Press Releases

FINANCIAL NEWS, EARNINGS RELEASES

Date: November 19, 2004

Contact: Michael DeMarco, Chief Financial Officer
             (201) 712-0090

Peoples Educational Holdings, Inc. Forecasts 2004 Revenue Growth and 2005 Business Outlook

Saddle Brook, NJ, November 19, 2004 – Peoples Educational Holding, Inc. is forecasting full year 2004 revenue to be in the range of $31 to $33 million, growing to $41 to $43 million in 2005. The expected revenue growth for 2005 of approximately 30% is somewhat higher than the Company’s historical compound annual growth rate over the past three years of 24%, due to new product and product line launches.

Operating income is projected to be between $2.3 to $2.5 million for 2004 growing to $3.1 to $3.5 million in 2005. Operating income as a percent of revenue is expected to increase slightly, from 7.8% of revenue in 2004 to 8.3% in 2005. This positive trend will continue as revenue grows and the product mix continues to shift toward high margin, proprietary product and the fixed component of costs are fully absorbed. The Company feels that an operating income of 15% to 18% of revenue is achievable over the next three to four years.

Net income for 2004 is projected to be between $1.3 and $1.6 million, growing to $1.8 to $2.1 million in 2005 or 5% of revenue. "We feel, as we do with operating income, that significant growth in this area, both in dollars and as a percent of revenue, is attainable. A net income percentage of 10% to 12% is attainable over the next three to four years," announced President and CEO, Brian Beckwith.

This press release and business outlook is based on current expectations. This business outlook contains forward-looking statements regarding the Company, its wholly-owned subsidiary, the Peoples Publishing Group, Inc. (“PPG”), and their markets as defined in section 21E of the Securities Exchange Act of 1934. These “forward looking statements” represent the Company’s present expectations or beliefs concerning future events. The Company cautions that such statements are necessarily based on certain assumptions, which are subject to risks and uncertainties which could cause actual results to differ materially from those indicated in the forward-looking statements. These risk factors include changes in general economic conditions; local and state levels of educational spending; changes in demand from customers; variations in the mix of products sold; the impact of competitive products and pricing; the Company’s ability to respond to rapidly changing technologies; and other factors disclosed below and throughout this report. The Company undertakes no obligation to revise any forward-looking statements in order to reflect events or circumstances that may arise after the date of this report. Readers are urged to carefully review and consider the various disclosures made by the Company in its other reports filed with the Securities and Exchange Commission from time to time that attempt to advise interested parties of the risks and factors that may affect the Company’s business and results of operations