Press Release


EDC Reports Record 1st Quarter Profits
 
June 23, 2004
 
Educational Development Corporation (NASDAQ: EDUC) reported today the highest 1st quarter net earnings and net revenues in the Company's history. Net earnings for the 1st quarter ended May 31, 2004 increased 41% to $824,400 when compared with the 1st quarter last year, which is the second consecutive quarter to record a 41% increase in earnings. Net revenues increased 16% to $8,417,500.

The Company's two divisions posted sales increases in the 1st quarter of fiscal year 2005. The Home Business Division's net revenues increased 21% and the Publishing Division increased its net revenues 2%. The Home Business Division just concluded its most successful National Convention with consultants from around the country in attendance at the convention held in Tulsa, Oklahoma.

The Company's annual dividend was paid June 10, 2004. The $0.12 per share dividend was a 20% increase over the $0.10 dividend paid the previous year.

Educational Development Corporation sells the Usborne line of children's books through its multi-level sales organization, through 6,000 retail stores and over the Internet. The Company offers over 1,300 different titles for children of all ages.
 
  Three Months Ended May 31
  2004   2003
Net Revenues $ 8,417,500 $ 7,263,000
Pre-tax Earnings 1,335,700 938,400
Income Taxes 511,300 352,500
Net Earnings $824,400 $585,900
Earnings Per Share
     Basic $0.21 $0.15
     Diluted $0.19 $0.14
Shares
     Basic 4,001,449 3,879,605
     Diluted 4,230,286 4,253,020