ResCare Signs Definitive Agreement to Purchase Multi-State in-Home Care Operations in Community Services Segment.

Annual Revenues Expected to Be $55 Million

LOUISVILLE, Ky. -- ResCare, Inc. (NASDAQ: RSCR), the nation's leading provider of residential, training, therapeutic, educational and support services for people with disabilities and special needs, today announced that its subsidiary, Southern Home Care Services, Inc., has signed a definitive agreement to purchase substantially all of the operating assets and business of Kelly Home Care Services, Inc. ("KHCS"), a wholly owned subsidiary of Kelly Services, Inc. (NASDAQ: KELYA, KELYB).

KHCS operates in 18 states, providing in-home care to the elderly and people with disabilities. Services are primarily custodial care, and the revenue mix is substantially private pay and long-term care insurance. The expected annualized revenue is approximately $55 million, and the purchase price is $12.5 million, subject to normal closing adjustments.

Ralph Gronefeld, ResCare president and chief executive officer, said, "The acquisition of KHCS significantly expands our periodic in-home care services in the West and Southeast and moves us closer to our goal of establishing a national presence in the in-home care arena. This transaction brings total in-home care revenues for our Community Services Group to approximately $275 million, a third of which is private pay. We also enthusiastically welcome KHCS's talented and experienced management team into the ResCare family. The acquisition is expected to be earnings per share neutral in 2007, with continued improvement throughout the year and setting the stage for significant margin expansion and accretion of $0.08 to $0.10 per diluted share in 2008. We expect operating margins of approximately 12% in late 2008 and beyond. We will be discussing the acquisition in more detail when it closes on or about the end of the first quarter of 2007."

ResCare, founded in 1974 and based in Louisville, Kentucky, provides services in 36 states, Washington, D.C., Puerto Rico and Canada. ResCare's services include residential, therapeutic, job training and educational supports to people with developmental or other disabilities; education and training to young people in the Job Corps program; one-stop employment and training services for people experiencing barriers to employment; and supports to older people in their homes. More information is available at www.rescare.com.

From time to time, ResCare makes forward-looking statements in its public disclosures, including statements relating to expected financial results, revenues that might be expected from new or acquired programs and facilities, its development and acquisition activities, reimbursement under federal and state programs, financing plans, compliance with debt covenants and other risk factors, and various trends favoring downsizing, de-institutionalization and privatization of government programs. In ResCare's filings under the federal securities laws, including its annual, periodic and current reports, the Company identifies important factors that could cause its actual results to differ materially from those anticipated in forward-looking statements. Please refer to the discussion of those factors in the Company's filed reports. Statements related to expected financial results are as of this date only and ResCare does not assume any responsibility to update these statements.