Profile

Established in 1999, ChinaEdu Corporation is a leading educational services provider in China. The Company’s American Depositary Shares (ADSs) were first listed on the Nasdaq Global Market under the symbol CEDU on December 11, 2007. Our primary business is to provide comprehensive services for the online degree programs of leading Chinese universities. We are the largest online degree service provider in terms of both the number of institutions that we serve and the number of student enrollments. In 2008, ChinaEdu won China's Most Influential Education Group award at the annual Tencent China Education Industry Review. ChinaEdu along with its Online Tutoring subsidiary and selected online university partners received additional awards from the annual Tencent China Education Industry Review and the annual Sina China Education Survey.

As of June 30, 2009, we have strategic relationships with 25 universities throughout China, 13 of which are under long-term, exclusive contracts (four are currently awaiting approval from Ministry of Education). We also provide recruiting and technology support services for 15 of the 25 universities through our learning centers network. All of the universities we serve are well-known top universities in China. Furthermore, we have entered into long-term exclusive partnerships with two provincial radio and television universities. All of our long-term exclusive partnerships generally have 10 to 50 years in contract length. As of June 30, 2009, we have approximately 390,000 paying students and cumulatively we have served over half a million online degree students in China. For our university partners, we provide a total solution for online education including courseware development, technology platform development, enrollment services, student support services and finance operations.

In 2005, we entered into online education for K through 12 students. Our 101 Online School began operation in 1996 and is a clear market leader in China in the online education market for the K through 12 students. We have a proprietary and comprehensive database covering all subjects and levels that include guided tutorials, supplemental studies, self-tests for the students as well as course material for teachers tailored to all major regions in China. Our 101 online tutoring program’s innovative platform also allows students and teachers to participate in a controlled yet interactive way.

In addition to our core online businesses, ChinaEdu also provides site-based services including the international curriculum programs and private primary and secondary schools.

ChinaEdu operates under multiple brands and multiple websites. The following chart shows our brand names and key websites for each of our business segments. All of the websites can be easily launched from our corporate homepage at http://www.chinaedu.net. A description for each of our business lines can also be found at http://ir.chinaedu.net. As you can see, ChinaEdu covers the complete spectrum of students from age 1 to working adults.

The size of the education and training market in China is the largest in the world and is growing rapidly. According to Enhancing China’s Competitiveness through Lifelong Learning, a study published by the World Bank in 2007, of China’s approximately 1.3 billion people, around 260 million are students enrolled in basic, secondary and higher education programs. However, when compared to mature markets such as the U.S., penetration of population with a higher education degree is far less.

Education spending in China is expected to grow rapidly as demand for more skilled labor grows, and as a result the participation rates in the educational system increases. According to China’s Eleventh Five-Year Plan for China’s Educational Reform and Development, or the Eleventh Five-Year Plan, the government has targeted a significant increase in the overall level of spending on education, which includes both public and private spending, to 4.0% of its gross domestic product, or GDP, by 2010, compared with 2.8% of GDP in 2005. The increase will help meet the growing demand for skilled labor and provide a catalyst for greater participation rates in the educational system. The growth in educational spending will likely be driven by several factors, including favorable demographic trends, growth in per capita and disposable income, the limited supply and growing demand for post-secondary education, government initiatives, and an increasing emphasis on higher education as well as English proficiency as a means to increase China’s international competitiveness.

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