Pre-Paid Announces 2008 4th Quarter & Year-End Results



    ADA, Okla., Jan. 2 /CNW/ -- Pre-Paid Legal Services, Inc. (NYSE:   PPD),
reported new memberships produced and new sales associates enrolled for the
fourth quarter and for the year ended December 31, 2008. During the 4th
quarter of 2008, new sales associates enrolled decreased 9.7% to 32,533 from
the 36,029 enrolled in the 4th quarter of 2007 and new memberships produced
decreased 11.6% to 132,641 during the 2008 quarter compared to 150,100 for the
2007 quarter.
    For the year 2008, new sales associates enrolled decreased 17.8% to
122,255 compared to 148,802 enrolled during 2007 while new memberships
produced were 552,327, down 9.8% from 612,096.  Our active memberships
decreased 1.1% during 2008 from 1,575,802 to 1,559,154.  From the 3rd quarter
of 2008 to the 4th quarter of 2008, our active memberships decreased by 16,739
memberships.



    
                                 Three Months Ended:           Year Ended:
    New Memberships:     12/31/2008 9/30/2008 12/31/2007 12/31/2008 12/31/2007
    

    
    New legal service
     membership sales      124,629    137,227    139,282    521,522    570,637
    

    
    New "stand-alone"
     IDT membership sales    8,012      7,814     10,818     30,805     41,459
    

    
    Total new
     membership sales      132,641    145,041    150,100    552,327    612,096
    

    
    New "add-on" IDT
     membership sales       85,221     95,762     94,945    344,869    381,419
    

    
    Average Annual
     Membership fee        $321.00    $326.14    $321.32    $324.52    $321.18
    


    
    Active Memberships:
    Active legal service
     memberships at end
     of period           1,469,315  1,488,259  1,492,341  1,469,315  1,492,341
    

    
    Active "stand-alone"
     IDT memberships
     at end of period
     (see note below)       89,839     87,634     83,461     89,839     83,461
    

    
    Total active
     memberships at
     end of period       1,559,154  1,575,893  1,575,802  1,559,154  1,575,802
    

    
    Active "add-on"
     IDT memberships
     at end of period
     (see note below)      680,862    681,118    631,910    680,862    631,910
    


    
    New Sales Associates:
    New sales associates
     recruited              32,533     37,820     36,029    122,255    148,802
    

    
    Average enrollment
     fee paid by new sales
     associates             $49.02     $56.17     $48.99     $71.53     $56.75
    


    
    Average Membership
     fee in force:
    Average Annual
     Membership fee        $300.80    $301.40    $297.62    $300.80    $297.62
    


    
    Note -- reflects 4,941 net transfers from "add-on" status to "stand-alone"
    status during the 2008 4th quarter
    
    Our total active membership premium in force remained unchanged at $469.0
million at December 31, 2008 and 2007.  The membership persistency rate
(defined as the number of memberships in force at the end of a 12 month period
as a percentage of the total of memberships in force at the beginning of such
period, plus new memberships sold during such period) was 73.3% for 2008.
    Our fourth quarter 2008 corporate finance focus has again been on share
repurchases.  During the 4th quarter, we returned $7.8 million to shareholders
through the repurchase of 220,766 shares of common stock, at an average per
share price of $35.21.  Since April 1999, we have returned $407.1 million to
shareholders through the purchase of 13.7 million shares, average price of
$29.62 per share, and $17.1 million in dividends for a combined total of more
than $424 million representing more than 115 percent of our net earnings
during the same timeframe.  We have reduced the number of shares outstanding
by approximately 52% from 23.6 million at March 31, 1999 to 11.4 million
today.
    We anticipate announcing our 2008 fourth quarter and yearly earnings on
February 23, 2009 after the market closes and hosting a conference call to
discuss such earnings on February 25, 2009.
    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 as well as 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 because of
the combination of outside vendors 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 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 2007 Form 10-K and pages 7 and 8 of our September 30, 2008 Form 10-Q
for a more complete description of these risks.  We undertake no duty to
update any of the forward-looking statements in this release.




For further information:

For further information: Steve Williamson, +1-580-436-1234, for Pre-Paid
Legal Services, Inc. Web Site: http://www.prepaidlegal.com

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PRE-PAID LEGAL SERVICES, INC.

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