Caliber Learning Network, Inc. Reports Second Quarter and Six Month 1999 Financial Results.

BALTIMORE--(BUSINESS WIRE)--July 21, 1999--

Caliber Announces New Internet Services on the Heels

of Record Revenues

Caliber Learning Network, Inc. (Nasdaq: CLBR) today reported financial results for the second quarter and six months ended June 30, 1999 that exceeded analyst expectations.

Net revenues for the second quarter of fiscal 1999 were $6.6 million, compared with $3.8 million in the second quarter of fiscal 1998, representing a 74% increase year over year. The net loss for the quarter was $6.1 million, or $0.50 per diluted share, as compared to a net loss of $6.5 million, or $0.60 per share, in the second quarter of fiscal 1998. Weighted average number of shares outstanding as of June 30, 1999 and June 30, 1998 were 12,318,872 and 11,117,319, respectively.

For the first six months of fiscal 1999, net revenues increased to $11.1 million from $5.1 million for the same period last year, representing a 119% increase year over year. The net loss for the first six months of 1999 was $12.2 million, or $1.00 per share, compared with $14.9 million, or $1.51 per share, for the same period in 1998. Weighted average number of shares outstanding for the six months ended June 30, 1999 and June 30, 1998 were 12,311,380 and 10,058,879, respectively.

Revenue growth in the second quarter of 1999 was generated primarily from corporate programs that produced $3.7 million of revenue. The balance of revenues were generated from academic programs and other services.

During the second quarter, Caliber signed new agreements with four major corporations and extended two agreements within its Corporate Services business line, with a total value of approximately $3.6 million.

Chris Nguyen, President and Chief Executive Officer of Caliber Learning Network, Inc., commented, "I am very pleased with the faster-than-anticipated growth in our Corporate Services business line."

In April, the first group of students graduated from the Johns Hopkins University's Hopkins Business of Medicine(SM) Executive Graduate Certificate Program, having completed a year's worth of courses beginning in April, 1998.

Mr. Nguyen continued, "The quality of the first year of instruction with Caliber has been the highest in the distance learning arena, with Hopkins Business of Medicine Program winning two awards for continuing and distance education. The program has exceeded Caliber and Hopkins' expectations for participant satisfaction. In the Fall, Caliber will continue to offer programs from both Hopkins and The Wharton School, and anticipates launching e-commerce programs with University of Southern California's The Marshall School of Business."

Caliber also announced today, in a separate release, that it is entering the Internet training market with a series of Internet services. Through these services, Caliber clients will be able to create training and education programs that reach audiences all over the world.

Mr. Nguyen commented, "Caliber's entrance into the Internet training market is in direct response to our clients' needs. By combining these new services with our existing services, corporations and universities will now be able to distribute their programs to audiences at Caliber Authorized Classrooms, at their workplaces and in their homes."

About Caliber Learning Network, Inc.:

Caliber offers interactive distance learning services for corporations and universities, enabling them to create training and education programs delivered through the Internet to desktops within its network of authorized centers, at the workplace, and in the home. These services give working adults access to live expert instruction, real-time two-way interactivity with the instructor, and the ability to collaborate with other course participants. Caliber Learning Network, Inc. (Nasdaq: CLBR) is an affiliate of Sylvan Learning Systems, Inc. (Nasdaq: SLVN).

This release may include information that could constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements may involve risk and uncertainties that could cause actual results to differ materially from any future results encompassed within the forward-looking statements. Factors that could cause or contribute to such differences include those matters disclosed in the Company's Securities and Exchange Commission filings. -0-

                     CALIBER LEARNING NETWORK, INC.
                        STATEMENT OF OPERATIONS
                           (Amounts in 000s)

                                Three Months            Six Months
                                ended June 30,         ended June 30,
                                 (Unaudited)            (Unaudited)

                                1999    1998         1999       1998
Net revenues               $   6,570  $  3,780  $  11,128  $   5,088

Costs and expenses            12,623    10,255     23,338     19,588

Loss before interest
 and taxes (EBIT)             (6,053)   (6,475)   (12,210)   (14,500)

Interest income
 (expense), net                  (41)      (64)       (26)      (370)

Loss before income taxes      (6,094)   (6,539)   (12,236)   (14,870)
Provision for income taxes      --        --         --         --
Net loss                   $  (6,094) $ (6,539) $ (12,236) $ (14,870)

Dividends accrued on
 preferred stock                 (15)      (85)       (30)      (284)

Net loss attributable
 to common stockholders    $  (6,109) $ (6,624) $ (12,266) $ (15,154)

Loss per share:
 basic and diluted         $   (0.50) $  (0.60) $   (1.00) $   (1.51)

Weighted average number
 of shares outstanding
 basic and diluted)      12,318,872  11,117,319  12,311,380 10,058,879


Selected Balance Sheet Data:                 As of June 30,
                                        1999               1998

Total cash and
 available-for-sale securities     $  21,575          $  47,187
Current assets                        26,523             52,607
Total assets                          49,359             72,893
Current liabilities                   11,783              7,799
Capital lease obligations
     (less current portion)           10,785             11,052
Shareholders' equity                  25,382             51,898