ResCare Acquires Multi-State Home Care Provider

LOUISVILLE, KY (July 17, 2008) - ResCare, Inc. (NASDAQ: RSCR), the nation’s leading provider of residential, training, educational and support services for people with disabilities and special needs, today announced the acquisition of Caregivers Home Health, Inc., a Wisconsin home care company with operations in Wisconsin, Illinois, Iowa and Florida. Caregivers Home Health primarily provides home care and personal care services to seniors.

Annual revenues are expected to be $20 million. Approximately 70% of revenue is funded through Medicaid. Another 8% is through private pay and the rest primarily through local government contracts or insurance companies. Medicare accounts for less than 1% of revenues. Caregivers becomes a part of ResCare HomeCare and will be integrated into the existing home care operations in those states.

Ralph G. Gronefeld, Jr., ResCare president and chief executive officer, said, “Caregivers Home Health further enhances and expands our home care services unit. Our ultimate goal is to have ResCare HomeCare throughout the country, providing consistent and unrivaled quality care to people who want to stay at home and maintain their highest level of independence.”

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.