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China Education Alliance, Inc. Announces Strong Fourth Quarter and Fiscal Year 2008 Results.

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HARBIN, China, April 1 /PRNewswire-Asia-FirstCall/ -- China Education Alliance, Inc. (OTC Bulletin Board: CEUA; "China Education Alliance" or "the Company"), a leading distributor of educational resources, offering high-quality programs and training both through online networks and an on-site training center in the People's Republic of China, today reported strong financial results for the fourth quarter and fiscal year ended December 31, 2008.



Fourth Quarter 2008 Highlights -- Total Revenue increased 91.2% year over year to $9.2 million -- Gross profit rose 80.6% to $7.2 million or 85.3% of sales, compared to 92.7% of sales in the fourth quarter of 2007 -- Operating income totaled $3.9 million, versus an operating income of $1.1 million in the fourth quarter of 2007 -- Net income was $3.6 million, versus net loss of $1.4 million in the fourth quarter of 2007 -- Net income grew to a record $0.15 per fully diluted share, versus net loss of $0.06 per fully diluted share in the fourth quarter of 2007 Fiscal Year 2008 Highlights -- Total revenue increased 43.5% in 2008 to $24.9 million -- Gross profit increased 44.3% to $20 million; gross margin was 80.% versus 79.6% in fiscal year 2007 -- Operating income increased 59.7% in fiscal year 2008 to $10 million -- Net income was $9.9 million, or $0.40 per fully diluted share -- In 2008, the Company signed a series of acquisition agreements: - On April 18, 2008, our subsidiary, Harbin Zhong He Li Da Education Technology, Inc. entered into an agreement and supplementary agreement with Harbin Daily Newspaper Group to establish a joint venture, Harbin New Discovery Media Co., Ltd ("New Discovery"). New Discovery publishes a newspaper, "Scientific Discovery," which promotes primary and secondary education resources. - On April 27, 2008, the Company entered into an agreement with Mr. Yuli Guo and World Exchanges, Inc ("WEI") to acquire 70% of WEI. On December 23, 2008, WEI incorporated Beijing Wei Shi Yi Tong Education Technology Co., Inc in the PRC to be involved in the English language training business. Fourth Quarter 2008 Results

China Education Alliance's on-line business generated 70.3% of its total revenue for the fourth quarter of 2008 versus 65.4% for the same period the prior year. Its training center business generated 21.2% of its total revenue for the fourth quarter of 2008 versus 23.6% for the same period the prior year and its advertising business generated the remaining 8.5% of its total revenue for the fourth quarter of 2008 versus 10.9% for the same period the prior year.

"Our online education, training center, and advertising businesses have experienced rapid growth during the fourth quarter of 2008; the training center business generated particularly dramatic growth due to our rapid expansion of our vocational education business," commented Mr. Xiqun Yu, Chairman and CEO of China Education Alliance. "The strong growth of our online education business was mainly driven by our...

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