Raffles Education set to be the Largest Education Provider in the Asia Pacific

- Makes strategic acquisition of Oriental University City in the PRC for RMB2 Billion

- Acquisition opens new growth opportunities and will add 5 colleges and a university to the Group’s PRC footprint

- Entrenches leadership position in the PRC education industry

Singapore, October 11th, 2007 - Main Board-listed Raffles Education Corporation Limited (“RafflesEducationCorp” or “the Group”) today announced that it has entered into an agreement to acquire Oriental University City Development Co., Ltd ("Oriental University City") in Langfang City, Hebei Province, the PRC. A strategic development that will entrench the Group’s leadership position in the PRC and set it as the largest education provider in the Asia Pacific.

Oriental University City is a company involved in the development, operation and management of educational assets in the PRC.

Under the terms of the agreement, the Group will acquire Oriental University City for a purchase consideration of approximately RMB 2 billion (S$392 million). The acquisition is payable in 4 equal instalments over a 4 year period and will be funded either through external financing arrangements, internal resources, or a combination of both, and the revenues generated by the Group’s operations in Oriental University City.

As part of the terms of the acquisition, Oriental University City will provide a pre-tax profit guarantee of RMB 100 million in 2008 and RMB 140 million in 2009. In addition, it will also transfer the ownership of Langfang Vocational Technical Institute and Langfang Health School to the Group. It will also apply to the PRC Ministry of Education to obtain the necessary approvals for the establishment of a private university, a private college and two Sino-foreign cooperative schools.