Press Release

September 29, 2000

Randall W. White, Chairman and CEO of Educational Development Corporation, reports that the second quarter earnings rose 12.5% to $352,700 on net sales of $4,414,600 when compared with the second quarter last year.  Net income for the six months ended August 31, 2000 increased to $628,800 versus $603,900 for the same six months last year.

On August 15, 2000 the Company launched a new program for selling on the Internet.  This program allows sales consultants to generate Internet sales through their own personalized Web sites.  Through these Web sites, the full range of the Company's products will be offered.

The distribution of three Usborne books by Chick-fil-A in their children's meal package began in late August and early September.  Chick-fil-A is distributing 1,000,000 Usborne books through their stores nationwide.
 

Three Months Ended August 31, Six Months Ended August 31,
2000 1999 2000 1999
Net Sales $4,414,600 $4,202,500 $8,665,000 $8,324,600
Earnings Before Income Taxes $571,700

$508,100

$1,019,200 $978,000
Income Taxes 219,000 194,500 390,400

374,100

Net Earnings $352,700 $313,600 $628,800 $603,900
Earnings Per Share:
Basic $0.09 $0.07 $0.16 $0.14
Diluted $0.09 $0.07 $0.16 $0.13
Weighted Average Shares:
Basic 3,940,825 4,289,961 4,004,976 4,457,239
Diluted 3,992,270 4,330,842 4,056,717 4,495,165