Healthcare Services Group declares cash dividend

Healthcare Services Group, Inc. (NASDAQ: HCSG)

Our Board of Directors has declared a regular quarterly cash dividend of $ .21 per common share, payable on March 5, 2010 to shareholders of record at the close of business February 12, 2010. This dividend represents a 5% increase over the dividend declared for the 2009 third quarter and a 24% increase over the 2008 same period payment. It is the 27th consecutive regular quarterly cash dividend payment, as well as the 26th consecutive increase since our initiation of regular quarterly cash dividend payments in 2003.

We intend to release our results for the year ended December 31, 2009 during the week of February 8, 2010, as well as to hold a conference call to discuss our results after the release. In connection with the results to be reported on in the upcoming release, the Company has, without admission of any violations, reached settlements in January 2010 of certain employment related matters with the U. S. Department of Labor and certain states which it estimates that such settlements, and related costs and expenses will unfavorably impact 2009 financial results by approximately $.04 to $.05 per diluted common share.

The Company also announces that it will make a presentation on February 10, 2010 regarding the Company at the "UBS Warburg Global Healthcare Services Conference" at the Grand Hyatt in New York City. Additionally, this presentation will be audio webcast at www.ibb.ubs.com.