Advantage Learning Systems acquires IPS Publishing.

WISCONSIN RAPIDS, Wis.--(BUSINESS WIRE)--Aug. 12, 1996-- Educational software publisher Advantage Learning Systems Inc. announced today that it has acquired IPS Publishing Inc., a Vancouver, Wash.-based firm that specializes in the development of math assessment software.

The deal is valued at more than $6 million, according to Advantage Learning Systems' Vice Chairman Terrance Paul.

In a related move, Advantage Learning Systems announced the promotion of the current president Michael Baum to chief executive officer and the appointment of John Hickey as president.

The moves are intended to strengthen Advantage Learning Systems' position in the educational software market and facilitate the broadening of its product line to new curriculum areas, Paul said.

Advantage Learning Systems publishes and markets Accelerated Reader(TM) computerized reading management system, an award-winning program currently in use by more than 23,000 K-12 schools in North America. It recently announced the fall release of a computer-based, norm-referenced reading test called the Standardized Test for Assessment of Reading (S.T.A.R.)(TM). The company, which employs 150 at its Wisconsin Rapids headquarters, is one of the top five publishers of language-arts software for schools.

IPS is the leader in the algorithms to generate classroom assessment software in Math and Science. In addition to software products, such as Exam in a Can(TM), MathCheck(TM), and ScienceCheck(TM), which it markets to schools, the firm also develops math and science tests and private-labeled versions of its software for such companies as McGraw Hill, IBM K-12, Addison Wesley, Computer Curriculum Corp., World Book Encyclopedia, Simon & Schuster, and other software and textbook publishers.

Paul said that Advantage Learning Systems intends to run IPS as a separate operational division at its current location in Vancouver, retaining all of its current employees. IPS founder Timothy Welch will remain with the company as CEO, and will become a member of Advantage Learning Systems' board of directors.

Advantage Learning Systems will use its direct marketing and sales organization to market IPS products, and tap its software developers for help in the creation of new academic assessment tools. IPS will continue to develop contract relationships with major players in the software and publishing industries.

``We feel the arrangement will allow IPS to continue doing what it does best, while adding exciting new products to Advantage Learning Systems' offering,'' Paul said. ``We also expect to benefit from IPS' expertise in establishing strategic relationships with most of the giants in educational publishing.''

``I'm very pleased with the arrangement,'' said IPS founder Welch. ``Advantage Learning Systems is a leader in direct marketing to the classroom, and will allow a boost in sales of our products throughout the U.S. and the rest of the world.''

The simultaneously announced management changes at Advantage Learning Systems are intended to better position the company for faster-paced growth, Paul said. As CEO, former president Baum will focus his attention on broader strategic development and expansion projects. Prior to his term as president, Baum headed Advantage Learning Systems' sister company, the Madison, Wis.-based Institute for Academic Excellence, an educational training firm.

Advantage Learning Systems' new president, John Hickey, assumes responsibilities for day-to-day management of the company. Hickey formerly served as executive vice president, operations at Best Power Technology, Necedah, Wis., a world leader in computer data protection. He had earlier held the posts of senior vice president, sales and marketing, and vice president, international, at BEST, and director of international sales and finance administration at Briggs & Stratton Corp., Milwaukee.

Advantage Learning Systems Inc. was founded in 1986 by Judi Paul, who now serves as the corporation's chairman. She was joined by her husband, Vice Chairman Terrance Paul, in 1992.

CONTACT: Advantage Learning Systems Inc.

Kristine McHugh, 800/338-4204, Fax: [phone]