New Oriental Announces Expansion into Professional Certification Preparation
November 13 2006 - 8:00AM
PR Newswire (US)
Leader in Chinese Private Education Enters New Growth Market
BEIJING, Nov. 13 /Xinhua-PRNewswire/ -- New Oriental Education and
Technology Group Inc. (NYSE:EDU), the largest provider of private
educational services in China, today announced the establishment of
the Beijing New Oriental North Star Training School. The new school
is the first step in New Oriental's expansion into the professional
certification preparation field, which includes preparation for the
PRC bar, Certified Public Accountant (CPA) and civil service exams.
'China's rapid growth in recent years has created large demand for
certified professionals by Chinese and multinational companies as
well as government agencies,' said New Oriental's Chairman and
Chief Executive Officer, Mr. Michael Yu. 'The result has been a
corresponding increase in demand for high quality professional
certification preparation courses and materials, which New Oriental
is in a unique position to provide.' In 2006, approximately 280,000
individuals took the PRC bar exam, 560,000 individuals took the CPA
exam, and about two million individuals took the civil service exam
in China. Due to the importance of the examinations, a majority of
these professional certification exam takers have taken at least
one preparation course. New Oriental will seek to leverage its
educational platform to target senior college students and working
adults, who together represent the majority of those seeking
professional certifications. 'We also expect this new business line
to complement the existing New Oriental education portfolio by
offering higher average sales prices and less seasonality than the
traditional overseas and domestic test preparation businesses,'
added Louis T. Hsieh, New Oriental's Chief Financial Officer. 'For
example, a typical bar exam preparation course often features class
sizes of 50 to 300 or more, runs for six months, and has an
approximate blended average sales price of US$500.' 'Our entry into
the professional certification field is an important step in our
efforts to continue expanding New Oriental's business,' continued
Mr. Yu. 'The existing market for professional certification exam
preparation in China is immature and highly fragmented, offering an
excellent opportunity for New Oriental to create a leading
professional certification brand.' 'We do not expect the new school
to contribute significant, if any, revenues in the 2007 fiscal
year, but we will incur setup costs as a result of the new
business,' concluded Mr. Hsieh. About New Oriental New Oriental is
the largest provider of private educational services in China based
on the number of program offerings, total student enrollments and
geographic presence. New Oriental offers a wide range of
educational programs, services and products consisting primarily of
English and other foreign language training, test preparation
courses for major admissions and assessment tests in the United
States, the PRC and Commonwealth countries, primary and secondary
school education, development and distribution of educational
content, software and other technology, and online education. New
Oriental's ADSs, each of which represents four common shares,
currently trade on the New York Stock Exchange under the symbol
'EDU.' Safe Harbor Statement This announcement contains
forward-looking statements. These statements are made under the
'safe harbor' provisions of the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements can be
identified by terminology such as 'will,' 'expects,' 'anticipates,'
'future,' 'intends,' 'plans,' 'believes,' 'estimates' and similar
statements. Statements that are not historical facts, including
statements about New Oriental's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. Information regarding these risks
and uncertainties is included in our registration statement on Form
F-1 and other documents filed with the Securities and Exchange
Commission. New Oriental does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law. All information provided in this press release is
as of November 13, 2006, and New Oriental undertakes no duty to
update such information, except as required under applicable law.
For more information, please contact: In China: Ms. Sisi Zhao New
Oriental Education and Technology Group Inc. Tel: +86-10-6260-5566
x8203 Email: Mr. Rory Macpherson Ogilvy Public Relations Worldwide
Tel: +86-10-8520-6553 Email: In the United States: Mr. Thomas Smith
Ogilvy Public Relations Worldwide Tel: +1-212-880-5269 Email:
DATASOURCE: New Oriental Education and Technology Group Inc.
CONTACT: In China, Ms. Sisi Zhao of New Oriental Education and
Technology Group Inc., +86-10-6260-5566 x8203, or , or Mr. Rory
Macpherson, +86-10-8520-6553, or , or in the United States, Mr.
Thomas Smith, +1-212-880-5269, or , both of Ogilvy Public Relations
Worldwide, for EDU
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