ResCare Reports First Quarter Results

Company Confirms 2009 Guidance

LOUISVILLE, KY (May 7, 2009) – ResCare, Inc. (NASDAQ: RSCR) today announced results for the first quarter ended March 31, 2009.
First Quarter 2009 Financial Highlights

Revenues for the first quarter of 2009 increased 4.1% over the prior year period to $390.8 million. Income from continuing operations was $12.1 million, or $0.36 per diluted common share, compared with $12.1 million, or $0.36 per diluted common share, in the same period of 2008. EBITDA for the first quarter of 2009 was $30.2 million versus $28.9 million in the prior year quarter.

Ralph G. Gronefeld, Jr., president and chief executive officer said, “Our first quarter performance is consistent with our expectations. We continue to manage in a responsible manner, maintaining quality of services while controlling our expenses. There is strong demand for our services. Our acquisition pipeline is robust, and we are well positioned for continued growth.”

2009 Guidance
The Company confirmed its 2009 guidance of diluted earnings per common share from continuing operations in the range of $1.52 to $1.58 and revenues of $1.61 billion to $1.67 billion. The 2009 guidance assumes a decrease of approximately one-half of one percent in aggregate reimbursement rates for the second half of 2009 within the Company’s Community Services Group. Additionally, the guidance assumes an income tax rate of 37% and acquisition-related costs of approximately $0.03 per diluted common share associated with planned 2009 acquisitions over the remainder of the year, as a result of the adoption of a new accounting standard.

A listen-only simulcast of ResCare’s first quarter 2009 conference call will be available on-line at www.rescare.com on May 8, 2009, 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.