NCO Group Announces Third Quarter 2007 Results

NCO is organized into three operating divisions: Accounts Receivable Management (“ARM”), Customer Relationship Management (“CRM”) and Portfolio Management. During the third quarter of 2007, the ARM division operated slightly below its revenue and profitability targets primarily as a result of weaker than expected consumer payment patterns, lower than expected revenue derived from owned portfolio collections, and the adverse impact of foreign currency exchange rates. The adverse impact of these items was partially offset by increased business opportunities from new and existing clients.  During the third quarter, the CRM division operated below its revenue and profitability targets primarily as a result of unanticipated client program changes, unanticipated ramp-up costs associated with several new client opportunities, as well as the adverse impact of foreign currency exchange rates. During the third quarter, the Portfolio Management division exceeded its revenue and profitability targets primarily due to ramp-up of newly acquired portfolios and the benefit of a refinement to our portfolio strategy designed to introduce sales opportunities earlier in the portfolio life cycle. Theses positive events were dampened by the weaker than expected consumer payment patterns.

Commenting on the quarter Michael J. Barrist, Chairman and Chief Executive Officer, stated, “I am pleased that during the third quarter, absent the adverse impact of foreign currency, we were able to exceed our overall profitability objectives. These results demonstrate that a strategy of diversification across several competencies and many industry verticals allows NCO to dampen the impact of what has proven to be a very difficult operating environment. During the quarter we continued to see an acceleration of the devaluation of the U.S. dollar, primarily as it relates to the Canadian dollar. We believe this trend will continue and accordingly we are working with our clients to determine the best methodology to counteract the impact of this ongoing trend. Additionally, we are focusing efforts on ways to leverage NCO’s market position in order to take advantage of all portfolio purchase and servicing opportunities that are available given the likelihood that we will continue to operate in a challenging consumer cycle.”

The Company also announced that it will host an investor conference call on Thursday, November 15, 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 24467951. 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 24467951.

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 Philippines, Panama, the Caribbean, India, the United Kingdom 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 our significant level of debt, 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, 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 Quarterly Report on Form 10-Q for the quarterly period ended June 30, 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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