Press Release


EDUCATIONAL DEVELOPMENT CORPORATION REPORTS RECORD SIX MONTH SALES AND EARNINGS
 
September 20, 2002
 
Educational Development Corporation (NASDAQ: EDUC) reported today record sales and earnings for the six months ended August 31, 2002.  The Company announced net earnings increased 26% to $1,001,700 and net sales increased 18% to $11,734,400 for the current six month period when compared with the same six month period a year ago.  Earnings per share on a fully diluted basis increased 20% to $0.24 per share for the current six month period ended August 31, 2002.  Net sales for the 2nd quarter ended August 31, 2002 increased 10% to $5,602,100 when compared with the 2nd quarter last year.  Net earnings for the 2nd quarter this year increased 7% to $454,000 when compared with last year.

The Home Business Division posted a 27% increase in net sales for the first six months of the current year.  This division has recorded 26 consecutive months of increased sales.  Recruiting of new sales associates was up nearly 100% for the six months ended August 31, 2002 when compared with the same period a year ago.

The Publishing Division recorded a 6% increase in net sales for the first six months of the current year.  This is especially encouraging in today's economic market and particularly the retail market which is generally experiencing a nationwide decline.

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 August 31 Six Months Ended August 31
  2002   2001 2002   2001
Net Sales $ 5,602,100 $ 5,108,400 $ 11,734,400 $ 9,909,000
Pre-tax Earnings $729,700 $664,700 $1,613,000 $1,263,300
Income Taxes 275,700 240,900 611,300 470,000
Net Earnings $454,000 $423,800 $1,001,700 $793,300
Earnings Per Share
     Basic $0.12 $0.11 $0.26 $0.20
     Diluted $0.11 $0.11 $0.24 $0.20
Weighted Average Shares
     Basic 3,834,772 3,867,091 3,836,324 3,890,899
     Diluted 4,144,683 4,028,636 4,150,941 4,017,429