THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Encore Capital Group, Inc. (ECPG)

5/1/2006 Proxy Information

During January 2005 certain selling stockholders sold 3,084,574 shares of common stock in an underwritten public offering. Pursuant to registration rights previously granted to such parties, we bore certain customary costs related to the offering on behalf of the selling stockholders. Among the selling stockholders were Mr. Barkley, our chief financial officer at the time and now a director of Encore; Mr. Kogan, a director of Encore; entities affiliated with Messrs. May and Peltz, directors of Encore; C. P. International Investments Limited, an affiliate of the employer of Raymond Fleming, a director of Encore; Madison West Associates Corp., an affiliate of Triarc and of Messrs. May and Peltz; and Edward P. Garden, a current officer and director of Triarc and the son-in-law of Mr. Peltz. Total offering expenses paid on behalf of the selling stockholders were approximately $500,000.

Mr. Gregory served as a Vice Chairman of Encore Capital Group, Inc. from October 2004 to May 2006. From October 2004 until September 2005, he also served as Vice Chairman and Chief Executive Officer and previously served as President and Chief Executive Officer from May 2000 to October 2004.