Encore Capital Receives Letter From Nasdaq for Audit Committee Vacancy

Encore Capital Group, Inc. announced that due to the resignation, on May 11, 2007, of Eric D. Kogan from its Board of Directors and audit committee, it received a letter, dated May 30, 2007, from The Nasdaq Stock Market indicating that Encore Capital no longer complies with Nasdaq’s audit committee requirement as set forth in Marketplace Rule 4350(d)(2)(A). The Rule requires Encore Capital to have an audit committee of three independent directors.
The letter from Nasdaq also indicated that Encore Capital has the following cure period in which to regain compliance:

until the earlier of Encore Capital’s next annual stockholders’ meeting or May 11, 2008; or

if the next annual stockholders’ meeting is held before November 7, 2007, then Encore Capital must evidence compliance no later than November 7, 2007.

If Encore Capital does not regain compliance by the above listed dates, its securities may be delisted. The Company is in the process of identifying and qualifying a candidate to fill this position and anticipates that the requirement will be satisfied within the cure period.