Sylvan Ventures Announces Investment in Walden University

Business Wire, Feb 5, 2001

Business Editors, Education Writers

BALTIMORE--(BUSINESS WIRE)--Feb. 5, 2001

Stake in Leading Provider of Distance and Online Graduate Curricula

Paves Way for Joint Efforts in Teacher Education and Sylvan

International Universities Degree Programs

Sylvan Ventures LLC, a subsidiary of Sylvan Learning Systems, Inc. (NASDAQ: SLVN), today announced it will invest approximately $32.8 million for 41% ownership of Walden University, a pioneer in distance and online learning for adults that offers Ph.D. and other graduate-level, regionally accredited degree programs in management, education, and the social and behavioral sciences. The investment will be staged in over the next 18 months.

"Sylvan Ventures' investment in Walden University adds an established, accredited, and profitable organization serving the post-secondary market to our already strong family of companies providing technology-based solutions to the K-12 and corporate education markets," said R. Christopher Hoehn-Saric, chairman and chief executive officer of Sylvan Ventures. "At the same time, this agreement paves the way for Sylvan and Walden to explore a range of joint initiatives involving other Sylvan businesses, including teacher education and certification from Canter and Associates, and the degree programs offered by Sylvan International Universities."

"Walden is the standard for quality distance education. We have been in the business for over 30 years and pioneered many of the educational practices that other distance learning institutions are just beginning to emulate," said Walden Chairman Don Ackerman. "We look forward to working with Sylvan, a company that shares Walden's core values of quality, integrity and student-centeredness."

In a separate announcement, Walden University today outlined the first joint program with a Sylvan Learning Systems company. Walden said it has joined with Sylvan subsidiary Canter and Associates to offer a new specialization in elementary reading and literacy in Walden's existing Master's in Education.

Paula Singer, president of Sylvan Education Solutions, said Walden would become an important new university partner, complementing the work of Canter's 16 existing university partners, and allowing Canter to reach thousands more K-12 teachers with proven educational programs at a time when the nation's political agenda is focused squarely on teaching quality.

"Bringing together Canter and Associates, the leader in distance learning for the teaching profession, with Walden University, which was one of the first to offer an online master's degree in education, is a win-win for Sylvan, Walden and especially for the teachers of America," she said.

Sylvan's investment also includes Walden University affiliate Walden Institute, which offers a range of non-credit, online certificate and professional development programs in technology and business.

About Walden University and Walden Institute

Walden University and Walden Institute provide high-quality, graduate and professional education to individuals and corporations. Walden's programs, most of which are delivered directly to any desktop or laptop in the world, significantly reduce or eliminate student and learner travel costs and time away from professional and personal responsibilities. Founded in 1970, Walden University is accredited by the North Central Association of Colleges and Schools, and has graduated thousands of students from all 50 states and more than 30 countries. Established in 1998, Walden Institute provides online certificate and development programs in technology and business. For more information on Walden University and Walden Institute, visit www.waldenu.edu.

About Sylvan Ventures

Sylvan Ventures develops and invests in educational technology companies, providing them with access to the brands, content and resources of its parent company Sylvan Learning Systems Inc. (NASDAQ: SLVN). For more information, visit www.sylvanventures.com.

About Sylvan Learning Systems, Inc.

Sylvan Learning Systems, Inc. (www.sylvan.net) is the leading provider of educational services to families, schools and industry. The Sylvan Learning Centers and Sylvan Education Services divisions provides personalized instruction services to K-12 students through direct consumer relationships and under contract to school systems. Sylvan provides courses to adult students throughout the world in the areas of English language, teacher training and accredited university offerings through the Wall Street Institute, Canter and Sylvan International Universities subsidiaries.

This release may include information that could constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements may involve risk and uncertainties. Political, economic, currency, tax, regulatory, technological, competitive and other factors could cause actual results to differ materially from those anticipated in the forward-looking statements. Additional information regarding these risk factors and uncertainties is detailed from time to time in the company's filings with the Security and Exchange Commission, including but not limited to our most recent Form 10-Q, available for viewing on our Web site. (To access this information, please click on "Investor Relations," "SEC Filings").