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THE LEARNING CO. REPORTS STRONG THIRD QUARTER RESULTS

 FREMONT, Calif., April 13 /PRNewswire/ -- The Learning Co. (NASDAQ: LRNG) today announced financial results for the third fiscal quarter which ended on March 31, 1993. Compared to the same quarter last year, revenues for the third quarter increased 58 percent to $6.1 million from $3.8 million. Net income increased 466 percent to $430,000 from $76,000. Average common and common equivalent shares outstanding at March 31, 1993, increased to 6,934,000 shares from 5,350,000 at March 31, 1992, primarily due to the issuance of 1,000,000 shares in the company's April 28, 1992, initial public offering and the addition of 1,200,000 shares issued in the company's Feb. 4, 1993, equity offering. Earnings per share were 6 cents in 1993 on the larger share base compared to 1 cent in 1992.
 Revenues for the nine months ended March 31, 1993, increased 48 percent to $20.2 million. Net income increased 79 percent to $2.3 million and net income per share increased 42 percent to 34 cents per share on a larger share base.
 "Our continued penetration of new distribution channels and continued acceptance of our growing product line contributed to this quarter's strong results," said Bill Dinsmore, president and chief executive officer. "Nonetheless, there are significant challenges ahead for the industry as it responds to growing competition, evolution of the distribution channel and technological change."
 The Learning Co. is a leading developer of quality educational personal computer software for children and young adults for use at home and at school. The company's strategy is to use the benefits of emerging technologies to provide highly engaging, easy-to-use software products that help build core learning skills, develop knowledge and facilitate effective written communication skills. The subject areas and learning objectives for the company's products are developed with input from outside educational professionals, parents, children and young adults to ensure that each new product is of the highest quality and matches an identified market opportunity.
 The company's products are designed to address the core educational needs, such as reading, math, writing, and problem solving, common to all children and young adults. The company currently sells 31 products comprised of 18 titles operating on one or more platforms, including IBM-compatible and Apple Macintosh personal computers. These titles include: "Reader Rabbit's Ready for Letters" (3-5 years), "Reader Rabbit 1" (3-6 years), "Reader Rabbit 2" (5-8 years), "Math Rabbit" (3-7 years), "MetroGnomes Music" (4-7 years), "Treasure Mountain!" (5-9 years), "Treasure Cove!" (5-9 years), "Treasure MathStorm!" (5-9 years), "Super Solvers OutNumbered!" (7-10 years), "Super Solvers Midnight Rescue!" (7-10 years), "Super Solvers Spellbound!" (7-12 years), "Writer Rabbit" (7-10 years), "Think Quick!" (7 and up), "Ancient Empires" (9-Adult), "Operation Neptune" (10-Adult), "Time Riders in American History" (10-Adult), "The Children's Writing & Publishing Center" (7-14 years) and "The Writing Center" (7-Adult).
 The Learning Co. is located at 6493 Kaiser Dr., Fremont, CA 94555; phone: 800-852-2255 (customer service) or 510-792-2101 (main number).
 The Learning Co.
 Statements of Income
 (In thousands, except per share data)
 Three months ended Nine months ended
 March 31, March 31,
 1993 1992 1993 1992
 (unaudited) (unaudited)
 Net revenues $ 6,075 $ 3,835 $20,161 $13,660
 Cost of revenues 1,301 770 4,433 3,201
 Gross profit 4,774 3,065 15,728 10,459
 Operating expenses
 Sales and marketing 2,051 1,262 6,128 3,733
 Research and
 development 1,407 1,347 4,082 3,431
 General and
 administrative 757 380 2,195 1,379
 Total operating
 expenses 4,215 2,989 12,405 8,543
 Income from
 operations 559 76 3,324 1,916
 Other income 200 48 451 158
 Income before provision
 for income taxes 759 124 3,775 2,074
 Provision for income
 taxes 329 48 1,491 801
 Net income $ 430 $ 76 $2,284 $1,273
 Net income per share $0.06 $0.01 $0.34 $0.24
 Shares used in per
 share calculation 6,934 5,350 6,663 5,303
 -0- 4/13/93
 /CONTACT: Financial Contact, Les Schmidt, chief financial officer, 510-792-2101, or Press Contact, Sharyn Fitzpatrick, 510-713-6011, both of The Learning Co./
 (LRNG)


CO: The Learning Co. ST: California IN: CPR SU: ERN

SG-TB -- SJ007 -- 5397 04/13/93 16:49 EDT
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Copyright 1993 Gale, Cengage Learning. All rights reserved.

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Date:Apr 13, 1993
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