NCO Group Announces Fourth Quarter 2007 Results

NCO is organized into three operating divisions: Accounts Receivable Management (“ARM”), Customer Relationship Management (“CRM”) and Portfolio Management. During the fourth quarter of 2007, the ARM division operated slightly below its revenue and profitability targets primarily as a result of weaker than expected collection environment and the adverse impact of foreign currency exchange rates. During the fourth quarter, the CRM division operated below its revenue and profitability targets primarily as a result of unanticipated client program changes that began in the third quarter and the adverse impact of foreign currency exchange rates. During the fourth quarter, the Portfolio Management division was slightly below its revenue target and above its profitability target, excluding the allowance for impairment of purchased accounts receivable of $25.0 million. The additional profitability was primarily due to the refinement of our portfolio strategy designed to introduce sales opportunities earlier in the portfolio life cycle.

Commenting on the quarter Michael J. Barrist, Chairman and Chief Executive Officer, stated, “During the fourth quarter, we continued to feel the impact of the consumer driven downturn that began during the third quarter. Historically, these types of downturns initially impact our business negatively as consumers slow their payment patterns and our clients are forced to make operational changes to offset the adverse impact to their businesses. Additionally, the downturn necessitated our reevaluation of the collectability of our purchase portfolio. This resulted in a near-term impairment, changes to our underwriting process and the renegotiation of certain of our ongoing commitments to buy portfolios. As with other downturns, this initial transition period is typically followed by a period of opportunity. The first quarter of 2008 has been relatively strong in our ARM business as increased volume from new and existing clients, primarily in our early stage delinquency business, has begun to offset some of the impact of lower consumer response. Additionally, we believe new CRM volume and increased portfolio purchase opportunities at reduced prices have positioned NCO for a productive 2008. During the first quarter we also completed our planned acquisitions of Systems & Services Technologies, Inc. and Outsourcing Solutions Inc. The integration of these acquisitions is proceeding according to plan and we expect that the addition of these companies will help us to further define NCO as the partner of choice for our clients as they navigate through this more challenging economy.”

The Company also announced that it will host an investor conference call on Wednesday, April 2, 2008, at 1:30 p.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 41778758. 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 41778758.

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 140 offices in the United States, Canada, the Philippines, Panama, the Caribbean, India, the United Kingdom, Mexico and Australia.

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 NCO’s significant level of debt, risks related to union organizing efforts at the Company's facilities, 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, risks related to international operations and other risks detailed from time to time in NCO’s filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2007, 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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