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EXHIBIT 99.2
EDISON SCHOOLS ANNOUNCES THAT COMPANY HAS SELECTED IBM TO HELP
BUILD A NEW MODEL FOR TECHNOLOGY IN SCHOOLS
NEW YORK, NY, JUNE 16, 2000 - Edison Schools, Inc. (NASDAQ: EDSN) the nation's
leading private manager of public schools, today announced that Edison has
selected IBM to help build a new model for technology in schools. In addition,
Edison and IBM have executed a license agreement for IBM's Tivoli enterprise
network management software. The license would support computers, network
devices, and servers for up to 250,000 students.
Technology is an essential component of the Edison design. Edison indicated that
IBM will provide the company with a technology solution, including Netfinity(R)
Servers, IBM NetVista (TM) Desktops, ThinkPads(R), network infrastructure and
Tivoli(R)enterprise network management software for its rapidly growing national
network of K-12 schools. Edison will purchase IBM personal computers for every
student in third grade and above and all faculty and administrators in Edison
schools. Beginning this fall, all new Edison schools will be on the IBM platform
and all technology of Edison's existing schools will be converted to the IBM
platform over time.
Edison indicated its intention to collaborate with IBM on a research and
development effort to create the next-generation technology model for K-12
education. This would include development of a device specific to the needs of
students.
"Second to excellent and well-prepared teachers, Edison believes technology is
an important part of the reinvention of American education," said Chris Whittle,
Edison's Founder and CEO. "As an example of Edison's commitment to technology,
last year Edison invested several times the reported national average per
student for technology in K-12 schools. IBM has come to the table with a total
solution of hardware, software and
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services that we require to serve children in Edison Schools and to continue our
growth. We see portability and wireless networking as key components of the next
technology model for schools."
"This agreement is indicative of IBM's commitment to the global education market
and we are confident that they are the best company to help us create the 'next
generation' technology model for Edison Schools," continued Whittle.
Edison currently estimates that the company's investment in the technology
platform will increase its net loss for fiscal 2001 by approximately $4.3
million. However, the company expects to realize significant returns on the
investment in subsequent years in the form of cost savings and improvements in
the scalability of its technology infrastructure to support student growth.
In the 1999-2000 school year, Edison managed 79 public schools with a total
enrollment of 37,500 students in 16 states and 36 cities. Through contracts with
local school districts and public charter school boards, Edison assumes
educational operational responsibility for individual schools in return for
per-pupil funding that is generally comparable to that spent on other public
schools in the area. Over the course of three years of intensive research,
Edison's team of leading educators and scholars developed an innovative
curriculum and school design. Edison opened its first four schools in August
1995, and has grown rapidly in every subsequent year.
Except for the historical information contained in this announcement, the
matters discussed are "forward looking statements" (as that term is used in the
Private Securities Litigation Reform Act of 1995) that involve risks and
uncertainties, including risks detailed from time-to-time in Edison's filings
with the Securities and Exchange Commission. In particular, Edison calls to the
reader's attention the risk factors described in its Quarterly Report on Form
10-Q dated May 15, 2000 under the heading "Additional Risk Factors That May
Affect Future Results." Any such forward-looking statements speak only as of the
date such statements are made, and Edison undertakes no obligations to publicly
release the results of any revision to these forward-looking statements or
otherwise update or supplement this announcement or risk factors contained
herein.
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