RISE China RISE Global

1. RISE China RISE Global July 23, 2012

2. RISE: Overview Riverdeep:Immersion Subject English (RISE) is EMPGI’s progressive, fast-growing children’s English learning center business in China Riverdeep Immersion Subject English (RISE) is an immersive, subject-based English language and leadership training program that delivers superior learning outcomes through English. • Immersive English-language Acquisition • All subjects are taught through English, allowing students to learn English as a native speaker does • Subject-based English Instruction: • English is taught through academic subjects so that students have a reason for learning English and learn the vocabulary to excel in those subjects in school and univeristy (math, science, social science, language arts) • Leadership Training (21st Century Skills): • Students learn social, life, and work skills in a project-based non-cognitive skill course. Students develop those skills needed for excelling in school, university, and the workforce • project- management skills • teamwork and collaboration • independent thinking and problem-solving • application of knowledge (higher-order thinking) • confidence, public speaking, etc.

3. EMPGI founded Beijing Riverdeep in partnership with local entrepreneurs to build an immersive English language learning end-to-end service business under the RISE and RISMART brands Beijing Riverdeep started operations with US$330k capital First centre opened in October 2007, followed by rapid expansion to capitalize on the rising demand for innovative English language learning solutions and benefitting from a highly scalable business model End of 2011: 105 operating learning centers across China (22 self-owned + 83 partner centers) with over 30,000 students Beijing Headquarters: over 200 employees (Sales and Marketing, Curriculum Development, Teacher Training, IT, Finance) Learning Centers: over 800 employees (Principals, Academic Heads, Teachers, Assistant Teachers, Administrators, IT) RISE: China Operations RISE China has 105 learning centers in operation throughout China (2011), with an additional 40 centers scheduled to be opened by the end of 2012 • Programs: • RISMART (pre-primary school): • Pre-K and Kindergarten • 192 tuition hours and ARP of US$2.2k • RISE (primary school): • Grades (Stages) 1 to 5 • 180-220 tuition hours and ARP of US$2.2k • RISE UP (middle and high school): • Grades 6 to 12 (in development) • 300-320 tuition hours + test preparation

4. RISE: Understanding the Market The success of RISE started with a clear understanding of the market in China • In general, it is difficult for companies in China to find Chinese graduates with the skills and English-language levels necessary to succeed in the global workplace • Most high- and middle-level employees are from Hong Kong, Taiwan, and Singapore • Approximately 70% of Chinese graduates cannot find a job • The majority of ESL learning centres focus on traditional methods of understanding English, such as “tourist English” and grammar (not communication) • Current ESL learning centres rely on available teachers and a ‘chalk and talk’ methodology – not scalable and impossible to control • The market presented an opportunity to introduce a unique program into China: • Subject-based learning • Immersive (English only) language acquisition • The necessary social and leadership skills for succeeding in the workplace: project management, presentation skills, problem-solving, project-based learning, teamwork, active thinking • The use of technology (digital content, learning management system, and IWBs) to create a scalable model

5. RISE Success The ongoing success of RISE is based on a number of key program strengths • Immersive language acquisition • Immersion programs are the fastest growing and most effective types of foreign language programs currently available in schools in the U.S. • Research has shown that immersion programs enhance students’ language development and provide a greater sense of global awareness, linguistic confidence, and learning strategies • Subject-based learning • Students view the second language as a tool for communicating rather than as an object to be analysed and studied • Language in a subject-based context is used for practical solving of problems and real-life situations (following directions, collaborating, presenting findings, etc.) • Leadership training (non-cognitive skill development) • Research has shown that students who score highly on tests but lack non-cognitive skills tend to be less successful in higher education and the workforce. • The development of non-cognitive skills allows students to gain confidence and become active learners. Students with non-cognitive skills are more likely to take the initiative in learning, to become independent learners, to problem-solve, and to work comfortably in groups.

