ResCare Reports Third Quarter 2008 Results

LOUISVILLE, KY November 5, 2008 – ResCare (NASDAQ: RSCR) today announced results for the third quarter and nine months ended September 30, 2008.

Third Quarter 2008 Financial Highlights

Consolidated revenues for the third quarter of 2008 increased 6.4% over the prior year period to $387.9 million. The Company reported income from continuing operations of $11.6 million, or $0.35 per diluted common share, compared with $11.5 million, or $0.34 per diluted common share, for the third quarter of 2007. In the third quarter of 2008, diluted loss per common share from discontinued operations was $0.01 compared with $0.00 in the prior year period.

Ralph G. Gronefeld, Jr., president and chief executive officer, said, "Despite a weak economic environment, demand for our services is steady, rates remain stable, and we continue to strengthen the Company by expanding our services to more people. ResCare's leadership is experienced in working in difficult reimbursement and regulatory environments, and we will continue to mitigate our risk by controlling costs, providing high quality services and diversifying and growing our business through strategic acquisitions and organically."

Guidance Update

The Company is providing guidance for the fourth quarter of 2008 for diluted earnings per common share from continuing operations in a range of $0.35 to $0.38 and revenues of $390 million to $410 million. The guidance assumes no reimbursement rate changes for the fourth quarter of 2008.

A listen-only simulcast of ResCare's third quarter 2008 conference call will be available on-line at www.rescare.com on November 6, 2008, beginning at 9:00 a.m. Eastern Time and a replay available at 11:00 a.m. Eastern Time.

ResCare, with nearly 35 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.