ChinaEdu to Acquire Remaining 20% Interest in 101 Online School
March 10 2008 - 4:06PM
PR Newswire (US)
BEIJING, March 10 /Xinhua-PRNewswire-FirstCall/ -- ChinaEdu
Corporation (NASDAQ:CEDU), an educational services provider in
China ('ChinaEdu' or the 'Company'), announced today that it has
entered into a definitive agreement to acquire the remaining 20%
equity interest in the 101 Online School, an online tutoring and
test preparation program in which the Company owned the other 80%
interest, for a purchase price of RMB5.2 million (approximately
US$712,856*). ChinaEdu acquired its initial 80% equity interest in
January 2005. The acquisition will allow ChinaEdu to obtain full
ownership of 101 Online School, which the Company believes will
facilitate strengthening the online business in many areas,
including technology, marketing, and distribution channels. The
acquisition is expected to close by April 2008. 101 Online School
provides interactive tutoring services to primary and secondary
school students in virtually all academic subjects offered to these
students in China, using ChinaEdu's proprietary e-learning
platform. Founded in 1996, 101 Online School has developed a strong
reputation among students and teachers as a valuable learning tool
over the past 12 years. In the nine month period ended September
30, 2007, online tutoring programs contributed RMB13.53 million
(approximately US$1.85 million) in revenue to the Company, as
compared to RMB12.53 million (approximately US$1.72 million) in
revenue during the same period in 2006. Ms. Julia Huang, Chief
Executive Officer of ChinaEdu, remarked, 'Our growth strategy
includes accelerating the organic growth of our existing businesses
while also pursuing strategic acquisitions in order to advance our
inroads into the Chinese educational market. We believe the
acquisition of the remaining 20% equity interest in the 101 Online
School will allow us to capitalize on the growth potential of the
online tutoring business.' Ms. Huang further noted, 'After the
closing of the acquisition, we intend to continue to enhance our
online tutoring program by recruiting additional high quality
teachers, expanding the scope of programs offered and upgrading our
technology to increase student retention and student usage rates
for our programs.' * Exchange rate: Buying rate of USD1.00 =
RMB7.2946 at noon on December 31, 2007 About ChinaEdu ChinaEdu
Corporation is an educational services provider in China,
incorporated as an exempted limited liability company in the Cayman
Islands. Established in 1999, the Company's primary business is to
provide comprehensive services to the online degree programs of
leading Chinese universities. These services include academic
program development, technology services, enrollment marketing,
student support services and finance operations. The Company's
other lines of businesses include the operation of private primary
and secondary schools, online interactive tutoring services and
providing marketing and support for international curriculum
programs. The Company believes it is the largest service provider
to online degree programs in China in terms of the number of higher
education institutions that are served and the number of student
enrollments supported. The Company currently has strategic
relationships with eleven universities to operate online degree
programs, nine of which are under long-term, exclusive contracts
that vary from 15 to 50 years in length. Forward-Looking Statement
This press release contains 'forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995,
including certain plans, expectations, goals, and projections,
which are subject to numerous assumptions, risks, and
uncertainties. Forward-looking statements involve known and unknown
risks, uncertainties and contingencies, many of which are beyond
our control which may cause actual results, levels of activity,
performance or achievements to differ materially from any future
results, levels of activity, performance or achievements expressed
or implied by such forward-looking statements. The Company's actual
results could differ materially from those contained in the
forward-looking statements due to a number of factors, including
those described under the heading 'Risk Factors' in the Company's
final prospectus filed with the Securities and Exchange Commission
on December 11, 2007, and in documents subsequently filed by the
Company from time to time with the Securities and Exchange
Commission. Unless required by law, the Company undertakes no
obligation to (and expressly disclaim any such obligation to)
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. For more
information, please contact: Michael Xu Chief Financial Officer
ChinaEdu Corporation Tel: +86-10-8418-6655 x1002 Email: Pamela
Leung Taylor Rafferty, Hong Kong Tel: +852-3196-3712 Email: Jessica
McCormick, Taylor Rafferty, New York Tel: +1-212-889-4350 Email:
DATASOURCE: ChinaEdu Corporation CONTACT: Michael Xu, Chief
Financial Officer of ChinaEdu Corporation, +86-10-8418-6655 x1002,
or ; or Pamela Leung of Taylor Rafferty, Hong Kong, +852-3196-3712,
or , or Jessica McCormick of Taylor Rafferty, New York,
+1-212-889-4350, or , both for ChinaEdu
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