Pre-Paid Legal Services, Inc. Cited by The Motley Fool as Undervalued Stock

November 4, 2009

ADA, Okla., Nov. 4 /PRNewswire-FirstCall/ -- Pre-Paid Legal Services, Inc. (NYSE: PPD) has been listed as one of 20 undervalued small cap company stocks by "The Motley Fool" Analyst and Contributor Anand Chokkavelu in a recent article updated on October 31.

In developing the list of undervalued small cap companies -- those with market capitalization between $200 million and $2 billion -- Mr. Chokkavelu considered both positive earnings, through the price/earnings (P/E) ratio, and the positive free cash flow (P/FCF) ratio for the past five years. As noted in the article, "We want companies that are both accounting profitable and generating cash off of that profitability." Among the 20 small cap companies, PPD's ratios were listed as P/E (7.3) and P/FCF (6.3).

"This is another in a series of favorable articles about Pre-Paid Legal Services and we're pleased to see this recognition," said Harland C. Stonecipher, Pre-Paid Legal Services Founder and CEO.

In addition to small cap companies, "The Motley Fool" article, "The Most Undervalued Stocks in the Market," examines the stocks in the banking and oil industry. It was originally published on August 21, 2009.

About PPD

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 our products and us 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 and pages 7 and 8 of our September 30, 2009 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.

SOURCE Pre-Paid Legal Services, Inc.