SOURCE: Peoples Educational Holdings, Inc.

December 17, 2009 12:46 ET

Peoples Education's New ePath Knowledge™ Series Expected to Boost Revenues

Custom Content and Superior Customer Service Advantages Will Fuel Continued Revenue and Margin Growth

SADDLE BROOK, NJ--(Marketwire - December 17, 2009) - Peoples Educational Holdings, Inc. (NASDAQ: PEDH), a leading provider of print and online supplemental educational materials for the K-12 school market, disclosed today that their new ePath Knowledge™ series of online tools for educators will begin contributing to the Company's revenue during its 2010 fiscal year, ending May 31.

The ePath Knowledge™ series, which was launched in early October 2009, consists of three distinct offerings: ePath Assess™, ePath Discovery™, and Practice Path™, all of which contain design features that provide the Company with a strong competitive advantage. In addition to the Company's unique, intuitive interfaces and visually based reporting features, each product contains custom content that is written, reviewed, and edited to support individual state requirements and standards -- customization that is not available in competitive products.

Peoples Education's president and CEO, Brian T. Beckwith, commented that the new ePath Knowledge™ series provides a perfect complement to the Company's print and online educational products that so far have helped more than 12 million K-12 students improve their academic performance. "The new ePath Knowledge™ series of online tools again 'raises the bar' by simplifying the arduous tasks of assessment, remediation, and testing. The unique state-specific content and feature-rich nature of ePath Knowledge™ are already drawing the attention of school systems in the eleven states we currently serve. ePath Assess™ is currently available in all those states, and we plan to expand the availability of Practice Path™ this fiscal year followed by ePath Discovery™ at a later date. As we do so, we expect to experience continued revenue expansion and margin growth due to the economics of electronically delivered products and our increasingly efficient operation."

Referring to the Company's earlier success with its Measuring Up® program, which received a number one ranking by the California State Board of Education, Mr. Beckwith added, "The enthusiastic response that our new series has received from the early adopters indicates a wide acceptance of the product line; therefore, this fiscal year we plan to begin a geographical expansion beyond the eleven states that we currently serve. We will begin with Practice Path™ and plan to follow with other products."

For additional information about Peoples Education ePath Knowledge™ tools, go to

About Peoples Educational Holdings, Inc.

Peoples Educational Holdings, Inc. is a publisher and marketer of print and electronic educational materials for the K-12 school market. The Company focuses its efforts in three market areas:

Test Preparation, Assessment, and Instruction

--  Test Preparation and Assessment: The Company creates and sells state-
    customized, print and electronic, test preparation and assessment materials
    that help teachers prepare students for success in school and for required
    state proficiency tests, grades 2-12.
--  Instruction: The Company produces and sells proprietary state-
    customized print worktexts and print and Web-based delivered assessments
    for grades 2-8. These products provide students with in-depth instruction
    and practice in reading, language arts, and mathematics. In addition, the
    Company's backlist remedial and multicultural products are included in this


The Company distributes K-8 supplemental literacy materials for three publishers on an exclusive basis in the United States. These materials include an extensive selection of leveled reading materials; high-interest engaging resources for striving readers; series that integrate reading, science, and social studies; and selections and strategies for English language learners.

College Preparation

The Company distributes instructional materials that meet the academic standards high schools require for honors, college preparation, and Advanced Placement courses. The Company is the exclusive high school distributor for two major college publishers and also creates proprietary supplemental materials for this market.

The Company's proprietary products are supplemental in nature. They are predominately softcover, high gross profit margin titles that can be sold efficiently through the Company's direct sales force, as well as through catalogs, direct mail, telemarketing, and independent commission sales representatives. Distributed products are both basal and supplemental in nature.

Forward-Looking Statements

This press release contains forward-looking statements (as defined in section 21E of the Securities Exchange Act of 1934) regarding the Company and its markets. These forward-looking statements involve a number of risks and uncertainties, including (1) changes in demand from customers, (2) changes in product or customer mix or revenues and in the level of operating expenses, (3) rapidly changing technologies and the Company's ability to respond thereto, (4) the impact of competitive products and pricing, (5) federal, state, and local levels of educational spending, (6) the Company's ability to retain qualified personnel, (7) the Company's ability to retain its distribution agreements in the College Preparation market, (8) the sufficiency of the Company's copyright protection, and (9) the Company's ability to continue to rely on the services of a third-party warehouse, and other factors as discussed in the Company's filings with the SEC. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. The Company undertakes no obligation to revise any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release. Readers are urged to carefully review and consider the various disclosures made by the Company in this press release and the reports the Company files with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect the Company's business and results of operations.

Contact Information