Edison Schools has grown each year since it first began operating schools in 1995. Serving more than 250,000 students this year represents significant growth since last academic year when Edison divisions served approximately 132,000 students.

Chris Whittle, Edison Founder and CEO, commented on the company's 2004-2005 outlook: "The real story behind our company's growth is the tremendous efforts of the hundreds of public-school clients we are privileged to serve, and the achievements of the thousands of children whose learning we are privileged to help nurture and grow. The men and women of Ed ison are proud of our business success -- but what we are passionate about is the student achievement that we have been able to help our clients to achieve."

According to Steve Pines, President of the Education Industry Association, "Edison is one of the founders of our industry, and its strong growth and diversification this year is evidence of our industry's momentum, its potential -- and most of all, the extraordinary benefits it brings to children across this nation. The EIA congratulates Edison for its expanding partnerships with local schools."

District Partnerships, Charter Schools, and Edison Alliance With more than 71,000 students enrolled in district partnership and charter schools across the country, Edison Schools remains the nation's leadin g education provider. Through its research-based School Design, Edison provides districts, charter boards, and states with effective school management that includes innovative curriculum, professional development, leadership training, operational support and achievement management systems.

In 2004-2005, Edison has opened new schools in Denver, CO; Indianapolis, IN; Warren, MI; and Philadelphia, PA. Edison also expanded grades served and student enrollment at many existing schools across the country.

Additionally, Edison is working in partnership with two districts in South Carolina to launch its new Edison Alliance program at nine schools in Charleston and four schools in Allendale. Edison Alliance partnerships offer customized academic achievement programs tailored to meet individual district and school achievement goals, while allowing the district to maintain management and operational control of schools.

''Over the past ten years Edison Schools has invested considerable time, focus, and more than $40 million in research and development to create comprehensive systems and a world-class school design that helps our partner districts and boards drive student achievement," said Edison President, Chris Cerf. "In that time we've also learned how to work shoulder to shoulder with our partner districts, boards, and states. Together we are making a difference for many more schools, students, and communities across the country."

Schools that partner with Edison are achieving academic gains faster and more consistently than comparable schools; making strong strides toward leaving no child behind in meeting state standards; and beginning to help close the achievement gap. Edison's achievement data is compelling:

"Students at schools that partner wit h Edison posted an average gain of 6.7 percentage points between 2002 and 2003. This gain rate is more than two and nearly three times the respective district and state gain rates where those Edison partnership schools are located. -On the basis of avera ge achievement gains at each school across the system82 percentare fulfilling their primary mission: raising student achievement. -Comparing the gain rates of schools that partner with Edison to schools with similar levels of economic disadvantage and ethnicity shows that Edison schools have a gain rate that is nearly double of comparable schools -- 6.7 percentage points from 2002 to 2003 versus an average gain rate of only 3.6 percentage points for similar, non-Edison Schools. -Edison is beginning t o close the achievement gap. The average gain rates of Edison schools with predominantly African-American students (90 percent or higher) have an average one-year gains of 7.2 percentage points and two-year gains of 9.5 percentage points, exceeding those of their local district and state. -Edison is helping improve the academic performance of schools in need of improvement, according to No Child Left Behind legislation. In these schools, Edison has improved student achievement by an average one-year gain of 5.5 percentage points. Over the same period of time, the districts and states in which these traditionally low-performing schools are located made average one-year gains of 3.5 and 1.9 percentage points, respectively. -For the eighth consecutive year, parents are overwhelmingly satisfied with their Edison schools. In an independent survey, 85 percent of Edison parents rate their school an A or B, with a majority of 51 percent giving their schools an A.

Newton Learning and Newton Learning SES Newton Learning is the division of Edison Schools that offers summer school, after-school, and supplemental educational services (SES) programs. In providing a world-class, extended-learning program that focuses on specific student needs, Newton Learning programs provide students with student-centered, targeted assistance guaranteed to raise academic achievement levels. Newton Learning, which operated summer schools in 68 districts this past summer, expects to serve approximately 67,500 students next year. It has established itself as a proven academic enrichment program for students and a high quality, cost-effective partner for school districts. Newton Learning has also launched its after-school programming with districts in Missouri and California, which will offer Newton Learning programs this fall. Newton Learning's SES program offers tutoring and targeted educational support for individual students outside the regular school day. It provides targeted instruction in reading and math, with active, hands-on lessons that combine skills that help get children excited about learning. Lessons are aligned to state standards, and Newton Learning SES works with individual districts to ensure that the program is consistent with the instructional strategies and curriculum students receive during the regular school day. The SES program is offered at no charge to parents, as it is funded as a provision of No Child Left Behind federal legislation. Newton Learning has been approved as an SES provider in Alabama, Alaska, Arkansas, California, Connecticut, Delaware, Florida, Kentucky, Illinois, Indiana, Maryland, Missouri, Montana, Nevada, New Jersey, New Mexico, New York, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Virginia, Washington, Washi ngton DC, and West Virginia. In addition, Newton Learning SES has been approved with renewal or revision pending in the following states: Colorado, Hawaii, Louisiana, Michigan, New Hampshire, Ohio, Texas, and Wisconsin.

Tungsten Learning Named for the k ey element in perfecting the modern light bulb, Tungsten Learning, a division of Edison Schools, offers the best elements, knowledge, and expertis, gleaned from years of research and development and school management experiencethat have driven student ac hievement for tens of thousands of children across the country. Tungsten is a leading provider of formative assessment content, technology, and expertise. Its comprehensive Benchmark Assessment System helps school districts inform instruction and raise st udent achievement.

For the academic year 2004-05, Tungsten Learning will serve approximately 75,000 students at districts in Arizona, California, Illinois, Indiana, Michigan, Missouri, New York, South Carolina, and Virginia.

Edison Schools UK Since 2002, Edison has partnered with Essex County Learning Services, the second largest system of public schools in the United Kingdom, to introduce a unique, comprehensive school improvement program. In 2004-05, Edison Schools UK will expand operations beyond Essex to serve approximately 15,000 students in 32 schools for the academic year 2004-05.

The Edison UK program, which was developed by a joint team of UK-based educators in conjunction with Edison, is designed to support teachers, motivate students, eng age parents and the community, and raise student achievement levels. Schools retain their autonomy, and benefit from Edison's expertise in helping teachers and school leadership accelerate learning through a core skills curriculum, assessment for learnin g tools, strategies for parent school engagement, and for creating a positive learning environment. The program is supported by relevant and timely professional development for teachers and teaching assistants.

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