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Exhibit 99.1
Contacts:
Houghton Mifflin Company Classwell Learning Group
Media Contact: Media Contact:
Margaret Sherry GPC/O'Neill
617-351-5113 Ann Murphy
Investor Contact: 617-646-1031
Susan E. Hardy
617-351-5114 Sylvan Ventures
Media Contact:
Miller Consulting Group
Joya Subudhi
617-262-1800 ext. 226
Investor Contact:
Sean Creamer
410-843-8991
HOUGHTON MIFFLIN COMPANY, SYLVAN VENTURES
AND INCEPTION CAPITAL ANNOUNCE $30 MILLION INVESTMENT
FOR THE FORMATION OF CLASSWELL LEARNING GROUP
--A one-stop online resource for pre-K-12 teachers--
BOSTON, MA (September 7, 2000) -- Houghton Mifflin Company (NYSE: HTN), Sylvan
Ventures, a subsidiary of Sylvan Learning Systems, Inc. (NASDAQ: SLVN), and
Inception Capital today announced the formation of Classwell Learning Group, a
groundbreaking online education company to provide pre-K-12 teachers with new
teaching and learning resources to meet their individual classroom needs and
those of their students.
For educators, Classwell will seamlessly integrate the three key elements of
standards-based education --- assessment, instruction and teacher training ---
providing tools, content and services all at one site.
Houghton Mifflin is a leading publisher of textbooks, instructional technology,
assessments and other educational materials for elementary and secondary schools
and colleges. Sylvan Ventures develops and invests in educational technology
companies. Houghton Mifflin and Sylvan combine the strength of their brands,
premium content and proven educational services in forming Classwell. Together
with Inception Capital, which specializes in e-commerce and Internet
infrastructure businesses, they are providing $30.4 million in funding for the
new venture.
"Houghton Mifflin and Sylvan are names teachers know and trust," said Nader F.
Darehshori, Chairman, President and Chief Executive Officer of Houghton Mifflin
Company. "As the sponsors of Classwell, we plan to create a service for
teachers that is easy to use, directly supports their core curriculum and saves
them time."
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Classwell 2 of 3 Pages
September 7, 2000
"Classwell fits with Houghton Mifflin's long-standing growth strategy of
actively pursuing partnerships that extend our brands beyond traditional
channels and bring us new expertise. Classwell will give us a further outlet
for our proven instructional materials as well as complement core businesses,"
said Darehshori.
Classwell will benefit from Houghton Mifflin's content resources and expertise
in developing curriculum. Houghton Mifflin will license educational content to
Classwell to adapt and distribute online. Classwell will also draw on Sylvan's
properties and services to provide professional development for teachers,
program training and implementation, online management systems for attendance
and grade reporting, and a messaging link among teachers, students and parents.
Sylvan Ventures and Inception Capital will invest $15.9 million and $7.5 million
for fully diluted ownership stakes in the company of 32% and 16% respectively.
Houghton Mifflin will invest $7 million in cash and $8.8 million of assets for
ownership of 32%.
"The launch of Classwell Learning Group marks an important initiative between
recognized, industry leaders in the content, educational services and capital
investment arenas. Focused squarely on supporting pre-K-12 teachers, Classwell
will be the first company to fully integrate digital content and technology for
schools in one site," said Chris Hoehn-Saric, Chairman and Chief Executive
Officer of Sylvan Ventures. "Classwell is a platform investment for Sylvan
Ventures in the pre-K-12 space, with tremendous synergies for current as well as
future Sylvan Ventures' and Sylvan Learning Systems' operating companies."
Classwell, unlike its competitors, will draw from other educational content and
services partners to provide teachers access to the brands they have come to
know and trust.
"Classwell will change teachers' lives. Every day teachers are asked to assume
more responsibility for the success of their students while at the same time
meet the student's individual needs. Yet they haven't been given the tools to do
it," said David Cappellucci, President and CEO of Classwell Learning Group.
"When you save teachers time, they have more time to spend with students
individually. When you give teachers the right tools, they can provide
individualized instruction to students. Classwell gives teachers the time and
the tools."
Cappellucci, formerly with Houghton Mifflin, will lead a management team with
extensive educational publishing and technology experience. Cappellucci has
nearly 20 years of management, finance, strategy and new business development
experience in the education industry.
"Inception's mission is specifically to work at the intersection of the new
economy and strong established businesses," said Leo Hermacinski, Co-Founder of
Inception Capital. "I can think of no better example of the power of working in
this space than Classwell and its partners. We look forward to helping David
and his team realize all the success available to them."
Additional partnerships will be formally announced this fall. Classwell's
services will be available at www.classwell.com in January 2001.
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Classwell 3 of 3 Pages
September 7, 2000
Partners Background
Houghton Mifflin Company
Houghton Mifflin is a leading publisher of textbooks, instructional technology,
assessments and other educational materials for elementary and secondary schools
and colleges. The Company also publishes an extensive line of reference works
and fiction and non-fiction for adults and young readers. The Company's
Internet site can be found at www.hmco.com.
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Sylvan Ventures
Founded in February 2000, Sylvan Ventures develops and invests in educational
technology companies, providing them with access to the brands, content and
resources of its parent company Sylvan Learning Systems, Inc. (NASDAQ: SLVN),
one of the world's leading providers of educational services to families,
schools and industry with over 2,000 tutoring, training and learning centers
around the world. For more information, visit www.sylvanventures.com.
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Sylvan Learning Systems, Inc.
Sylvan Learning Systems, Inc. (www.sylvan.net) is the leading provider of
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educational services to families, schools and industry. The Sylvan Learning
Centers and Contract Education Services divisions provide personalized
instruction services to K-12 students through direct consumer relationships and
under contract to school systems. Sylvan provides courses to adult students
throughout the world in the areas of English language, teacher training and
accredited university offerings through the Wall Street Institute/ASPECT, Canter
and Sylvan International Universities subsidiaries. Through its affiliate,
Caliber Learning Network, Inc., Sylvan also has the ability to distribute world-
class adult professional education and training programs.
Inception Capital
Inception Capital (www.inceptioncapital.com) was jointly founded by BV
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Group, CEA Worldwide, The Parthenon Group and Parthenon Capital. The Boston-
based financial group specializes in e-commerce and Internet infrastructure
businesses.
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