New Horizons Reports Second Quarter and Six Months Ended June 30, 2008 Results

Business Wire, August 13, 2008

CONSHOHOCKEN, Pa. -- New Horizons Worldwide, Inc. (OTCBB: NEWH) today reported financial results for the second quarter and the six months ended June 30, 2008.

Quarter Ended June 30, 2008 Highlights

* Operating income was $1.5 million for the second quarter of 2008, representing our sixth consecutive quarter of positive results.

* Net income was $1.1 million for the quarter ended June 30, 2008.

* System-wide revenue increased 7.6% for the quarter ended June 30, 2008 over the comparable quarter in the prior year.

Quarter Ended June 30, 2008 Results

Revenue for the quarter ended June 30, 2008 totaled $9.9 million, compared to $13.3 million in the comparable 2007 period. Franchising revenue increased to $6.4 million in the second quarter of 2008 as compared to $6.0 million in the second quarter of 2007. Royalty revenue increased by $901,000 in the quarter ended June 30, 2008 to $5.8 million from $4.9 million in the comparable 2007 period, partially due to the re-franchising of Company-owned training centers. Revenue from Company-owned training centers declined to $3.5 million in the quarter ended June 30, 2008 from $7.3 million in the comparable period of 2007, as a result of the disposal and re-franchising of four Company-owned training centers during 2007.

The Company had operating income of $1.5 million in the second quarter of 2008, compared to an operating income of $1.4 million in the second quarter of 2007. The Company defines operating income as income before gains (losses) from the sale of assets, interest and income taxes. The improvement reflects increased margins in both the Company's Franchising segment and its Company-owned training centers segment. The Company's net income was $1.1 million for the three months ended June 30, 2008 compared to a net income of $1.5 million in the comparable 2007 period. The second quarter of 2007 benefited from $585,000 of non-recurring gain on the sale of a Company-owned training center.

For the three months ended June 30, 2008, total system-wide revenue from all franchised and Company-owned training centers was $105.5 million compared to total system-wide revenue for the comparable 2007 period of $98.1 million, an increase of 7.6%.

Six Months Ended June 30, 2008 Highlights

* Operating income was $3.0 million for the six months ended June 30, 2008.

* Net income was $2.5 million for the six months ended June 30, 2008.

* System-wide revenue increased 8.4% for the six months ended June 30, 2008 over the comparable six months in the prior year.

Six Months Ended June 30, 2008 Results

Revenue for the six months ended June 30, 2008 totaled $19.3 million, compared to $28.1 million in the comparable 2007 period. Franchising revenue increased to $12.6 million in the first half of 2008 as compared to $11.5 million in the first half of 2007. Royalty revenue increased by $1.9 million in the six months ended June 30, 2008 to $10.9 million from $9.0 million in the comparable 2007 period, partially due to the re-franchising of Company-owned training centers. Revenue from Company-owned training centers declined to $6.8 million in the six months ended June 30, 2008 from $16.6 million in the comparable period of 2007 as a result of the disposal and re-franchising of four Company-owned training centers during 2007.

The Company had operating income of $3.0 million in the first half of 2008, compared to operating income of $2.3 million in the first half of 2007. The Company defines operating income as income before gains (losses) from the sale of assets, interest and income taxes. The improvement reflects increased margins in both the Company's Franchising segment and its Company-owned training centers segment. The Company's net income was $2.5 million for the six months ended June 30, 2008 compared to a net income of $2.7 million in the comparable 2007 period. The first half of 2007 benefited from $1.1 million of non-recurring gain on the sale of Company-owned training centers.

For the six months ended June 30, 2008, total system-wide revenue from all franchised and Company-owned training centers was $205.8 million compared to total system-wide revenue for the comparable 2007 period of $189.9 million, an increase of 8.4%.

Current Outlook

Mark A. Miller, President and Chief Executive Officer of New Horizons, stated, "We are pleased with the continued strong results for the second quarter and the first half of 2008, driven by growth in both our domestic and international markets."

Mr. Miller continued, "During the quarter, we continued to execute on our growth strategy by becoming a Cisco Learning Solutions Partner in the United States and Canada and by making arrangements for our centers around the world to also participate in our Cisco relationship. Cisco Learning Solutions Partners (CLSP) and their sponsored organizations are the only companies that may provide authorized Cisco training. We also saw increased franchising activity as a result of a revitalized franchising program that was developed as part of our strategy."