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Providence Service Corporation Adopts Shareholder Rights Plan
Date:12/10/2008

r will become void and will not be so exercisable. If Providence is acquired in a merger or other business combination transaction after a person becomes the beneficial owner of 20 percent or more of the company's common stock, each right will entitle its holder to purchase, at the right's then-current exercise price, a number of the acquiring company's common shares having a market value at that time of twice the right's exercise price.

Providence's Board of Directors has established a mechanism under which an independent Board committee will review the plan annually and, if it deems it appropriate, recommend that the Company's full Board of Directors modify or terminate the plan.

While the rights plan is effective immediately, the Company intends to seek ratification of the shareholder rights plan from shareholders within the next 12 months.

Additional information regarding the rights plan and the rights are or will be contained in a Current Report on Form 8-K and in a Registration Statement on Form 8-A that the Company has filed or will be filing with the Securities and Exchange Commission (SEC). These filings will be available on the SEC's web site at www.sec.gov. In addition, the Company will send to its shareholders of record as of the close of business on the Record Date a "Summary of the Rights" that will describe the material terms of the rights plan.

About Providence

Providence Service Corporation, through its owned and managed entities, provides home and community based social services and non-emergency transportation services management to government sponsored clients under programs such as welfare, juvenile justice, Medicaid and corrections. Providence does not own or operate beds, treatment facilities, hospitals or group homes, preferring to provide services in the client's own home or
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