Collection House Limited Establishes Law Services Arm

Collection House Limited today announced that it has established Collection House Legal Services Pty Ltd, an incorporated legal practice under the Legal Profession Amendment (Incorporated Legal Practices) Act 2000 (New South Wales), which became law on 1 July 2001. The newly established company, a wholly owned subsidiary of Collection House Limited, is the world?s first incorporated legal practice.

This announcement is a result of the New South Wales Parliament enactment of the Legal Profession Amendment (Incorporated Legal Practices) Act in November 2000. The world first legislation has allowed legal practices to incorporate under the Corporations Law and applies only to New South Wales.

Managing Director and Chief Executive Officer of Collection House Limited, John Pearce, regards the initiative as a strategic opportunity which would benefit Collection House?s clients and ultimately, shareholders.

?Collection House has been positioning itself for the past year to progress this venture through its alliance with ALR Lawyers, a partnership law firm specialising in debt collection litigation.?

?Anticipated growth of the law firm will be further progressed through the corporate funding from Collection House Limited which will enable quality staff and automated systems to enhance the public company?s revenues. Ultimately it is the clients and shareholders of Collection House who will benefit from this landmark legislation.?

?For the first time, legal practices can be competitive in the world marketplace, gaining the benefits from incorporation.?

• Flexibility of shareholding, opening the opportunity for non-lawyers to be both shareholders and directors in the company;
• Improved capital borrowing capacity;
• Freedom to issue various types of shares and rewarding key staff with shares;
• Limiting the liability of key shareholders; and
• In appropriate cases, raising capital in the stock market by floating.

Collection House Legal Services Pty Ltd will, with the consent of the Partners of the national law firm ALR Lawyers, operate under the name and style of ALR Lawyers in New South Wales and will expand branch offices of the incorporated legal practice into other states as soon as enabling legislation is enacted in those states.

John Pearce acknowledged The Law Society of New South Wales and Law Cover Pty Ltd for their valuable contributions in assisting Collection House Legal Services Pty Ltd to achieve prompt recognition as the first incorporated legal practice.

For further information contact:
Mr John Pearce
Managing Director and Chief Executive Office
Collection House Limited
Ph: 61 7 3292 1022
Email: john.pearce@collectionhouse.com.au