ADA, Okla., May 11 – LAWFUEL – The Law News Network — Pre-Paid …

ADA, Okla., May 11 – LAWFUEL – The Law News Network — Pre-Paid Legal Services, Inc. (NYSE: PPD) (“Company”) announced a trial court decision in a lawsuit filed
against us and certain of our executive officers in Holmes County, Mississippi
in the matter of Barbara Booth v. Pre-Paid Legal Services, Inc., et al.

A jury yesterday returned a verdict in the aggregate amount of $40,000 in
favor of the plaintiff on three separate claims primarily related to alleged
misrepresentation and fraud in connection with the sale of a membership to the
plaintiff in 2000. The plaintiff’s request for punitive damages was denied by
the judge. Additionally, following the plaintiff’s failure to fully
participate in certain pre-trial matters, the judge awarded us related
reasonable costs and attorneys fees. We believe the compensatory damages
awarded were not based on the evidence and accordingly, will seek further
relief as necessary.

While the amount in question is not material to us, we will continue to
take all appropriate actions to vigorously contest these and similar claims
pending in Mississippi and Alabama.

About Pre-Paid Legal Services
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 more than 50 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 because of
our association with Kroll Background America, Inc., a subsidiary of Kroll
Inc. 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 significantly
our employee group membership sales, 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 and that we may have material
weaknesses in our internal control environment. Please refer to pages 38 and
39 of our 2004 Form 10-K and pages 8 and 9 of our March 31, 2005 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.

Web Site: http://www.prepaidlegal.com

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