Pre-Paid Legal Services, Inc.and subsidiaries

Five Areas To Evaluate•The Company

•The Need/Marketplace

•The Product

•The Compensation

•The Timing

The Company•Over 30 Years In Business

•Began With A Serious Auto Accident

•Public Company Since 1976 (NYSE:PPD)

Harland C. StonecipherFounder, Chairman,and CEO

This Business Is EasyJust let the tools do the work for you!

• Hand Out

• Mail Out

• Call

DVDs& CDs

Recordings

Website

Third Party

The U.S. Chamber of CommerceThomas J. Donohue, President and Chief Executive Officer of the U.S. Chamber of Commerce recently wrote in a letter to Harland Stonecipher, “It is clear that millions of Americans are seeking viable business opportunities in order to secure their financial future, be their own boss, and better balance the responsibilities of career and family. Pre-Paid Legal Services and companies like yoursare propelling this powerful trend forward. In doing so, you are not only providing unique opportunities for the Pre-Paid participants, you are also ensuring that the spirit of free enterprise in our country remains strong and vibrant.”

Sales History

Our sales history continues to improve as we move up and to the right each year.

GROS

S RE

VENU

EIN

MIL

LION

S

2001 2002 2003 2004 2005 2006$303 $350 $361 $386 $423 $444

0

$500$400$300$200$100

It’s Not If, But When

You Are More Than Twice As Likely To Be In Court Than You Are To Be Hospitalized!*Hospital Statistics, American Hospital Association, 2002 Edition ** Examining the Work of State Courts, 2002

100 M

75 M

50 M

25 M

0

36Million

93Million

Hospitalizationsin 2002*

Court Filingsin 2002**

Have You Ever . . .• Been Overcharged For A Repair?• Tried To Return A Defective Product?• Received A Traffic Ticket?• Lost A Security Deposit?• Been Audited?• Signed a Contract? • Purchased A Home?• Prepared A Will?

The Main Reasons People Don’t Seek Legal Counsel:• They Are Intimidated By Lawyers• They Don’t Know Who To Call• They Believe It Would Cost Too Much

The Most Common Responses To A Legal Dispute Are To:•Ignore The Problem•Try To Handle It Personally

What Do We DoSimply put, a Pre-Paid Legal Plan does for attorney and legal bills what medical insurance does for doctor and hospital bills.

Who Is Covered By The Pre-Paid Legal Membership?1) The Member2) The Member’s Spouse3) Never Married Dependent Children Under 21 Living At Home4) Dependent Children Under Age 18 For Whom The Member Is Legal Guardian5) Full Time College Students Up To Age 23 Never Married, Dependent Children6) Physically Or Mentally Challenged Child Living At Home

Areas of Coveragefor New York Residents• Preventive Legal Services

• Motor Vehicle Legal Services

• Trial Defense Services

• IRS Audit Legal Services

• Contingency Fee Services

• 25% Preferred Member Discount

Preventive Legal Services• Phone Consultation on an Unlimited Number of Matters

• A Letter Written or Phone Call Made on an Unlimited Number of Personal Issues for You and Your Family

• An Unlimited Number of Personal Contracts and Documents Reviewed Up To 10 Pages Each

• Standard Will Preparation and Yearly Updates Included for the Member, Available to Covered Family Members for an Additional $20

UNDER TITLE I: A letter or phone call per subject matter is available if advisable in your Provider Attorney’s sole discretion. Nevada residents limited to 50 hours of telephone consultation per year and five personal legal documents reviewed per year. In New York, these benefits are provided at a reduced fee. Check benefit availability in your state/province.

These services are available to you immediately when you enroll!

