Raffles Edu proposes to split 1 share into 2

PROPOSED SUB-DIVISION OF EACH ORDINARY SHARE IN THE CAPITAL OF RAFFLES EDUCATION CORPORATION LIMITED INTO TWO ORDINARY SHARES
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The Board of Directors (the "Directors") of Raffles Education Corporation Limited (the "Company") wishes to announce a proposed sub-division (the "Sub-Division") of every existing ordinary share ("Share") in the capital of the Company into two ordinary Shares.

As at 2 January 2008, the Company has 1,139,850,148 Shares in issue. The proposed Sub- Division, if approved, would increase the number of Shares to 2,279,700,296.

The Directors believe that the Sub-Division will increase the affordability, accessibility and liquidity of the Shares of the Company available for trading on the Mainboard of the Singapore Exchange Securities Trading Limited (the “SGX-ST”)

The Sub-Division is subject to, inter alia:
(a) the approval of the shareholders by way of an ordinary resolution at an extraordinary general meeting ("EGM"), to be convened; and

(b) the approval from SGX-ST.

The Company will be making an application to the SGX-ST in due course for its approval for the listing and quotation of all the Shares arising from the Sub-Division. A circular containing further details of the Sub-Division and the EGM will be despatched to shareholders in due course.

BY ORDER OF THE BOARD
Mr Chew Hua Seng
Chairman and Chief Executive Officer
2 January 2008