Addus HomeCare Corporation Hit by Investor Lawsuit

JUNE 2011 - $3 million settlement approved.

MARCH 2011 - According to the Notice: Security and Time Period: Addus HomeCare Corporation (“Addus”) common stock (stock
symbol: ADUS) purchased or acquired between October 27, 2009 through March 18, 2010, inclusive (the
“Settlement Class Period”).

Settlement Fund: $3,000,000 in cash. Your recovery will depend on the number of shares of Addus
common stock you, and other Settlement Class Members who file claims, purchased and sold and the prices at
which you, and the other Settlement Class Members who file claims, purchased and sold those shares. The
estimated average recovery per share of common stock will be approximately $0.55 per share before deduction of
Court-approved fees and expenses and costs of notice and claims administration.

Reasons for Settlement: The case has been litigated since March 2010. Plaintiffs and Plaintiffs’ Lead
Counsel believe that the Settlement provides the Settlement Class with a benefit now, instead of years of further
uncertain litigation, including disposition of summary judgment motions, a contested trial and likely appeals, with
the possibility of no recovery at all.

Plaintiffs allege that Defendants made materially false and misleading statements and omitted material
information relating to Addus’ financial condition relating to, among others, Addus’ accounts receivable, in
connection with its Initial Public Offering (“IPO”).

Defendants have denied and continue to deny each and all of the allegations made and claims brought by
Plaintiffs, maintain that they have meritorious defenses and Defendants contend that many of the factual allegations
are materially inaccurate. Defendants also have denied and continue to deny, among other things, the allegations
that Plaintiffs or the Settlement Class have suffered damages or that the Settlement Class was harmed by the
conduct alleged in the Complaint or otherwise.

Nonetheless, Defendants have concluded that further conduct of the Litigation would be protracted and
expensive, and that it is desirable that the Litigation be fully and finally settled in the manner and upon the terms
and conditions set forth in this Stipulation. Defendants also have taken into account the uncertainty and risks
inherent in any litigation, especially in complex cases like this Litigation. The Settlement shall in no event be
construed as, or deemed to be evidence of, an admission or concession by any of Defendants with respect to any
claim of any fault or liability or wrongdoing or damage to the Settlement Class Members in this Litigation.

MARCH 2010 - An investor in Addus HomeCare Corporation (Public, NASDAQ:ADUS) filed a lawsuit in United States District Court for the Northern District of Illinois on behalf of all persons or entities who purchased Addus HomeCare Corporation common stock (ADUS) pursuant and/or traceable to the Registration Statement and Prospectus issued in connection with the Company’s October 27, 2009, initial public offering (the “IPO”).

According to the complaint the plaintiff alleges that Addus HomeCare Corporation and certain of its executive officers and/or directors violated federal securities laws, specifically Sections 11 and 15 of the Securities Exchange Act, by issuing in the Registration Statement and Prospectus materially false and misleading and/or omitting facts necessary to make the statements made not misleading. Then on March 18, 2010, after the market closed, Addus HomeCare Corporation reported its financial results for the fiscal fourth quarter and year ended December 31, 2009, and reported a fourth quarter net loss of $3.7 million, or $0.48 per share.

Addus HomeCare Corporation announced that its had to increase its bad debt reserve levels by $1.5 million, and that during the fourth quarter its Home Health revenues were short of internal forecasts due to a slowdown in admissions from its Integrated Services program due to the State of Illinois’ effort to develop new procedures for integrating care.

The following day, March 19, 2010, Addus HomeCare’s stock (ADUS) price declined $2.60 per share to close at $6.30 per share, representing a cumulative decline of $3.70, or 37%, of the value of Addus shares at the IPO price of $10 per share. Shares of Addus HomeCare Corp. (ADUS) traded recently at $5.62 per share, down from $9.15 in November 2009, $9.72 per share in January 2010, and $8.90 per share on March 18, 2010.