X0202 3 2007-08-30 0 0001007330 PRG SCHULTZ INTERNATIONAL INC PRGX 0001069726 GALLEN JONATHAN C/O AHAB CAPITAL MANAGEMENT, INC. 299 PARK AVENUE, 17TH FLOOR NEW YORK NY 10171 0 0 1 0 Common Stock, no par value 1025000 I By partnerships, corporations and private investment accounts As of August 30, 2007, Ahab Partners, L.P. ("Partners"), Ahab International, Ltd. ("International"), Queequeg Partners, L.P. ("Queequeg"), Queequeg, Ltd. ("Limited") and one or more private investment accounts (the "Accounts") held in the aggregate 1,025,000 shares of common stock, no par value (the "Shares"), of PRG-Schultz International, Inc. (the "Company"). Jonathan Gallen possesses sole power to vote and direct the disposition of all securities of the Company held by Partners, International, Queequeg, Limited and the Accounts. Accordingly, for the purposes of Rule 13d-3 under the Securities Exchange Act of 1934, as amended, Mr. Gallen is deemed to beneficially own 1,025,000 Shares. Mr. Gallen's interest in the securities reported herein is limited to the extent of his pecuniary interest in Partners, International, Queequeg, Limited and the Accounts, respectively, if any. /s/ Jonathan Gallen 2007-09-05