Enter into Licensing Arrangement for Public Schools Abroad

Education Pioneers to Launch New Private Schools Company

New Management Assignments Announced

NEW YORK – (January 9, 2007) – Two of the world’s leading K-12 education companies today announced an alliance designed to expand their respective operations around the world.

New York-based Edison Schools, the largest manager of U.S. and U.K. public schools, and Global Education Management Systems (GEMS), the largest private school operator in the Middle East, China and India, have become the founding partners in a new company that will build a network of private schools. Campuses will be launched in major cities around the world.

In addition, Edison Schools will license its intellectual property and brand to GEMS for the management of public schools in the Middle East, North Africa, and Southern Asia.

The new alliance unites two of education’s most prominent entrepreneurs and pioneers: Chris Whittle, who founded Edison Schools, and Sunny Varkey, founder of Global Education Management Systems. Chris Whittle becomes the CEO of the new private schools company.

“We believe that great pedagogy is portable; that educational quality is enhanced by international collaboration; and that organizations like those we have founded will be increasing and positive contributors to both public and private schools worldwide,” said Varkey and Whittle in a joint statement.

The formation of this new alliance creates several management changes for Edison Schools.

Mr. Whittle moves from the role of Edison Schools chief executive officer to become the company’s chairman and focus on three major initiatives: (1) launch of new school designs, (2) expansion of the company’s UK business and (3) support of GEMS licensing activity in the Middle East, North Africa, and Southern Asia.

Benno Schmidt, Edison Schools current chairman, becomes vice-chairman and continues his 15-year service as an Edison Schools director.

Terry Stecz, Edison Schools current president and chief operating officer, continues as president and becomes the company’s chief executive officer.

Mr. Stecz has been chief operating officer since 2004 and president of Edison Schools since 2005. As president, he has managed the company’s operations across all five of its business channels. He also supervised the integration of key headquarters functions with the company's field operations. John Chubb and Chris Corrini continue as Edison Schools’ chief education and chief financial officers, respectively.

Edison Schools, founded in 1992, serves more than 285,000 public school students in 19 states, the District of Columbia, and the United Kingdom through multiple educational offerings, from the full operation of schools to tutoring and summer schools. It employs approximately 6,000 full-time professionals and many thousands more in part time roles.

GEMS manages approximately 100 private schools, some dating back 40 years, in the UAE, England, India, and other countries with a total enrollment of over 70,000 students. GEMS employs over 6,000 educational professionals and provides education for children of more than 100 nationalities. It is skilled in multiple international educational programs.