1. 1 2004

2. 2 SCHOLASTIC INC SCHOLASTIC INC. Largest children’s publisher in the English speaking world 83 year old, $2 billion international company with unparalleled reach: ! 33 million families ! 3.3 million teachers ! 53 million students Reaches 90% of all U.S. classrooms ! 45% in preschool and daycare centers Publishes materials in several languages in more than 50 countries worldwide SCHOLASTIC INC SCHOLASTIC INC. Largest children’s publisher in the English speaking world 83 year old, $2 billion international company with unparalleled reach: ! 35 million children ! 40 million parents ! 3.3 million teachers Reaches 98% of all U.S. classrooms ! 45% of preschool and day care centers Publishes materials in several languages distributed to more than 165 countries worldwide

3. 3 Scholastic is devoted to reading and learning products for children ages 3-12 Award-winning product lines: Children’s books Classroom, consumer & professional magazines Television programming Videos Feature films Software Online services Educational materials SCHOLASTIC INC.

4. 4 www.scholastic.com Education Leading publisher of research-based core and supplementary instructional materials; providing reading improvements products to grades: PreK – high school Book Fairs 105,000 book fairs annually nationwide. Book Publishing The largest publisher and distributor of children’s books. International 15 subsidiaries sell books and educational materials to schools through book clubs and 25,000 book fairs. Book and Software Clubs Largest school book club in America; reaches 26 million students, over 1 million teachers per year and 9 out of 10 schools. Direct to Home Monthly themed packages distributed to 20 million members via 50 different clubs. With the recent acquisition of Grolier, Scholastic now reaches families with children 0-14. Magazines 50 classroom and professional Magazines with 30 million readers. Scholastic Entertainment Producers of award-winning kids television series, videos, feature films and software; leader in kids’ marketing, promotion and consumer products worldwide.

5. 5 Clifford is a Big Brand Scholastic’s 40 year old (280 dog years!) publishing property has grown into a very powerful brand. Publishing Media Consumer Products

6. 6 25 new titles to be released in 2004! Clifford books are published in 9 languages and distributed internationally, and are perennial favorites in Canada, Australia and New Zealand. Clifford books are available in a multitude of formats including scratch ‘n’ sniff, pop-up, board books, lift-a-flap and TV Tie-in books. Clifford book sales have doubled since the launch of the TV series. Best-selling children’s book series of all time. Represents one of the first reading experiences for American children. A literary classic for kids and families  Clifford has over 160 titles with over 100 million books in print  Appears regularly on Publishers Weekly and USA Today best-sellers lists CLIFFORD PUBLISHING

7. 7 Books in Print (in millions)

8. 8 Top-rated animated TV show since its premier on PBS KIDS in 2000. 65 half-hour episodes produced. Performs better than Dora the Explorer and Bob the Builder combined. Sold in 80 countries. Something To Bark About!

9. 9 Top-Rated Children’s Programs Source: For PBS, NTI Pocketpieces for March 2004. For broadcast, cable, and syndication Nielsen Galaxy Explorer, March 1-31, 2004 Note: Broadcast and cable networks measure each feed separately while PBS combines all weekly telecasts into one "M-F" and one "Wknd" rating.

10. 10 On Air Impressions PBS reaches 98% of U.S. television households. Over 6 million viewers watch Clifford every week. Clifford airs two or three times a day Monday-Friday, and weekends (that’s 12 - 17 times per week!) Number of airings per week, as compared to other PBS KIDS favorites: Arthur 3766 Clifford4021 Dragon Tales2756 Caillou2003 Sagwa1669 *Source: PBS Station Relations, September 2003

11. 11 SCHOLASTIC INC SCHOLASTIC INC. Largest children’s publisher in the English speaking world 83 year old, $2 billion international company with unparalleled reach: ! 33 million families ! 3.3 million teachers ! 53 million students Reaches 90% of all U.S. classrooms ! 45% in preschool and daycare centers Publishes materials in several languages in more than 50 countries worldwide ADVENTURES WITH CLIFFORD THE BIG RED DOG MUSEUM EXHIBIT Adventures With Clifford The Big Red Dog debuts at The Minnesota’s Children Museum on Valentine’s Day with a special kick-off event. Exhibit to tour to more than 15 cities. Supported with targeted advertising and public relations. 2,500 square foot exhibit transports visitors to the world of Birdwell Island.

