Press Release


October 14, 1998

Randall W. White, Chairman and CEO of Educational Development Corporation, reports net earnings of $307,000 for the second quarter ended August 31, 1998 compared with net earnings of $480,800 for the second quarter a year ago.

Net sales were $3,950,400 and $8,111,100 for the three months and six months ended August 31, 1998, respectively, compared to $5,266,600 and $9,927,000 for the same respective periods the previous year. While the first six months have produced lower sales, management continues to be optimistic that the second half of the year will show an improvement. New programs have been implemented and initial results look favorable. The fall selling season traditionally represents the strongest quarter for the Company.

Management continues to believe the stock is undervalued and has consistently been acquiring stock in the open market. As of this date, the Company has acquired in excess of 150,000 shares and will continue the repurchase program. The Board of Directors has authorized repurchase of up to 1,000,000 shares.

  3 Months Ending 8/31/98 3 Months Ending 8/31/97 6 Months Ending 8/31/98 6 Months Ending 8/31/97
Net Sales $3,950,400 $5,266,600 $8,111,100 $9,927,000
         
Pre-tax income $498,200 $842,600 $1,076,800 $1,589,000
         
Income taxes 191,200 361,800 419,800 644,300
         
Net Income $307,000 $480,800 $657,000 $944,700
         
Basic and Dilluted Earnings Per Share $ .06 $ .09 $ .13 $ .18
         
Shares        
   Basic 5,085,404 5,216,942 5,151,420 5,207,996
   Dilluted 5,144,929 5,336,927 5,241,520 5,324,119