CALDEIRÃO DE BOLSA

ATLANTA, May 14, 2007 (BUSINESS WIRE) -- PRG-Schultz International, Inc. (PRGX) , the world's largest recovery audit firm, today announced its unaudited financial results for the first quarter ended March 31, 2007.

Highlights of Financial Results

-- Net earnings for the 2007 first quarter were $1.5 million or $0.16 per basic share and $0.13 per diluted share, compared to a net loss of $10.3 million, or $(1.66) per basic and diluted share for the same period in 2006. The first quarter 2007 net income included a charge of $2.7 million related to stock-based compensation. The first quarter 2006 net loss included a non-cash charge of $10.1 million resulting from the Company's financial restructuring, a charge of $0.4 million related to stock-based compensation and a charge of $0.4 million for severance and other charges related to an operational restructuring.

-- Adjusted EBITDA for the 2007 first quarter was $11.6 million compared to $6.6 million of adjusted EBITDA for the same period in 2006. The 2007 first quarter adjusted EBITDA is earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA) excluding the $2.7 million charge for stock-based compensation. The comparable adjusted EBITDA amount for the first quarter of 2006 is EBITDA for the period which excludes the non-cash charge of $10.1 million resulting from the financial restructuring, and excluding the charge of $0.4 million related to stock-based compensation and the operational restructuring charge of $0.4 million. (Schedule 3 attached to this press release provides a reconciliation of net earnings (loss) to each of EBITDA and adjusted EBITDA).

-- Consolidated revenue for the first quarter of 2007 was $66.9 million, an increase of 2.1% compared to $65.5 million for the same period in 2006. Cost of Revenue and SG&A expenses combined were $60.2 million for the 2007 first quarter, reflecting a reduction of $2.0 million, or 3.2%, compared to the same period in 2006.

Liquidity

At March 31, 2007 the Company had cash and cash equivalents of $21.4 million and had no borrowings against its revolving credit facility. Total debt outstanding at quarter-end was $130.3 million and included a $15.4 million outstanding balance on a variable rate term loan due 2010, $51.5 million in principal amount of 11.0% Senior Notes Due 2011, $61.9 million in principal amount of 10.0% Senior Convertible Notes Due 2011, and $1.5 million of capital lease obligations. In addition, the Company had 9.0% Series A preferred stock outstanding with an aggregate liquidation preference of $8.9 million, which is mandatorily redeemable in 2011. The Company paid down $9.6 million of the term loan balance during the first quarter of 2007. Also, $0.6 million in principal amount of Senior Convertible Notes and $2.4 million in liquidation preference of Series A preferred stock were converted during the quarter into approximately one million shares of common stock. During the first quarter, the Company also retained an investment banking firm to assist in the evaluation and pursuit of financing alternatives to reduce the Company's cost of capital.

"We are pleased that our disciplined cost management and clear focus on our most important clients has led to another successive quarter of improved results," said James B. McCurry, chairman, president and chief executive officer. "We continue to aggressively pursue our three part strategy of strengthening our position as the world's leading recovery audit firm, developing new services to meet the needs of our strong base of clients, and pioneering recovery audit into the new territory of Medicare. We are excited by the upcoming expansion of recovery audit of Medicare to all fifty states, and are actively investing to strengthen our Medicare auditing capabilities in preparation for this opportunity."