U.S. SCHOOL TECHNOLOGY SPENDING HEADING FOR $6 BILLION

New Education Standards, Need For Technology Tracking Student Progress Drives $400 Million Administrative Software Segment
 
Wireless Technology Makes Up 28.6% Of Instructional Computer Purchases

Dallas, TX (September 16, 2003) -- Instructional technology spending in U.S. K-12 Schools is turning upwards again and is expected to hit $5.8 billion dollars, compared to $5.74 billion in the previous year---a result of sweeping changes to the nation's education system. In particular, market dynamics continue to fuel the $400 million administrative software market segment. More news on school technology purchase trends can be found in the 2003-2004 Technology Purchasing Forecast, 9th edition released today by Quality Education Data, Inc. (QED®), a leading education market research and database firm, and a wholly owned subsidiary of Scholastic. Jeanne Hayes, President of QED, presented highlights from the survey to key executives from school publishing and technology companies at its annual The Heller Reports' EdNET Conference in Dallas, Texas.
 
Instructional Technology Expenditures in U.S. School Districts
13-Year Trend
 
Expenditures (Billions)

© Quality Education Data, Inc. QED's Technology Purchasing Forecast 2003-2004, 9th Edition
 
“If this projection holds, districts will have kept funding for instructional technology relatively steady, which is a substantial achievement in these days of state budget deficits and other pressures,” Hayes explained.
 
Investment In Technology Helps Track Student Achievement “Schools are increasingly making a bigger investment in administrative software to track students, inform the community about educational progress, and meet the new requirements of the federal No Child Left Behind Act,” Hayes continued. “We're already seeing that the federal government's push for more detailed information about various sub-groups, such as students by ethnic background, is driving greater investment in systems that offer more robust reporting on student academic progress.” Over 90% of districts surveyed reported that they have installed Student Information Systems that include components such as data warehousing for students' records, computerized student assessment software, computerized report cards and attendance records software.
 
Administrative Software, including Student Information Systems Software
$350 to $400 Million Market
 
Expenditure per Student

© Quality Education Data, Inc. QED's Technology Purchasing Forecast 2003-2004, 9th Edition
 
Other key findings from Technology Purchasing Forecast, 2003-2004 include:
  • Software Purchases: Comprehensive courseware leads planned software purchases for 2003-2004 with 72% of districts planning to purchase learning-content software. Student Information Systems purchases are next, planned by 42% of districts, followed by Instructional Management Systems at 38% and Assessment Software at 29%.
  • Wireless Technologies: Two-thirds of the districts surveyed (68%) report current ownership of wireless devices, a jump from 39% in 2002. Importantly, an additional seven percent of districts report they will purchase wireless devices for the first time this year. Districts will be spending $220 million in 2003-2004 for wireless networking and equipment including portable wireless laptop carts and wireless-enabled handhelds.
To purchase copies of QED's School Market Trends reports, please contact Quality Education Data by phone at 1-800-525-5811 or e-mail at info@QEDData.com
 
Methodology:
 
School Market Trends: QED's Technology Purchasing Forecast 2003-2004: The sampling frame for this field study was public school districts randomly selected from Quality Education Data's National Education Database™. A total of 446 surveys were completed. Interviewing was conducted by telephone from May 12 to June 15, 2003. All surveys were conducted by telephone with District Technology Coordinators.
 
About QED
Established in 1981 and headquartered in Denver, Colorado, Quality Education Data (QED is a research and database company focused exclusively on the education market. As a leading provider of integrated marketing services, QED offers custom market research, database analysis, mailing lists, email marketing services, marketing consultation, professional development conferences, and trend analysis reports. QED's relationship with The Heller Reports, a leading business-to-business publisher of education market newsletters and producer of the EdNET conference, expands the services of QED with their expert news, market and trend analysis, and events designed to support the vendor community and facilitate dialog between educators and vendors.
 
QED's comprehensive National Education Database™ covers U.S. and Canadian educational institutions and is the core of all QED products and services. Thousands of firms use QED as a key part of their sales and marketing programs. To find out more about QED, call 800.525.5811 or email info@QEDData.com
 
About Scholastic
Scholastic Corporation (NASDAQ: SCHL) is the world's largest publisher and distributor of children's books. 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, videos and toys. Scholastic 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.

Contacts:
Julie Livingston
(212) 343-6794
 
Jennifer Slackman
(212) 343-6427
 
Judy Corman
(212) 343-6833