EDU Brightpath Early Learning, Inc.

CALGARY, July 4, 2011 /CNW/ -- CALGARY, July 4, 2011 /CNW/ - Edleun Group, Inc. (TSX-V:EDU) ("Edleun" or the "Company"), a leading Canadian operator, consolidator and developer of Early Learning & Care facilities, announced today that it has completed the acquisition of five child care centres, agreements for two redevelopment properties and an additional centre in the province of British Columbia, previously announced, in part, on March 24, 2011 and April 21, 2011. "Closing of these acquisitions cements our initial move into the British Columbia marketplace, which  broadens national awareness of the Edleun brand and creates new child care spaces in underserved communities," said Leslie Wulf, Chief Executive Officer of Edleun. In its announcement on March 24th, the Company disclosed agreements to acquire five child care centres with 422 licensed spaces for a purchase price of $4.1 million. Three of the child care centres are located in the Greater Vancouver area, two are situated in the Kelowna area and all are currently in leased premises. The final agreement of purchase and sale has been amended to acquire four of the operating centres effective June 30, 2011 with conveyance to the Company of the fifth centre deferred and to occur in conjunction with the relocation of its operations to a newly identified redevelopment property to be acquired by the Company. The adjusted purchase price for the four operating centres to be acquired effective June 30, 2011 is $3.2 million with the deferred payment to be $0.9 million. As part of the overall transaction for the five centres, the Company will also acquire from the same vendor a redevelopment property in Kelowna to be converted into a child care facility for $1 million. The Company's comprehensive redevelopment of this wholly-owned property will create 111 new licensed spaces. The Company has entered into a new agreement to purchase a second redevelopment property in Kelowna for a price of $950,000 which will be converted in a child care facility with a licensed capacity of 122 spaces. Edleun intends to relocate the children from the earlier noted deferred centre, which is located in leased premises, to this redevelopment property once the conversion and conveyance is complete. The Company is particularly pleased to establish an initial presence in the Kelowna market.  Currently, the Kelowna market is an area of the province that reflects continuing regional population growth and exhibits a significant child care supply shortage. The Company has also completed the purchase of a child care centre operation situated on land lease and operating lease property in the Greater Vancouver area that comprises a total of 115 licensed spaces for a price of $630,000, which was previously announced on April 21, 2011. On February 25, 2011 the Company announced the acquisition of two Calgary area redevelopment properties. The Company has closed on the purchase of the first transaction, an $830,000 property located in northwest area of the city. The Company has elected not to acquire the other redevelopment property on the basis of it offering fewer licensed child care spaces than originally envisioned. Edleun's Chief Executive Officer, Les Wulf commented, "We are extremely pleased with the closing of these transactions.  These acquisitions are quite material, both strategically in terms of entrenching our expansion into British Columbia and financially due to their contribution to our bottom line profitability and cash flow.   As we highlighted in the news release announcing our March 31(st) 2011 financial results, Edleun delivered its first positive operating cash flow. As such, with the cost of our general and administrative platform to implement our national expansion covered by in-place revenues, these and future acquisitions are expected to be accretive to the cash flow of the Company." The acquisitions and subsequent redevelopments will add 753 licensed child care spaces to the Company's portfolio. After giving effect to the aforementioned additions and changes to the Company's portfolio, the Company will have 3,292 spaces across 34 centres including centres owned and transactions previously announced to acquire or build new centres. As with all centres built or acquired, the Company will implement Edleun's operating procedures, systems of quality controls, education curriculum and nutritionally certified meal programs. About Edleun Group, Inc. Edleun is the leading provider of high-quality, Early Learning & Care in Canada.  The Company is committed to providing children, families and employers with access to, and choice of, quality early childhood education programs, helping Canadians balance their work and family lives. The Company's objectives include the acquisition and improvement of existing child care centres and across Canada.  Edleun is also pursuing the development of new "state of the art" child care centres across Alberta and British Columbia in residential communities which are currently underserved. FORWARD-LOOKING STATEMENTS: Certain statements in this Release which are not historical facts may constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Any statements related to Edleun's projected revenues, earnings, growth rates, revenue mix, staffing and resources, and product plans are forward looking statements as are any statements relating to future events, conditions or circumstances. The use of terms such as "believes", "anticipated", "expected", "projected", "targeting", "estimate", "intend" and similar terms are intended to assist in identification of these forward-looking statements. Readers are cautioned not to place undue reliance upon any such forward-looking statements. Such forward-looking statements are not promises or guarantees of future performance and involve both known and unknown risks and uncertainties that may cause the actual results, performance, achievements or developments of Edleun to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions. Except as required by law, Edleun does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. The Company undertakes no obligation, except as required by law, to update publicly or otherwise any forward-looking information, whether as a result of new information, future events or otherwise, or the above list of factors affecting this information. Many factors could cause the actual results of Edleun to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/July2011/04/c2951.html p Leslie Wulf, Chief Executive Officer or Dale Kearns, Chief Financial Officer, of Edleun Group, Inc. at (403) 705-0362, or Nick Hurst of the Equicom Group, Inc. at (403) 218-2835 /p

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