EPALS TO INTRODUCE THE FIRST EDUCATIONAL APPLICATIONS DEDICATED TO CREATING A SAFE ONLINE ENVIRONMENT ON THE INTEL-POWERED CLASSMATE PC

ePals and Intel to enable cross-cultural collaboration among classrooms worldwide through ePals' Global Learning Community and the Intel World Ahead Program

HERNDON, VIRGINIA, February 25, 2008 — ePals, Inc., the Internet's leading K-12 learning community, announced today that it will be the first to introduce educational applications that are dedicated to creating a safe online environment on the Intel-powered classmate PC, including its global community, SchoolMail™ and SchoolBlog™ applications.

The Intel-powered classmate PC is an affordable fully-functional laptop designed to support collaborative learning environments for students in emerging markets. It is part of the Intel World Ahead Program that aims to connect the next billion people to uncompromised technology around the world.

Students and teachers can join the ePals Global Learning Community™, the largest network of interconnected classrooms in the world, by simply selecting the new ePals icon on the classmate PC's desktop. By doing so, they enter a safe environment for building and exchanging knowledge, using protected email, blog, translation tools, evidence-based curricula and authentic, collaborative learning experiences. Truly international in scope, ePals safely connects more than 350,000 teachers and their classrooms from 200 countries and territories around the world.

"Intel and ePals share a common goal of bringing high quality educational solutions to classrooms, students and families around the globe" said Ed Fish, President and CEO of ePals. "In the 21^st century this means helping students around the world use the Internet in a safe and protected context to develop global awareness, critical thinking and project- based collaboration. We are very pleased to work with Intel to bring ePals to an even wider, more diverse learning audience."

"The collaboration between Intel and ePals will take students' learning experience beyond the walls of the classrooms to different corners of the world. ePals' application complements the collaboration features on the Intel-powered classmate PC; enabling students and teachers to collaborate and learn together in a secured environment to develop skills for the global economy," said Lila Ibrahim, general manager of the Emerging Markets Platform Group of Intel. "Bringing technology to children in emerging markets is a huge task. We are excited to work with leading service providers such as ePals in delivering opportunities for students."

The collaboration with Intel is part of ePals' ongoing initiative designed to accelerate the growth of its global learning community. Last September, ePals made its award-winning connectivity tools and curricula available at no cost to educators and school systems. This shift from subscription to free access rapidly accelerated the growth of the ePals community. It now reaches more than 13 million teachers and students around the world. More than 2,000 classrooms join the ePals learning community each month.

This announcement also comes on the heels of an agreement between ePals and the New Partnership for Africa's Development (NEPAD) Council to provide African students and educators with the opportunity to connect with classrooms worldwide through ePals' Global Community. ePals also announced today a wide ranging strategic partnership with National Geographic that will, among other things, enhance the ePals experience with premier, digital learning content.

For more information about ePals and its tools, please visit www.ePals.com or the corporate site www.ePalscorp.com. More information about the Intel classmate PC initiative can be found at www.classmatepc.com.

About ePals, Inc.

Founded in 1996 and merged with In2Books in 2006, ePals offers K-12 students and teachers around the world a safe environment for building and exchanging knowledge based on protected connectivity tools, evidence-based curricula and authentic, collaborative learning experiences. The ePals Global Learning Community™ (www.ePals.com) is the largest online community of K-12 learners, reaching more than 13 million educators and students across 200 countries and territories. The company's mission is to support lifelong learning through collaborative online experiences that empower and inspire.