Press Release


EDUCATIONAL DEVELOPMENT CORPORATION ANNOUNCES RECORD SALES AND EARNINGS FOR THE FOURTH QUARTER
 
April 27, 2006
 
Educational Development Corporation (NASDAQ: EDUC) reported today record earnings for the fourth quarter ending February 28, 2006. The Company announced net revenues of $7,085,090 compared to $6,774,179 for the comparable period last year. The Company reported net earnings of $519,310 compared with net earnings of $319,874 for the comparable period and $.14 per share compared to $.09 for the same period a year ago, an increase of 55%.

The Company ended the year with a small increase in net revenue of $31,788,890 compared to $31,650,779 for the previous year and a small decrease in net earnings of $2,398,410 compared to $2,406,074 for the previous year. However, due to the stock buyback program which resulted in less shares outstanding, earnings per share increased to $.62 compared to $.59 last year on the fully diluted basis.

The fourth quarter improvement was encouraging as revenue and earnings were down for the first six months of the fiscal year. The Company earlier announced it would pay a $.20 per share annual dividend on May 12, 2006 for shareholders of record May 2, 2006, an increase of 33% over the dividend paid last year.

Educational Development Corporation sells the Usborne line of children's books through its multi-level sales organization, through 5,100 retail stores and over the Internet. The Company offers over 1,400 different titles for children of all ages.
February 28, 2006 February 28, 2005
Revenues
     Gross Sales $42,567,648 $41,361,612
     Less Discounts & Allowances ( 12,367,775 ) ( 11,324,165 )
     Transportation Revenue 1,589,017 1,613,332
          Net Revenues $31,788,890 $31,650,779
Pretax earnings $3,814,250 $3,885,074
Income Taxes 1,415,840 1,479,000
Net Earnings $2,398,410 $2,406,074
Earnings Per Share:
     Basic $0.64 $0.62
     Diluted $0.62 $0.59
Weighted Average Number of Common and Common Equivalent Shares Outstanding:
     Basic 3,747,759 3,902,075
     Diluted 3,898,737 4,088,130