1. External Analysis Strategic Plan Review American School 2007

2. Socio- Economic Indicators Honduras is among the 10 poorest countries in the Western Hemisphere. GDP per capita: US$ 2,876 per year (2006) GDP per capita: US$ 2,876 per year (2006) Population living below the national poverty line (%): Population living below the national poverty line (%): 60.2 %, 24.3% Relative, 35.9% Extreme (1990-2003) Economic growth: last few years has averaged 5% a year Economic growth: last few years has averaged 5% a year Rate of unemployment: 27.9%. (It is estimated that there are more than 1.2 million people who are unemployed or underemployed.) Rate of unemployment: 27.9%. (It is estimated that there are more than 1.2 million people who are unemployed or underemployed.) GDP per capita annual growth rate: 0.1% (1990-2004) GDP per capita annual growth rate: 0.1% (1990-2004) Inflation: 8.3% (Oct 07) 5.3% (Dec 06) Inflation: 8.3% (Oct 07) 5.3% (Dec 06) Monthly Economic Activity Index (IMAE): 7.9% (Jan-Oct 07) Monthly Economic Activity Index (IMAE): 7.9% (Jan-Oct 07)

3. Macroeconomic Indicators Source: BCH

4. Socio- Economic Indicators Socio- Economic Indicators (continued) Population: 7,529,403 (May 2007) Population: 7,529,403 (May 2007) Annual population growth rate (%): 2.9% (1975-2004) Annual population growth rate (%): 2.9% (1975-2004) Sex ratio: Sex ratio: At birth: 1.05 male/female. At birth: 1.05 male/female. Under 15 years: 1.04 male/female Under 15 years: 1.04 male/female Life expectancy at birth: (HDI): 68.1 yrs. (2004) Life expectancy at birth: (HDI): 68.1 yrs. (2004) Population Under Age 15 yrs: 38.4% (May 2004, % of Total) Population Under Age 15 yrs: 38.4% (May 2004, % of Total) Urban Population: 45.5% ( May 2007) Urban Population: 45.5% ( May 2007) Tegucigalpa Population: 1,054,198 (2006) Tegucigalpa Population: 1,054,198 (2006) 14% of Total 14% of Total 91.65% Urban 91.65% Urban Proportion of economically active population: 27.4% (2007) Proportion of economically active population: 27.4% (2007) Informal Employment: 37.2% (2007) Source: UNDP & USAID Informal Employment: 37.2% (2007) Source: UNDP & USAID

5. Honduras Population Pyramid for 2005

6. Future Expansion of Tegucigalpa American School The projected area of this urban expansion is based on four key variables influencing new housing developments in Tegucigalpa: (1) proximity to the city and existing infrastructure,(2) transportation systems, (3) elevation, and (4) slope

7. Education Indicators Education index is based on the adult literacy rate and the combined gross enrollment ratio for primary, secondary and tertiary public schools Index: 0.77 (2006) Index: 0.77 (2006) World Position: 117 /170 (2006) World Position: 117 /170 (2006) Youth Literacy Rate: 88.9% (2004, % ages 15-24) Youth Literacy Rate: 88.9% (2004, % ages 15-24) Net Primary Enrollment ratio: 91% (2004) Net Primary Enrollment ratio: 91% (2004) The number of students enrolled in a level of education who are of official school age for that level, as a percentage of the population of official school age for that level. Percentage of repeaters, Primary: 8% (2005) Percentage of repeaters, Primary: 8% (2005) Survival Rate to Grade 5th: 70% (2004) Survival Rate to Grade 5th: 70% (2004) Pupil / teacher ratio (primary): 33 (2005) Pupil / teacher ratio (primary): 33 (2005) Source: UNESCO

8. Education Indicators 33% of children are enrolled in pre- primary school 92% of girls and 90% of boys are in primary school 79% of children complete a full course of primary Source: UNESCO

9. Competition Analysis

10. School Enrollment

14. Competition Analysis Teachers remuneration Comparison Teachers remuneration Comparison

15. Competition Analysis ACADEMIC PROGRAMS OFFERED: American School: Bachillerato and High School (SACS), IB American School: Bachillerato and High School (SACS), IB Academia Los Pinares: Bachillerato and High School Academia Los Pinares: Bachillerato and High School Del Campo: Bachillerato and High School Del Campo: Bachillerato and High School Discovery School: Bachillerato and High School (Advance Ed / SACS) Discovery School: Bachillerato and High School (Advance Ed / SACS) Elvel School: Bachillerato and High School Elvel School: Bachillerato and High School