Steck-Vaughn Publishing Corporation Reports Third Quarter Results.

Publishing Corporation (NASDAQ:STEK) today announced total revenue grew by 8% to $20,372,000 for the three months ended September 30, 1995, from revenue of $18,852,000 for the same period in 1994.

The company reported net income of $3,706,000, or $.26 per share, compared to net income of $3,269,000, or $.22 per share, for the same period in 1994.

Total revenue for the nine months ended September 30, 1995, grew by 8% to $46,797,000 from revenue of $43,493,000 for the same period in 1994. Net income for the nine months ended September 30, 1995, was $6,315,000, or $.44 per share, compared to $5,979,000, or $.41 per share, for the same period in 1994.

According to Roy Mayers, president and chief executive officer, the growth in revenue for the third quarter resulted primarily from strength in the traditional elementary market as well as from growing strength in the recently acquired Berrent product line. The Berrent product line offers an expanding test preparation program, assessment and professional resource materials used in elementary and secondary schools.

"Sales during the quarter in the library market benefited slightly from the exclusive, worldwide distribution agreement Steck-Vaughn entered into with Abdo & Daughters on September 1, 1995. Abdo publishes high interest, low-reading level products in key curriculum content areas for students reading several years below grade level," Mayers said.

Although performance in the adult education segment continued to be soft during the quarter, improvement is anticipated in coming months as Steck-Vaughn releases new products for this market in key areas, including General Educational Development (GED), skills development for students performing at Pre-GED levels, and titles from recently acquired Educational Development Laboratories (EDL) based in Columbia, South Carolina.

"We are pleased to see some modest strengthening in the general market during the quarter resulting from improved funding as well as renewed interest in skills-based instruction among educators," Mayers said.

Operating margins for the third quarter of 27% were only slightly below the 28% reported for the same period in 1994, primarily as a result of increased paper costs used in manufacturing and higher product development and amortization expenses related in part to the Berrent acquisition.

In October 1995, Steck-Vaughn announced the acquisition of EDL, which had revenue of approximately $2.0 million for the past 12 months.

According to Mayers, for over 25 years, EDL has offered a broad range of instructional materials for adult learners and high school students designed to teach basic reading, vocabulary and writing skills.

"The EDL acquisition further expands the range of products Steck-Vaughn has available for the adult education market. We're particularly excited to offer the EDL computer-based instruction programs for adult and high school learners to complement Steck-Vaughn's Pre-GED and GED software already in place," he said.

Steck-Vaughn, which is 83% owned by National Education Corporation (NYSE:NEC), has been a publisher of education materials since 1936 and is one of the largest publishers of supplemental materials used in elementary, secondary and adult education, as well as school and public libraries. "Supplemental educational materials" generally refer to softcover curriculum-based books, workbooks and support materials that are used in conjunction with or instead of hardcover basal textbooks. -0-

                     STECK-VAUGHN PUBLISHING CORPORATION
                          Statement of Operations

            (dollars in thousands except for per share amounts)

                                      Three Months Ended  Nine Months Ended
                                          September 30        September 30
                                         1995     1994       1995     1994
                                      __________________  _________________

Revenues
  El/Hi                                $14,167  $12,222    $28,731  $25,968
  Adult                                  3,373    3,891      9,936   10,185
  Library                                2,832    2,739      8,130    7,340
                                       _______  _______    _______  _______

Net Revenues:                           20,372   18,852     46,797   43,493

  Publishing Costs and Materials         4,997    4,421     12,490   11,357
                                       _______  _______    _______  _______

Gross Profit                            15,375   14,431     34,307   32,136

  Product Development Expense            2,069    1,835      6,444    5,470
  Selling and Marketing                  6,498    6,258     14,602   13,684
  General and Administrative             1,061      924      3,545    3,033
  Provision for Doubtful Accounts           34       29         83       70
  Amortization of Acquired
    Intangible Assets                      185       80        554      241
                                       _______  _______    _______  _______

Operating Income                         5,528    5,305      9,079    9,638

  Net Interest Income (Expense)            455       54      1,106      164
                                       _______  _______    _______  _______

Income Before Income Taxes               5,983    5,359     10,185    9,802

  Income Taxes                           2,277    2,090      3,870    3,823
                                       _______  _______    _______  _______

Net Income                             $ 3,706  $ 3,269    $ 6,315  $ 5,979
                                       =======  =======    =======  =======

  Earnings Per Share                     $0.26    $0.22      $0.44    $0.41
                                         =====    =====      =====    =====

  Shares Outstanding                    14,359   14,523     14,349   14,551
-0-

CONTACT: National Education Corporation

Roy Mayers

President & CEO

512/343-8227

or

Connie McCluskey

Director - Investor Relations

714/474-9483