and our second-quarter results bear this out. Driving our performance was our continued commitment to making significant investments in people, information and technology. Our overall strategy is to continually improve operating effectiveness, underwriting competency and cost efficiency. This is an approach that has served us well since our inception, and we remain confident as ever in its ability to drive future growth," said Kevin P. Stevenson, Chief Financial and Administrative Officer.

Conference Call Information

The Company will hold a conference call with investors today, August 2, 2006, at 5:30 p.m. EDT to discuss its second quarter results. Investors can access the call live by dialing 800-659-1942 for domestic callers or 617-614-2710 for international callers using the pass code 99993426.

In addition, investors may listen to the call via a taped replay, which will be available for seven days, by dialing 888-286-8010 for domestic callers and 617-801-6888 for international callers using the pass code 80017269. The replay will be available approximately two hours after today's conference call ends. Investors may also listen via webcast, both live and archived, at the Company's website, www.portfoliorecovery.com.

About Portfolio Recovery Associates, Inc.

Portfolio Recovery Associates is a full-service provider of outsourced receivables management and related services. The company's primary business is the purchase, collection and management of portfolios of defaulted consumer receivables. These are the unpaid obligations of individuals to credit originators, which include banks, credit unions, consumer and auto finance companies, and retail merchants. Portfolio Recovery Associates also provides a broad range of collection services, including revenue administration for government entities through its RDS business, collateral-location services for credit originators via IGS Nevada, and fee-based collections through Anchor Receivables Management.

Statements herein which are not historical, including Portfolio Recovery Associates' or management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, including statements with respect to future contribution of IGS Nevada and RDS to earnings and future portfolio-purchase opportunities, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include references to Portfolio Recovery Associates' presentations and web casts. The forward-looking statements in this press release are based upon management's beliefs, assumptions and expectations of the Company's future operations and economic performance, taking into account currently available information. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties, some of which are not currently known to us. Actual events or results may differ from those expressed or implied in any such forward-looking statements as a result of various factors, including the risk factors and other risks that are described from time to time in the Company's filings with the Securities and Exchange Commission including but not limited to its annual reports on Form 10-K, its quarterly reports on Form 10-Q and its current reports on Form 8-K, filed with the Securities and Exchange Commission and available through the Company's website, which contain a more detailed discussion of the Company's business, including risks and uncertainties that may affect future results. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Information in this press release may be superseded by more recent information or statements, which may be disclosed in later press releases, subsequent filings with the Securities and Exchange Commission or otherwise. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or to reflect any change in events, conditions or circumstances on which any such forward-looking statements are based, in whole or in part. Portfolio Recovery Associates, Inc. Unaudited Consolidated Income Statements (in thousands, except per share amounts) Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2006 2005 2006 2005 Revenues: Income recognized on finance receivables $ 40,394 $ 33,823 $ 79,767 $ 66,073 Commissions 5,791 2,093 11,759 5,621 -------- -------- -------- -------- Total revenue 46,185 35,916 91,526 71,694 Operating expenses: Compensation and employee services 14,335 10,415 28,431 21,276 Outside legal and other fees and services 9,740 7,575 18,801 14,736 Communications 1,304 1,040 2,918 2,098 Rent and occupancy 560 513 1,120 988 Other operating expenses 1,205 729 2,281 1,482 Depreciation and amortization 1,240 1,039 2,492 1,980 -------- -------- -------- -------- Total operating expenses 28,384 21,311 56,043 42,560 -------- -------- -------- -------- Income from operations 17,801 14,605 35,483 29,134 Other income and (expense): Interest income 171 192 244 287 Interest expense (75) (63) (243) (127) -------- -------- -------- -------- Income before income taxes 17,897 14,734 35,484 29,294 Provision for income taxes 6,795 5,673 13,651 11,313 -------- -------- -------- -------- Net income $ 11,102 $ 9,061 $ 21,833 $ 17,981 ======== ======== ======== ======== Net income per common share Basic $ 0.70 $ 0.58 $ 1.37 $ 1.16 Diluted $ 0.69 $ 0.56 $ 1.36 $ 1.12 Weighted average number of shares outstanding Basic 15,897 15,599 15,884 15,565 Diluted 16,085 16,074 16,075 16,113 Portfolio Recovery Associates, Inc. Unaudited Consolidated Summary Balance Sheets (in thousands, except share amounts) June 30, December 31, ASSETS 2006 2005 Cash and cash equivalents $ 25,205 $ 15,985 Finance receivables, net 197,438 193,645 Property and equipment, net 7,288 7,186 Goodwill 18,288 18,288 Intangible assets, net 7,888 9,023 Other assets 3,009 3,646 ------------ ------------ Total assets $ 259,116 $ 247,773 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Accounts payable and accrued liabilities $ 10,924 $ 13,569 Deferred tax liability 25,119 22,346 Revolving lines of credit - 15,000 Long-term debt & capital lease obligations 1,232 1,535 ------------ ------------

Total liabilities 37,275 52,450

Stockholders' equity: Preferred stock, par value $0.01, authorized shares, 2,000,000,issued and outstanding shares - 0 - - Common stock, par value $0.01, authorized shares, 30,000,000, issued and outstanding shares - 15,899,568 at June 30, 2006 and 15,767,443 at December 31, 2005 159 158 Additional paid in capital 112,749 108,064 Retained earnings 108,933 87,101 ------------ ------------

Total stockholders' equity 221,841 195,323 ------------ ------------

Total liabilities and stockholders' equity $ 259,116 $ 247,773 ============ ============

Contact: Investor Relations 757-519-9300 ext. 13010 info@portfoliorecovery.com

SOURCE: Portfolio Recovery Associates, Inc.

Source: marketwire