Chinese Court Rules in ETS's Favor on Beijing New Oriental School Lawsuit.

Business Editors/Legal Writers/Education Writers

BEIJING--(BUSINESS WIRE)--Sept. 30, 2003

In a landmark judgment, the Beijing First Intermediate People's Court ruled that Beijing New Oriental School ("BNOS") violated copyrights and trademarks for ETS's TOEFL,(R) and GRE(R) tests and the Graduate Management Admission Council's GMAT(R). The rulings come after over two and one-half years of litigation with BNOS.

The Court ruled that BNOS reproduced and sold GRE, TOEFL, and GMAT test questions in violation of applicable copyright law, and violated the trademark rights of ETS and GMAC. The Court ordered BNOS to stop infringing ETS's and GMAC's copyrights and submit to the Court all infringing materials and printing plates for destruction. It further ordered BNOS to apologize and pay damages, as well as certain litigation expenses and fees.

"We are clearly delighted by the verdict, and appreciate the court's careful deliberation and commitment to protecting intellectual property rights. We feel that this is not only a victory for ETS, but more importantly, it is a victory for hardworking students in China and around the world. This is why we will always seek to preserve the integrity and quality of our tests," explained Stanford von Mayrhauser, General Counsel for ETS.

Mr. von Mayrhauser emphasized that ETS is now looking to the future. "We recognize that the implications of this verdict extend far beyond us. The favorable ruling clearly demonstrates that China is more committed than ever to enforcing intellectual property rights, and we look forward to many more years of serving Chinese test taker's needs."

Kurt M. Landgraf, president and CEO of ETS, is similarly enthusiastic about making ETS educational products and services accessible to the Chinese market. "People everywhere deserve a chance to learn, grow and advance in their careers. ETS is proud to be working with Chinese organizations to advance learning."

ETS continues to provide an array of services in China by collaborating with Chinese organizations. The academic tests TOEFL, GRE, and GMAT are offered through NEEA. English tests for the workplace, such as TOPE and TOEIC, are offered through Beijing Topeak Education and Sylvan. TideTime is the authorized distributor of TOEFL test preparation (current and next generation TOEFL), as well as LanguEdge Courseware, innovative teacher training programs related to LanguEdge, and the Criterion Online Writing Evaluation Service.

About ETS

Founded in 1947, ETS is the world's largest and most respected private, nonprofit educational testing and measurement organization and a leader in education research. ETS products and services measure knowledge and skills, promote learning and performance, and support education and professional development. ETS employs 2,500 professionals who produce and administer 12 million tests annually. ETS is dedicated to serving the needs of individuals, educational institutions, and government bodies around the world.

The extensive family of tests ETS owns and/or administers includes the TOEFL, GRE the GMAC's GMAT and other tests used for applying for academic admissions. ETS also offers TOPE and TOEIC for individuals seeking to measure and improve their professional English communication skills.