Press Release


September 20, 2001
 
Randall W. White, Chairman and CEO of Educational Development Corporation, announces the Company has achieved its sixth consecutive quarter of increased sales.   Net sales for the second quarter ended August 31, 2001 increased to $5,108,400, a 15.7% increase over net sales of $4,414,600 for the same quarter a year ago.  Net sales for the six months ended August 31, 2001 were $9,909,000, up 14.4% over net sales of $8,665,000 for the same six months last year.
 
Net earnings for the second quarter ended August 31, 2001 increased 20.2% to $423,800 versus $352,700 for the second quarter last year.   Net earnings for the six months ended August 31, 2001 were up 26.2% to $793,300 when compared with net earnings of $628,800 for the same six month period a year ago.
 
Sales in the Home Business Division increased 42.4% for the first second quarter when compared with the second quarter last year.   Sales in the retail division were down 7.9% for the second quarter when compared with the second quarter last year.
 
In the wake of the September 11th terrorist attacks, the Company has experienced a tremendous outpouring of support from its field sales force for the relief effort.  In addition to the individual contributions from the 5,000 member sales force, the Company has pledged 1% of sales for the month of September to the relief effort.
 
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.
 
Educational Development Corporation's common stock is traded on the NASDAQ exchange under the symbol EDUC.
 
  Three Months Ended August 31, Six Months Ended August 31,
  2001 2000 2001

2000

         
Net Sales $5,108,400 $4,414,600 $9,909,000 $8,665,000
         
Earnings Before Income Taxes $664,700 $571,700 $1,263,300 $1,019,200
         
Income Taxes 240,900 219,000 470,000 390,400
         
Net Earnings $423,800 $352,700 $793,300 $628,800
         
Earnings Per Share:        
Basic $0.11 $0.09 $0.20 $0.16
Diluted $0.11 $0.09 $0.20 $0.16
         
Weighted Average Shares:        
Basic 3,867,091 3,940,825 3,890,899 4,004,976
Diluted 4,028,636 3,992,270 4,017,429 4,056,717