Pre-Paid Legal Services Announces 2008 3rd Quarter Membership and Recruiting Results



    ADA, Okla., Oct. 1 /CNW/ -- Pre-Paid Legal Services, Inc. (NYSE:   PPD),
reported new memberships produced and new sales associates enrolled for the
2008 third quarter.  During the 3rd quarter of 2008, new sales associates
enrolled decreased 13.2% compared to the third quarter of 2007.  Memberships
produced decreased by 6.0% while new membership fees written decreased by 6.0%
and our active membership base increased 0.1% compared to the comparable
period of the previous year.
    On a sequential quarterly basis, new associates enrolled increased 44.9%;
new memberships produced increased 7.9%, new membership fees written increased
6.8% and our active membership base increased by 9,254 memberships.



    
                                               Three Months Ended
    New Memberships:                 9/30/2008        6/30/2008  9/30/2007
    

    
    New legal service
     membership sales                  137,227         127,804    145,530
    New "stand-alone" IDT
     membership sales                    7,814           6,642      8,771
        Total new membership sales     145,041         134,446    154,301
    New "add-on" IDT
     membership sales                   95,762          82,623    100,888
    Average Annual Membership fee      $326.14         $329.44    $325.98
    

    
    Active Memberships:
    Active legal service
     memberships at end of period    1,488,259       1,481,051  1,496,319
    Active "stand-alone" IDT
     memberships at end of
     period (see note below)            87,634          85,588     78,237
        Total active memberships
         at end of period            1,575,893       1,566,639  1,574,556
    Active "add-on" IDT
     memberships at end of
     period (see note below)           681,118         658,365    616,919
    

    
    New Sales Associates:
    New sales associates recruited      37,820          26,102     43,555
    Average enrollment fee
     paid by new sales associates       $56.17          $98.93     $40.74
    

    
    Average Membership fee in force:
    Average Annual Membership fee      $301.40         $300.46    $297.52
    
    Note -- reflects 4,755 net transfers from "add-on" status to
"stand-alone" status during the quarter
    Our total active membership fees in force increased approximately 1.4%
during the last year and continue our trend of increasing our membership fees.
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 73.5% for the 12 month period ended September 30, 2008 an increase
from the 73.3% for the 12 month period ended September 30, 2007.
    Our third quarter 2008 corporate finance focus has again been on share
repurchases.  During the 3rd quarter, we returned $9.0 million to shareholders
through the repurchase of 205,886 shares of common stock, at an average per
share price of $43.77.  Since April 1999, we have returned $399.2 million to
shareholders through the purchase of 13.5 million shares, average price of
$29.52 per share, and $17.1 million in dividends for a combined total of
$416.3 million representing more than 115 percent of our net earnings during
the same timeframe.
    We anticipate announcing our 2008 third quarter financial results on
October 27, 2008 after the market closes.  The Company will conduct a
conference call to present the third quarter results on Wednesday, October 29,
2008, at 8:30 a.m. Eastern Time.  The conference call will be webcast on the
investor relations' page of http://www.prepaidlegal.com.  Questions may be
submitted prior to the call via email to investor@pplsi.com.
    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 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 June 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 of Pre-Paid Legal Services,
Inc., +1-580-436-1234 Web Site: http://www.prepaidlegal.com

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PRE-PAID LEGAL SERVICES, INC.

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