PRG-Schultz Announces Completion of Redemption of 11% Senior Notes and 10% Senior Convertible Notes

PRG-Schultz International, Inc. (Nasdaq: PRGX), the world’s largest recovery audit firm, today announced that it has completed the redemption of its 11% Senior Notes Due 2011 and its 10% Senior Convertible Notes Due 2011. All of the outstanding Senior Notes were redeemed for an aggregate of approximately $52.8 million, which included interest accrued on the Senior Notes to the redemption date and a 2% redemption premium payable as a result of early redemption of the Senior Notes. As a result of the Company’s call for redemption of the Senior Convertible Notes, virtually all of the outstanding Senior Convertible Notes were converted into shares of PRG-Schultz common stock prior to the redemption date. The Company redeemed the outstanding Senior Convertible Notes that did not convert for an aggregate of approximately $152 thousand, which included interest accrued on the Senior Convertible Notes to the redemption date. The Company used funds under its credit facility with Ableco Finance LLC to complete the redemption of the notes. As previously announced, PRG-Schultz has also called its 9% Series A preferred stock for redemption. The redemption date for the preferred stock is October 19, 2007. Holders of the preferred stock have until the close of business on October 18, 2007 to convert their shares of preferred stock into shares of the Company’s common stock and the Company expects that virtually all of the preferred stock will be converted by the holders prior to the redemption date. Currently, the Company has approximately 19.6 million shares of common stock outstanding, and expects that upon completion of the redemption of the Series A preferred stock, its total shares of outstanding common stock will number approximately 21.5 million. About PRG-Schultz International, Inc. Headquartered in Atlanta, PRG-Schultz International, Inc. is the world's leading recovery audit firm, providing clients throughout the world with insightful value to optimize and expertly manage their business transactions. Using proprietary software and expert audit methodologies, PRG industry specialists review client purchases and payment information to identify and recover overpayments. Forward Looking Statements In addition to historical information, this press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include both implied and express statements regarding the Company's financial condition and liquidity, the redemption of the Series A preferred stock, the anticipated conversions of the Series A preferred stock into common stock and the anticipated number of outstanding shares of common stock. Such forward looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from the historical results or from any results expressed or implied by such forward-looking statements. Risks that could materially impact such forward looking statements include the Company's ability to satisfy the terms and conditions for funding of the new credit facility, market conditions for the Company's common stock that could affect the conversions of the Series A preferred stock, and other risks generally applicable to the Company's business. For a discussion of other risk factors that may impact the Company's business and the success of its restructuring plan, please see the Company's filings with the Securities and Exchange Commission, including its Form 10-K filed on March 23, 2007. The Company disclaims any obligation or duty to update or modify these forward-looking statements.