Pre-Paid Legal Announces Record Net Income & Record EPS - - - Net Income Up 13%; EPS Up 29% & Cash Flow Up 12%



    ADA, Okla., April 23 /CNW/ -- Pre-Paid Legal Services, Inc. (NYSE:   PPD),
announced financial results for the first quarter ended March 31, 2007. 
Membership revenues increased 2% to $103.9 million from $101.7 million for the
same period last year.  Net income increased 13% to $14.7 million from $13.1
million for the comparable prior year period. Diluted earnings per share for
the quarter increased 29% to $1.08 per share from 84 cents per share for the
prior year's comparable quarter, higher than the net income increase due to
the 13% decrease in the weighted average number of outstanding shares.
    Net cash provided from operating activities before changes in assets and
liabilities for the quarter ended March 31, 2007 increased 12% to $16.8
million compared to $15.0 million for the comparable period of 2006.  During
the first quarter, we returned $14.0 million to shareholders through the
repurchase of 328,823 shares of common stock at an average per share price of
$42.55.  Since April 1999, we have returned $310.0 million to shareholders
through the purchase of 11.7 million shares, average price of $26.49 per
share, and $17.1 million in dividends for a combined total of $327.0 million
representing more than 115 percent of our net earnings during the same
timeframe.  We have reduced the number of shares outstanding by approximately
44% from 23.7 million at March 31, 1999 to 13.3 million today.  At March 31,
2007, our total indebtedness was $87.4 million and we had unpledged cash and
investment balances of $87.0 million.
    First quarter 2007 membership fees increased slightly to $103.9 million
from $103.8 million for the fourth quarter of 2006.  Associate services
revenues increased during the 2007 first quarter by approximately $358,000 to
$7.1 million from $6.7 million for the 2006 fourth quarter and associate
services and direct marketing expenses decreased by $1.1 million during the
same period.  Membership benefits totaled $36.8 million in the first quarter
of 2007 compared to $37.1 million for the 2006 fourth quarter and represented
35% and 36%, respectively, of membership fees for the two periods. Commissions
to associates totaled $30.5 million in the 2007 first quarter compared to
$30.7 million for the 2006 fourth quarter and represented 29% and 30%,
respectively, of membership fees for the two periods.  General and
administrative expenses increased slightly during the 2007 first quarter to
$12.7 million compared to $12.4 million for the 2006 fourth quarter and
represented 12% of membership fees for both periods.
    We will conduct a conference call to present the first quarter results on
Wednesday, April 25, 2007, at 8:30 a.m. Eastern Time.  The conference call
will be webcast on the investor relations' page of www.prepaidlegal.com or may
be accessed by dialing (913) 981-5517.  Audio replay will be available
beginning at 11:30 a.m. Eastern Time on April 25, 2007 and will run through
midnight Wednesday, May 2, 2007 by dialing (719) 457-0820; passcode for the
replay is 6934951.  The presentation will be available on the web site
indefinitely by selecting "Earnings Calls" under the "Investor Relations"
section.  Questions may be submitted prior to the call via email to
investor</B>pplsi.com.
    We expect to file our quarterly report on Form 10-Q for the three months
ended March 31, 2007 later this week.

    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 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.



    
    PRE-PAID LEGAL SERVICES, INC.
    Financial Highlights (Unaudited)


                                                       Three Months Ended
                                                     March 31    December 31
                                                 2007       2006     2006
    Revenues:
                                                  $           $        $
      Membership fees                          103,881    101,740  103,757
                                                 7,064      6,963    6,706
      Associate services                Other    1,139      1,257    1,209

                                               112,084    109,960  111,672
     Costs and expenses:
                                                36,751     35,628   37,075
      Membership benefits
                                                30,532     31,885   30,739
      Commissions
                                                 6,375      7,302    7,463
      Associate services and direct marketing
                                                12,747     12,467   12,362
      General and administrative
                                        Other,   3,744      2,723    3,677
      net
                                                90,149     90,005   91,316
    Income before income taxes                  21,935     19,955   20,356
    Provision for income taxes                   7,207      6,884    7,125
    Net income                                    $            $       $
                                                14,728     13,071   13,231
    Basic earnings per common share               $            $       $
                                                  1.09        .85      .95
    Diluted earnings per common share             $            $       $
                                                  1.08        .84      .94

    Weighted average number of shares,
     as adjusted:
      Primary                                   13,541     15,430   13,972
      Diluted                                   13,617     15,572   14,051
    Net cash provided by operating                $           $        $
     activities before changes in               16,776     15,006   15,816
     assets and liabilities

    Net cash provided by operating                $           $        $
     activities                                 24,105     18,277   18,814

    Net cash used in investing                    $           $        $
     activities                                   (827)    (7,959)  (9,246)

    Net cash used in financing                    $           $        $
     activities                                (17,702)   (25,073) (28,897)

    




For further information:

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

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PRE-PAID LEGAL SERVICES, INC.

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