American Educational Products, Inc. Acquires Assets of To-Sew, Inc.

BOULDER, Colo.--(BUSINESS WIRE)--Sept. 2, 1999--

American Educational Products, Inc.(NASDAQ: AMEP, PACIFIC: EP) has acquired substantially all of the assets of To-Sew, Inc., a privately owned mail order company in Canoga Park, Calif. that produces sewing kits. The kits are distributed to schools and home consumers for the purpose of aiding and enriching sewing instruction.

To-Sew had total sales of $1,600,000 in 1998. AMEP believes that it can increase sales and profits by relocating To-Sew's operations to its Summit Learning facility in Fort Collins, Colo. The move will allow AMEP to apply its existing management structure and thereby reduce a large percentage of To-Sew's current general and administrative expenses. In turn, the acquisition is expected to positively affect earnings per share for the balance of 1999, as well as for the full year 2000.

The purchase closed on Sept. 1, 1999. AMEP intends for operations to continue in To-Sew's Calif. facility until the end of the year. The expected total purchase price will approximate $1,300,000, paid in cash at closing.

Since its inception in 1971, To-Sew has maintained profitability by targeting beginning sewing students in school elective programs that are typically known as home economics or family consumer science courses. The products consist mainly of packaged kits that students use to make pillows, clothing and other useful items. To-Sew generates most of it sales by mailing catalogs, posters, and promotional materials and by attending teachers' conventions.

Mr. Clifford C. Thygesen, President of AMEP, stated: "We are pleased to continue our acquisition strategy by incorporating the very successful To-Sew, Inc. into our business. To-Sew will blend well with our current framework and expands the range of subjects that our manipulative products encompass."

American Educational Products, Inc. develops and produces hands-on educational materials for schools and parents. The Company's broad base of proprietary products, primarily in math and science, gives it a strong presence in the preschool through high school instructional market.

Along with historical information, this statement contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and is thus prospective. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements.