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SCHOLASTIC BRINGS BELOVED CLIFFORD™ AND I SPY™ BRANDS TO CHILDREN'S SOFTWARE IN TIME FOR BACK-TO-SCHOOL

Expands Award-Winning Clifford The Big Red Dog™ and I SPY Lines with New CD-ROMs for Children in Preschool and Beyond

NEW YORK (September 28, 2001) — Just in time for back-to-school, Scholastic, the global children's publishing and media company, has released two new CD-ROMs from its most successful children's brands, one starring popular television and literary character Clifford the Big Red Dog and the other expanding the award-winning I SPY series. I SPY Treasure Hunt recently shipped, while Clifford Learning Activities is hitting store shelves this month.

Clifford the Big Red Dog, the large and lovable companion of children for nearly 40 years, brings fun and learning to kids on the computer. Clifford Learning Activities is the third in a series of best-selling CD-ROMs based on the Clifford the Big Red Dog® book series which boasts more than 100 titles and 85 million books in print. Clifford is also the star of his own award-winning television series on PBS KIDS™.

Building on the success of the best-selling I SPY software series, Scholastic launched I SPY Treasure Hunt. Scholastic's original I SPY CD-ROM was ranked number six among top-selling educational retail software titles of 1998 (NPD Intelect) and the winner of more than 10 prestigious awards. In the Fall of 1999, I SPY Spooky Mansion was one of the top four educational retail software titles (NPD Intelect), while I SPY Junior, winner of five awards, introduced the magic of I SPY to preschoolers for the first time. I SPY School Days and I SPY Junior: Puppet Playhouse, both released in 2000, were also top sellers and received more than 10 industry awards, including top honors from the Oppenheim Toy Portfolio.

"We are delighted to introduce new software titles that expand two of our most popular brands, I SPY and Clifford," said Alan Waldman, Vice President and General Manager, Scholastic Software Group. "Both titles leverage Scholastic's educational expertise to offer children the opportunity to combine learning and fun in unique and interactive settings."

Clifford Learning Activities brings children ages four through six into Clifford's neighborhood to help Clifford and his friends perform good deeds on Birdwell Island. As a result of their good deeds, the community can win a contest that would feature it in a special issue of Prize Pooch Magazine. Players follow Clifford and his friends to seven different locations where 10 activities let children practice early developmental skills like math, reading, sorting, matching, creativity, and word building. Throughout the game, Clifford talks to his dog-friends when humans are not around and, in true Clifford fashion, he continually gets into trouble because he is so big — creating humorous situations that entertain and engage kids.

I SPY Treasure Hunt transports children ages six through ten to the quaint seaside town of Smuggler's Cove where they set out on three separate adventures in search of hidden pirate treasures. While children explore the town and play 60 challenging I SPY riddles, pieces of three mysterious treasure maps are cleverly revealed. Players must use their mapping and problem-solving skills to assemble the pieces and follow the clues on an exciting hunt to discover the unique treasures left behind by the town's legendary pirates.

I SPY Treasure Hunt is available nationwide in a Windows/Macintosh hybrid for a SRP of $29.95. Clifford Learning Activities is available at all major retail outlets in a Windows/Macintosh hybrid for a SRP of $19.95.

About Scholastic Inc.
Scholastic (NMS: SCHL) is the world's largest publisher and distributor of children's books. As a global children's publishing and media company serving the needs of parents, teachers, and children, Scholastic provides proprietary book and software distribution through school book clubs, school book fairs and to classrooms, as well as through the retail trade. Since 1920, Scholastic has created quality educational materials for schools and has expanded its reach to include the distribution of books, software, toys, online learning services and television programming directly to the home. Scholastic's Grolier division is the leading print and online publisher of children's reference materials and the leader in children's direct-to-home book clubs. 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 U.S. Scholastic web site http://www.scholastic.com is a leading provider of educational services online for parents, teachers and children.

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