ResCare 10140 Linn Station Road Louisville, Kentucky 40223-3813
Phone: 502.394.2100 www.rescare.com
Contact: Nel Taylor
Vice President of Communications
502/394-2357
RESCARE MERGER AGREEMENT MUTUALLY TERMINATED
Operating Expenses Remain in Excess of Plan
LOUISVILLE (June 29, 2000)-ResCare, Inc. (Nasdaq/NM:RSCR), the
nation's leading provider of residential, training, educational
and support services for persons with special needs and at-risk
youth, today announced that an agreement has been mutually
terminated with an investor group which had proposed to acquire
all the outstanding shares of ResCare common stock for $15.75 per
share in cash. The agreement, which ResCare had indicated was
subject to a number of conditions, had been announced April 12,
2000.
Ron Geary, chairman, president and chief executive officer
remarked, "Our goal remains to maximize the value of our
shareholders' investment in ResCare. As a result of the mutual
termination of this agreement, our focus is to continue to
operate our business as a publicly held company. Although serving
individuals with developmental or other disabilities remains very
challenging, it is a vital need that continues to increase each
year.
"As previously reported we are incurring operating expenses in
excess of plan. We expect second quarter earnings, before special
charges related to the transaction, to be below the 23 cents per
share earned in the first quarter of 2000. Although we expect to
remain solidly profitable, we are unable to quantify at this time
the impact these higher operating expenses will have on earnings
over the balance of this year."
Geary indicated that ResCare plans to report its financial
results for the second quarter as scheduled on July 27, 2000.
ResCare serves some 27,000 individuals in 32 states, Washington,
D.C., Puerto Rico and Canada. Of these approximately 17,000 have
developmental or other disabilities and 10,000 are at-risk or
special needs youth. The company is based in Louisville, KY.
-END-
The Company from time to time makes forward-looking statements in
its public disclosures, including statements relating to the
Company's expected financial results, 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, de-institutionalization 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.
