CHILDREN'S COMPREHENSIVE SERVICES ANNOUNCES NEW RESIDENTIAL AND ALTERNATIVE EDUCATION CONTRACTS IN UTAH AND ARKANSAS.

MURFREESBORO, Tenn.--(Aug. 21, 1997)--

TOTAL NEW CONTRACTS RELATED TO THE RECENT VENDELL HEALTHCARE

ASSET PURCHASE NOW STAND AT FIVE SINCE THE START OF FISCAL 1998

William J. Ballard, Chairman and Chief Executive Officer of Children's Comprehensive Services, Inc. ("CCS") (Nasdaq/NM: KIDS), today announced several new residential and alternative education contracts in Utah and Arkansas. These contracts bring to five the total number of new contracts executed since the start of fiscal 1998 in states entered through the recent Vendell Healthcare asset purchase.

CCS signed a new contract with the Utah Department of Corrections for a 24 bed observation and assessment, short-term residential program for adjudicated male juvenile offenders. The program will be located in the behavioral services division's West Jordan, Utah, facility. With a scheduled opening date of September 8, 1997, the program is expected to generate in excess of $1.0 million of annual revenues at full capacity.

CCS also signed contracts for three new alternative education schools in Arkansas. The contracts were executed with various school districts in the state and provide for programs with an aggregate of 80 chairs at sites in Little Rock, North Little Rock and Bryant, Arkansas. The programs are designed for unruly, conduct disordered youth and are already in operation for the 1997-1998 school year. At full capacity, the three new contracts, which will be operated through the behavioral services division, are expected to generate approximately $600,000 of revenues annually.

In addition to these four new contracts, CCS signed a contract in early July with the Michigan Family Independence Agency for a 30-bed residential program for seriously disturbed, adjudicated juvenile offenders. The program, which is already in operation, is located in the behavioral services division's St. Johns, Michigan, facility and is expected to produce annual revenues in excess of $2.5 million at full capacity.

Commenting on the announcement, Mr. Ballard said, "It is gratifying to achieve such early success in integrating juvenile justice and education programming into the behavioral services division, affirming our vision that the combined skills and capacities of the organization could be dramatically enhanced by the acquisition. Many of these accomplishments relate to efforts undertaken by the managers of the former Vendell facilities prior to the CCS purchase, but their efforts were aided by CCS's reputation, training and programming in these areas. At full capacity, the five new contracts are expected to generate annual aggregate revenues in excess of $4.0 million.

"We believe the potential for further expansion is significant, primarily for two reasons. First, the market presence established by Vendell through its long relationships with various state and local government agencies in seven states, five of which are new to CCS, has substantially improved CCS's ability to compete effectively for new business in these markets. Second, the seven residential facilities we purchased in the transaction represent valuable and underutilized assets through which we can initiate a wide range of new programs, without the delays normally associated with the siting and preparation of new facilities. We will continue to pursue new contracts across the Company's broad continuum of services in the markets served by the division's seven residential and 12 day-treatment facilities, with a goal of filling underutilized capacities. In addition, as we accomplished with the Arkansas alternative education contracts, we believe there are additional opportunities for contracts requiring new facilities in these markets, as well."

To take advantage of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, you are hereby cautioned that this release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Actual operations and results may differ materially from those expressed in the forward-looking statements made by the Company. Please refer to CCS's filings with the Securities and Exchange Commission for additional information. The Company disclaims any intent or obligation to update these forward-looking statements.

Children's Comprehensive Services provides education, treatment and juvenile justice services for at risk and troubled youth, either directly or through management contracts. It currently offers these services through the operation and management of nonresidential specialized education programs and day treatment programs and both open and secured residential treatment centers for local, state and federal government agencies in Alabama, Arkansas, California, Florida, Kentucky, Louisiana, Michigan, Montana, Tennessee, Texas and Utah.

CONTACT: Children's Comprehensive Services Inc.

Donald B. Whitfield, 615/896-3100