Sylvan Learning Systems Wins $125 Million Contract to Deliver All Drivers' License Theory Tests in Great Britain.

BALTIMORE--(BUSINESS WIRE)--Nov. 30, 1998--Sylvan Learning Systems, Inc. (NASDQ:SLVN) Monday announced that it has won a contract with the Driving Standards Agency (DSA) of Great Britain to deliver all drivers' license theory tests in the countries of England, Scotland and Wales.

The contract has an estimated value of $125 million over a six-year term through August 2004. Currently, more than one million people per year take the theory test for learner drivers.

Under the contract, Sylvan will operate 158 testing centers at which it will deliver a computer-based version of the drivers' exam. The centers will be located within 20 miles of most testing candidates' homes. Sylvan expects to begin delivering tests through these centers in January 2000.

Chris Hoehn-Saric, Sylvan's co-Chief Executive Officer commented, "This contract is significant not only because of its large scale, but also because it is a strong first step toward fulfilling our previously stated objective to secure large indigenous testing programs around the world.

"Moreover, this contract, in combination with Sylvan's existing computerized testing business in Great Britain and our ASPECT English language schools, represents a substantial commitment for Sylvan to the United Kingdom. As a result, we expect to employ more than 500 people in this region over the next several years."

Stephen Hoffman, president of Sylvan Prometric, the company's computer-based testing division, added, "The result of a successful implementation of the DSA program will be a dense nationwide network of computer-based testing centers throughout Great Britain, and one of the first and largest implementations of computer-based testing in Europe.

"The formation of the European Union has brought to the forefront the need to set licensing and certification standards across all of Europe. Our current European testing business coupled with the DSA contract provides Sylvan with a substantial lead in this growing market."

In July 1998, the DSA reported that its research showed that driving theory test candidates would welcome a transition to a computer-based format, and announced it would convert to computerized testing in 2000.

Today, Bernard Herdan, DSA Chief Executive, said, "Computerized testing offers substantial benefits for testing candidates as well as the DSA, and I believe it is the way forward. We have proceeded cautiously, however, to ensure that the testing process is fair, cost-effective and convenient for test candidates, and that the quality of the examination is not sacrificed.

"Sylvan's vast experience in delivering computer-based testing programs in nearly every country and culture around the world gives us every confidence that our testing program is in capable hands."

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 education, teacher professional development and consulting services under contract to large urban school districts.

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

Through its affiliate, Caliber Learning Network, Inc., 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.

NOTE: Sylvan Learning Systems, Inc. management will hold a conference call today at 11:00 a.m. Eastern Standard Time to discuss this announcement. The call-in number is 800/949-2486, passcode SLVN.