Press Release


June 12, 2002
 
Educational Development Corporation (NASDAQ: EDUC) reported today record earnings for the 1st 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 23rd consecutive month of increased sales.  Recruiting of new sales associates was up 112% for the 1st 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 1st 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.
 
 
  Three Months Ended May 31
  2002   2001
Net Sales $ 6,132,300 $ 4,800,600
Pre-tax Earnings 883,300 $598,600
Income Taxes 335,600 229,100
Net Earnings $547,700 $369,500
Earnings Per Share
     Basic $0.14 $0.09
     Diluted $0.13 $0.09
Shares
     Basic 3,837,875 3,914,707
     Diluted 4,157,200 4,006,222