Steve Fredrickson Chairman, President and Chief Executive Officer management changes in both businesses, and we  are diligently employing process and technology  resources that have served us well in the debt-  purchase business. Our fee businesses offer oppor- tunities for solid growth without significant capital  investment, and we are focusing on developing  them into highly profitable, sustainable enterprises  over the long term. I strongly believe that intelligent diversification is a  key to Portfolio Recovery Associates’ continuing  success. This belief is what led us to enter the  bankruptcy market, though we knew at the onset  that patience would be required to achieve significant  success, and it is what is guiding us now in building  an impressive portfolio of fee-for-service businesses.  Ultimately, building a diverse group of enterprises  selling to different markets and exposed to different  economic and pricing cycles should enable us to  deliver superior long-term results through a wide  variety of conditions. Regulation and compliance continued to be front- burner items for us throughout 2010. Although  nothing specific to our industry has yet emerged  from the newly created Consumer Financial Protection  Bureau, it is clear that additional regulation of the  industry is likely. We believe PRA is an industry leader  in the compliant conduct of all aspects of collection  operations, including the litigation process. In handling  and reviewing account documentation, we employ  what we believe are rigorous, industry-leading stan- dards. We continue to study and refine them, setting  the bar even higher for the industry. During 2010,  this included making a significant investment in  technology that provides sophisticated speech analytics for all telephone conversations, to ensure  that we’re in compliance with PRA’s policies and  procedures as well as industry standards. Unfortunately, the proliferation of blogs and other  social media outlets has spawned a number of  one-sided, often misguided, and frequently unsub- stantiated posts or stories about the debt-purchase  industry. Some of those posts have mentioned PRA.  The irresponsible, and many times outright inaccu- rate, views expressed have even leaked into the  traditional press. The fact is that the debt-purchase  business plays a critical role in the consumer credit  industry that is so essential to the health of the U.S.  economy. Without a reasonable and well-run enforce- ment mechanism, the consumer credit market cannot function. PRA and firms like it in the collection  industry work every day with defaulted consumers  to voluntarily resolve unpaid bills. Although litigation  is never our first choice for enforcing a debt, when  we go down this path we take great care to ensure  proper service, documentation, balances, and venue. Our challenge for 2011 is to carry forward the fabu- lous momentum we developed in 2010. We seek to  strengthen the operations and sales capabilities of  our fee-for-service businesses, while leveraging our  expertise and market position in both bankruptcy  and core debt purchases. Thank you for your con- tinued support of PRA through your ownership of  our stock. I assure you that the employees at  Portfolio Recovery Associates are working very hard  to maximize your investment and retain your trust. Sincerely, Steve Fredrickson Chairman, President and Chief Executive Officer 3