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 Edison Schools Completes First in a Series of Planned Re-Financings of Charter School Facilities. Thursday, December 12, 2002 Edison announced today that it has closed on the first in a series of planned re-financings of its charter school facilities. The Company said it had successfully completed the financing of the facility for Derrick Thomas Academy in Kansas City, Missouri, a school that opened this fall with approximately 550 students. Under the terms of the arrangement, Bank of America will lend approximately $7 million to the non-profit charter board of Derrick Thomas. The charter board will use these proceeds primarily to repay to Edison amounts under a loan which the company provided to the school. This re-financing of our bridge loan is the first closing in a series of re-financings that the Company is planning for this fiscal year, said Chip Delaney, the Companys vice-chairman. We continue to believe that this series of debt repayments to Edison will generate a minimum of $30 million in gross cash proceeds before June 30, 2003. We will use these funds to reduce debt, invest in our FY04 growth, and maintain a healthy level of cash balances. Edison recently raised its EBITDA estimates for the total company in the current fiscal year by 30 percent, saying it expects to generate annual EBITDA of $26 million. The Company also said that it expects to post positive net income in the fourth quarter of this fiscal year, the first quarterly net income in the company's 10-year history. In addition to the minimum $30 million from repayment of charter school loans that it expects from the above re-financings, the Company expects improvements in the collection of receivables from its managed schools customers of approximately $20 million. The Company's balance sheet remains strong with shareholder equity of $219 million or $4.07 per share, including $31.5 million of cash on hand on September 30, 2002. The Company expects to end the fiscal year with cash on the balance sheet of approximately $25 million. This amount would be after reduction in the company's debt level and investing in FY04 new business.
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