ADA, Okla., Nov. 3 2004 LAWFUEL – Law, legal, attorney, law techno…

ADA, Okla., Nov. 3 2004 LAWFUEL – Law, legal, attorney, law technology newsPre-Paid Legal Services, Inc. (NYSE: PPD) today announced favorable developments in two lawsuits filed against the Company and certain of its executive officers.

On June 29, 2001, an action was filed against Pre-Paid in the District
Court of Canadian County, Oklahoma. The action was originally a putative
class action brought by former and current sales associates. The amended
petition, filed in 2002, seeks injunctive and declaratory relief, with other
damages, for alleged violations of the Oklahoma Uniform Consumer Credit Code
in connection with Pre-Paid’s commission advances, and seeks injunctive and
declaratory relief regarding the enforcement of certain contract provisions
with sales associates, including a request for the imposition of a
constructive trust as to earned commissions applied to the reduction of debit
balances and disgorgement of all earned renewal commissions applied to the
reduction of debit balances. On September 23, 2003 the trial court entered an
order dismissing the class action allegations upon the motion of the
plaintiffs. On December 4, 2003, Pre-Paid filed a motion for summary
judgment. On November 2, 2004, the trial court issued a Memorandum Order
finding Pre-Paid’s motion for summary judgment to be meritorious and granting
judgment in favor of Pre-Paid on all claims.

“Subject to plaintiffs’ right to pursue an appeal, this order ends this
lawsuit,” stated Pre-Paid Chairman and CEO Harland C. Stonecipher.

Additionally, the United States Court of Appeals for the Tenth Circuit
issued a ruling on October 26, 2004 denying an Interlocutory Appeal filed by
putative class action plaintiffs, thereby affirming the trial court’s earlier
ruling denying class certification. On March 1, 2002, an action was filed in
the United States District Court for the Western District of Oklahoma by five
individuals against the Company and certain executive officers. This action
is a putative class action seeking unspecified damages purportedly filed on
behalf of sales associates of the Company and alleges that the marketing plan
offered by the Company constitutes a security under the Securities Act of 1933
and seeks remedies for failure to register the marketing plan as a security
and for violations of the anti-fraud provisions of the Securities Act of 1933
in connection with representations alleged to have been made in connection
with the marketing plan.

The complaint also alleges violations of the
Oklahoma Securities Act, the Oklahoma Business Opportunities Sales Act, unjust
enrichment and violation of the Oklahoma Consumer Protection Act. On
September 8, 2004, the trial court issued its ruling denying class
certification on multiple grounds. “Although the case may still proceed in
the trial court on the individual plaintiffs’ claims, the appellate court’s
denial of the interlocutory appeal indicates the class action case is closed,”
stated CEO Stonecipher.

“Pre-Paid is certainly pleased with these recent developments,” stated
Pre-Paid Chairman and CEO Harland C. Stonecipher. “These rulings, along with
other recent favorable litigation developments in Mississippi, continue to set
the tone for Pre-Paid in litigation matters and will continue to push Pre-Paid

About Pre-Paid Legal Services

Pre-Paid Legal Services develops and markets legal service plans across
North America. The plans typically provide for legal service benefits,
including 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. More information
can be located at the Company’s homepage on the worldwide web at .

Forward-Looking Statements

Statements in this press release, other than purely historical
information, regarding the Company’s future plans and objectives and expected
operating results, 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 the
Company’s 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 the Company with the Securities and Exchange Commission, including (among others) those listed in the Company’s Form 10-K and Form 10-Q, and include the risks that
the Company’s membership persistency or renewal rates may decline, that the
Company may not be able to continue to grow its memberships and earnings, that
the Company is dependent on the continued active participation of its
principal executive officer, that pending or future litigation may have a
material adverse effect on the Company if resolved unfavorably to the Company,
that the Company could be adversely affected by regulatory developments, that
competition could adversely affect the Company, that the Company is
substantially dependent on its marketing force, that the Company’s stock price
may be affected by short sellers and that the Company has been unable to
increase significantly its employee group membership sales. Please refer to
pages 39 and 40 of the Company’s 2003 Form 10-K and pages 8 through 10 of the
Company’s September 30, 2004 Form 10-Q for a more complete description of
these risks. The Company undertakes no duty to update any of the forward-
looking statements in this release.

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