SOURCE: The Children's Internet, Inc.

December 20, 2007 06:30 ET

The Children's Internet Announces New Business Developments

SAN RAMON, CA--(Marketwire - December 20, 2007) - The Children's Internet, Inc. (OTCBB: CITC) announced today that it has amended the terms of its agreement with The Children's Internet Holding Company (TCIH) to permit TCIH to purchase up to an additional 128,040,988 shares of TCI Common Stock for an aggregate of $8 million. The parties also agreed to extend the outside termination date of their Definitive Stock Purchase Agreement (DSPA) from December 31, 2007 to January 31, 2008.

Currently, the DSPA provides for the purchase of 128,040,988 shares of TCI stock for an aggregate purchase price of $8 million. The new agreement allows TCIH to potentially double its investment in TCI through exercise of a warrant to purchase up to 128,040,988 shares of TCI common stock at an exercise price equal to the purchase price per share of common stock under the DSPA. The warrant may only be exercised after the closing of the DSPA, and then, only until April 30, 2008.

Richard J. Lewis III, TCI's Acting CEO and the Manager of TCIH, commented: "The warrant gives TCIH the flexibility to provide significant additional funding to TCI at the closing, which will allow TCI to implement its post-closing strategy more quickly and efficiently than we otherwise would have been able to do. The extension of the termination date also gives us additional time to plan our post-closing efforts, manage the IT transfer from Two Dog Net and raise additional funds."

TCI also recently entered into a Services Agreement with Two Dog Net (TDN) under which, TDN will continue to provide TCI office lease and equipment rental services until the closing under the DSPA. TCIH is a third-party beneficiary to the rights of TCI and a guarantor of the payments to be made by TCI under the Services Agreement.

New Technology Development Team

In order to facilitate the transfer of technology and ensure continual and reliable performance under the Service Agreement, TCI is also pleased to announce the formation of its new technology development team (the "Tech Team") that is being put into place by TCIH in anticipation of the closing. Each member of the Tech Team has a specific area of Internet software and security expertise. The Tech Team is led by Kenneth C. Wilkinson, formerly of Boxer Technology, LLC., who has over 20 years' experience in the IT business including as a leading software developer. Senior Developer Rick Leinecker has been an expert in the field of Internet filtering technologies for over 10 years. Tyler Wheeler, the Chief Architect and one of the original creators of The Children's Internet® software, has over 20 years of software and hardware integration and design experience. Daniel W. Schoenthal has over 25 years of design and implementation experience, and is currently providing content architecture and access control list services in addition to being the home office trouble shooter for TCIH

About The Children's Internet, Inc.:

The Children's Internet, Inc. ( is the exclusive marketer and distributor of The Children's Internet® membership based service created just for kids. The Children's Internet is the most comprehensive, secure Internet service and "educational super portal" for children, pre-school to junior high, providing them with SAFE, real time access to millions of the best pre-selected, pre-approved educational and entertaining web pages accessed through a kid-friendly search engine.

The Children's Internet provides kids with a rich array of easy to use applications, including secure e-mail, search engine, homework help, games, news, learning activities and virtually limitless educational resources all within its safe, protected online community that gives kids a sense of freedom and parent's total peace of mind!

Awards won by The Children's Internet®:

The Children's Internet® was declared winner of Outstanding Products of 2006 by iParenting Media Awards in the software category.

The Children's Internet® received the coveted National Parenting Center's Seal of Approval.

The Children's Internet® was ranked by PC Magazine as Editors' Choice in the category of "Kids' Browsers and Services" and declared the winner, rated #1 over AOL, MSN and EarthLink.

Forward-Looking Statements:

This press release may be deemed to contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements are made as of today's date and we do not undertake any obligation to update forward-looking statements. You can identify such statements by our use of such words as "should," "expect," "will," "intends," and similar words and phrases which denote future events and which may depend on the future performance of the Company. Specifically, these include statements as to future product releases, the implementation of strategic initiatives and the ownership in TCI upon completion of the transaction and whether or not the transaction will be consummated. Our assumptions underlying these statements are also "forward-looking" statements. Forward-looking statements are based on information and assumptions that are dynamic in nature and subject to rapid and sometimes abrupt changes. Our forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those stated or implied by the statements. Our forward-looking statements are also subject to important risks and uncertainties detailed in our latest reports filed with the SEC and available on its website at

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