Preventive Legal Services continued• Warranty Assistance

• Review of Leases and Other Documents

• Assistance in Contacting Government Agencies

• Living Will Preparation

• Health Care Proxy

• Debt Collection Review and Advice

Preventive Legal Services continued • Personal Financial Alternatives Review Personal/joint bankruptcy Out-of-court arrangements Out-of-court settlements

• Tenant Review and Advice

• Small Claims Court Advice

• Consumer Protection Benefits

Preventive Legal Services continued • Legal Advice in Matters Relating to Social Security, Medicare and Veteran’s Benefits

• Legal Advice on Settlement of an Estate

Motor Vehicle Legal ServicesIf you or a family member is charged with a trafficviolation which results in points being assessed, yourProvider Lawyer will assist you for $25

• Representation for Certain Motor Vehicle Related Criminal Charges at a rate of $49 per hour

• Driver’s license recovery assistance and/or personal injury/property damage collection assistance of $2,000 or less at a rate of $50 per case

These services are available just 15 days after enrollment!

Representation under this benefit is provided as a result of the operation of a properly licensed motor vehicle. Your membership helps you with the cost of representation for moving traffic violations and defense of motor vehicle related criminal charges. You are responsible for any court costs, fines, and related fees. Pre-existing conditions, charges of DUI/DWI, hit and run, drug-related matters, and unmeritorious cases are excluded. Commercial vehicles with more than two axles are not covered. In New York, these benefits are provided at a reduced fee. Check benefit availability in your state/province.

Trial Defense ServicesIf you or your spouse face a civil suit or job-related criminal charges you will be represented by your Provider Lawyer if either of you is named defendant or respondent in a covered civil or job-related criminal action filed in court. You’ll receive representation under this benefit for $49 per hour for covered suits.

Trial Defense Services cover the member and spouse for covered civil actions or for criminal actions which arise out of the performance of the covered person’s employment responsibilities. Not covered are dissolution of marriage, separation, annulment, child custody or other divorce-related matters, bankruptcy, charges of DUI/DWI, or drug-related matters. Acts or matters occurring prior to the membership that give rise to a lawsuit even though the lawsuit may be filled after enrollment are excluded as pre-existing conditions. You may use your 25% discount and the unlimited toll-free consultation benefit for any of these exclusions. In New York, these benefits are provided at a reduced fee. Check benefit availability in your state/province.

IRS Audit Legal ServicesWhen you are notified in writing of an IRS audit or are requested to appear at the IRS about your tax return, you’ll receive representation under this benefit for $49 per hour for covered suits.

Coverage for this service begins with the tax return due April 15th of the year you enroll.

Contingency Fee ServicesPersonal injury claim review and evaluation/recommendation

If your Provider Lawyer agrees you have a case worthy of pursuing, he or she will be paid only a percentage of what you ultimately collect.

Your Provider Lawyer fees will not exceed 25% in a personal injury case.

25% Preferred Member DiscountYour Provider Law Firm will render assistance at the preferred rate for legal services not otherwise covered by the membership. Even pre-existing matters can be covered under this portion of the plan!

If you own a business and wish representation for the entity, you will receive a preferred rate of 25% less the Provider Law Firm’s corporate hourly rate*.

Five business days advance notice is required for preparation in court representation.

*Hourly rates for Referral Lawyers and court appearances may vary.The information contained in this material is for illustrative purposes only and is not a contract. It is intended to provide a general overview of the coverage you have selected. Please remember that only the plan contract can give actual terms, coverage, amounts, conditions, and exclusions. Check benefit availability in your state/province.

Legal ShieldThe Legal Shield gives you and your family 24-hour access to legal consultation for only $1 a month for the following situations:• If you are detained by a law enforcement officer• If you are injured in an accident• If authorities attempt to remove your child from your home or custody• If you are served with a warrant

To contact your Provider Law Firm, simply call the toll-free number on your Legal Shield card. You will reach the Pre-Paid Legal offices, who will then put you in contact with your Provider Law Firm, so you can consult with an attorney. It’s that easy.The Legal Shield membership will not apply if the member is alleged to be under the influence of or impaired by alcohol, intoxicants, controlled substances, chemicals or medicines, whether prescribed or not; the member is alleged to be involved with domestic violence or stalking; and/or assistance in making, posting, or obtaining bond, bail or other security required for release. Check benefit availability in your state.

How Much Will It CostWell, with a Pre-Paid Legal membership you receive all of this for only $24 a month! Isn't your family worth it?

