Educational Insights Affirms Continuation of Strategic Focus

Educational Insights Affirms Continuation of Strategic Focus RANCHO DOMINGUEZ, Calif., Jan. 14 /PRNewswire-FirstCall/ -- Educational Insights, Inc. , in response to inquiries made by several of the Company's shareholders, announced today that it is not currently engaged in any active discussions concerning the possible sale or merger of the Company. Reid Calcott, the Company's President and CEO, reported that from time to time during the past two years the Company has had discussions with potential investors in its effort to increase shareholder value. He said that although the Company has, over the past few years, had preliminary discussions regarding possible transactions, no such discussions resulted in what the Board of Directors believed to be fair and viable offers. Mr. Calcott went on to explain that he believes that, in the near future, the Company's best strategy for increasing shareholder value is to continue its current strategy of emphasizing its core education products as this strategy is producing positive results. Mr. Calcott stated, "Revenue for 2004 was up approximately 20% over 2003, making this year the second consecutive year in which the Company's turnaround strategy has produced an increase in domestic sales volume. In addition, the Company expects to report an operating profit for the first time in five years." The Company's formal report on its results of operations for 2004 is expected to be released at end of the first quarter. He added that the Company has renewed its license to market Classroom Jeopardy!(R) for another five years. Classroom Jeopardy! permits teachers to present material in the entertaining Jeopardy! format and makes classroom presentations more interesting for both teachers and students. The Classroom Jeopardy! product has been enthusiastically received by teachers throughout the country and positive sales momentum is expected to continue. Mr. Calcott stated, "All things considered, I believe the Company's turnaround can now be considered a success. I expect both revenue and earnings to improve in 2005 which I believe will ultimately increase shareholder value." He further stated, "Although we will, of course, continue seeking ways to increase shareholder liquidity, our priorities in the near term are to increase profitability and to finalize the Company's return to a position of leadership in the supplemental educational materials and educational toys and game businesses." Educational Insights, Inc. designs, develops and markets a variety of educational products, including electronic learning aids, electronic games, activity books, science and nature products, board games and other materials for use in both schools and homes. The Company's product lines, including its popular GeoSafari(R) branded products, its classroom version of Jeopardy!(R) , and The Amazing Live Sea-Monkeys(R) product line, appeal to children as well as students ranging mainly from pre-kindergarten to eighth grade and is designed to make learning fun. Except for the historical information contained herein, this press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, future events or performance and underlying assumptions and other statements, which are other than statements of historical facts. Editors and investors are cautioned that forward-looking statements invoke significant risk and uncertainties that may cause the Company's actual results to differ materially from such forward-looking statements. Words such as "projects", "believe", "anticipates", "estimate", "plans", "expect", "intends", and similar words and expressions are intended to identify forward-looking statements and are based on our current expectations, assumptions, and estimates about us and our industry. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Although the Company believes that such forward-looking statements are reasonable, we cannot assure you that such expectations will prove to be correct. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of several factors, risks and uncertainties. These factors, risks and uncertainties include, without limitation, continued successful development and acceptance of new products, dependence on off-shore contract manufacturers, competitive factors, dependence on education funding by Federal, State and local governments, dependence on key development and marketing personnel, general economic conditions and other risk factors. All such forward-looking statements, whether written or oral, and whether made by, or on behalf of, the Company, are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances subsequent to the release of this information Source: Educational Insights, Inc. CONTACT: Stephen E. Billis, Chief Financial Officer of Educational Insights, Inc., +1-310-884-2000 Web site: http://www.edin.com/ ------- Profile: International Entertainment