ResCare Reports Its First Quarter 2008 Results

LOUISVILLE, KY May 7, 2008 - ResCare, Inc. (NASDAQ: RSCR) today announced results for the first quarter ended March 31, 2008.

First Quarter 2008 Financial Highlights
Revenues for the first quarter of 2008 increased 10.9% over the prior year period to $375.4 million. Income from continuing operations was $12.1 million, or $0.36 per diluted common share, compared with $10.3 million, or $0.31 per diluted common share, in the same period of 2007. EBITDA for the first quarter of 2008 was $28.9 million versus $25.4 million in the prior year quarter. In the first quarter of 2008 and 2007, diluted loss per common share from discontinued operations was less than $0.01.

Ralph G. Gronefeld, Jr., president and chief executive officer, said, “We are pleased with our operational results in the first quarter. ResCare’s leadership team has demonstrated the ability to manage through difficult reimbursement and regulatory environments. We were able to achieve double-digit revenue growth and improve profitability year-over-year. Our growth can be attributed to domestic and international acquisitions, new contract awards and the expansion of service offerings on existing contracts.”

In closing, Mr. Gronefeld added, “ResCare is successfully implementing its strategic plan, which includes diversifying our funding streams through focusing on organic growth and acquisitions primarily in home care and international markets.”

2008 Guidance
The Company confirmed its 2008 guidance of diluted earnings per common share in the range of $1.44 to $1.50 and revenues of $1.55 billion to $1.62 billion. The 2008 guidance assumes no reimbursement rate changes.

A listen-only simulcast of ResCare’s first quarter 2008 conference call will be available on-line at ResCare's First Quarter 2008 Conference Call on May 8, 2008, beginning at 9:00 a.m. Eastern Time and a replay available at 11:00 a.m. Eastern Time.

ResCare, with 30+ years of experience helping people reach their highest level of independence, is one of the largest providers of home care to the elderly and those with disabilities. It also offers residential and support services to people with intellectual and developmental disabilities and provides education, vocational training and job placement for people of all ages and skill levels. Based in Louisville, Kentucky, ResCare and its 44,000 dedicated employees serve daily more than 65,000 people in 38 states, Washington, D.C., Puerto Rico and in a growing number of international locations. For more information about ResCare, please visit the Company’s website at www.rescare.com.

From time to time, ResCare makes forward-looking statements in its public disclosures, including statements relating to expected financial results, revenues that might be expected from new or acquired programs and facilities, its development and acquisition activities, reimbursement under federal and state programs, financing plans, compliance with debt covenants and other risk factors, and various trends favoring privatization of government programs. In ResCare’s filings under the federal securities laws, including its annual, periodic and current reports, the Company identifies important factors that could cause its actual results to differ materially from those anticipated in forward-looking statements. Please refer to the discussion of those factors in the Company’s filed reports. Statements related to expected financial results are as of this date only, and ResCare does not assume any responsibility to update these statements.