China Education Resources Inc.
TSX VENTURE : CHN
PINK SHEETS : CHNUF

China Education Resources Inc.

July 23, 2009 11:58 ET

China Education Resources Announces Acquisition

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 23, 2009) - China Education Resources Inc. ("China Education", "CER", "the Company") (TSX VENTURE:CHN)(PINK SHEETS:CHNUF) - today announced that its Chinese subsidiary, Today's Technology and Culture Ltd. ("TTTC") has entered into a definitive agreement to purchase a sixty (60) percent interest in Yu Cheng Yuan Consulting and Service Ltd. ("YCY"), a distributor of education products in China for 6,000,000 RMB ($1,000,000 CDN) payable in 2,860,000 CER shares with a deemed value of thirty-five (35) cents per share.

One-third of the purchase consideration will be paid up front with the balance paid on the first and second anniversary of the closing date, contingent upon YCY generating an annual net profit of 2,000,000 RMB ($324,000 CDN).

Financial statements prepared by YCY management indicate that for the year ended December 31, 2008, YCY gross revenue was 27,604,000 RMB ($4,474,000 CDN) with net profit of 1,948,000 RMB ($315,000 CDN). These financial statements have not been prepared in accordance with U.S. or Canadian generally accepted accounting principles and, when audited, may be different.

C.F. Zhou, Chairman and CEO, said, "The YCY acquisition is an important step in our business plan which is to become a leading online provider of educational resources and services to China's 230 million K-12 students and 12 million teachers. After several years of development, our CERSP portal has developed into a national brand and has a reputation for offering best in-class learning products and services.

The acquisition of YCY provides CER with a strong presence in a number of important markets. YCY has sales offices in seven Chinese provinces and direct contact with 150 city education authorities. The executives of YCY have more than 15 years of sales experience in the educational distribution business and each of the sales team has an average of five years experience.

To date, YCY has been selling products from other developers and, at the same time, developing online education products which require a robust portal such as ours to support their existing product line."

Zhou observed that YCY, already a profitable venture, will be able to extend its market reach by using the CERSP portal. "There is natural synergy between our companies. Both will benefit from this acquisition."

This acquisition is subject to the approval of relevant regulatory authorities.

ABOUT CHINA EDUCATION RESOURCES INC.

In collaboration with China's various education authorities and experts, China Education Resources Inc. (CER) is helping to transform the curriculum of the world's largest educational system. Recognizing the need for centralization and increased accessibility to address the Chinese Central government's 2000 education reform policy changes, China Education Resources Inc. has created educational tools and curricula for China's entire kindergarten through twelfth grade system. By implementing the government's goal of converting the existing educational system from memory-based learning to creative thinking and utilizing a more interactive approach to embrace a world-based economy, CER has played an integral part in positioning China's educational system to reach new heights.

Safe Harbor Statement

This press release contains certain forward-looking statements that reflect the current views and/or expectations of China Education Resources Inc. with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.

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The TSX Venture Exchange has not reviewed, and does not accept, responsibility for the adequacy or accuracy of the contents of this press release.

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