Res-Care Increases Credit Line To $35 Million

Business Wire, Feb 23, 1996

LOUISVILLE, Ky.--(BUSINESS WIRE)--Feb. 23, 1996--Res-Care, Inc. (Nasdaq/NM:RSCR), a leading provider of residential, training and support services for persons with mental retardation and other developmental disabilities, today announced that it has entered into an amended line of credit agreement with a group of banks led by PNC Bank, Kentucky which allows for maximum borrowings of $35 million.

This represents an increase of $17 million over the prior credit facility and, including unused capacity under the prior line, will provide approximately $24 million in future borrowing capacity to be used primarily for acquisitions and related development expenditures. The participating banks include National City Bank, Kentucky and Sun Trust Bank, Nashville.

Commenting on the announcement, Ronald G. Geary, Res-Care president and chief executive officer, said, "The additional funds available as a result of this financing will enable Res-Care to continue the momentum reached in 1995. Last year, as previously announced, we entered five new states and attained new levels of performance in revenues, earnings and individuals served through our two operating divisions. Res-Care is continuing to expand in 1996, as evidenced by our recent additions in New Mexico. We are pleased with the support our banks have given us and the confidence they have placed in our company and its strategic plan. As we aggressively seek growth opportunities, our expanded credit facility will permit us to pursue new and larger acquisitions and development projects."

"PNC Bank is proud to have a lead role in providing the capital necessary for Res-Care's expansion," said PNC Bank Executive Vice President Terry Irvin, who manages the bank's Corporate Banking group. "Res-Care is a valued customer, and we are very happy to see our client poised for more success in 1996."

Now in its 22nd year, Res-Care serves more than 4,300 individuals with mental retardation and other developmental disabilities through approximately 260 operations and programs in 15 states. The company also serves more than 2,500 at-risk young adults in eight Job Corps Centers located in four states and Puerto Rico. In total, Res-Care employs more than 7,500 people in 18 states and Puerto Rico.

CONTACT: Res-Care, Inc., Louisville

Halsey Sandford, 502/394-2312