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Providence Service Corporation Issues Letter to Stockholders
Date:5/28/2009

Recommends Stockholders to Vote WHITE Proxy Card to Re-Elect Highly-Qualified and Experienced Incumbent Directors and Reject Dissident Group's Opposition Slate

TUCSON, Ariz., May 28 /PRNewswire-FirstCall/ -- The Providence Service Corporation (Nasdaq: PRSC) today announced that it has issued the following letter to stockholders:

Dear Fellow Providence Stockholder:

As you decide how to vote at the upcoming 2009 Annual Meeting of the Stockholders of The Providence Service Corporation to be held on June 15, 2009, ask yourself the following question:

ARE YOU PREPARED TO LET DONALD E. SMITH IMPOSE UPON PROVIDENCE THE SAME APPROACH TO CORPORATE GOVERNANCE THAT HE IMPOSED UPON AVALON CORRECTIONAL SERVICES?

Donald E. Smith is the founder, Chief Executive Officer and sole director of Avalon Correctional Services, Inc., a publicly-traded company that has its shares trade over-the-counter on the "pink sheets." Over the past seventeen years, Mr. Smith has shown a flagrant disregard for the adoption of best practices in corporate governance at Avalon Correctional Services, both during its time as a public reporting company and following Mr. Smith's decision to voluntarily terminate its registration under the Securities Exchange Act of 1934 and terminate its listing on Nasdaq. In addition, during that same time period, Mr. Smith has shown a strong proclivity for engaging in related-party transactions with Avalon Correctional Services, either directly or through entities owned and/or controlled by Mr. Smith. We call the attention of stockholders to the following:

  • On November 16, 1992, Avalon Correctional Services cautioned investors in its prospectus filed with the SEC that it has engaged in, and would continue to engage in, transactions with compani
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SOURCE The Providence Service Corporation
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