New York, NY (January 13, 2005) -- Almost a third (31 percent) of school districts across the United States indicate that they prefer software of any kind to be delivered as a license to install on their school or district local area network (LAN) or wide area network (WAN) versus CD-ROMs for individual installations, the internet or district intranet, or an application service provider (ASP). This and other key findings on educational software trends can be found in the 2004-2005 What Schools are Using: Educational Software Market Share Data report by Quality Education Data, Inc. (QED®), a leading education market research and database firm, and a wholly owned subsidiary of Scholastic.
 
“While many districts currently prefer software to be delivered via a school or district's network, we are expecting to see a shift towards an application service provider model in the future,” commented Andy Lacy, General Manager, Quality Education Data. “As more businesses begin to adopt ASPs to meet their needs, districts and schools become more comfortable with this technology, and security concerns with hosting data offsite are addressed, more districts will adapt this technology to reduce IT over-head costs, specifically hardware costs and IT support.”
 
The Educational Software Market Share Data report also found that school districts across the United States continue to invest in software that allows educators to monitor and track student progress as required by the No Child Left Behind Act. An estimated 82 percent of school districts currently own or lease a student information system, 75 percent own or lease an instructional management system and 73 percent use assessment software. Specifically, on average about half of all elementary (51 percent) and middle school (49 percent) students are tested annually using assessment software compared to 32 percent of high school students.
 
Other key findings from the Educational Software Market Share Data, 2004-2005 include:

• The majority of respondents said students in their schools are taught technology literacy or technology integration using software: seventy-one percent of middle school, 68 percent of elementary school and 61 percent of high school students are taught technology literacy or integration through software.
• Use of software packages for instruction in core subjects declines by grade level. Elementary school students are most likely to be taught using instructional software (66 percent), while high school students are least likely (45 percent).
• With the federal government spending over $1 billion to support Reading First Initiatives in fiscal year 2004, eighty-five percent of districts cite using software to specifically support this initiative. 
• During the 2004-2005 school year, 41 percent of districts are expected to offer online courses for their students.

 
Methodology
The sampling frame for this field study was public school districts randomly selected from Quality Education Data's National Education Database™. A total of 400 surveys were completed via telephone or online with curriculum directors between May 5, 2004 and June 4, 2004.
 
About QED
Established in 1981 and headquartered in Denver, Colorado, QED is a leading provider of K-12 and high education mailing lists, marketing services, and market research focused exclusively on the education market. QED Inc. is a wholly owned subsidiary of Scholastic Inc., the global children's publishing and media company. QED's National Education Database™ provides comprehensive access to U.S. and Canadian educational institutions and is the core data resource that supports all QED products and services, including custom education market research, database design and annual research reports tracking critical educational trends. In 1997, QED introduced its National Registry of Teachers by Names, a database of over 4.3 million educators by name, telephone-verified at the school building level. In 2002, QED acquired The Heller Reports, adding a variety of news publications and the annual EdNET conference to its offering of products and services designed to help education marketers stay current on market trends.
 
About Scholastic
Scholastic Corporation (NASDAQ: SCHL) is the world's largest publisher and distributor of children's books and a leader in educational technology. Scholastic creates quality educational and entertaining materials and products for use in school and at home, including children's books, magazines, technology-based products, teacher materials, television programming, film, videos and toys. The Company distributes its products and services through a variety of channels, including proprietary school-based book clubs, school-based book fairs, and school-based and direct-to-home continuity programs; retail stores, schools, libraries and television networks; and the Company's Internet site, www.scholastic.com .

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