Pre-Paid Legal Services Announces 2009 1st Quarter Membership and Recruiting Results



    ADA, Okla., April 1 /CNW/ -- Pre-Paid Legal Services, Inc. (NYSE:   PPD),
reported new memberships produced and new sales associates enrolled for the
2009 first quarter.  During the 1st quarter of 2009, new sales associates
enrolled decreased 7.5% compared to the first quarter of 2008.  Memberships
produced decreased by 12.6% while new membership fees written decreased by
13.0% and our active membership base decreased 2.5% compared to the comparable
period of the previous year.
    

    
    On a sequential quarterly basis, new associates enrolled decreased 26.6%,
new memberships produced decreased 7.6%, new membership fees written decreased
7.9% and our active membership base decreased by 32,091 memberships.
    

    

    
                                             Three Months Ended
                                             ------------------
    New Memberships:                 3/31/2009   12/31/2008   3/31/2008
    ----------------                 ---------   ----------   ---------
    New legal service membership
     sales                             117,635     124,629     131,862
    New "stand-alone" IDT
     membership sales                    4,960       8,012       8,337
      Total new membership sales       122,595     132,641     140,199
                                       =======     =======     =======
    New "add-on" IDT membership
     sales                              72,850      85,221      81,263
    Average Annual Membership fee      $319.86     $321.00     $321.47
    

    
    Active Memberships:
    -------------------
    Active legal service
     memberships at end of period    1,438,519   1,469,315   1,481,531
    Active "stand-alone" IDT
     memberships at end of period
     (see note below)                   88,544      89,839      85,428
      Total active memberships at
       end of period                 1,527,063   1,559,154   1,566,959
                                     =========   =========   =========
    Active "add-on" IDT
     memberships at end of period
     (see note below)                  671,850     680,862     641,997
    

    
    New Sales Associates:
    ---------------------
    New sales associates recruited      23,871      32,533      25,800
    Average enrollment fee paid by
     new sales associates              $119.17      $49.02      $94.71
    

    
    Average Membership fee in
     force:
    -------
    Average Annual Membership fee      $300.81     $300.80     $298.54
    

    
    Note - reflects 4,777 net transfers from "add-on" status to "stand-alone"
    status during the quarter

    
    Our total active membership fees in force decreased approximately 1.8%
during the last twelve months.  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 72.7% for the 12 month period ended
March 31, 2009 a decrease from the 73.2% for the 12 month period ended March
31, 2008.
    

    
    Our first quarter 2009 corporate finance focus has again been on share
repurchases.  During the 1st quarter, we returned $13.5 million to
shareholders through the repurchase of 422,505 shares of common stock, at an
average per share price of $32.05.  Since April 1999, we have returned $420.7
million to shareholders through the purchase of 14.2 million shares, average
price of $29.69 per share, and $17.1 million in dividends for a combined total
of $437.8 million representing more than 110% of our net earnings during the
same timeframe.
    

    
    We anticipate announcing our 2009 first quarter financial results on
Monday, April 27, 2009 after the market closes. The Company will conduct a
conference call to present the first quarter results on Wednesday, April 29,
2009, at 8:30 a.m. Eastern Time.  The conference call will be webcast on the
investor relations' page of 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 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 may have compromises of our information
security, that during an economic downturn in the economy consumer purchases
of discretionary items may be affected which could materially harm our sales,
retention rates, profitability and financial condition, 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 15 - 17 of our 2008 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.
    




    




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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