Avalon Restates Intention and Concerns Regarding Board of Directors
01 June 2009 - 10:00PM
PR Newswire (US)
OKLAHOMA CITY, June 1 /PRNewswire-FirstCall/ -- The Providence
Committee for Accountability (the "Committee") and 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),
announced today that, contrary to statements made by the Company,
Avalon has no desire or intention to merge with, seek control of,
or enter into undesired transactions with the Company or its Board
of Directors (the "Board"). The Committee noted that the Company
has stated, on numerous occasions, that Avalon or its
representatives have an "undisclosed agenda." Avalon is committed
to focusing solely on the need to have a Board that represents
shareholder interests and to not divert its attention from
enhancing shareholder value for ALL shareholders. Committee member,
and CEO of Avalon, Donald E. Smith stated, "Since we invested in
Providence, we have sought to enhance the composition of the Board
by adding shareholder representation. We would be willing to enter
into a reasonable agreement with the Company, stating that we won't
attempt to merge, seek control of, or enter into any undesired
transactions with the Company. We have never attempted to control
Providence, nor do we have any desire or intention to do so. Our
only concern has been, and continues to be, reversing the apparent
management control over the Board and to begin holding the Board
accountable to shareholders." Additional Information and Where to
Find It This press release may be deemed to be solicitation
material in respect of the matters to be considered at the 2009
annual meeting of shareholders. The Committee has filed the
definitive proxy statement with the Securities and Exchange
Commission ("SEC") on May 22, 2009. Investors and shareholders are
urged to read the proxy statement, the BLUE proxy card and any
other relevant documents filed or that will be filed with the SEC
because they contain important information. Investors and
shareholders may obtain the proxy statement and other relevant
documents free of charge at the SEC's Web site,
http://www.sec.gov/; or at http://www.dfking.com/prsc; or from the
Committee at 13401 Railway Drive, Oklahoma City, Oklahoma 73114.
Participants in Solicitation 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 (CITY.PK). The Committee members
collectively hold 17.9% 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 Committee.
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 Committee 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, 1-800-919-9113, for Avalon Correctional Services, Inc. Web
Site: http://www.avaloncorrections.com/
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