That's less than the price of a cup of coffee a day!

Identity Theft Shield"America's fastest Growing Crime"

In September 2003, the Federal Trade Commission issued a report on the impact of Identity Theft in the United States and the numbers are alarming: • 27.3 million victims - last 5 years• 9.9 Million victims in 2002 alone• $53 Billion in losses

And what’s worse, new records are expected this year.

It’s No Secret: Identity Theft is A Major Problem In America Do you hand your credit card to servers at restaurants?

Do you supply personal information over the internet?

Do you keep your Social Security number in your wallet or purse?

Do you leave mail at your home or business for the postal carrier to collect?

Do you throw away unwanted mail with personal information without shredding it first?

The Identity Theft Shield With Kroll, Inc.Kroll Background America is the world’s leading risk consulting company with more than 30 years of experience.

They have been involved in many notable cases:• Assisted the Kuwaiti government in investigating Saddam Hussein's financial network • Responsible for the restructuring of Enron

Credit ReportYou’ll receive an up-to-date credit report through Experian at no additional charge with your membership. You will also receive a personal credit score calculated by an independent scoring service and a detailed analysis of that score.

Continuous Credit MonitoringYour credit files will be regularly monitored. Suspicious activity will be brought to your attention, providing you with early detection.

You’ll receive prompt notice if any new accounts are opened in your name... or if derogatory notations are added to your credit report…

Identity RestorationIf your identity is stolen, get more than just information about how to restore your name and credit rating. As an Identity Theft Shield member you can rest easy knowing experienced professionals are working for you!

• Fraud alert notifications will be sent on your behalf and applicable follow up will be done with affected agencies and institutions

• Proactive searches of applicable local and national databases will be made on your behalf to look for information you may not have known about

Identity Restoration will not apply if the identity theft is the result of a dishonest, criminal, malicious, or fraudulent act you, your spouse, or your child participated in, directed, or had knowledge of. Restoration services will not be provided for a known stolen identity event that occurred prior to enrollment date. You must be an active member to receive restoration services. Services provided do not cover financial losses arising from the identity theft. A signed limited power of attorney must be provided to Kroll when an Identity Theft Restoration case is opened in order for Kroll to work on your behalf and/or provide the Proactive Database Searches listed. A stolen identity event does not include the theft or unauthorized or illegal use of your business name, d/b/a, or any other method of identifying your business activity.

How Much Will This Peace Of Mind CostThe value of these services is priceless, but we had to put a price tag on it.

Only $9.95 a month, in addition to your PPL membership, both you and your spouse receive the benefits of the Identity Theft Shield.

This membership is also available as a stand-alone product for just $12.95/month.

It’s SimpleThe Pre-Paid Legal Opportunity is simply telling other people about this legal service and our business!

It’s even easier now, just share a magazine with everyone.

Certified Field Training ProgramThe Certified Field Training Program provides the new Associate help from the sponsor to get their business stated right. The new Associate simply does the following:

•Works with their sponsor to create a list of prospects

•Watches and learns as their sponsor presents the Pre-Paid Legal membership and business opportunity to their first three prospects

•Recruits three new Associates with a membership or writes five new memberships in 45 days to successfully complete the program

Get A Check, Then Get A Raise

When you sign up your three new recruits with a membership within your first 45 days, you will receive $69 in commissions. You will also:• CFT qualify• Receive advanced commissions and overrides on membership sales• Receive CFT commissions on the business generated by your CFT recruits

When your three new recruits sign up their three new recruits with a membership, you will receive an additional $207 in CFT commissions as well as $69 in membership sale overrides as you help them CFT qualify.

Here’s how it works:

Amounts shown are representative of commissions on the $24 Family Plan. Commissions will be pre-rated for all other plans. Memberships sold by Associates participating in this program are still subject to applicable licensing requirements.

YouAssociate

New Recruitwith a Membership

New Recruitwith a

Membership

New Recruitwith a

Membership

New Recruitwith a

Membership

Advanced Commissions - $24 Plan

Residual income begins after the advance period. That means you get paid month after month for the life of the membership.

