Sylvan Learning Systems Obtains Agreement With Expected Value of $12 Million Annually in Year 2000 to Deliver Medical Licensing Exam.

BALTIMORE--(BUSINESS WIRE)--July 13, 1998--Sylvan Learning Systems Inc. (NASDQ: SLVN) Monday announced that it has signed an agreement to deliver the United States Medical Licensing Examination(tm) (USMLE(tm)) through its global network of computer-based testing centers.

Sylvan expects that this agreement will generate approximately $12 million in revenue annually by the year 2000, after a ramp-up period beginning in mid-1999.

USMLE exams are a requirement in the licensure process for most physicians in the U.S., with more than 125,000 exams given globally each year in a paper-and-pencil format.

There are three exams in the program, each of which will be converted to a computer-based format during 1999 when the paper and pencil format will be discontinued. The exams will be offered at more than 500 Sylvan Technology Centers throughout the world.

The USMLE was created approximately eight years ago to provide a common evaluation system for individuals applying for medical licensure in the U.S. It is owned jointly by the National Board of Medical Examiners(R) (NBME(R)) and the Federation of State Medical Boards of the United States Inc. (FSMB).

Results of the USMLE are reported to medical licensing authorities for use in granting initial licenses to practice medicine.

Dr. Donald Melnick, senior vice president of the NBME, said, "Implementation of computer-based delivery is part of an enhancement plan for the exam which was adopted by the USMLE Composite Committee and sponsoring organizations three years ago. Having delivered the NBME exams through the Sylvan testing center network since 1995, we are well aware of the benefits of computer-based delivery and very confident in Sylvan as our test delivery partner."

Steve Hoffman, president of Sylvan Prometric, commented, "We are honored by the trust in Sylvan exhibited by the NBME and FSMB with their decision to deliver yet another exam through our testing network. As one of the world's most prestigious professional organizations, the NBME is taking a leadership role in the transition to computer-based testing, and we believe will serve as a bellwether of this trend for large professional organizations."

Melnick said testing procedures for the computer-based USMLE will be the same as with its traditional paper-based test. The first two of the three tests are required by many U.S. medical schools for promotion or graduation. The third complete series of tests is used by medical licensing authorities in granting a license to practice medicine.

Sylvan Learning Systems Inc. is the leading provider of educational services to families, schools and industry. The company provides lifelong educational services through three divisions: The Sylvan Prometric division delivers computer-based testing for academic admissions, Information Technology and professional certification programs; the Sylvan Learning Centers division provides personalized instructional services to students of all ages and skill levels; and the Sylvan Contract Educational Services division provides supplemental educational services under contract to school systems and other organizations.

Sylvan subsidiaries include the PACE Group, which provides corporate consulting, training and professional development services, the Canter Group, which provides professional development and graduate degree programs for teachers, Wall Street Institute and ASPECT, which deliver English language instruction to professionals and college students, respectively.

Through its affiliate, Caliber Learning Network Inc., formed as a joint initiative between Sylvan and MCI Communications Corp., Sylvan has the ability to distribute world-class adult professional education and training programs. Sylvan's services are delivered through its network of more than 3,000 educational and testing centers around the globe.

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 Security and Exchange Commission filings.

CONTACT: Sylvan Learning Systems Inc.

Investor Contact:

Lee McGee, CFO, 410/843-8000 (

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Media Contact:

Vickie Glazar, Public Relations, 410/843-8732