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Exhibit 99.1
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For Immediate Release
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THE LEARNING COMPANY, INC. AND XXXXXXX PLC
REACH AGREEMENT ON MINDSCAPE, INC.
March 6, 1998
CAMBRIDGE, Mass., THE LEARNING COMPANY, INC. (NYSE:TLC), announced today that it
has entered into an agreement with certain affiliates of Xxxxxxx plc to acquire
all of the stock of Mindscape, Inc., a leading publisher of education,
productivity and entertainment software.
Mindscape, Inc. is the publisher of many award winning titles such as Xxxxx
Beacon Teaches Typing, The Complete National Geographic Collection, Print Master
Platinum, Chessmaster 5500 and The Princeton Review: Inside the SAT & ACT and
other home productivity, reference and educational titles. Mindscape had
revenues of approximately $130 million in its most recent year ended
December 31, 1997.
The Learning Company has agreed to purchase Mindscape for a purchase price of
$150 million, payable primarily in cash and the remainder through the issuance
of shares of common stock. The closing of the transaction is subject to certain
conditions, including expiration of applicable waiting periods under pre-merger
notification regulations.
Xxxxxxx Xxxxx, Chairman and Chief Executive Officer of The Learning Company,
Inc., said, "We are very impressed with the achievements and the sales momentum
that Mindscape has been able to achieve over the past twelve months. We believe
the company has built one of the best portfolios of branded content available in
the marketplace today. Mindscape's product strategy will complement that of The
Learning Company and allow us to provide an even broader array of products to
our customers. In addition, we expect that this acquisition will be accretive to
fiscal 1998 earnings by at least $.05 per share for the Learning Company."
Xxxxx X'Xxxxx, President of The Learning Company said, "Mindscape brings several
premium franchises into the Learning Company's portfolio of leading educational
and reference brands. These include Xxxxx Beacon Teaches Typing, The Complete
National Geographic Collection, Print Master Platinum, The Princeton Review:
Inside the ACT & SAT and Chessmaster 5500. Print Master Platinum achieved
leadership in its home graphics category in January 1998, according to PC Data.
We expect to even further accelerate Print Master Platinum's momentum by
expanding its distribution through our school and direct response channels.
Furthermore, The Learning Company and Mindscape together are number-one in
dollar market share in U.S. retail in the month of January 1998, according to PC
Data."
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Xxxxxxxx Xxxxxxxx, Chief Executive Officer of Xxxxxxx plc said, "We are selling
Mindscape because we believe it is always going to be worth more to a company
such as The Learning Company than it would be to Xxxxxxx. It was important to us
to find a new owner for the business who we believe values the talent, drive and
commitment of the people at Mindscape and will build on what has been achieved
over the past year."
This release contains information forecasting the results of the company after
the acquisition of Mindscape which are "forward-looking statements" under the
federal securities laws. Actual results could differ materially from those
forecasts and there can be no assurance that results will be achieved. Important
factors that could cause actual results to differ materially from those present
or estimated include: the company's ability to predict the revenues and profit
it will generate from the sale of Mindscape's product line; the effects of
general economic conditions; and the ability to achieve economies of scale and
revenue growth from the acquisition.
For additional information contact:
Xxxx Xxxxx
Investor Relations
The Learning Company, Inc.
(000) 000-0000
xxxxxx@xxxxxxxxxx.xxx
Xxxxxx Xxxxxx
Public Relations
The Learning Company, Inc.
(000) 000-0000
xxxxxxxx@xxxxxxxxxx.xxx
Xxxxx Xxxxxxx
Director of Corporate
Communications
The Learning Company, Inc.
(000) 000-0000
xxxxxxxx@xxxxxxxxxx.xxx
