NCO Group Announces $1.4 million Loss for Q1 2007

NCO Group, Inc., announced that during the first quarter of 2007, it reported revenue of $318.4 million, EBITDA of $44.9 million and a net loss of $1.4 million.

On November 15, 2006, NCO was acquired by and became a wholly owned subsidiary of Collect Holdings, Inc., an entity controlled by One Equity Partners and its affiliates ("OEP"), a private equity investment fund, with participation by Michael J. Barrist, Chairman, President and Chief Executive Officer of NCO, certain other members of executive management and other co- investors ("the Transaction"). Under the terms of the merger agreement, NCO shareholders received $27.50 in cash, without interest, for each share of NCO common stock that they held. On February 27, 2007, NCO Group, Inc. merged with and into Collect Holdings, Inc. and the surviving corporation was renamed NCO Group, Inc. The accompanying unaudited selected financial data are presented for two periods, Predecessor and Successor, which relate to the period of operations preceding the Transaction and the period of operations succeeding the Transaction, respectively.

NCO is organized into three operating divisions: Accounts Receivable Management ("ARM"), Customer Relationship Management ("CRM") and Portfolio Management. During the first quarter of 2007, the ARM division exceeded its revenue and profitability targets primarily as a result of a better than expected collection environment and the timing of tax season. The CRM division also exceeded its revenue and profitability targets for the first quarter of 2007 primarily as a result of client volumes and reduced training exposure. During the first quarter of 2007, the Portfolio Management division was slightly below its revenue target as a result of the timing of the ramp up of newly acquired portfolios but exceeded its profitability target.

Commenting on the quarter Michael J. Barrist, Chairman and Chief Executive Officer, stated, "We are very pleased with the strong performance of NCO during the first quarter of 2007. Each of our operating divisions exceeded their profitability objectives on strong revenue and better than expected impact from some of the organizational changes and cost realignments we made during the latter part of the fourth quarter. Additionally during the quarter, we experienced stronger than expected portfolio buy opportunities which will help position us to meet our objectives as we move through the remainder of the year."

The Company also announced that it will host an investor conference call on Thursday, May 17, 2007, at 10:00 a.m., ET, to address the items discussed above in more detail and to allow the investment community an opportunity to ask questions. Interested parties can access the conference call by dialing (888) 209-7450 (domestic callers) or (706) 634-6082 (international callers) and providing the pass code 9643216. A taped replay of the conference call will be made available for seven days and can be accessed by interested parties by dialing (800) 642-1687 (domestic callers) or (706) 645-9291 (international callers) and providing the pass code 9643216.