6. RISE Success The ongoing success of RISE is based on a number of key program strengths • World’s leading digital educational content • RISE uses the flagship digital products of Houghton Mifflin Harcourt, one of the United States’s leading educational publishers. Titles include: • Millie’s Math House (RISMART and RISE stage 1) • Bailey’s Book House (RISMART and RISE stage 1) • Sammy’s Science House (RISMART and RISE stage 1) • Trudy’s Time and Place (RISMART and RISE Stage 1) • Destination Math (RISE) • Destination Reading (RISE) • Integration of technology in teaching approaches • RISE uses technology extensively in its delivery and recording of learning in all learning centers. The technology includes the following hardware and software pieces: • Destination Learning Management System (LMS): allows teachers to assign actvities and tests to students, and then record test results and produce reports instantaneously • Multimedia Lessons and Tests: the audio-driven, graphic-rich lessons engage students and address different learning styles. Students can hear correct pronunciation and intonation of all English pieces, and teachers can differentiate learning. • Interactive White Boards (IWBs): allow students to interact dynamically with the various products in the classroom, making learning engaging, active, and creative.

7. RISE Success The ongoing success of RISE is based on a number of key program strengths • Standardized and scalable teaching methods • RISE invests considerable time and effort in developing lesson plans that employ the most effective teaching methodologies • Standardized lesson plans gives all teachers access to the most successful methodologies for all lesson types and learning styles. • Standardized teaching approaches and lesson plans also provide a highly scalable curriculum model. All teachers teach to the same curriculum with the same lesson plans for every stage. • Fun and engaging learning center environment • RISE learning centers are designed and branded to provide a safe, welcome, fun, and engaging learning environment for young learners. • Learners are encouraged to interact with the IWBs and other learners, to collaborate, to contribute actively in class, and to think independently • Social interaction and respect for others are fostered within all RISE learning centers.

8. RISE Success The ongoing success of RISE is based on a number of key program strengths • Highly integrated teacher training program • RISE trains local graduates with good English skills to teach according to well-researched lesson plans and methodologies • An expert Academic Coaching Department provides intensive initial training and internship, followed by ongoing quality assurance during a 3-month probationary period • Teachers are mentored on an ongoing basis and various tools are used for appraisal and teacher evaluation • Proven and measurable student outcomes and success • An independent survey/testing of RISE students in 2009 showed impressive results and progress: • Stage 1: 65% = Beginning speakers • Stage 2: 62% = Confident speakers • Stage 1: 64% = Beginning to limited writers • Stage 2: 88% = Emerging to confident writers • Students continue to perform at a high level in TOEFL Jr exams at stages 4 and 5

9. RISE: Additional Strengths The ongoing success of RISE is based on a number of key program strengths • Convenient locations of Learning Centers • Urban locations attract walk-ins and are typically 1,000-1,800 sq. meters, consisting of 8-14 classrooms • Maximum of 20 students per class + 2 teachers per class • Engaging, graphic-rich, audio-driven, interactive software • Students interact with American voice-overs and scenarios and speak only English in class • Project-based learning promotes interpersonal skills and readiness • Student radio stations, student stage performances, student competitions,and other collaborative projects are common • Strong parent involvement in student learning • A Parents Teacher Association was started in Q1 2009 and has been a huge success as parents increasingly promote and become the public face of RISE • Regular “RISE Vision” newsletters and a parent internet portal allow families to track learning progress

10. RISE: Customization The RISE model can be customized for other solutions • Government sponsorship and schools • RISE China is looking at offering a full RISE program in government and private schools in China, using school facilities • Full Pre-K and Kindergarten offering • RISMART to be expanded into a full day-long pre-K and kindergarten offering (including hot meals and nursery facilities) • Leadership Training Program for all ages (adult education) • LTP program to be adapted for adult vocational educational centers and within the training centers of Chinese companies • Intensive winter and summer programs • RISE China currently offers additional intensive and refresher English courses during winter and summer holidays for all grade levels • Independent and internationally recognized assessment • RISE China offering internationally recognized benchmark assessment for RISE and RISE UP programs through TOEFL Jr and SAT/ACT

11. RISE: Future Growth The RISE model can be customized for other territories • India • A RISE and RISE Kids curriculum has been developed for the India after-school market, based on the RISE China model • Currently 2 learning centers in operation (Delhi and Hyderabad) • Vietnam • Plans are underway to enter the market in Vietnam: a JV with a local partner has been signed, a CEO has been hired, and a small team has been hired to “localise” the RISE model for this market • South Korea • Plans are underway to enter the market in South Korea: a local partner has been found and market research and customisation of the curriculum is underway. • Turkey • EMPGI is currently investigating opportunities for localizing RISMART and/or RISE for this market. Local partners are being sought.