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

China Education Resources Inc.

December 20, 2006 09:01 ET

China Education Resources Inc. Provides Status Report on Education Portal

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 20, 2006) - China Education Resources Inc. ("CER", the Company) (TSX VENTURE:CHN)(PINK SHEETS:CHNUF) today provided a status report on the Company's education portal which can be accessed at www.cersp.com.

C.F. Zhou, Chairman and CEO, said, "In the last year, we have made significant progress in the development of our education portal and have been focused on the following areas:

1. development of training programs

2. development of a student community website

3. revamping our technological infrastructure

4. expanding our team in the areas of finance, marketing, technology and education, to implement our strategy.

I am happy to report that the portal has started to generate revenue, even though it is still in its development phase. While the revenue is relatively small, it does begin to prove that it is gaining market acceptance and is developing into a viable business."

The following is an update on key developments:

Teacher Training - The Company's top priority is teacher training and it believes that it will be able to generate meaningful revenue from its teacher training program beginning in the 1st half of 2007.

The Company is currently working with a few provinces which have requested the Company, together with the CDC, to develop and provide them with customized "total solution" teacher training programs. The CDC is China's leading academic authority in the area of curriculum development.

Recently, the Company signed a 5 year agreement with the Beijing Normal University (BNU) to provide BNU certificate courses using CERSP as the delivery mechanism. BNU is the most prestigious teacher university in China. The Company and BNU are approaching primary and secondary schools throughout China and will be charging 12,000 RMB ($1700 CDN) per school as an annual subscriber fee, which will allow teachers in these schools to take certain BNU training courses. The Company has already started to receive subscription fees.

Additionally, the CDC is finalizing the next 8 training courses co-developed by the Company and the CDC as certification courses to be delivered through the portal. The Company and the CDC anticipates that these certificate courses will be offered on a nationwide basis in the first quarter of 2007.

Mr. Zhou remarked, "We are very proud that the CERSP portal will deliver certificate courses developed by the BNU and the CDC. The endorsement by these 2 prestigious organizations adds credibility to our teacher training program and will undoubtedly aid in our marketing efforts."

Student Community Website - The Company has launched and is currently beta testing its "student community website" as part of the CERSP portal. The website is targeted to China's 240 million K-12 students. It currently offers a number of key functions including a blogging capability, a students' forum, online counseling, assessment of student comprehensive capabilities, an online classroom and downloadable educational content. The student community will be another avenue to market our supplementary materials and our "New Thinking Book Series."

Mr. Zhou remarked, "We think that the student website will soon attract a sizeable following due to the quality of its contents, services and functions. We feel that in time, an online community will develop as students are able to interact with each other, creating a social network, much like as occurred with MYSPACE.com. The website will be further developed to provide downloading and uploading of video content, similar to what is being offered by Youtube.com. Simultaneously, as the community is developing, we will be developing revenue producing components to the site, such as online tutorials, e-portfolios and student training. We feel that the opportunities to generate revenue from this audience are numerous and significant."

Technology Upgrade - Phase One of a technology upgrade to the portal has been completed which added a video streaming capability developed by Apple Computer Inc. ("Apple"). The portal is continuing to be further upgraded with Apple's assistance to accommodate the demands of increased teacher training, and will be fully integrated with Apple's leading edge digital tools for students which encourage collaboration and teamwork and are designed to raise student achievement.

Mr. Zhou concluded, "2007 will be a breakout year for the Company, during which we will begin to realize the potential of the portal. We have approximately CDN $2.5 million in the treasury and believe these funds will be sufficient to generate revenue, and move us further along in achieving our goal of developing the leading educational portal in China."

About China Education Resources Inc.

China Education Resources Inc. is at the forefront of the revolution taking place as China fully modernizes its education system. In conjunction with the Curriculum Development Center of the Ministry of Education CER's Chinese operating subsidiary Today's Teachers Technology & Culture Ltd. has developed the first and most comprehensive web portal CERSP.com to provide an online resource for China's kindergarten to grade 12 education community (CERSP; www.cersp.com).

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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