China Education Resources Inc.

China Education Resources Inc.

June 28, 2005 17:34 ET

China Education Resources Inc. Issues Update on its Central Government Supported Education Platform

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 28, 2005) - China Education Resources Inc. (TSX VENTURE:CHN), today issued an update on its education resources platform,, which received the endorsement of the Curriculum Development Centre (CDC) of the Central Government's Ministry of Education (MOE), in an agreement signed and announced on May 31, 2005. The CDC is the highest authority in China in the curriculum development area.

Immediately following the May 31st agreement, the MOE appointed a team to commence the process of further developing the platform and promoting its use nationwide. On June 11-12, a national meeting was convened in Hainan province by the MOE to discuss educational reform, showcasing the platform as a key instrument in the government's education reform policy. The MOE reaffirmed the platform as the only one in China which integrates the needs of the educational sector, government and the private sector in a cost effective and socially responsible way. In attendance were 70 delegates form 12 provinces and major cities, representing 34% of the Chinese population. Among those in attendance were delegates from Guangdong, Shandong, Ningxia provinces and Shanghai. Delegates were introduced to the platform and to the experience of Hainan province in using the platform. (As announced on February 14, 2005, the Hainan government issued a directive to all primary and secondary schools in the province mandating the use of the platform.)

During the meeting, all delegates were invited and encouraged to adopt the use of the platform in their respective areas. The reaction of the delegates was very favourable.

In his remarks, Mr. Jian Liu, head of the CDC said, "The platform will be a key instrument in the MOE's next five year plan for education reform, which begins this year. This platform satisfies a number of key objectives of the MOE and will be the educational portal in China."

Since the June 11-12 meeting, the CDC has begun to implement a plan to have other regions (provinces and cities) to start to use the platform. This plan involves the following key aspects:

1. The linking of existing educational websites developed by other provinces and cities to the platform.

2. The creation of modules for regions which to date have not developed a similar system, much like what China Education Resources has developed in Hainan. The objective would be to have the education authorities in each of these regions promote the use of the platform in the schools under their jurisdiction.

3. The creation of special purpose websites in each of 22 core subject areas. The objective is to create the foremost source of digital information for teachers and students to aid them in assimilating material taught in the new creative fashion. In the case of teachers, the platform will offer teaching plans, case studies and tools to assess student performance. In the case of students, the platform will offer mock examinations and work books.

Ronald Shon, President, said, "The involvement of the central government has significantly increased our credibility and visibility, and has dramatically accelerated our business plan. Our stated strategy of signing agreements with individual provinces has been greatly facilitated by the support of the central government.

We have developed a unique system which we believe satisfies the needs of a very large and growing market. Credit Suisse First Boston Inc. estimates that the market will be an annual market of $450 billion U.S. by 2008. Our objective is to develop a portal which is a daily necessity for all of China's 240 million students and 10 million teachers. If we are able to implement properly, we have the unique opportunity to become the dominant Chinese education portal."

About the Platform

The Company's platform is the first ever internet-based service platform that provides quality education resources tailored to meet the individual needs of 240 million students and 10 million teachers in the kindergarten to grade 12 system in China.

The platform fulfills a key strategic service for the changing educational market in China to help facilitate the efficient and successful implementation of new educational initiatives by establishing a link between the central government, the provincial education departments and ultimately the individual student, teacher and administrator.

About China Education Resources Inc.

China Education Resources Inc. is a Canadian-based company focused on providing educational solutions to China's education market. As a leading distributor of hardcopy text books and other related educational materials, the Company has developed an internet-based educational resource platform to facilitate China's new education initiatives.

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.

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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