Press Release


January 5, 2001

Randall W. White, Chairman and CEO of Educational Development Corporation, reports that the third quarter sales were up 5% to $5,245,600.  The sales increase is comprised of a 19% increase in the Home Business Division and an 18% decline in the Publishing Division, which sells to retail stores.  The decline reflects a softening in the retail market for the quarter, but also timing difference between quarters, as the sales in that division are off only 3% for the nine months.

Profits were down for the third quarter primarily due to incurring $130,000 of one time, non-recurring expense for recruiting and training over 1,000 new sales consultants who joined the Company from a competitor who ceased operations.

Educational Development Corporation, publisher of Usborne Books in the United States, announces the launch of The Next Usborne Revolution, Non-Fiction for the Internet Generation.  A new generation of books linked to 1,000 fascinating web sites specially selected to enhance text entries with animation and sound, film clips, interactive games online, experiments and revision aids.  These unique products are unlike any on the market today, and the Company expects wide spread acceptance.

  Three Months Ended November 30 Nine Months Ended November 30
  2000 1999 2000 1999
         
Net Sales $5,245,600 $5,012,800 $13,910,600 $13,337,400
         
Earnings Before Income Taxes $619,400 $680,700 $1,638,600 $1,658,700
         
Income Taxes

237,500

260,900

627,900

635,000
         
Net Earnings $381,900 $419,800 $1,010,700 $1,023,700
         
Earnings Per Share:        
Basic $0.10 $0.10 $0.25 $0.23
Diluted $0.10 $0.10 $0.25 $0.23
         
Weighted Average Shares:        
Basic

3,914,806

4,328,334

3,974,920

4,410,938
Diluted

4,039,210

4,430,490

4,056,382

4,473,607