EDU Brightpath Early Learning, Inc.

CALGARY, March 26, 2012 /CNW/ - Edleun Group, Inc. ("Edleun" or the "Company") , the leading provider of quality early childhood education and care in Canada, today provided an interim first quarter update on its current operations and growth. The Company held its fourth quarter and fiscal 2011 investor conference call on March 7, 2012 with discussion focused on 2011 results as outlined in the news release related thereto. Included in the information provided at that time was reference to the first quarter 2012 child care space count and other key performance indicators.  With the first quarter now nearing a close the Company offers the following update and comment: -- The Company finalized the acquisition of its seventh Greater Toronto Area child care centre acquisition referenced in the news release dated February 3, 2012. The centre which comprises 198 licensed spaces is located in Oakville, Ontario. Edleun purchased the assets of this operating child care centre out of receivership for $800,000. The centre is located in premises leased from a third party under a long term lease. Closing of the transaction is effective March 26, 2012 utilizing the Company's available capital and hence is anticipated to be immediately accretive to the Company's profitability; -- Licensed child care spaces at the end of March 31, 2011 contributing to revenue for a full quarter are 3,660 compared to 2,539 in the fourth quarter, an increase of 1,121 spaces or 44%; -- Adjusted Funds From Operations ("AFFO") for the first quarter 2012 will be substantially higher on a sequential basis due to the increase in child care spaces near the end of the fourth quarter; -- As detailed in its news release and updated to the date hereof, the amount available under Company's credit facility is $20.2 million, which is available to the Company to advance its pipeline of growth initiatives; and -- Accordingly, and as disclosed on March 7, 2012, the Company has no plans to undertake a common share equity issuance. Moreover, the Company believes its common shares are significantly under- valued. This is reflected by the recently reported purchases of common shares by insiders. "The Oakville centre is being acquired on very favourable financial terms," said Ty Durekas, Edleun's Chief  Executive Officer. "The vendors were extremely passionate about creating and delivering a high-quality child care environment and experience, however had no prior experience in the child care industry, and were unfortunately underfunded to accomplish their goals. We estimate that $2 million was spent on improvements to create this centre, making it one of the most attractive and high quality "as-built" centres Edleun has seen in Canada. Furthermore, we provided financial support to the centre pending finalization of the receivership, ensuring child care spaces were not lost and enabling Edleun to capture the opportunity that this centre offers." "The reported increase in the number of licensed child care spaces in the fourth quarter together with those scheduled to be online upon completion of development creates a significant AFFO run rate in 2012," said Dale Kearns, Chief Financial Officer of Edleun. "We are now processing the next series of accretive acquisitions, which we anticipate will be announced shortly, that will be funded from our currently in-place capital resources." Since inception the Company has grown primarily through acquisitions. Since commencing operations in May 2010 with 11 operating centres comprising 1,061 spaces, Edleun now has 43 total centres, including 38 in operation and five in various stages of development and redevelopment, representing 4,463 licensed child care spaces. The Company has demonstrated an ability to generate organic growth from centres following acquisition. Same centre growth, which were centres in operation at both December 31, 2010 and 2011 showed: -- An increase in occupancy from 76% to 87%; -- Revenue growth of 15%; and -- A 26% increase in same centre margins (dollars). A significant additional portion of the Company's growth in 2012 is expected to come from development and re-development initiatives. The Company currently has two new centres under construction and two in redevelopment. These centres alone are expected to add nearly 700 spaces to the Company's portfolio in 2012. The new centres are expected to be open for the key 2012-13 school year enrollment season. These initiatives are fully funded from the Company's in place capital. Edleun employs a multi point growth strategy that, in addition to acquisitions and developments, includes co-location initiatives. Co-location initiatives enable the Company to secure prized locations through available space in established residential apartment buildings and commercial developments. The Company recently entered into an agreement with Canadian Apartment Properties REIT, one of Canada's largest residential landlords, to explore co-location opportunities, initially in the Greater Toronto Area. About Edleun Group, Inc. Edleun is the leading provider of high-quality, community-based Early Learning & Care child care centres in Canada offering early education and child care services to children ages six weeks to 13 years. Edleun is committed to preparing children for the next step in their education and life, offering families and employers access to and choice of quality early childhood education programs, as well as enhanced opportunities and career advancement for Early Childhood Educators. Publicly traded on the Toronto Stock Exchange , the Company's objectives include the acquisition and subsequent improvement of existing child care centres and developing new state-of-the-art Early Learning and Care Centres in underserved Canadian communities. The Company currently has a total 43 centres in its portfolio including:  38 centres in operation and five in various stages of development or redevelopment representing 4,463 licensed child care spaces. 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. Edleun Group, Inc. CONTACT: Ty Durekas, President and CEO or Dale Kearns, Chief FinancialOfficerof Edleun Group, Inc. at (403) 705-0362, or Nick Hurst of the EquicomGroup, Inc. at (403) 218-2835

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