Pre-Paid Legal Reports Q4 EPS of $1.66

Pre-Paid Legal Services, Inc. PPD, announced results for the fourth quarter and year ended December 31, 2010. Net income for the fourth quarter of 2010 increased 43% to $16.3 million from $11.4 million for the prior year's fourth quarter. Diluted earnings per share for the 2010 fourth quarter increased 54% to $1.66 per share from $1.08 per share for the prior year's comparable quarter due to an increase in net income of 43% and a decrease of 7% in the weighted average outstanding shares. Membership revenues in the fourth quarter of 2010 decreased to $104.8 million from $108.6 million for the same period last year. Due to a 20.8% decline in the number of new memberships sold, commissions during the 2010 fourth quarter decreased 30%, or $11.2 million, to $26.4 million from $37.6 million for the 2009 period, membership benefits were 33% and 34% of membership fees for the respective periods while general and administrative expenses were 14% and 12% of membership fees for the respective periods. Due to a 54.3% decline in the enrollment of new associates, associate services revenues decreased to $5.9 million compared to $9.5 million in the prior year's quarter and associate services and direct marketing expenses decreased to $7.1 million from $10.8 million.