NCO Group Announces Amendment of Credit Facility

HORSHAM, PA – NCO Group, Inc. (“NCO” or the “Company”) (Nasdaq: NCOG), a leading provider of business process outsourcing services, announced yesterday that it has amended and restated its credit facility. The amended and restated credit facility is structured as a $300 million revolving credit facility with a $100 million accordion feature allowing the Company to increase its borrowing capacity up to $400 million, subject to obtaining commitments for the incremental capacity from existing or new lenders. The amendment also extends the maturity date from March 15, 2006 to June 18, 2010. As of June 21, 2005, the Company had outstanding loans of $31.3 million under the facility.

RBS Securities Corporation served as Joint Lead Arranger and Sole Bookrunner for the facility and Citizens Bank of Pennsylvania is serving as the Administrative Agent. National City Bank joined the credit facility as Joint Lead Arranger and Syndication Agent; Bank of America and Wachovia are serving as Documentation Agents.

The amended credit facility allows for $125 million of the capacity to be used for the repayment of the Company’s convertible notes if they are not converted into NCO common stock before their maturity on April 15, 2006. The Company is required to reserve sufficient capacity to repay the convertible notes until such time as the notes convert or are otherwise retired. The notes are convertible into NCO common stock at an exercise price of $32.92.

At the option of NCO, the borrowings bear interest at a rate equal to either Citizens Bank’s prime rate or the London InterBank Offered Rate (“LIBOR”) plus a margin of 0.75 percent to 1.50 percent depending on the Company’s consolidated funded debt to earnings before interest, taxes, depreciation, and amortization (“EBITDA”) ratio.

Commenting on the refinancing, Steven L. Winokur, Executive Vice President, Chief Financial Officer, and Chief Operating Officer of Shared Services, stated, “This amended credit facility provides us with the financial depth to take full advantage of future growth opportunities. We believe that the pricing and flexibility of this facility is a reflection of our bank group’s confidence in the financial strength and stability of NCO.”