PRG-Schultz Announces Completion of Redemption of Notes and Preferred Stock Issued in 2006 Exchange Offer

PRG-Schultz International, Inc. (Nasdaq: PRGX), the world’s largest recovery audit firm, today announced that it has completed the redemption of its 9% Series A preferred stock, thus concluding the successful redemption of all notes and preferred stock issued in the Company’s Exchange Offer which closed in March 2006. In the 2006 Exchange Offer the Company offered a bundle of new securities comprised of 11% Senior Notes due 2011, 10% Senior Convertible Notes due 2011 and 9% Series A preferred stock in exchange for $125 million in principal amount of 4.75% Convertible Subordinated Notes due November 2006. The Company initiated the redemption of all of the securities issued in the 2006 Exchange Offer on September 17, 2007. On October 4, 2007, the redemption date for the Senior Notes and the Senior Convertible Notes, the Company announced that it had redeemed all of its outstanding Senior Notes for an aggregate amount of approximately $52.8 million, that virtually all of the Company’s Senior Convertible Notes were converted into shares of PRG-Schultz common stock prior to the redemption date, and that the remaining Senior Convertible Notes were redeemed for approximately $152 thousand. The redemption date for the Series A preferred stock was October 19, 2007, and virtually all of the outstanding shares of the preferred stock were converted into shares of PRG-Schultz common stock prior to this redemption date. The Company redeemed the remaining outstanding shares of preferred stock that did not convert for an aggregate of approximately $44 thousand, which included dividends accrued on the Series A preferred stock to the redemption date. Following the completion of the redemption of the Senior Notes, the Senior Convertible Notes and the Series A preferred stock, the Company has total debt outstanding of $45 million and has approximately 21.5 million shares of common stock outstanding. "The successful turnaround at PRG-Schultz was made possible by the March 2006 acceptance by our noteholders, whose notes were then due in November 2006, of our offer to exchange these notes for a bundle of new securities not due until 2011,” said James B. McCurry, the Company’s chairman, president and chief executive officer. "We are therefore very pleased that the turnaround which they made possible has allowed us to redeem the new securities almost three and a half years sooner than expected.” 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 turnaround of its operations. 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 additional or unforeseen costs related to operations, a material decrease in revenues from clients, and the 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.