The American Education Corporation (AEC) today announced that for the second quarter and six-month period ended June 30, 2009, net revenues increased 9 percent and 8 percent, respectively. Net revenues for the 2009 second quarter were $4,380,855, compared to $4,005,575 for the same quarter of 2008. For the six-month period, net revenues were $6,907,761, compared to $6,383,572 reported for the same 2008 period. The increase in net revenues is primarily attributable to growth in online revenues, new orders due to expanded market coverage and the continued penetration of larger school districts.

Second quarter 2009 operating income increased 20 percent to reflect an operating income of $776,878 versus operating income of $645,780 reported for the comparable 2008 quarter, while operating income for the six-month period declined 14 percent to $457,701 from the $530,770 reported for the 2008 period. The Company reported a net profit for the 2009 six-month period of $259,401, compared to net profit of $308,921 reported for the same period in 2008. This performance resulted in earnings per share of $0.35 for the six-month period, compared to earnings per share of $0.40 for the first half of 2008.

Gross margin for the six-month period was $6,709,067, or 97 percent of net revenues. For the same 2009 period, total operating expense increased from $5,681,767 to $6,251,366, or by 10 percent. The increase in operating expense was substantially driven by increases in commission expense due to a planned increase in the amount of sales billed directly to customers. The Company instituted a policy earlier this year to bill directly to the end user and to pay its independent representatives commissions to facilitate better internal controls and cash management practices.

EBITDA for the 2009 six-month period increased 3 percent to $1,381,909, and represents 20 percent of revenues, as compared to $1,346,926 reported for the 2008 period, primarily as a result of higher amortization and depreciation expense.

At June 30, 2009, total assets increased by 16 percent to $14,445,732, as compared to $12,459,237 reported at December 31, 2008. Stockholders’ equity increased by 3 percent to $6,115,291, compared to the $5,929,642 reported at December 31, 2008.

Commenting on these results, Jeffrey E. Butler, Chief Executive Officer of the Company, stated, “The increase in AEC quarterly revenues marks the thirteenth consecutive quarter of growth for the Company. While the results of the June-ended quarter represent real improvement in performance, our six-month results were impacted by a slowdown in the school market spending as a result of overall national and regional economic conditions. The first half of the year represented a challenge as: 1) there was a significant interruption of inbound order flow due to school market funding uncertainty driven by overall economic conditions; and the announcement in February of American Recovery and Reinvestment Act (ARRA), which initially created customer uncertainty that compounded the slowness in inbound orders. Funding for schools in the first quarter and a large part of the second quarter almost ceased until districts began to understand the impact of ARRA and resources available under federal programs; and 2) Once customers understood the availability and allowable use of funding, a rapid upswing in orders occurred in the latter part of the second quarter, with a significant percentage of orders being placed in the last week of June. It is now clear that there will be additional ARRA funding to schools in areas served by the Company during the last half of 2009 and into 2010; and the Company should benefit from this program for the next several quarters. Reinforcing the potential benefit of ARRA stimulus funding, we are experiencing an unusual level of new orders, setting a new order record for the July month.

“Of note, at June 30^th the Company now has online business that is comprised of more than 10,000 concurrent user licenses, supporting over 63,000 registered students. In the first six months of 2009, the Company delivered approximately 1,500,000 hours of online instruction to these students. We are solidifying our competitive position and gaining market share with our range of user deployment options, and with online delivery now a significant part of our business mix,” he concluded.

The American Education Corporation is a leading provider of research-based core curriculum instructional software for kindergarten through adult learners. The Company’s courseware is currently in use in over 14,000 public and private K–12 schools, charter schools, colleges, correctional institutions, centers of adult literacy, military education programs, and after-school learning centers. For more information, visit www.amered.com. The Company’s Java-based technology, the A+nyWhere Learning System Versions 3.0 and 4.0 of educational software products, provides for an integrated offering of grade levels 1-12 software for Reading, Mathematics, Language Arts, Science, Writing, History, Government, Economics and Geography. In addition, the Company provides assessment testing and instructional content for the General Educational Development (GED) test. All company products are designed to provide for LAN, WAN and Internet delivery options and support Windows, Linux and Macintosh platforms. Spanish-language versions are available for Mathematics and Language Arts for grade levels 1-8. The Company provides scaled formative assessment testing tools in A+ LearningLink to support response to Intervention programs and provide educators with information to place students appropriately. A+ Classroom™ Student Response Software (A+ Classroom SRS) is a managed whole classroom assessment product aligned to state standards which covers a wide range of K-12 course offerings. A+dvancer™, the Company’s diagnostic, prescriptive test and online, postsecondary developmental curriculum offering, is aligned to ACCUPLACER On-Line and ACT’s Compass^TM tests, which are the leading college admissions tests for students requiring developmental support to enroll in full credit secondary coursework in Mathematics, Reading, Algebra and Writing.

ACCUPLACER and ACCUPLACER On-Line are either trademarks or registered trademarks owned by the College Entrance Examination Board, New York, NY. ACT® and Compass™ are registered trademarks of ACT, Inc., Iowa City, Iowa. Flash® is a registered trademark of Macromedia, Inc., San Jose, CA. Lexile® and Quantile® are registered trademarks of MetaMetrics, Inc., Durham, North Carolina.

Note: Certain matters discussed above concerning the future performance of the Company are forward-looking statements intended to qualify for the safe harbors from liabilities established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified as such by words such as “believes,” “anticipates,” “plans,” “expects” or words of similar import. The future performance of the Company is subject to a number of factors including, but not limited to, general economic conditions, competitive activity and funding available to schools.

THE AMERICAN EDUCATION CORPORATION

7506 BROADWAY EXTENSION

OKLAHOMA CITY, OK 73116

1-800-34APLUS

www.amered.com

EBITDA represents earnings (loss) from continuing operations before interest income, interest expense, income taxes, depreciation, amortization, other income and impairment of goodwill. The Company believes that EBITDA provides meaningful additional information concerning a company’s operating results and its ability to service its long-term debt and other fixed obligations and to fund its continued growth. Many financial analysts consider EBITDA may be a meaningful indicator of future profitability. EBITDA should not be construed as an alternative to net income (loss) as determined in accordance with GAAP, as an alternative to cash flows from operating activities as determined in accordance with GAAP or as a measure of liquidity. Because EBITDA is not calculated in the same manner by all companies, it may not be comparable to other similarly titled measures of other companies. See the statement of cash flows in the Company’s financial statements.