's services overlap, we will strengthen our continuum of services to at risk and troubled children through the addition of more extensive behavioral health services. Perhaps equally important, we will gain access to underutilized facilities which can serve as platforms to expand CCS's core business of education, treatment and juvenile justice. Staff at these sites will provide us with established operations and an understanding of local markets and contacts within state and local governments as well as commercial insurance and private payors. Such familiarity typically takes significant periods of time to develop when initially entering a new state.

"We are still working diligently in concert with state and federal regulatory authorities to complete the regulatory transfer of control of the acquired facilities. It is our hope that the regulatory transfer of control of the facilities will continue to go smoothly."

This release contains certain forward-looking statements regarding the Vendell acquisition and its impact on CCS's operations and financial results. Management wishes to caution the reader that actual events or results may differ materially from these forward-looking statements, which involved risk and uncertainties. Such risks include, but are not limited to, the ability of CCS to integrate and manage the operations of Vendell, and the occurrence of unanticipated problems associated with Vendell's operations. The reader is also advised that management undertakes no obligation to publicly release any revision to any of these forward-looking statements in order to reflect any events or circumstances occurring after the date of this release.

CCS, based in Murfreesboro, Tennessee, provides either directly or through management contracts, education and treatment services for at-risk and troubled youth. CCS offers these services through the operation and management of specialized education programs and both open and secured residential treatment centers and day treatment centers located in 12 states.

CONTACT: Children's Comprehensive Services, Murfreesboro

William J Ballard, 615/896-3100