Pre-Paid Legal Services Announces Additional Stock Repurchase Authorization

ADA, Okla., March 19 /PRNewswire-FirstCall/ -- Pre-Paid Legal Services, Inc. (NYSE: PPD) , today announced that our Board of Directors has authorized an additional repurchase of 1 million shares, as we have purchased 11.7 million shares of our previously announced stock repurchase authorizations totaling 12 million shares.

During 2007, we have returned $13.6 million to shareholders through the repurchase of 320,672 shares of common stock, at an average per share price of $42.37. Pursuant to the repurchase program originally announced on April 6, 1999, we have returned $309.6 million to shareholders through the purchase of 11.7 million shares, average price of $26.47 per share, and $17.1 million in dividends for a combined total of $326.6 million representing more than 115 percent of our net earnings during the same timeframe. We have reduced the number of shares outstanding by approximately 43% from 23.7 million at March 31, 1999 to approximately 13.4 million today. Purchases pursuant to the new repurchase authorization will be made at prices that we consider attractive. We expect to continue purchases after our 2007 first quarter earnings conference call scheduled for April 25, 2007. No time limit has been set for completion of the additional share repurchases.

About Us

We believe our products are one of a kind, life events legal service plans. Our plans provide for legal service benefits provided through a network of independent law firms across the U.S. and Canada, and include unlimited attorney consultation, will preparation, traffic violation defense, automobile-related criminal charges defense, letter writing, document preparation and review and a general trial defense benefit. We have an identity theft restoration product we think is also one of a kind due to the combination of our identity theft restoration partner and our provider law firms. More information about us and our products can be found at our homepage at http://www.prepaidlegal.com/.

Forward-Looking Statements

Statements in this press release, other than purely historical information, regarding our future plans and objectives and expected operating results, dividends and share repurchases and statements of the assumptions underlying such statements, constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. The forward- looking statements contained herein are based on certain assumptions that may not be correct. They are subject to risks and uncertainties incident to our business that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are described in the reports and statements filed by us with the Securities and Exchange Commission, including (among others) those listed in our Form 10-K, Form 10-Q and Form 8-K, and include the risks that our membership persistency or renewal rates may decline, that we may not be able to continue to grow our memberships and earnings, that we are dependent on the continued active participation of our principal executive officer, that pending or future litigation may have a material adverse effect on us if resolved unfavorably to us, that we could be adversely affected by regulatory developments, that competition could adversely affect us, that we are substantially dependent on our marketing force, that our stock price may be affected by short sellers, that we have been unable to significantly increase our employee group membership sales and that our active premium in force is not indicative of future revenue as a result of changes in active memberships from cancellations and additional membership sales. Please refer to pages 14 and 15 of our 2006 Form 10-K for a more complete description of these risks. We undertake no duty to update any of the forward-looking statements in this release.