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 News Article

October 4, 2007

NEWLY PRIVATE SYLVAN LEARNING INC. ANNOUNCES A NEW LESSON PLAN



Answering the more than 5,000 franchise inquiries received each year, Sylvan makes hundreds of centers and territories available for ownership nationwide Sylvan announces expansion of consumer and school-based programs in response to increasing consumer demand

Sylvan Learning, the nation’s largest franchisor of after-school learning centers, today announced significant changes to its consumer offerings and operating strategy, including the re-franchising of more than 250 centers across the nation.

Sylvan receives more than 5,000 franchise ownership inquiries each year, more than four times the size of its existing system of 1,200 retail locations. Under Sylvan’s new “lesson plan,” the company is making available more than 400 centers and territories for new ownership across the country. Available are individual retail locations, multiple centers and entire territories in markets such as Chicago, Los Angeles, Boston, Houston, Atlanta and numerous other communities large and small.

The availability of the centers and territories results from two strategic business developments. First, Sylvan is redistricting a group of territories to address changes in consumer population and density that have occurred since Sylvan’s territories originally were drawn. By redistricting territories, franchisees will be better positioned to serve consumers through more conveniently located centers.

Second, Sylvan is re-franchising corporate-owned centers because the best way to respond to the overwhelming interest in children’s educational services is through local ownership that can respond to the particular needs of each community. The performance of Sylvan’s franchisee’s centers demonstrates that local ownership and control is more effective.

“Consumer demand for educational services is growing, but so is the complexity of those demands,” said Peter Cohen, president and CEO of Sylvan Learning. “We know that the best way to respond to those demands is by providing a brand and service footprint that is the most respected and recognized in the nation, delivered through a franchise system that serves every community in America.”

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NEW LESSON PLAN, Page 2

Over the past three years, consumer spending on tutoring has increased 7 to 10 percent annually, and annual increases of 12 to 15 percent are projected for the future, according to Eduventures, Inc.

A Focus on Convenience

In response to the changing consumer marketplace and increasing demand for supplemental educational programs, Sylvan – best known for its center-based learning programs in reading and math – is also expanding its services to better and more effectively serve more students. Sylvan is becoming more convenient for many families through its home-based tutoring services, the wide-scale launch of its online tutoring program and its addition of centers through redistricting.

“We know parents increasingly are squeezed for time and it may be difficult to commit to a regular schedule of after-school visits to a learning center,” Cohen said. “That is why we are, first, introducing a home-based tutoring service; second, moving our live, online tutoring program from pilot stage to wide-scale launch; and third, redistricting a group of our territories to better serve customer needs and meet franchise demand.”

Through Sylvan In Home Tutoring, students can receive tutoring from an experienced tutor who has been carefully screened, selected and is backed by Sylvan’s comprehensive network of educational resources, people and expertise. Individual instruction is available in a broad range of academic subjects, from the comfort of students’ own homes, allowing a schedule that best suits students and their families. Similarly, Sylvan Online provides live, interactive reading, math and other tutoring programs offered in centers via the Internet, enabling students and parents to choose when and where they want the tutoring to take place.

“We have proven, through piloting online tutoring with more than 1 million sessions delivered, that our live, online program generates the same stellar academic results as our center-based programs, but provides the added convenience of complete scheduling flexibility,” Cohen said. “We are responding to the increased demand for supplemental education by offering expanding programs that make our best-in-quality tutoring available in a wide range of subjects, offered any time of the day, at home, over the web and even in school.”

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Responding to NCLB

The pressure to achieve the No Child Left Behind mandate of 100 percent proficiency for all students in reading and math by 2014 has prompted schools across the nation to seek more partnerships with third-party education firms like Sylvan.

In response, Sylvan is introducing Ace It!, a research-based supplemental reading and math program designed to allow Sylvan Learning Center franchisees to partner with their local schools in addressing the needs of underperforming students. Ace It! programs are in partnering school buildings or nearby community locations.

“As the nation’s largest network of after-school learning centers, we have provided a pathway to academic success and self-confidence for millions of struggling students,” said Cohen. “With the national launch of Ace It!, we are arming our franchisees with a supplemental education program that is perfect for partnering with schools and community organizations. Over the past few years a number of our franchisees have become invaluable partners with schools in their territories.”

As the demand for supplemental education programs has skyrocketed, so too has the interest in becoming a Sylvan franchisee. The demand for children’s education businesses has been sparked by the increasing number of baby boomers nearing the end of their current work careers and looking for new opportunities to use the skills they have developed during years of employment. Nearly half of Sylvan’s qualified franchising inquiries in 2007 have come from the baby boomer population. Many wish to become business owners and relish the idea of owning and operating a business that provides the opportunity for personal growth and serves the needs of families looking to help their children excel in school and life.

Founded in 1979, Sylvan Learning is North America’s leading provider of private tutoring in grades pre-K through 12. There are currently nearly 1,200 Sylvan centers located across the United States and Canada delivering personalized tutoring programs to students of all ages, grades and skill levels.

About Sylvan Learning, Inc. - Learning feels goodTM at Sylvan, the leading provider of in-center and live, online tutoring at home to students of all ages, grades and skill levels. With more than 27 years of experience and nearly 1,200 centers located throughout North America, Sylvan’s proven process and personalized methods have inspired more than 2 million students to discover the joy of learning.



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