Hooked On Phonics -- the No. 1 Trusted Name in Reading -- gets an Update for Today's Families.

Business Editors/Education and High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--April 25, 2001

Hooked on Phonics with New CD-ROM Provides Independent Practice,

Increases the Potential for Success, and Adds an Element of Fun

Gateway Learning Corporation, creators of the popular Hooked on Phonics program, unveiled a new edition of the award-winning program, which now includes an all-new interactive CD-ROM. Adding to the program's already high level of effectiveness, the new CD-ROM offers children independent practice, the potential for increased success, and a new element of fun.

Created by leading educators, parents, and award-winning contemporary authors and illustrators, Hooked on Phonics Deluxe is the only program that combines essential phonics instruction and books in an easy-to-use, fun learning system that includes audiotapes, flash cards, workbooks, a CD-ROM, and 50 books written exclusively for the program. Each book and CD-ROM activity features friendly characters; upbeat memorable stories; and colorful, amusing illustrations that help bring reading to life.

Hooked on Phonics Deluxe contains five learning levels, housed in separate, color-coded boxes that are easy and fun to follow for kids and parents. Each level uses the same skills-practice-play approach, a unique three-step process that helps children:

-- Learn the skill of sounding out letters and letter combinations with the
musical audiotapes and color-coded flash cards;

-- Practice sounding out words by reading stories in the workbooks and playing
games on the CD-ROM;

-- Play by putting it all together to read rich books that incorporate the
words just learned and practiced.

CD-ROM Boosts Success of Program

Unlike other online educational products, the activities featured on the new Hooked on Phonics CD-ROM are completely integrated into the scope and sequence of Level 1 of the existing program, following its progressive lessons and activities. Each activity goes hand in hand with the program's audiotapes, flash cards, workbooks, and books to help kids overcome the early challenges of reading. New activities focusing on letter recognition and beginning sounds allow children as young as three and four to learn essential skills needed to get a head start in reading.

"It was time to update Hooked on Phonics for the growing number of families with computers," said Jean McKenzie, vice chairman and CEO of Gateway Learning Corporation. "We know kids love computer games, but what parents want is real learning--not just random games their kids enjoy. With the new edition of Hooked on Phonics, we've done it...a fun, interactive, reading program that promises success and really works."

Program Based on Educational Research

Research has shown that the most effective way for kids to learn to read is to combine systematic instruction in phonics and exposure to rich literature(1). Hooked on Phonics Deluxe does just this--it combines phonics instruction with colorful, illustrated books to help children practice reading successfully.

"Early reading success is the number one predictor of school success for children," said Ted Mitchell, Ph.D., former vice chancellor and dean of UCLA Graduate School of Education. "What makes Hooked on Phonics Deluxe so powerful is that it provides systematic phonics instruction, then leads children to apply their new skills to fun games on the CD-ROM or to reading wonderfully illustrated stories and books. Kids begin to feel confident and see their own success since the games and books use words they just learned in the phonics lessons."

Creates Special Bond for Parent and Child

Hooked on Phonics makes it easy for parents to guide children through the program with easy-to-follow, step-by-step instructions in the Parent's Toolbox. Additional information for parents is included in the workbooks and on audiotapes to help take the anxiety out of helping children learn to read. And, they can track their child's progress with fun posters and stickers that are designed to motivate children and increase their confidence.

"Hooked on Phonics was designed to bring children and parents together in an important and enjoyable activity: learning to read," says McKenzie. "In only 20 minutes a day, a few days a week, with no special education or instruction, parents can help give their child every opportunity to read confidently and succeed in school."

About Gateway Learning Corporation

As parents who once used the Hooked on Phonics program (initially created in 1986 by a father for his son), Chip Adams and his wife Thayer saw its value and became convinced that it could be made even better. In 1996, Chip's passion for education inspired him to start Gateway Learning Corporation with the intent to create the most effective, fun, and easy-to-use educational products that deliver on a clear promise: success in learning for children. Following close to two years of research, along with top educators, business leaders, and parents, Gateway Learning Corporation launched the redesigned Hooked on Phonics program, which combines systematic phonics instruction with books created by award-winning authors and illustrators.

Today, Gateway Learning Corporation offers families two award-winning learning systems, including Hooked on Phonics and Hooked on Math. More than two million families and thousands of schools have turned to Hooked on Phonics for helping teach kids to read.

Chip Adams is chairman of Gateway Learning Corporation. Jean McKenzie, former senior executive at Mattel Toys, Inc., and a parent who once used Hooked on Phonics with her child, is vice chairman and CEO. Gateway Learning Corporation is headquartered in San Francisco.

(1) Lyon, G. Reid. Statement before the Committee on Education and the Workforce, U.S. House of Representatives, Washington, D.C., 1997.