OKLAHOMA CITY, April 20 /PRNewswire-FirstCall/ -- The Providence Committee for Accountability (the "Committee") and Donald E. Smith, Chairman and CEO of Avalon Correctional Services, Inc. (Pink Sheets: CITY), a leading provider of community corrections programs, and the largest shareholder of Providence Service Corporation (the "Company), (NASDAQ:PRSC), urged the Providence Board of Directors ("the Board") to add representation to the Board. The Committee noted that the Board implemented by-law changes in November of 2008 that hindered shareholder input. After spending $300,000 in legal fees, the Board unanimously reversed many of those changes when faced with a shareholder consent solicitation initiated by the Committee. The Committee is concerned about the Company's apparent opposition to shareholder representation on the Board and the wasting by the Company corporate funds by continuing to oppose basic shareholder representation on the Board. The Committee is disappointed by the inaccurate statements in the Company's most recent press release regarding settlement discussions between the parties and the Committee's proposal for resolving any proxy contest. Omitted from the Company's press release is any mention of the twenty-five (25) terms and conditions demanded by Providence which, among others, included giving the existing Company management voting control of the Committee's shares in Director elections for the next three (3) years, the Committee's dropping all claims of malfeasance, if any, that have been committed by the Board and the Company's officers, withdrawing the Committee's legitimate requests for Board of Directors and Committee minutes and prohibiting the Committee from communicating with any other shareholders. These were the provisions rejected by the Committee. Committee member Don Smith said, "We were surprised to hear from the Company after months of attempting to contact them, with no response, however I was contacted by Providence's CEO, Fletcher McCusker, late last week to discuss a settlement. We held limited telephone discussions and I proposed that we would consider withdrawing our proxy solicitation if Providence's Board would add a specifically named shareholder representative unrelated to Avalon, to provide much needed independence and representation of shareholders interests. We later received a settlement proposal from the Company that in no way represented our discussions. Providence's proposal required the Committee to agree to twenty-five (25) items, including giving the Board the voting rights of all shares for three (3) years, and prohibiting any communication with other shareholders. In exchange, Providence offered to "work in good faith to identify a new director" within ninety (90) days. It appeared to me that we were making progress with our discussions, but the proposal bore no relationship to our discussions. Despite the baseless, negative comments that Providence has made about Avalon, the Committee, and its representatives, our focus continues to be on the need to have a Board that represents shareholder interests. We will not divert our attention from enhancing shareholder value for ALL shareholders." The Providence Committee for Accountability consists of 73114 Investments, L.L.C., Donald E. Smith, Tiffany Smith, Michael Bradley, Eric Gray and Avalon Correctional Services, Inc (Pink Sheets: CITY.PK). The Committee members collectively hold 18.7% of the Providence common stock. Safe Harbor Statement Information in this news release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are only predictions or statements of current plans that are constantly under review by the Company. These forward-looking statements involve risks, uncertainties and assumptions and such statements are qualified by important factors that may cause actual results to differ materially from those expressed in the forward-looking statements. The Company has no obligation to update or revise these forward-looking statements to reflect the occurrence of future events or circumstances. DATASOURCE: Avalon Correctional Services, Inc. CONTACT: Tiffany Smith of Avalon Correctional Services, Inc., 1-800-919-9113 Web Site: http://www.avaloncorrections.com/

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