Press Release - January 5, 2001


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