Encore Capital Announces Deals that Lock Up 40% of its Shares

Encore Capital Group, Inc. announced an agreement has been reached by an investment vehicle jointly funded by affiliates of J.C. Flowers & Co. and FPK Capital to acquire 5,737,032 shares of Encore common stock from C.P. International Investments Limited, Triarc Companies, Inc. and related parties in a privately negotiated transaction, all as set forth in relevant filings with the Securities and Exchange Commission. On closing of this transaction, this vehicle will be the largest stockholder of Encore Capital Group, with shares representing approximately 25% of the common stock outstanding.

The Company also announced that Red Mountain Capital Partners has separately purchased 3,435,062 shares of Encore common stock, as announced in filings with the Securities and Exchange Commission on April 12, 2007 and April 16, 2007, representing approximately 15% of the common stock outstanding.

Following these separate transactions, representatives of J.C. Flowers, FPK Capital and Red Mountain are expected to be invited to join the Board of Directors in early May 2007. Simultaneously, Raymond Fleming, Treasurer of Consolidated Press Holdings Limited, Eric D. Kogan, Partner of Clarion Capital Partners, and Peter W. May, President and Chief Operating Officer of Triarc Companies, are expected to step down from the Board.

"We view J.C. Flowers, FPK Capital and Red Mountain as strong partners in building long-term value for Encore and all of its stockholders. We have developed our relationship with Red Mountain over the past year and are pleased to see them take a significant position in the Company and we look forward to a productive relationship with J.C. Flowers and FPK Capital," said J. Brandon Black, President and CEO of Encore Capital Group, Inc.

Richard A. Mandell, Chairman of the Board of Directors of the Company said, "On behalf of the entire Board of Directors and the management team, I am deeply grateful to Ray, Eric, and Peter for their service to Encore Capital’s Board of Directors. Each has made significant contributions to the Company’s governance and strategic initiatives. We are particularly thankful for Eric’s active leadership throughout his 10-year relationship with the Company, helping to build it from a virtual startup into the business it is today."