Raffles Edu expands China operations

RAFFLESEDUCATIONCORP EXPANDS CHINA OPERATIONS THROUGH ACQUISITION OF SHAAN XI RUIZHI EDUCATION INVESTMENT
- Acquisition by RafflesEducationCorp’s wholly-owned subsidiary, Value Vantage Investment and Management (Hangzhou)
- Further strengthens leadership position in the PRC education industry

Singapore, May 26, 2008 - Mainboard listed Raffles Education Corporation Limited (“RafflesEducationCorp” or “the Group”), the largest private education group in the Asia Pacific region, announced that it has on May 23, 2008, entered into an agreement to fully acquire Shaan Xi Ruizhi Education Investment Co., Ltd (“SXRZ”), through its wholly-owned subsidiary in China, Value Vantage Investment and Management (Hangzhou) Co., Ltd (“VVIM”).

SXRZ is a company involved in the business of secondary and higher education investment, providing consulting services in relation to vocational and technical education, training and international education. It also manages and operates a higher vocational institute, Shaan Xi Electronic Information Institute, which provides diploma courses in computer science & information technology.

Under the terms of the agreement, VVIM will fully acquire SXRZ for a purchase consideration of RMB 44 million (approximately S$8.7 million), from the existing shareholders of SXRZ.

The acquisition will be funded either through external financing, internal resources, or a combination of both external financing and internal resources.