ResCare Reports Fourth Quarter and Year-End 2007 Results

LOUISVILLE, KY ((March 10, 2008) - ResCare, Inc. (NASDAQ: RSCR) today announced results for the fourth quarter and year ended December 31, 2007.

Fourth Quarter 2007 Financial Highlights

Revenues for the fourth quarter of 2007 increased 8.9% over the prior year period to $367 million. Income from continuing operations was $12.1 million, or $0.36 per diluted common share, compared with $11.7 million, or $0.35 per diluted common share, in the same period of 2006. EBITDA for the fourth quarter of 2007 was $27.6 million versus $25.3 million in the prior year quarter. In the fourth quarter of 2007, diluted earnings per share from discontinued operations was less than $0.01, compared with a net loss of $0.08 per share in the same period of 2006.

Full Year 2007 Financial Highlights

Revenues for 2007 increased 10.1% over the prior year period to $1.43 billion. Income from continuing operations was $44.2 million, or $1.32 per diluted common share, compared with $42.0 million, or $1.27 per diluted common share, in the same period of 2006. EBITDA for 2007 was $106.9 million versus $100.6 million in 2006. In 2007, diluted loss per share from discontinued operations was $0.01, compared with a net loss of $0.16 per share in 2006.

Ralph G. Gronefeld, Jr., ResCare president and chief executive officer, said, "2007 was an exciting year for us. We improved the profitability of our Employment Training Services segment and grew Community Services segment revenues by 15%. We completed 12 acquisitions in total, adding projected annualized revenues of approximately $130 million. These acquisitions allow us to expand our services to greater populations and diversify our revenue stream.

"The acquisition of Kelly Home Care Services early in 2007 gave us the national footprint we needed to build our private-pay home care business to the elderly and drive organic growth. The acquisitions of Maatwerk Groep, BV and Biscom Resource Management Limited late in the fourth quarter gave us entry into the European Union. Maatwerk has 18 locations in the Netherlands, U.K. and Germany, and Biscom has six locations in the U.K. Both companies are private providers of government funded workforce services that include job training and job placement assistance."

In closing, Mr. Gronefeld added, "We commend our management team and employees for all of their hard work in 2007, and we look forward to positive 2008 operating results. However, 2008 will not be without its challenges. We will continue to face difficult reimbursement and regulatory environments, and recruiting and retaining our workforce will be critical to a successful 2008. We have a robust pipeline and anticipate that the acquisition marketplace will remain favorable and valuations reasonable. We will continue to diversify and broaden our reach by executing our growth strategy of acquiring smaller providers - primarily in home care, the intellectual and developmental disability sector and the international job training and assistance markets. In addition, we will continue to expand our existing home care business, compete for new contracts and expand service offerings on existing contracts."

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, an income tax rate of 36.5% and share-based compensation expense of approximately $0.09 per diluted common share.

A listen-only simulcast of ResCare's fourth quarter 2007 conference call will be available on-line at www.rescare.com on March 11, 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 42,000 dedicated employees serve daily more than 65,000 people in 37 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.