Press Releases

FINANCIAL NEWS, EARNINGS RELEASES

Date: April 17, 2002

Contacts: Brian Beckwith, President & CEO, 201-712-0090
               Mike DeMarco, Vice President, 201-712-0090

Peoples Educational Holdings, Inc. Posts 14% Increase in Revenues and 14% in Net Income

SADDLE BROOK, NJ, APRIL 17, 2002– 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, 2001, net revenue was $15,755,000, an increase of 14% from $13,806,000 recorded in the prior fiscal year. Net income for 2001 was $705,000, an increase of 14% from $619,000 in 2000.

"We are pleased with these results, particularly with sales in our rapidly growing assessment preparation area, which increased 37% over the prior year to $4,465,000 in sales. Our primary focus in new product development continues to be in our standards-based instructional materials and diagnostic practice tests, which prepare students for state-specific tests. As we continue to enter new states and enhance our product offerings in existing states, we expect a large share of our growth in sales and profits to come from this line of high margin, proprietary products," said Brian Beckwith, President and CEO of Peoples Educational Holdings.

Mr. Beckwith also highlighted a very significant sales increase in the area of instruction, where sales increased $560,000 or 29%, reaching $2,463,000 as compared to $1,903,000 in the prior year. The Company recorded a slight decline in sales of its Advanced Placement product line, with 2001 sales of $7,609,000 compared to $7,759,000 in 2000. "The Advanced Placement sales decline is a result of limited adoption opportunities in fiscal year 2001 and a one-time 2000 sale that didn't repeat in 2001. In 2002, the adoption opportunities are numerous, and we remain positive and committed to the Company's growth plan in the Advanced Placement market," Mr. Beckwith said.

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. In November 2001, the company reincorporated in Delaware. PPG is a niche school publisher and distributor of supplemental materials for grades pre-K-12 educational markets. PPG focuses its efforts in three market niches:

• Standards-based supplementary instructional materials and diagnostic practice tests used to prepare students for state-specific assessments mandated by state and federal laws;
• Supplementary instructional products for the student-at-risk and multicultural niches;
• Distribution of Advanced Placement materials for the academically rigorous senior high and college prep markets

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: 1) the success of its sales and marketing efforts, 2) its ability to attract new customers and compete effectively, and 3) 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.