Media Contact:

Runi Krishnamurty
Access Communications
(212) 462-2890
runi@accesspr.com

Scholastic Inc. Extends Popular I SPY™ Brand with Two New CD-ROMs Just in Time for Back-to-School.

I SPY™ School Days and I SPY™ Junior: Puppet Playhouse Newest Additions to the Well-Loved I SPY Family

NEW YORK (August 22, 2000) – Scholastic Inc. (NASDAQ: SCHL), the global children's publishing and media company, today shipped two new titles in the award-winning and best-selling I SPY line of educational CD-ROMs.

Building on the success of the well-loved family of I SPY software, Scholastic is launching I SPY School Days and I SPY Junior: Puppet Playhouse in time to reach retail shelves for back-to-school. Scholastic's original I SPY CD-ROM was the #6 top-selling Educational retail software title for 1998 (PC Data), and is the winner of more than ten prestigious awards. I SPY Spooky Mansion, winner of the 2000 Codie Award for Best Home Education Software Debut, outsold all other retail Educational titles in October, 1999 and January, 2000 (PC Data). I SPY Junior, winner of five awards, brought the magic of I SPY to preschoolers for the first time.

"Based on the runaway success of the I SPY line of software, Scholastic is enhancing the original CD-ROM and introducing a totally new I SPY for preschoolers in 2000," said Alan Waldman, General Manager and Vice President, Scholastic Inc. "The fascinating pictures, rhyming riddles, and rewarding gameplay engage both preschoolers and elementary school-aged children."

I SPY School Days combines the magic of the original award-winning I SPY CD-ROM with 12 new riddles, 10 extra Codebreakers, three more difficult Oops Hoops object association games, and additional treasures for the Make Your Own I SPY area. Children ages five through nine search for hidden objects in the brain-teasing puzzles, which combine intriguing photographs of familiar objects with rich rhyming riddles that kids can't resist. As kids play, they develop skills including reading, math, problem solving, and creativity.

In I SPY Junior: Puppet Playhouse, enchanting handmade puppets, props, and sets provide the backdrop for captivating I SPY picture riddles and games. Children ages three through five build early reading and thinking skills as they use their imaginations to solve dozens of riddles in four story areas, create puppets, arrange delightful props by shared characteristics, and make their own I SPY pictures. Clear voice-overs and animated instructions enable non-readers to solve riddles, play games, and be creative in an open-ended play area.

I SPY School Days and I SPY Junior: Puppet Playhouse will be available in September at all major retail outlets, in a Windows/Macintosh hybrid for a suggested retail price of $29.95 and $19.95, respectively. Scholastic's children's consumer software products are distributed by Havas Interactive, a worldwide leader in interactive content, a subsidiary of the French media company Havas, which is part of Vivendi, one of the largest publicly owned companies in Europe.

About Scholastic Inc.
Scholastic (NASDAQ: SCHL), the global children's publishing and media company, creates and distributes innovative and quality educational materials for use in school - textbooks, magazines, technology and teacher materials - and engaging and appropriate products for use at home - books, magazines, software, television programming, videos and toys. Building long-term relationships with teachers, parents, and children since 1920, Scholastic is unique in its understanding of what kids want and need. The Company is the world leader in children's book clubs and book fairs, where children purchase books and software for their use at home. Scholastic recently acquired Grolier Inc., the leading on-line and print publisher of reference products and the leading operator of direct-to-home book clubs, bringing together two of the most popular names in publishing and online media for children. Internationally, Scholastic operates wholly owned companies in Argentina, Australia, Canada, Hong Kong, India, Indonesia, Ireland, Malaysia, Mexico, New Zealand, The Philippines, Singapore, Taiwan, Thailand, and the United Kingdom. The Scholastic corporate web site is www.Scholastic.com.