CHILDREN'S COMPREHENSIVE SERVICES ANNOUNCES SECOND QUARTER EARNINGS OF $0.04 PER SHARE; ACHIEVES SIXTH CONSECUTIVE QUARTER OF PROFITABILITY.

MURFREESBORO, Tenn.--(BUSINESS WIRE)--Nov. 1, 1994--William J Ballard, President and Chief Executive Officer of Children's Comprehensive Services, Inc. ("CCS") (Nasdaq/NM: KIDS), today announced financial results for the second quarter and first six months of fiscal 1995.

Total revenues for the second quarter, which ended September 30, 1994, were $4,623,000 compared with $4,604,000 for the second quarter of fiscal 1994. Net income rose to $392,000, or $0.04 per share, from $33,000, or $0.01 per share, for the same prior-year period. Net income for the latest three months included the effect of the recovery of reserves related to the Company's recently completed financial restructuring of $249,000, while the same three months in the prior year included the effect of the recovery of $375,000 of insurance deposits which had previously been deemed uncollectible and written off.

For the first six months of fiscal 1995, total revenues were $9,924,000 versus $9,524,000 for the first six months of fiscal 1994. Net income increased to $968,000, or $0.09 per share, compared with $36,000, or $0.01 per share, for the same period in fiscal 1994.

Ballard remarked, "The results for the second quarter enabled CCS to report its sixth consecutive quarter of profitability for the first time in its history. As in the first quarter of fiscal 1995, the successful growth of Helicon, Inc., a not-for-profit corporation whose programs are managed by CCS, was a key factor contributing to CCS's improved financial results. This growth has ended Helicon's need for additional development financing from CCS, while allowing it to make contracted payments to the Company.

"For the third quarter and the remainder of fiscal 1995, CCS will focus on the further development and implementation of an aggressive marketing plan. With the previously announced completion of the Company's financial restructuring late in the second fiscal quarter, we are now positioned for the first time to devote the full resources of the Company to expanding its programs in operation. Through this effort, we expect to increase the scope of existing programs, expand into new territories geographically and replicate certain existing programs on a broader basis."

Children's Comprehensive Services provides, either directly or through management contracts, education and treatment services for at-risk youth. It currently offers these services through the operation and management of special education schools and both open and secured residential treatment centers for local, state and federal government agencies in Alabama, California, Louisiana and Tennessee.

-0-

                CHILDREN'S COMPREHENSIVE SERVICES, INC.
                         Financial Highlights

                        Three Months Ended        Six Months Ended
                           September 30,             September 30,
                        1994          1993        1994         1993

Total revenues       $4,623,000    $4,604,000  $9,924,000  $ 9,524,000
Net income           $  392,000    $  33,000   $  968,000  $    36,000
Net income per common
  share:
    Primary          $     0.04    $    0.01   $     0.10  $      0.01
    Fully diluted    $     0.04    $    0.01   $     0.09  $      0.01
Weighted average common
  shares and equivalents
  outstanding:
    Primary          10,187,000    6,315,000   10,076,000    6,294,000
    Fully diluted    10,280,000    6,349,000   10,280,000    6,327,000

                                              September 30,  March 31,
                                                  1994         1994

Cash                                           $  551,000  $   178,000
Current assets                                  3,553,000    3,815,000
Total assets                                  $19,395,000  $19,950,000

Current bank debt                              $1,342,000  $ 7,446,000
Current liabilities                             3,415,000   14,091,000
Long-term debt                                  7,313,000        8,000
Stockholders' equity                            7,977,000    5,161,000
Total liabilities and stockholders' equity    $19,395,000  $19.950,000

CONTACT: Children's Comprehensive Services Inc., Murfreesboro

Donald B. Whitfield, 615/896-3100