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Providence Service Corporation Announces That Avalon Correctional Services Has Abandoned Its Consent Solicitation
Date:3/3/2009

already two-thirds independent. As we demonstrated with the bylaw amendments that the Providence Board adopted on February 24, 2009, our Board is committed to adopting best practices in corporate governance irrespective of how those best practices come to our attention. However, we will continue to vigorously protect the interests of ALL stockholders from a dissident stockholder, such as Avalon, that would seek to utilize limited company resources to advance narrow interests or personal agendas and distract Providence and our management team from their continuing focus on enhancing stockholder value and acting in the best interests of ALL Providence stockholders."

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 other community setting. The Company provides a range of services through its direct and managed entities to over 74,000 clients through 870 contracts at September 30, 2008, with an estimated six million individuals eligible to receive the Company's non-emergency transportation services related to its LogistiCare operations. Combined, the Company has a nearly $1 billion book of business including managed entities.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "demonstrate," "expect," "estimate," "anticipate," "should" and "likely" and similar expressions identify forward-looking statements. In addition, statements that are not historical should also be cons
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