12. 12 The Big Red Dog is On the Big Screen! Clifford’s first animated feature film premiered in select markets February 2004. The film was such a hit, it was released in an additional 19 markets in April, reaching over a third of the country. Characters voiced by famous actors including John Ritter, Judge Rheinhold, Jenna Elfman and Wilmer Valderrama. DVD/VHS is scheduled to be released in August 2004.

13. 13 Clifford Licensing More than $550 million in retail sales with over 85 licensees: Children’s Apparel Network American Greetings Brach’s Curad Fisher Price Hanes Hasbro Leapfrog Mead Toy Island Playmates Hedstrom

14. 14 Clifford Promo Partners Bounty is spotlighting Clifford on their Activity Prints line with Clifford games, puzzles and mazes. Junior Juice features Clifford on 50 million juice boxes. Program supported with FSIs and in-store signage. Lipton is an underwriter for TV series and also features Clifford on 5 different SKU’s (10 million boxes) in a year-long promotion. Danimals joins the Clifford family as an underwriter for television series. Chuck-E-Cheese renews as an underwriter for TV series on PBS KIDS. In-store support includes merchandise and promotion. Other blue chip promotional partners include:

15. 15 Clifford’s BIG RED QSR Promotion The program featured 5 different premium toys in millions of meal bags. Promotion included in-store signage, millions of tray liners and television advertising in select cities. Wendy’s featured Clifford on their 2 nd nationwide Clifford Kid’s Meal Promotion during February 2004.

16. 16 Clifford’s Retail Promotion Clifford was featured in Kohl’s Cares for Kids® charity program from February through May 2004. Promotion will include Clifford plush and books. All proceeds from merchandise sold will be donated to local children’s hospitals. Advertising will include in-store circulars, print ads, POP and website.

17. 17 Clifford Videos, DVDs, CD-ROMs and Online Activity VIDEOS & DVDs Shipped over 3.5 million units. Six videos ranked on Billboard’s Top 25 Kid Video Chart. Recipient of Parents Choice and Kids First Awards. CD-ROMs Clifford CD-ROMs have sold 1.3 million units. Ranked on the Top-10 Bestsellers list.* Recipient of prestigious software awards. ON-LINE ACTIVITY Two Clifford web sites produced by Scholastic Entertainment with nearly 15 million page views per month. scholastic.com/clifford pbskids.org/clifford *NPD Intelect

18. 18 Scholastic Channels Clifford is promoted through Scholastic’s extensive distribution network which has an unparalleled reach among kids, parents and teachers: Clifford & Company is a continuity program, reaching 130,000 families at home Scholastic Books Fairs reach more than 35 million students and their parents, and 2 million teachers In-school book clubs reach 26 million students and 1 million teachers Clifford is featured on the cover of Scholastic News, which reaches one million first graders and 47,500 teachers Clifford’s Literacy Page is featured in every issue of Let’s Find Out which reaches 33,000 kinder-garden teachers and 600,000 students Clifford themed magazine reaching 125,000 preschoolers and their teachers.

19. 19 Clifford’s Got It All! Star of a Feature Film, Live Show, Museum Exhibit, Wendy’s Promotion and new TV series on PBS KIDS. Clifford merchandise has generated more than $550 million dollars in retail sales. More than 85 licensees including Hasbro, Fisher Price, and Leap Frog. Star of the top-rated animated TV series for kids 2-5. 40-year-old literary icon beloved by parents,teachers, and kids coast to coast. Publishing powerhouse with more than 100 million books in print.