PRE-PAID LEGAL HONORED FOR DRAWING "LINE IN SAND"

Company Recognized by the Oklahoma State Chamber of Commerce for Stand Against Frivolous Lawsuits

ADA, Okla. June 17, 2002- The Oklahoma State Chamber of Commerce has awarded Pre-Paid Legal Services Inc. (NYSE:PPD) the inaugural "Line in the Sand Award" as a result of their diligent effort to stop the abuse of the U.S. legal system with frivolous lawsuits.

The State Chamber has recognized the destructive effect that lawsuits can have on business owners due to the aggressive, litigious atmosphere where one lawsuit can financially devastate a company and ruin many lives in the process. Harland C. Stonecipher, founder and CEO of Pre-Paid Legal Services has been acknowledged by the State Chamber as setting the precedent in this fight against meritless claims.

"Getting sued is probably the greatest fear a business owner has," commented Dick Rush, president and CEO of the Oklahoma State Chamber. "Even if you've done nothing wrong, your business must play defense not only in a court of law, but in the court of public opinion as well. All in all, it is a very costly process that destroys many companies and reputations every year."

A study conducted by the Stanford Law School Securities Class Action Clearinghouse, in cooperation with Cornerstone Research, showed that the overwhelming economic incentives to sue companies for large sums of money, whether or not these claims have merit, has gone up significantly. Similarly, there has been a significant jump since the passage of the Private Securities Litigation Reform Act of 1995, where settlements averaged nearly $25 million in 2001, up from $8 million the in 2000.

"Having been selected to receive this award reinforces that we're doing the right thing," commented Stonecipher. "Ours is the best legal system in the world, but it's not perfect. One of the biggest issues we face is the rampant pursuit by plaintiff attorneys to file a big, meritless lawsuit and then wait for the settlement. On paper, it may appear to make sense to settle a case - but I can tell you we've learned the hard way that that's simply not true. Settling on these suits only encourages more of the same."

After having been the victim of several lawsuits seeking class action status, Stonecipher knows intimately what happens when a company is unfairly accused. One lawsuit began seeking a substantial settlement, but after depositions were taken, the plaintiff attorney backed off to a paltry $3,500 settlement offer. The Pre-Paid Legal answer, of course, was still "no settlement" and responded to the court that it was ready for a trial. Days later the plaintiff attorney, whose client had pocketed more than $150,000 in more than 10 other non-Pre-Paid Legal lawsuits and was only deposed on one other occasion, dismissed the case on his own, realizing the weakness of his case.

Studies show that meritless lawsuits affect every American. Be it the inflated cost of car insurance, or that extra test a patient has received from his doctor, unnecessary lawsuits are costing Americans billions of dollars every year.

Pre-Paid Legal Services, which is celebrating its 30th anniversary this year, has pioneered a system to provide high-quality, affordable legal help for every American family and small business owner. Over 1.3 million families currently own the membership and have access to top quality legal advice through their provider law firm.

Pre-Paid Legal believes that helping Americans deal appropriately with their legal needs reflects the heart of their business and the "Line in the Sand Award" is the first step in turning around the trend toward haphazard litigation.

"This award goes to the core of our company platform," said Stonecipher. "We built Pre-Paid Legal Services to even out the playing field in the legal community. Our goal was to offer the top legal minds in a given state to every American."

About Pre-Paid Legal Services

Pre-Paid Legal Services develops and markets legal service plans across North America. The plans provide for legal service benefits, including 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. More information can be located at the Company's homepage on the worldwide web at http://www.prepaidlegal.com.

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Forward-Looking Statements

Statements in this press release, other than purely historical information, including those contained in the comments above by Harland Stonecipher and the Company's future plans and objectives and expected operating results, 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 all of the risks and uncertainties incident to the Company's business that are described in the reports and statements filed by the Company with the Securities and Exchange Commission, including (among others) those listed in the Company's Form 10-K. Please refer to pages 33 and 34 of the Company's 2001 Form 10-K and page 7 of the Company's March 31, 2002 Form 10-Q for a more complete description of the factors that could cause actual results to differ materially from those described in the forward-looking statements.

The forward-looking statements regarding the putative securities class action and ruling on the motion for reconsideration, and the Company's intention to vigorously defend the putative securities class action and other pending litigation, are subject to numerous risks and uncertainties that could cause actual results to differ materially from the Company's goals, objectives and anticipated outcomes. These risks and uncertainties include, but are not limited to, possible reversals on appeal, adverse rulings on motions to dismiss or limit claims in pending and future litigation, adverse rulings on motions for class certification, and adverse verdicts and/or judgments at trial. The Company undertakes no duty to update any of the forward-looking statements in this press release.