FACTS TO CONSIDER

1. K-12 education industry - $300 billion - See Graph E.

2. Total education industry in the United States alone is a $660 billion business. That amounts to about 8.5% of America's GDP - Very bullish for PMKY.

3. Importance of education: The salary gap between those with a high school education and those who have a college degree has increased from about 25% in 1980 to more than 100% today.

4. Business of education is essentially recession proof. Bullish for PMKY.

5. 31,000,000 students attending high school and the first two years of college in the U.S. - Bullish for PMKY.

6. A growing, literate population with high levels of disposable personal income provides strong support for U.S. publishers - Bullish for PMKY.

7. College texts, EL-hi test and materials and standardized tests show consistent growth - Bullish for PMKY. See Chart F.

FACTS TO CONSIDER - Part II

Internet and E-Commerce

1. According to Forrester Research, 40 million households will be shopping online in 2003. Consumers will spend more than $108 billion on the Web that year.

2.

3. There were more than 147 million internet users worldwide by the end of 1998; 52% were from the US (Computer Industry Almanac).

4. One third of connected US households have income of $75K or more (2D Market Research).

5. Retail sites derive 30% of total business revenue from Web Enterprise (Activ Media).

6. 17% of retail sites derive 90 - 100% of their revenue online (Activ Media).

7. 60% of the on-line shoppers buy for convenience, 40% for time savings (2D Research).

8. Internet use is doubling every 100 days according to the US Commerce Department.

9. More than one out of every three Americans were using the internet by mid 1998.

10. By the year 2002 according to International Data Corp. commerce over the internet will surge to $333 billion (Business to Business and Consumer).

11. The top 100 retail sites had revenues of nearly $1 billion in 1998 (Activ Media).

12. 81% of consumers surveyed by Intelliquest intend to shop or buy on-line in the next 12 months.

OVERVIEW OF FACTS TO CONSIDER

Part I and II

1. When you consider the explosive growth of computing, Internet usage and e-commerce (see graphs and charts 1, 2, A, B, C, D, E and F), it is no wonder that small and young companies are finding out that the web is a ticket for fast growth and a creative weapon for taking on larger competitors. In its brief history, the web has transformed small, fledgling companies into corporate behemoths. PMKY has the ability to take advantage of every facet of this internet explosion. In addition, it is participating in an education industry worth over $660 billion. By any measure, the internet is one of the fastest growing commercial phenomena ever witnessed by society. By mid 1998, a new computer or host was being added to the internet about every three seconds. Clearly, the internet is in an exceptional growth phase! This, of course, has allowed companies like PMKY the chance to make it BIG!