ResCare Expands Periodic Services Unit in Arizona; Adds $9.5 Million in Revenue.

Business Editors

LOUISVILLE, Ky.--(BUSINESS WIRE)--Jan. 6, 2003

ResCare, Inc. (NASDAQ/NM:RSCR), the nation's leading provider of residential, training, educational and support services for persons with disabilities and youth with special needs, announced today that Creative Networks, a ResCare subsidiary providing periodic, in-home services based in Phoenix, Az., has been awarded a two-year contract, with three one-year options by Maricopa County to provide in-home supports, monitoring and respite services to special needs individuals in Maricopa County and its six cities. Effective Jan. 1, 2003, annualized revenue under the contract is expected to approximate $9.5 million. The award came after a request for proposals from Maricopa Integrated Health System (MIHS) for an innovative and cost-effective service model. Creative Networks' proposal was selected from a field of eight others, making it the sole provider for these services in Arizona's most populous county.

"We are very excited about the opportunity we have in Maricopa County to pioneer a unique, new service model that could become a solution for many local and state governments, enabling them to provide desired services more cost effectively," said Ronald G. Geary, ResCare chairman, president and chief executive officer. "Medicaid in all states must find creative ways to serve these populations, because the demand for services continues to grow and state budgets are challenged to fulfill those needs. This service formula should provide solutions to both issues."

"Maricopa County is taking a cutting-edge approach to home and community-based services," said Paul Strauss, chief health plan officer for MIHS. "We believe this managed care program can be a model for all payers of home and community-based services in the future. We are excited about being partners with Creative Networks in developing and fine-tuning this new approach to delivering these services."

Periodic, in-home services provide people supports in their own homes on an as-needed basis. ResCare's periodic, in-home services to the elderly and to people with disabilities have grown by approximately 45 percent in the past three years. Currently, the Company provides in-home services to approximately 6,240 people in 18 states.

ResCare, founded in 1974, offers services to some 27,000 people in 32 states, Washington, D.C., Puerto Rico and Canada. Of these, approximately 17,000 are people with developmental or other disabilities and 10,000 are youth with special needs. The Company is based in Louisville, KY. More information about ResCare is available on the Company's web site at http://www.rescare.com.

The Company from time to time makes forward-looking statements in its public disclosures, including statements relating to revenues that might be expected from new or acquired programs and facilities, other statements regarding development and acquisition activities, statements regarding reimbursement under federal and state programs and statements regarding various trends favoring downsizing, deinstitutionalization and privatization of government programs. In the Company's filings under the federal securities laws, including its annual, periodic and current reports, the Company identifies important factors that could cause the Company's results to differ materially from those contained in such forward-looking statements. Reference is hereby made to such disclosures.