English Language Training

We recently entered the English language training business with the acquisition of a 70% equity interest in World Exchanges Inc. The strong demand for English language training is mainly attributable to the belief that English language proficiency is essential for career development in China and the rapidly growing number of Chinese students that have traveled overseas since 2002. We have plans to reach 10 WECL branches in China from the 5 currently by collaborating with universities or establishing our own branches by the end of fiscal year 2008. In total, at full capacity these branches can accommodate about 4,000 full time study students. Tuition for each student is about $4,000 for one year of full time on-campus English language training courses. Other revenue will come from its part-time language training program, test preparation program as well as overseas study and consulting services for students.