Pre-Paid Legal Services, Inc. Announces Preliminary Results of Tender Offer

4 August 2006

Pre-Paid Legal Services, Inc. (NYSE: PPD) today announced the preliminary results of our tender offer, which expired at 5:00 p.m. on August 2, 2006. We commenced the tender offer on July 5, 2006, to purchase up to 1,000,000 shares of its common stock at $35.00 per share, net to the seller in cash, without interest. Georgeson Shareholder Communications, Inc. acted as information agent for the offer and UMB Bank, n.a. acted as the depositary.

Based on a preliminary count by the depositary, the total number of shares tendered in the offer was 195,090, which include 59,867 shares pursuant to the guaranteed delivery procedure. We expect to purchase all properly tendered shares at $35.00 per share, net to the seller in cash, without interest, for a total purchase price of approximately $6.8 million. The actual number of shares to be purchased is subject to final confirmation and the proper delivery of all shares tendered and not withdrawn, including shares tendered pursuant to the guaranteed delivery procedure. The actual number of shares will be announced promptly following completion of the verification process. Payment for shares accepted and the return of all shares tendered but not accepted will occur promptly after determination of the number of shares properly tendered.

As previously announced, we will fund the purchase price with proceeds of a $75 million term loan facility we closed with Wells Fargo Foothill, Inc. on June 23, 2006.

About Us

We develop, underwrite and market legal service plans across North America. The plans provide for legal service benefits, including unlimited attorney consultation, letter writing, document preparation and review, will preparation, traffic violation defense, automobile-related criminal charges defense and a general trial defense. We also market an identity theft protection plan. More information can be located at our homepage on the worldwide web at http://www.prepaidlegal.com/.

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

Source: newswire

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