Edison Schools Plans to End Partnership with Mount Clemens School District Tuesday, June 18, 2002 Edison Schools announced today that it plans to submit a payment dispute with the Mount Clemens Community School District in Michigan to arbitration, and that it anticipates that its seven-year relationship with the district likely will end at the close of this academic year. Edison further stated that it had given notice to the district that it was in breach for non-payment, and that Edison intended to terminate the contract if this concern is not remedied. While we regret the apparent end of this partnership, the net effect of this decision is positive to the companys finances, said Chris Cerf, Edisons Chief Operating Officer. This relationship was projected to generate negative site contribution in our previously-issued FY03 guidance. Though we are fully prepared to make substantial investments in our schools and their students, we simply cannot continue in a relationship where the economics of the arrangement have not met expectations, as this one has not met expectations for some time. Edison manages four schools in Mount Clemens, Michigan serving students in grades K-12. Edison began its relationship with Mount Clemens Community Schools in 1995. We are sorry to have to end our partnership with the district of Mount Clemens, said Cerf. We leave these schools in a much invigorated and vastly improved state--with well-trained teachers and administrators and a major investment in infrastructurein essential areas such as technology, curriculum and facility improvement. We believe that our schools have made a positive difference to the educational opportunities and outcomes for our Mount Clemens students and their families.
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