Noah Education Completes Acquisition of Little New Star

2009-07-07 02:31 649

Entering Fast-Growing Kids' English Training Market in China

SHENZHEN, China, July 7 /PRNewswire-Asia/ -- Noah Education Holdings Ltd. (NYSE: NED), a leading provider of interactive education content in China, today announced the completion of its acquisition of 100% interest in Little New Star Education Group ("Little New Star"), a Changsha-based private education service provider that specializes in providing English language training for kids, pursuant to the terms of definitive agreements entered into on May 22, 2009.

The total consideration of the acquisition is RMB113 million, comprised of a combination of cash and stock. Noah expects the newly acquired business to contribute between RMB 13-15 million to net profit in fiscal year 2010.

"We are extremely pleased to have finalized this transaction that will transform our company into a more comprehensive supplemental education services provider for children aged 3-19 in China," said Mr. Dong Xu, Noah's Chairman and Chief Executive Officer. "With the acquisition of Little New Star, Noah gains a well-known brand name in English training for children, a nationwide network of Little New Star learning centers, a well-respected professional teaching team and an industry-leading teaching and training system that is highly scalable. We expect the combination of Noah's nationwide distribution channel and sales and marketing expertise in China with Little New Star's reputable teaching methodology, outstanding content development capabilities, and well-established teacher training program to provide Noah with greater growth potential, synergies and a stable recurring revenue stream. We are confident that this transaction will further strengthen Noah's competitive position in China's education market."

Conference Call

Noah has scheduled an investor conference call at 5:00 a.m. (Pacific) / 8:00 a.m. (Eastern) / 8:00 p.m. (Beijing/Hong Kong) on Tuesday, July 7, 2009 to discuss its acquisition of Little New Star. Individuals interested in participating in the call may do so by dialing:

Toll Free Toll

United States +1-800-561-2601 +1-617-614-3518

China 10-800-130-0399

Hong Kong 800-96-3844

United Kingdom 00-800-2800-2002

Passcode Noah Education

Please dial in 10 minutes before the call is scheduled to begin.

A telephone replay will be available shortly after the call until July 14, 2009 by dialing the following numbers:

Toll Free Toll

United States +1-888-286-8010

International Dial In +1-617-801-6888

Passcode 68575240

A live webcast of the conference call and replay will be available on the investor relations page of Noah's website at .

About Little New Star

Little New Star, founded in 1992, is a leading provider of kids' English language training in China, based in Changsha, Hunan province. The company provides English learning services through its direct-owned schools, as well as develops and markets English teaching materials through its franchised learning centers. It has 10 direct-owned learning centers in Changsha, Datong and Xiangtan, and over 600 franchises across China, except in Tibet. The company was recently named as one of the Top Ten Foreign Language Training Organizations by .

About Noah

Noah Education Holdings Limited is a leading provider of supplementary education services to China's elementary and middle school students. Noah's core offering includes the development and marketing of electronic learning products (ELPs), interactive educational courseware content, software, online and offline delivery platforms and after-school education services. Noah combines standardized education content with innovative digital and multimedia technologies to create a dynamic learning experience and improve academic performance for students throughout China. Noah has developed a nationwide sales network, powerful brand image, and accessible and diverse delivery platforms to bring its innovative content to the growing student population. The interactive and comprehensive services Noah offers will enable students and teachers to engage in knowledge-sharing communities, all centered around the Noah brand. Noah was founded in 2004 and is listed on the New York Stock Exchange under the ticker symbol NED.

For more information about Noah, please visit .

Safe Harbor Statement

This press release contains forward-looking statements that reflect Noah's current expectations and views of future events that involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Noah has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. You should understand that our actual future results may be materially different from and worse than what Noah expects. Information regarding these risks, uncertainties and other factors is included in Noah's most recent Annual Report on Form 20-F and other filings with the SEC.

Source: Noah Education Holdings Ltd.
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