NCO Group Announces First Quarter 2007 Results

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.

About NCO Group, Inc.
NCO Group, Inc. is a global provider of business process outsourcing services, primarily focused on accounts receivable management and customer relationship management. NCO provides services through over 100 offices in the United States, Canada, the United Kingdom, Australia, India, the Philippines, the Caribbean and Panama.

For further information contact:      
NCO Investor Relations                    
(215) 441-3000

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Certain statements in this press release, including, without limitation, statements as to fluctuations in quarterly operating results, statements as to trends, statements as to NCO’s or management’s beliefs, expectations or opinions, and all other statements in this press release, other than historical facts, are forward-looking statements, as such term is defined in the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created thereby. Forward-looking statements are subject to risks and uncertainties, are subject to change at any time and may be affected by various factors that may cause actual results to differ materially from the expected or planned results. In addition to the factors discussed above, certain other factors, including without limitation, the risk that NCO will not be able to implement its business strategy as and when planned, the risk that NCO will not be able to realize operating efficiencies in the integration of its acquisitions, risks related to union organizing efforts at the Company's facilities, risks related to the ERP implementation, risks related to past and possible future terrorists attacks, risks related to the economy, the risk that NCO will not be able to improve margins, risks relating to growth and acquisitions, risks related to fluctuations in quarterly operating results, risks related to the timing of contracts and risks related to international operations can cause actual results and developments to be materially different from those expressed or implied by such forward-looking statements. The Company disclaims any intent or obligation to publicly update or revise any forward-looking statements, regardless of whether new information becomes available, future developments occur or otherwise.

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