Press Releases

FINANCIAL NEWS, EARNINGS RELEASES

PRESS RELEASE For Immediate Release

Date: April 11, 2000

Contacts: James Peoples, 201-712-0090
Mike DeMarco, 201-712-0090

Peoples Educational Holdings, Inc. Posts 56% Increase in Sales

SADDLE BROOK, NJ, APRIL 11, 2000– Peoples Educational Holdings, Inc. (PEH, i.e., the "Company") today announced its final year-end audited financial results. For the fiscal year ended December 31, 1999, net sales were $9,597,744, an increase of 56% from $6,164,248 recorded in the prior fiscal year. Net income for the 1999 year was $300,232, a decrease of 5% from $316,138 in 1998.

"We are pleased with these results, particularly with sales in our rapidly-growing Test Preparation area which increased 62% to $1,548,000 as compared to $955,000 in the prior year. With our heavy focus in new product development on state-specific test preparation materials, we expect a large share of our growth in sales and profits to continue to come from sales of high margin product in our Test Preparation area," said James Peoples, CEO of Peoples Educational Holdings.

Mr. Peoples also highlighted a very significant sales increase in the area of Advanced Placement, where sales of distributed products more than doubled to $6,209,000 as compared to $2,738,000 in the prior year. The Company recorded a decline in sales only in its Instruction product line, where 1999 sales of $1,841,000 declined from $2,471,000 in the 1998 year, although if compared excluding a single large sale of $591,000 in 1998, instruction sales in 1999 actually increased 8% as compared to 1998.

Separately, PEH announced that holders of the Company's Series 1990, 1993, and 1998 Convertible Stock had all converted their shares to common stock on December 30, 1999. In addition, the Company indicated that holders of accrued dividends had reached agreement with the Company to convert portions of these dividends into additional shares of common stock at a conversion rate of $3.00 per share. Mr. Peoples said, "We are very pleased to have strengthened our balance sheet position by the conversion of our preferred stock and the majority of our accrued dividends." The total number of common shares outstanding as of March 30, 2000 was 3,188,850, which included the effect of the conversion of the preferred shares as well as the accrued dividends. No preferred shares remain outstanding.

The Peoples Publishing Group (PPG), located in Saddle Brook, NJ, was incorporated in 1989 and began operations in 1990 with the acquisition of a small supplemental product line in the student-at-risk area. In 1998, PPG was merged into a subsidiary of Concourse Corporation, which was later renamed Peoples Educational Holdings, Inc. As a result of the merger transaction, PPG became a wholly-owned subsidiary of Peoples Educational Holdings, and at present, PPG is the only operating company within PEH. PPG is a niche school publisher and distributor of supplemental materials for pre-K-12 education. PPG focuses its efforts in three market areas:

Test Preparation (materials to prepare students for state and city standardized tests and assessment)
Distribution of Advanced Placement materials (for the academically rigorous senior high and college prep markets)
Instruction products (for the student-at-risk and multicultural markets)

PPG's proprietary products are supplemental in nature, meaning that they are predominately soft-cover, high gross profit margin titles that can be sold efficiently through niche catalogs, direct mail, telemarketing, and independent commission sales representatives. Products are developed through a combination of internal development capabilities with royalty-based contracts, freelance production, and creative talent.

This news release contains forward-looking statements regarding the expected performance of PEH and PPG. The achievement of results referred to in such statements is subject to certain risks and uncertainties including:

the success of its sales and marketing efforts,
its ability to attract new customers and compete effectively, and
changes in state and local levels of educational spending. Readers are cautioned not to place undue reliance upon forward-looking statements which reflect management's analysis only as of today's date. PEH does not intend to update any forward-looking statements.