Press Release

New Century Education Raises Venture Capital Funding

(February 5, 2005, Piscataway, New Jersey) New Century Education Corporation announces the successful completion of a new round of venture capital funding. The funds will support New Century’s ongoing program of product improvement. According to Jim Griffin, CEO, “Raising money is very challenging in the current environment, so we were especially pleased to close this equity offering at its maximum level. We demonstrated consistent 20% growth in revenues over the past few years, along with a rapid rise in positive earnings, and this made all the difference in raising money.”

The Company attributes its growth to the efficacy of its products in educating students. Measuring the performance of students who use New Century software versus control groups who do not, school districts are independently concluding that use of New Century contributes significantly to student learning. For example, in a recent randomized control study, third graders who used New Century’s software significantly outperformed students in control groups on the Florida FCAT exam in Reading. According to Karen Brandhorst, President, “Results such as these are leading to significant improvements in sales.”

The New Century Instructional System combines software based curriculum, integrated assessments, and valuable teacher and administrator reports that are used by districts to help students of all ages and ability levels achieve proficiency in core curriculum subjects. New Century’s diagnostic/prescriptive solution assesses a student’s strengths and weaknesses and delivers lessons designed to teach those skills that the student must master according to state standards. Importantly, New Century lessons are designed to teach new skills, not drill and practice. In many instances, New Century is used as the core curriculum. The Company’s diagnostic tests are used as benchmarking tools, because they demonstrate a high degree of validity and reliability in measuring student progress.

New Century Education offers educators a complete program 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