Providence to prepay its senior debt of $20 million

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The Providence Service Corporation (Nasdaq: PRSC) today announced that given the substantial free cash generated in the Company's record operating performance in the first half of 2009, as well as its expectations of additional free cash generation for the remainder of the year, the Board of Directors has authorized a total voluntary prepayment on its senior debt of $20 million.

The $20 million voluntary prepayment, in addition to regularly scheduled amortization of $13 million in 2009, is expected to bring the balance of the Company's senior debt to approximately $131 million at December 31, 2009, down from $173 million at December 31, 2007. Including outstanding convertible indentures, total debt at December 31, 2009 is expected to be approximately $204 million.

"With the strong turnaround in our operating results and the voluntary debt prepayment, we expect to see a significant improvement in the Company's leverage ratio by the end of 2009," said Fletcher McCusker, Chairman and CEO.

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The Providence Service Corporation

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