ADA, Okla., Aug. 10 /PRNewswire-FirstCall/ -- Pre-Paid Legal Services, Inc. Chairman & CEO Harland Stonecipher has announced the company's intent to undergo a national media campaign beginning in late September. The purpose of the campaign, Stonecipher said, is to increase the awareness and familiarity of the Pre-Paid Legal Services, Inc. Life Events Legal Plan(R).
"A recent survey conducted by a nationally-known and respected organization spurred our efforts to secure a national spotlight for Pre-Paid Legal Services, Inc.," said Stonecipher. The survey targeted active Pre-Paid Legal members, canceled members, Pre-Paid Legal associates and the general public (non-Pre-Paid Legal members). "A few of the key points brought to light by this survey are, first, relatively untapped and untouched, the market is huge. The survey specifically indicated 'The market potential for Pre-Paid Legal plans is large. Based on direct market feedback, it is potentially $5 billion -- and under-penetrated.' Second, the general public was found to be largely unaware as to what a Pre-Paid Legal plan is. The survey continued, 'Market awareness is somewhat low.' We are taking immediate steps to begin expanding market awareness, and solidify our brand in this huge market."
According to Stonecipher, "Many people remain skeptical when facing the rule of law. However, Pre-Paid Legal members receive access to high quality lawyers for a low monthly cost through Pre-Paid Legal Services, Inc. No longer is it a requirement to pay a high dollar professional hourly rate to a lawyer every time life happens."
The television campaign will not be directed to consumers purchasing the legal service plan from the television show. Rather, the goal will be to educate and inform viewers about the revolutionary product we offer. All sales of products and recruiting of sales associates will be done by our present sales associates.
"We've enjoyed tremendous success and growth as a 'word-of-mouth' marketing company," Stonecipher said. "Research has demonstrated very clearly that increasing market awareness is crucial to reaching the next step in our growth. This national media spotlight will support the efforts of our marketing sales force, and should result in increased sales and recruiting."
Stonecipher said Pre-Paid is currently in negotiations with several media outlets. No contract has been secured as of release of this announcement, but negotiations are expected to be finalized before September 1. The program itself, tentatively entitled "Justice for All," will feature former State of Mississippi Attorney General Mike Moore as host/narrator.
"We're looking for the best way possible to reach the most viewers," Stonecipher said. "This is a historic step for our Company. We've never embarked on such a campaign in our 35 years. But, we believe the timing has never been more favorable -- a large need exists and we have a product to meet that need at an affordable price."
About Pre-Paid Legal Services, Inc.
We develop, underwrite and market legal service plans across North America. The plans provide for legal service benefits, including unlimited attorney consultation, letter writing, document preparation and review, will preparation, traffic violation defense, automobile-related criminal charges defense and a general trial defense. We also market an identity theft protection plan. More information can be located at our homepage on the worldwide web 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 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 significantly 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 14 and 15 of our 2006 Form 10-K and pages 7 and 8 of our June 30, 2007 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.
