ResCare Acquires Arizona Residential Youth Program

LOUISVILLE, Ky. (September 6, 2005) – ResCare, Inc. (NASDAQ/NM:RSCR), the nation’s leading provider of residential, training, educational and support services for people with disabilities and special needs, announced today that it has acquired the operations and certain assets of Phoenix, Arizona-based Alternative Behavioral Counseling Services, which offers residential and therapeutic services to at-risk youth in the state. Funding for the programs is primarily from Medicaid. Annual revenue is expected to be approximately $700,000.

“We welcome Alternative Behavioral Counseling to the ResCare family of services,” said Ronald G. Geary, ResCare chairman, president and chief executive officer. “The operations will be managed from our Arizona Youth Associates offices and are an excellent fit with ResCare’s existing youth services in Arizona.”

ResCare, founded in 1974, offers services to some 41,000 people in 34 states, Washington, DC, Puerto Rico and Canada. ResCare is a human service company that provides residential, therapeutic, job training and educational supports to people with developmental or other disabilities, to youth with special needs and to adults who are experiencing barriers to employment. The Company is based in Louisville, Ky. More information about ResCare is available on the Company’s web site at http://www.rescare.com.

The Company from time to time makes forward-looking statements in its public disclosures, including statements relating to revenues that might be expected from new or acquired programs and facilities, other statements regarding development and acquisition activities, statements regarding reimbursement under federal and state programs and statements regarding various trends favoring downsizing, deinstitutionalization and privatization of government programs. In the Company’s filings under the federal securities laws, including its annual, periodic and current reports, the Company identifies important factors that could cause the Company’s results to differ materially from those contained in such forward-looking statements. Reference is hereby made to such disclosures.

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Nel Taylor

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ResCare, Inc

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