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Providence Service Corporation California Subsidiary Awarded $1.5 Million Contract Under State's Mental Health Services Act

TUCSON, Ariz., Feb. 19 /PRNewswire-FirstCall/ -- The Providence Service Corporation (Nasdaq: PRSC) today announced that its California entity has been awarded a $1.5 million annual contract to operate a consumer-run adult mental health wellness center in Orange County, California. The contract is being funded through the state's Mental Health Services Act, approved by California voters as Proposition 63.

"Our home and community based delivery model is very much aligned with Orange County initiatives to transform their public mental health system," stated Fletcher McCusker, Chairman and CEO. "This unique program will utilize a consumer-driven advisory board made up of consumers, advocates and members of the community to help direct the recovery-focused services."

The contract is anticipated to be effective May 1, 2009 and is subject to final negotiations and approvals. The center is anticipated to serve 100 consumers per day.

Proposition 63, officially known as the Mental Health Services Act, was enacted in November 2004 to help fund mental health service programs by levying a 1% tax on incomes of $1.0 million or greater. Funds for the Wellness Center should not be affected by the latest in state budget negotiations.

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 considered forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. Such forward-looking statements are based on current expectations that involve a number of known and unknown risks, uncertainties and other factors which may cause actual events to be materially different from those expressed or implied by such forward-looking statements. These factors include, but are not limited to the global credit crisis, capital market conditions, and other risks detailed in Providence's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2007. Providence is under no obligation to (and expressly disclaims any such obligation to) update any of the information in this press release if any forward-looking statement later turns out to be inaccurate whether as a result of new information, future events or otherwise.

SOURCE Providence Service Corporation
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