Press Release - June 12, 2002


Press Release

June 12, 2002

Educational Development Corporation (NASDAQ: EDUC) reported today record earnings for the 1^st quarter ended May 31, 2002. The Company announced net revenues of $6,132,300, an increase of 28% versus $4,800,600 for the comparable period last year. The Company reported net earnings increased 48% to $547,700 when compared to net earnings of $369,500 for the same period last year. Earnings per share on a fully diluted basis increased 44% to $0.13 versus $0.09 for the same period last year. These are the highest 1st quarter sales and earning numbers in the Company's history. The Home Business Division posted a 41% increase in net sales, marking its 23^rd consecutive month of increased sales. Recruiting of new sales associates was up 112% for the 1^st quarter ended May 31, 2002 when compared with the same period last year. The Publishing Division posted a 9% increase in net sales for the 1^st quarter ended May 31, 2002. This is especially gratifying as the retail industry nationwide has been in a sales slump the last few months. The Board of Directors authorized increasing the annual dividend from $0.04 to $0.06 per share payable August 12, 2002 to shareholders of record on August 1, 2002. Educational Development Corporation sells the Usborne line of children's books through its multi-level sales organization, through 10,000 retail stores and over the Internet. The Company offers over 1,100 different titles for children of all ages.