ADA, Okla., April 10 LAWFUEL – Law Newswire — Pre-Paid Legal Services, Inc. (NYSE: PPD), today announced that we have entered into an extension of our contract with Kroll Background America Inc. (“KBA”), a subsidiary of Kroll Inc., effective April 1, 2007 through the end of 2010 to provide services related to our Identity Theft Shield membership.
The contract extension provides tiered pricing to us that will bring
our cost of benefits related to our Identity Theft Shield membership in
line with those of our traditional life events legal service memberships.
“We believe when we pair Kroll’s expertise in the identity theft arena
with our existing ability to provide legal services to our members on a
24/7 basis, we offer a combination of products and services that cannot be matched by anyone else at this price and with this level of service,” said Pre-Paid Chairman Harland Stonecipher. “We see this continued relationship as a combination of the best in legal service benefits with the best in identity theft solutions.”
“We are delighted to continue our partnership with Pre-Paid Legal
Services to offer their clients high-quality access to identity theft
related benefits through Kroll’s fraud experts,” said A. Michael Rosen,
President of Kroll Background America Inc. “Through Pre-Paid, North
American families have yet another valuable product to help achieve greater financial security and peace of mind.”
Kroll, the world’s leading risk consulting company, provides a broad
range of investigative, intelligence, financial, security, and technology
services to help clients reduce risks, solve problems, and capitalize on
opportunities. Kroll Inc. is a subsidiary of Marsh & McLennan Companies,
Inc., the global professional services firm. Based in Nashville, Tenn.,
Kroll’s Background Screening Division provides employee and vendor
background investigations, disability claims integrity programs, and
identity theft solutions. For more information, visit http://www.kroll.com
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 .
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 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.