The American Education Corporation Announces Business Partnership with Cambridge University Press.

OKLAHOMA CITY -- The American Education Corporation (AEC) is pleased to announce that it has entered into a business partnership with Cambridge University Press (CUP) of Cambridge, England, to jointly develop and market leading-edge, K-12 educational content through AEC learning management systems in the United States, United Kingdom and other world markets. The two companies have agreed to collaborate on new product offerings which incorporate award-winning multimedia instructional software from CUP's Cambridge-Hitachi unit into AEC's award-winning A+nyWhere Learning System([R]) for the U.S. market and to collaborate with CUP in the Global Grid for Learning (GGFL) initiative, a new global community of education stakeholders and online exchange for digital content. In addition, the parties have agreed to jointly market and develop new products that will be at the leading edge of instructional technology for the K-12 marketplace in the U.S. and worldwide.

The first AEC/CUP joint product offering, expected to be available mid-2007, will consist of Cambridge-Hitachi Science and Early Reading content incorporated into the structure and managed environment of AEC's A+nyWhere Learning System for the U.S. market. Future offerings may include integration of additional CUP content for other subject areas and grade levels and new products for English Language Learners (ELL), as well as complete new content packages developed collaboratively to respond to jointly identified marketplace needs.

The Global Grid for Learning is a subscription-based website and Web Service, powered by Atomic Assets, that provides validated and copyright-cleared educational content to schools and teachers worldwide. The content library grows by the day and brings together a range of publishers including Bridgeman Art Library, Cambridge University Press, Channel 4-UK, an educational television resource, UK Learn Online, and many others. It features over 4,000 learning objects, 2,500 video and audio clips and over 200,000 images from many of the world's leading museums. Schools and teachers will be able to access this incredible collection of free and pay-for-content by registering at www.globalgridforlearning.com or local sites as they become available. AEC will work with CUP to develop and sell an AEC version of Global Grid for Learning. By subscribing to this service AEC's education customers will have access to hundreds of thousands of images, videos, audio clips and learning objects that can be directly integrated with the A+nyWhere Learning System. The new online service is expected to launch in the second half of 2007.

Commenting on this development, Jeffrey E. Butler, President and Chief Executive Officer of AEC, stated, "The addition of the expertise and the well established and recognized resources of Cambridge University Press and its partners in the Global Grid for Learning should provide AEC an expanded capability to quickly bring to market for our existing and future customers in the U.S. enhanced and new products. Importantly, given CUP's established international sales operations and presence in global markets, the relationship should also provide an expansion of our geographic business opportunities to other world markets. We are very excited about the future potential offered by this significant new partnership and believe that it should contribute to AEC's future growth."

Cambridge University Press was founded by a royal charter granted to the University of Cambridge by King Henry VIII in 1534. It is the oldest printer and publisher in the world, having been operating continuously since 1584, and is one of the largest academic publishers globally. Its purpose is to further the University's objective of advancing learning, knowledge and research. Cambridge is one of the world's largest and most prestigious international academic publishers and is acclaimed for its list of journals, textbooks, monographs and practitioner guides covering subjects from medicine and law to literature and classics. Cambridge's current academic publishing operations includes approximately 200 journals, around 1200 new books each year, and its historic Bibles list. Cambridge is a global leader in English Language Teaching (ELT) books and resources and is well established as a print and electronic publisher of books for schools in the United Kingdom, Australia and Africa for primary, secondary and postsecondary grade levels. Cambridge-Hitachi, a joint venture between Cambridge University Press and Hitachi Software Engineering, produces a range of curriculum-based software developed with the changing needs of today's teachers in mind. Cambridge Learning consolidates these strands of educational publishing into a single brand.

The American Education Corporation recently celebrated its twenty-fifth anniversary as a publisher of educational software. The Company's Java-based technology, the A+nyWhere Learning System Versions 3.0 and 4.0 of educational software products, provides for an integrated offering of grade levels 1-12 software for Reading, Mathematics, Language Arts, Science, Writing, History, Government, Economics and Geography. In addition, the Company provides assessment testing and instructional content for the General Educational Development (GED) test. All company products are designed to provide for LAN, WAN and Internet delivery options and support Windows, UNIX and Macintosh platforms. The Company has developed a computer adaptive, companion academic skill assessment testing tool to provide educators with the resources to more effectively use the Company's curriculum content aligned to important state and national academic standards. Spanish-language versions are available for Mathematics and Language Arts for grade levels 1-8. The Company's curriculum content is aligned to other third party digital resources, which may be accessed directly from A+LS lessons. The A+LS comprehensive family of educational software is now in use in over 13,000 schools, centers of adult literacy, colleges and universities, and correctional institutions in the U.S., UK and other international locations. A+dvancer, the Company's diagnostic, prescriptive test and online, postsecondary developmental curriculum offering, is aligned to ACCUPLACER On-Line, the leading college admissions test for students requiring developmental support to enroll in full credit secondary coursework in mathematics, reading, algebra and writing.

ACCUPLACER and ACCUPLACER On-Line are either trademarks or registered trademarks owned by the College Entrance Examination Board, New York, NY.

Note: Certain matters discussed above concerning the future performance of the Company are forward-looking statements intended to qualify for the safe harbors from liabilities established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified as such by words such as "if," "may," "believes," "anticipates," "plans," "expects" or words of similar import. The future performance of the Company is subject to a number of factors including, but not limited to, general economic conditions, competitive activity and funding available to schools.

THE AMERICAN EDUCATION CORPORATION

7506 BROADWAY EXTENSION

OKLAHOMA CITY, OK 73116

1-800-34APLUS

www.amered.com