RISE China RISE Global July 23 2012

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RISE China RISE Global July 23, 2012

RISE: Overview Riverdeep: Immersion Subject English (RISE) is EMPGI’s progressive, fastgrowing children’s English learning center business in China Riverdeep Immersion Subject English (RISE) is an immersive, subjectbased English language and leadership training program that delivers superior learning outcomes through English. • Immersive English-language Acquisition • • Subject-based English Instruction: • • All subjects are taught through English, allowing students to learn English as a native speaker does 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 (21 st 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.

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 • • • 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$330 k 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) Programs: • • • RISMART (pre-primary school): • Pre-K and Kindergarten • 192 tuition hours and ARP of US$2. 2 k RISE (primary school): • Grades (Stages) 1 to 5 • 180 -220 tuition hours and ARP of US$2. 2 k RISE UP (middle and high school): • Grades 6 to 12 (in development) • 300 -320 tuition hours + test preparation

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

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.

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.

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.

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 2: 62% = Confident speakers • Stage 1: 64% = Beginning to limited writers • • Stage 1: 65% = Beginning speakers Stage 2: 88% = Emerging to confident writers Students continue to perform at a high level in TOEFL Jr exams at stages 4 and 5

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 Q 1 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

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

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.

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