Team OverrideAdvance

Personal Sales

Advance

All you have to do is collect:$24.00 1st Month's fee

+ $10.00 One Time Enrollment $34.00

Executive Director

Senior AssociateAssociate

168.47 30.00138.47115.3992.3169.24

23.0823.0823.08

DirectorManager

CFT Associate 23.0823.08

122.3292.3269.2446.1623.08

CumulativeOverride Advance

Get A Check, Then Get A Raise

When you sign up your three new recruits with a membership within your first 45 days, you will receive $97 in commissions. You will also:• CFT qualify• Receive advanced commissions and overrides on membership sales• Receive CFT commissions on the business generated by your CFT recruits

When your three new recruits sign up their three new recruits with a membership, you will receive an additional $293 in CFT commissions as well as $97 in membership sale overrides as you help them CFT qualify.

Consider this example:

Amounts shown are representative of commissions on the $24 Family Plan plus the $9.95 Identity Theft Shield. Commissions will be pre-rated for all other plans. Memberships sold by Associates participating in this program are still subject to applicable licensing requirements.

YouAssociate

New Recruitwith a Membership

New Recruitwith a

Membership

New Recruitwith a

Membership

New Recruitwith a

Membership

Advanced Commissions - $33.95($24 PPL Family Plan + $9.95 Identity Theft Shield)

All you have to do is collect:$33.95 1st Month's fee

+ $10.00 One Time Enrollment $43.95

Executive Director

Senior AssociateAssociate

238.32 42.44195.88163.23130.5897.95

32.6532.6532.65

DirectorManager

CFT Associate 32.65

Residual income begins after the advance period. That means you get paid month after month for the life of the membership.

173.04130.6097.9565.3032.6532.65

Team OverrideAdvance

Personal Sales

Advance

CumulativeOverride Advance

Pre-Paid Legal Pays You Every DayCommissions are paid daily by direct deposit!

This Business Is EasyJust let the tools do the work for you!

• Hand Out

• Mail Out

• Call

DVDs& CDs

Recordings

Website

Third Party

The Top 10% Have Or Can Afford Legal Access

The Bottom 10% Have Access To Legal Aid or Public Defender Target Customer

$15-$25 Billion MarketPre-Paid Legal Services®,

Inc. gives middle income North America equal access to justice.

The Target Market is Huge

The Market Timing Is Perfect

100 %

75 %

50 %

25 %

0 % Less than 3% ofNorth Americans

Have A Pre-Paid Legal

Services Membership

Approximately 80%

Of Europeans Have

Legal Coverage

Current Market Penetration

This map illustrates Pre-Paid Legal Services®, Inc.’s current market penetration. Percent of population based on households utilization of 2.5 household members per membership.

Less than 1%penetration

1% to 3%penetration

More than 3%penetration

Plan not available

Timing Is KeyHistory shows that when an industry hits a 2% market penetration, critical mass can be achieved.

THE GROWTH OF HMO’S• It took 10 Years for HMO’s to reach 2% market penetration•After that, it took just seven more years to reach 52% market penetration

60%50%40%30%20%10%0%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Success StoriesNow, it is time to show you how Pre-Paid Legal really works. We’re going to share with you real stories from real people who have been helped either by the membership, the business opportunity or both.

Pre-Paid Legal Services®, Inc.This Presentation is copyrighted material and may not be altered in any form under any circumstances. Alteration of this material in any way is a violation of the company’s policies and procedures and may result in immediate termination of your PPLSI Associate Agreement.

Marketed by Pre-Paid Legal Services®, Inc. or applicable subsidiary:In Tennessee: Pre-Paid Legal Services of Tennessee, Inc.In Florida: Pre-Paid Legal Services, Inc., of FloridaIn Mississippi: National Pre-Paid Legal Services of Mississippi, Inc.In Virginia: Legal Service Plans of Virginia, Inc.In Ohio: Ohio Access to Justice, Inc., administered by Pre-Paid Legal Services®, Inc.©1999 Pre-Paid Legal Services, Inc.04.06