Press Release

New Century Reports Continued Growth in 2006

Despite Declines by Others

(December 7, 2006, Piscataway, New Jersey)

December 7, 2006, Piscataway, N.J. - New Century Education Corporation is reporting revenue growth of 2% for the fiscal year ended June 30, 2006 versus prior year. “While this is less than the typical 20% growth that we have generated over the past four years, it compares quite favorably to double digit declines being reported by others in our industry,” says Jim Griffin, Chief Executive Officer. Karen Brandhorst, President, reports that “the industry was adversely affected by the Department of Education’s announcement in January that it would cut educational funding for the first time in over a decade, but our release of new products and our validating research has allowed us to continue growing.”

The Company also reported a 23% increase in software revenues in the first three months ended on September 30 versus the same period in the prior year. In other news, shareholders subscribed for additional equity in order to help accelerate certain development initiatives.

The New Century Instructional System has demonstrated the ability to enhance student learning by large effect sizes under rigorous studies involving random assignment of students to intervention and control groups. The software helps students of all ages and ability levels achieve proficiency in core curriculum subjects by combining software based curriculum, integrated assessments, and valuable teacher and administrator reporting. The program’s structured approach to differentiated instruction, its assessment and monitoring, and its curriculum are based on New Century’s rich history as a publisher of original research in learning behavior and motivation. Using adaptive assessments of a student’s skills across several strands of learning, the student is automatically assigned discrete lessons that address the specific objectives which the student needs to master. The developmental lessons are consistent in design and pedagogy through all grade levels and curriculum, and they are consistent with the Madeline Hunter approach to teaching new skills.  Unparalleled use of natural voice audio helps even students with Limited English Proficiency learn in situations where they may not read proficiently, but understand the spoken word.  For all of these reasons and more, New Century is very efficient at raising student performance in a short period of time.

New Century Education offers educators a complete program solution including software installation, technical support, training and staff development. Headquartered in Piscataway, New Jersey, the company has a national network of support personnel dedicated to on-site service delivery.

Contact: Janice Harrison, New Century Education Corporation , 732-981-5562