Residual Income: Life Saving(s)

    
    Pre-Paid Legal Associates Value the Recurring Income Stream




    
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<p>ADA, Okla., <chron>Dec  17</chron> /CNW/ -- Income that accrues after the initial work is completed is described as residual, recurring or passive income. Some call it the commission that keeps on giving. For some, Pre-Paid Legal Services, Inc. (NYSE: PPD) associates, it might be described as "life saving" or "life savings" income.  Pre-Paid Legal associates <person>Albert Lewis</person>, <person>Inger Lemke</person>, Richard DeVasto and Astrid Hricak each offer stories of how such residual income has provided ongoing benefits to them.</p>
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    Albert Lewis (Chicago, Illinois)

    
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<p>On <chron>October 2, 2009</chron>, <person>Mr. Lewis</person> suffered a stroke and was hospitalized for 30 days. One thing the former truck driver turned Pre-Paid Legal associate did not have to worry about during his recuperation was income for his family. During his hospital stay, <person>Mr. Lewis</person> received a monthly residual check that amounted to approximately 15 percent of the annual income he once received as a truck driver.</p>
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<p><person>Mr. Lewis</person> recently sent an email to Pre-Paid Legal Founder and CEO Harland C. Stonecipher in which he described himself as being "living proof" that the Pre-Paid Legal's residual income plan works. A Pre-Paid Legal associate since December of 2001, <person>Mr. Lewis</person> said he has no intention of giving up as a result of his medical condition. In fact, he has already returned to active involvement in Pre-Paid Legal activities, including leading a group training program in early December.</p>
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    Inger Lemke (Bigfork, Montana)

    
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<p><person>Inger Lemke</person> said her residual income from Pre-Paid Legal provides a great feeling of security. <person>Ms. Lemke</person>, a former high school German teacher, now accrues benefits from the business that she and her husband Larry built over a decade beginning in 1997. <person>Mr. Lemke</person> had actually joined the company in 1987, worked hard for a period months with the team he assembled, but then moved on to other ventures.  Over the next 10 years, he continued to receive residual checks and that helped determine his return to the company and the Lemkes' active involvement in the business.</p>
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<p>After several years of hard work building a "book of business," <person>Larry Lemke</person> became seriously ill in 2000 and died in 2006.  "Although we pulled back from the business during that period, our business kept growing and our residual income increased," <person>Ms. Lemke</person> said.  "That was a blessing for us in those final years and it continues to this day," she said.</p>
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    Richard DeVasto (Winter Park, Florida)

    
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<p>After a 23 year career in the Marine Corps, followed by seven years as a U.S. Federal Marshall, Richard DeVasto signed on as a Pre-Paid associate in 1983.  Like other successful associates he worked hard at building his business and after a few years he realized that more than 90 percent of his earnings were the result of residual income.</p>
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<p>"The residual income has allowed me to pay off the mortgage on my home in Florida and to maintain a quality lifestyle even during the period when I faced some serious health problems," <person>Mr. DeVasto</person> said. "Pre-Paid Legal is a career, not a job.  Persistence and hard work will lead to a steady stream of residual income," he said.</p>
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    Astrid Hricak (Rockville, Maryland)

    
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<p>Astrid Hricak said her husband Richard was a natural network marketer.  He worked with a number of networks before he found Pre-Paid Legal and became an associate in <chron>August 1994</chron>.  Like other successful associates, <person>Mr. Hricak</person> worked hard building his business and his team, but in March of 1996 he suffered a heart attack. Within a few months he was also diagnosed with colon cancer and then he suffered a massive stroke which left him unable to speak for a period of time.</p>
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<p>Although <person>Mr. Hricak</person> remained as active as possible in the business until his death in <chron>April 2007</chron>, it was his initial efforts in 1995 and 1996 that resulted in the residual income that <person>Ms. Hricak</person> benefits from today. "Residual income allowed us to focus on Richard's health during the last 10 years of his life," <person>Ms. Hricak</person> said.  "My story -- our story -- could be anyone's," she said.</p>
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    About PPD
    
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<p>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 <location>Canada</location>, 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 <a href="http://www.prepaidlegal.com">www.prepaidlegal.com</a>.</p>
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    Forward Looking Statements
    
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<p>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 <chron>September 30, 2009</chron> 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.</p>
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For further information: George Snyder of Pre-Paid Legal Services, Inc., [phone] (desk) or [phone] (cell), [email protected] Web Site: http://www.prepaidlegal.com