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                SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.

SECURITIES AND EXCHANGE COMMISSION v. HEALTHCARE SERVICES GROUP,
INC., DANIEL P. MCCARTNEY, THOMAS A. COOK AND MELVYN B. MASON,
Civil Action No. 96cv-6464 (E.D. Pa.).

Litigation Release No. 15124 / October 16, 1996.

Accounting and Auditing Enforcement
Release No. 842 / October 16, 1996.

     The U.S. Securities and Exchange Commission announced today
that on October 15, 1996, the Honorable Eduardo C. Robreno, judge
of the U.S. District Court for the Eastern District of
Pennsylvania, entered Orders in the matter of SEC v. Healthcare
Services Group, et al., consented to by all defendants, without
admitting or denying the allegations in the Commission's
complaint, resolving all matters raised in that litigation.
Pursuant to the Orders: (i) Healthcare Services Group, Inc.
("HSG"), is permanently enjoined from future violations of Sec-
tion 17(a) of the Securities Act and Sections 10(b), 13(a),
13(b)(2) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, and
13a-13 thereunder, and is required to pay a civil penalty in the
amount of $650,000; (ii) HSG chief executive officer and
chairman-of-the-board Daniel P. McCartney is permanently enjoined
from future violations of Sections 10(b) and 13(a) of the
Exchange Act and Rules 10b-5, 12b-20, 13a-1, 13a-13 thereunder,
and is required to pay a civil penalty in the amount of $100,000;
(iii) HSG president Thomas A. Cook is permanently enjoined from
future violations of Sections 10(b) and 13(a) of the Exchange Act
and Rules 10b-5, 12b-20, 13a-1, 13a-13 thereunder, and is
required to pay a civil penalty in the amount of $50,000; and
(iv) former HSG vice-president Melvyn B. Mason is permanently
enjoined from future violations of Sections 10(b) and 13(b)(5) of
the Exchange Act and Rules 10b-5 and 13b2-1 thereunder, is
required to pay a civil penalty in the amount of $50,000, and is
prohibited, pursuant to Section 21(d)(2) of the Exchange Act,
from serving as an officer or director of any public company for
a period of 7 years.

     HSG, headquartered in Huntingdon Valley, Pennsylvania,
supplies housekeeping, laundry and linen services to healthcare
facilities.  HSG's common stock is quoted on the National
Association of Securities Dealers' Automated Quotation System.