Raffles Education Corp FY08 Results News Release

RAFFLES EDUCATION CORP DELIVERS ANOTHER RECORD NET PROFIT OF S$99.4 MILLION IN FY2008

- Revenue increased 53.2% to S$190.0 million

- Net profit increased 95.9% to S$99.4 million

- Net asset value increased 111.3% to 16.06 Singapore cents per share

- Strong cash position of S$68.5 million

- Positive maiden contributions from Oriental University City, Hefei WanboCollege and Shaanxi Electronic Information Institute

- Proposes final dividend of 1.0 Singapore cent per shareFY2008

Singapore, August 25, 2008 – Mainboard-listed Raffles Education Corporation Limited(“RafflesEducationCorp” or “the Group”), the largest private education group in the Asia Pacific region, today announced another set of good results for the financial year ended June 30, 2008 (“FY2008”).

Net profit increased to a record-breaking S$99.4 million for FY2008, up 95.9% from the S$50.8 million recorded in FY2007. This was achieved on the back of a 53.2% increase in revenue to S$190.0 million in FY2008. The Group’s strong performance was a result of increased student enrolment, an increase in course fees, new contributions from the Group’s recent acquisitions of Oriental University City, Hefei Wanbo College and Shaanxi Electronic Information Institute.

Mr Chew Hua Seng, Chairman and CEO of RafflesEducationCorp, said, “We are pleased to deliver another year of record growth. We have a scalable business model in the growing education industry and a proven track record to deliver. We are confident of continued growth both organically and through strategic acquisitions.”

RafflesEducationCorp’s balance sheet further strengthened with a sharp increase of 111.3% in net asset value to 16.06 cents as at June 30, 2008. Its cash and cash equivalents stood at S$68.5 million. To reward its shareholders, the Group has proposed a final, tax-exempt dividend of 1.0cent per ordinary share, payable on November 14, 2008, making a total of 2.95 cents per ordinary share.

Outlook And Prospects

Moving forward, the Group expects to continue expanding its business through the establishment of more colleges in the region, strategic acquisitions, as well as through value creation of Oriental University City. The continued development of its proprietary courseware will also reinforce the Group’s brand name regionally.