Press Release

EDC Reports Recruiting Success

October 20, 2000

A major competitor of Educational Development Corporation ceased operations August 31, 2000.  This company was in direct competition with EDC's direct selling division, Usborne Books at Home (UBAH).  While that company's sales consultants have many options open to them, UBAH is the only direct selling company which sells children's books.  EDC has made a generous offer to all of their former sales consultants and supervisors offering them the opportunity to join the UBAH sales force.  So far approximately 900 have joined UBAH and it is anticipated many more will join in the next few months.  EDC expects the closing of that company to have a positive effect on its sales, both due to the loss of a major competitor and to the increase in the number of UBAH consultants.  The impact has been immediate as September sales for UBAH were up 28% over September last year.

The Company has entered into a co-branding advertising agreement with Chick-fil-A, a national fast food chain.  Beginning in late August and early September, Chick-fil-A began distributing over 1,000,000 Usborne books with their children's meal package.  There is information on the back of each book explaining the UBAH opportunity and providing a telephone number to call for additional information.  EDC did not incur any significant expenses for this promotion, and believes that this added exposure will strengthen the Usborne brand name, resulting in a positive impact on sales.

The Company has implemented an Internet sales strategy by creating individual web sites which are sold to the sales consultants for their use in promoting their business both in sales and recruiting.  Customers may place orders through these web sites directly to the Company.  Currently we have over 500 web sites active.

In anticipation of this sales growth, the Company has doubled its technological operating capacity through its computer systems.