Press Release


EDC Reports Announces 1st Quarter Results
 
July 13, 2005
 
Educational Development Corporation (NASDAQ: EDUC) reported today net revenues for the 1st quarter ended May 31, 2005 of $8,226,700 compared with $8,553,300 for the comparable period last year. The Company reported net earnings of $745,200 compared with net earnings of $824,400 for the previous year and basic earnings per share of $0.20 a share versus $0.21 for the same period a year ago.

The Company reports that net revenues in the Publishing Division increased 7.0% in the 1st quarter ended May 31, 2005 when compared with the 1st quarter last year while net revenues in the Home Business Division declined 7.2%. However, the Company reports new recruits increased 66% in May and 50% in June over the same two months in the previous year.

The Company is also pleased to announce that for the third consecutive year it was ranked in the top 100 Fastest Growing Small Public Companies by Fortune Small Business magazine.

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.
 
  May 31, 2005   May 31, 2004
Revenues
Gross Sales $10,994,400   $11,111,100  
Less Discounts & Allowances ( 3,111,500 ) ( 2,954,000 )
Transportation Revenue 343,800   396,200  
Net Revenues $ 8,226,700   $ 8,553,300  
 
Pre-tax Earnings $ 1,202,500   $ 1,335,700  
Income Taxes     457,300       511,300  
 
Net Earnings $   745,200   $   824,400  
 
Basic Earnings Per Share $        0.20   $        0.21  
Diluted Earnings Per Share $        0.19   $        0.19  
 
Weighted Average Number of
Common and Common Equivalent
Shares Outstanding:
Basic 3,738,133   4,001,449  
Diluted 3,901,588   4,230,286