ResCare Reports Its Second Quarter 2008 Results

LOUISVILLE, KY August 7, 2008 – ResCare (NASDAQ: RSCR) today announced results for the second quarter and six months ended June 30, 2008.

Second Quarter 2008 Financial Highlights

Consolidated revenues for the second quarter of 2008 increased 6.2% over the prior year period to $385.4 million. The Company reported a loss from continuing operations of $1.6 million, or $0.06 per diluted common share, which included a charge of $24.4 million ($14.9 million, net of tax, or $0.45 per diluted common share). This charge resulted from the previously announced increase in legal reserves for adverse developments in four lawsuits. Income from continuing operations for the second quarter of 2007 was $10.3 million, or $0.31 per diluted common share.

Ralph G. Gronefeld, Jr., president and chief executive officer, said, “I am pleased with our core operating results during the quarter as we achieved revenue growth in virtually all of our business segments with significant contribution from our Employment Training Services unit, driven by performance incentives and new contracts. Although the legal charge had a negative impact on the second quarter 2008 results, the lawsuits do not affect core business operations or our acquisition strategy. Thanks to the strength of our operations’ leadership and commitment from our employees, our underlying business fundamentals were positive in the second quarter, despite a weak economic environment nationally.”

In closing, Mr. Gronefeld added, “We will continue to invest in our service lines through strategic acquisitions to build our core businesses such as the acquisition of Caregivers Home Health, which closed in early July 2008.”

Guidance for Balance of 2008

The Company is providing guidance for the second half of 2008 for diluted earnings per common share from continuing operations in a range of $0.70 to $0.74 and revenues of $790 million to $825 million. The guidance assumes no reimbursement rate changes for the balance of 2008.

A listen-only simulcast of ResCare’s second quarter 2008 conference call will be available on-line at www.rescare.com on August 8, 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.