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Providence Service Corporation Comments on Section 220 Demands Received From Avalon Correctional Services, Inc.
Date:1/26/2009

Avalon's Section 220 Demands Called Extraordinarily Overbroad, Patently Inappropriate, Unduly Burdensome and an Egregious Abuse of the Section 220 Process

TUCSON, Ariz., Jan. 26 /PRNewswire-FirstCall/ -- The Providence Service Corporation (Nasdaq: PRSC) today commented on the two Section 220 demand letters for access to the Company's books and records it had received on January 21, 2009 from an affiliate of Avalon Correctional Services, Inc. The Company's formal responses to each of the Section 220 demand letters were delivered earlier today to Avalon.

Avalon and three of its principals recently accumulated approximately 19% of the Company's common stock at an average price of $1.34 and last week filed an amended Schedule 13D with the U.S. Securities and Exchange Commission indicating that Avalon may solicit proxies for the Company's next annual meeting and/or solicit consents. The first demand letter seeks access to the Company's shareholder list and certain related records and includes, in its litany of stated purposes for the demand, the use of the information in connection with a possible proxy contest against the Company. The second demand letter is extremely broad in scope, and seeks access to confidential Company information encompassing over 20 separate categories. In addition to alluding to a possible proxy contest to be brought by Avalon against the Company and, again, including such proxy contest as one of the purposes for the demands made in the second demand letter, Avalon also includes a wide-ranging list of other purposes for requesting the information. The second demand letter provides no credible justification for the extraordinarily overbroad nature of the information being demanded and neither demand letter contains any additional information regarding Avalon's plans or intentions or its timing for bringing
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SOURCE Providence Service Corporation
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