Healthcare Services Group, Inc. Reports Results for the Three Months and Year Ended December 31, 2008

Market Wire, February, 2009

                     HEALTHCARE SERVICES GROUP, INC.
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                               (Unaudited)



                                                 December 31,  December 31,
                                                     2008          2007
                                                ------------- -------------
Cash and cash equivalents                       $  37,501,000 $  92,461,000
Marketable securities, net                         49,413,000            --
Accounts receivable, net                           96,558,000    82,951,000
Other current assets                               23,143,000    19,686,000
  Total current assets                            206,615,000   195,098,000

Property and equipment, net                         3,929,000     4,303,000
Notes receivable- long term, net                    3,201,000     6,058,000
Goodwill, net                                      15,020,000    15,020,000
Other Intangible Assets, net                        5,033,000     6,090,000
Deferred compensation funding                       8,287,000    10,361,000
Other assets                                        6,476,000     6,438,000
                                                ------------- -------------

Total Assets                                    $ 248,561,000 $ 243,368,000
                                                ============= =============


Accrued insurance claims- current               $   3,943,000 $   4,302,000
Other current liabilities                          25,099,000    23,579,000
                                                ------------- -------------
  Total current liabilities                        29,042,000    27,881,000

Accrued insurance claims- long term                 9,201,000    10,037,000
Deferred compensation liability                     8,636,000    10,732,000
Stockholders' equity                              201,682,000   194,718,000
                                                ------------- -------------

Total Liabilities and Stockholders' Equity      $ 248,561,000 $ 243,368,000
                                                ============= =============



                      HEALTHCARE SERVICES GROUP, INC.
                    CONSOLIDATED STATEMENTS OF INCOME
                                (Unaudited)


                                                 For the Three Months Ended
                                                        December 31,
                                                     2008          2007
                                                ------------- -------------
Revenues                                        $ 154,563,000 $ 146,979,000
Operating costs and expenses:
   Cost of services provided                      134,113,000   125,884,000
   Selling, general and administrative              9,204,000     9,803,000
                                                ------------- -------------
Income from operations                             11,246,000    11,292,000

Other income:
   Investment and interest income                     596,000       586,000
                                                ------------- -------------
Income before income taxes                         11,842,000    11,878,000
Income taxes                                        4,559,000     4,573,000
                                                ------------- -------------
Net income                                      $   7,283,000 $   7,305,000
                                                ============= =============

Basic earnings per common share                 $         .17 $         .17
                                                ============= =============

Diluted earnings per common share               $         .17 $         .17
                                                ============= =============

Cash dividends per common share                 $         .16 $         .12
                                                ============= =============
Basic weighted average number of
 common shares outstanding                         43,290,000    42,737,000
                                                ============= =============

Diluted weighted average number of
 common shares outstanding                         43,948,000    44,033,000
                                                ============= =============



                      HEALTHCARE SERVICES GROUP, INC.
                    CONSOLIDATED STATEMENTS OF INCOME
                                (Unaudited)


                                                    For the Year Ended
                                                        December 31,
                                                    2008          2007
                                                ------------- -------------
Revenues                                        $ 602,718,000 $ 577,721,000
Operating costs and expenses:
   Cost of services provided                      521,269,000   493,364,000
   Selling, general and administrative             39,523,000    40,284,000
                                                ------------- -------------
                                                   41,926,000    44,073,000

Other income:
   Investment and interest income                   1,349,000     4,022,000
                                                ------------- -------------
Income before income taxes                         43,275,000    48,095,000
Income taxes                                       16,661,000    18,517,000
                                                ------------- -------------
Net income                                      $  26,614,000 $  29,578,000
                                                ============= =============

Basic earnings per Common Share                 $         .62 $         .70
                                                ============= =============

Diluted earnings per Common Share               $         .60 $         .67
                                                ============= =============

Cash dividends per common share                 $         .58 $         .42
                                                ============= =============
Basic weighted average number of
 common shares outstanding                         43,131,000    42,286,000
                                                ============= =============

Diluted weighted average number of
 common shares outstanding                         44,025,000    43,847,000
                                                ============= =============