ePALS TO OFFER SCHOOLS FREE ACCESS TO ITS PREMIERE ONLINE EDUCATION TOOLS AND LITERACY CURRICULA

Leading Internet Learning Community to Eliminate Subscription Fees for Award-Winning SchoolMail™ and SchoolBlog™ Solutions

Shift to Free Access Addresses School Budget Constraints; Accelerates Growth of ePals Global Learning Community, Now Reached by More Than 8 Million Students

HERNDON, VIRGINIA, September 10, 2007 — ePals, Inc., the leading Internet learning community, today announced the availability of its award-winning, policy-managed SchoolMail™, SchoolBlog™ and online literacy curricula services free of charge to educators and school systems globally.

ePals, a pioneer in online education, offers K-12 students and teachers around the world a safe environment for building and exchanging knowledge, using protected email and blog tools, evidence-based curricula and authentic, collaborative learning experiences. ePals is making its premiere subscription-based connectivity tools and curricula available at no cost to educators and school systems in order to meet intense school district demand for digital literacy tools and curricula, address district constraints and accelerate the growth of ePals' global Internet learning community.

More than 325,000 educators and students in 126,000 classrooms in 200 countries and territories currently participate in ePals' Internet learning community. With the successful conclusion of several recent agreements with municipalities and school districts, the ePals global learning community is now accessible to more than eight million students around the world. Agreements have been signed recently in San Antonio and Brownsville, TX; Aurora, CO; Newark, NJ; Jersey City, NJ, Cherokee, GA; Kansas City, KS; and New Brunswick, Canada.

"ePals fulfills an important need for school systems across the country - most of which, though wired for Internet access, lack the resources to purchase the online tools and curricula necessary to enable effective Internet-based learning for all of their students," said Ed Fish, President and CEO of ePals. "Our goal is to build a global online learning community that provides educators and parents with a safe, proven and cost-effective way to channel students' enthusiasm for the Internet into authentic educational experiences."

"By providing ePals' award-winning connectivity and literacy tools free to schools, more students will have the chance to enhance their 21st Century literacy skills, including critical thinking, global awareness, creativity with media tools and a facility for Internet navigation," said Tim DiScipio, ePals co-founder and Chief Marketing Officer. "With ePals available at no cost, the money schools have budgeted for email services can now be used for more value-added IT priorities."

"From a district perspective, this is a big win-win," said Stan Salagaj, Director of Instructional Technology at Newark, New Jersey Public Schools. "We get to acquire a leading K-12-designed collaborative tool suite and, in the process, eliminate budget constraints, eRate paperwork and the application process to apply for partial government technology subsidies, saving us time and money."

ePals' connectivity tools and digital literacy curricula include:

SchoolMail™, the leading integrated email service in use in schools around the world. SchoolMail™ uniquely offers teacher-monitored email to ensure secure usage; a built-in, instant translation matrix for 72 language pairs; file sharing and spell checking; virus and spam filters, and easily-accessed manuals and tutorials.

SchoolBlog™, recipient of the Technology and Learning award of excellence and one of the top literacy education tools for teaching students to express their ideas, collaborate with other students and teachers, and involve parents in a secure online environment. SchoolBlog™ builds literacy skills, exposes students to a real audience and encourages cultural idea exchange on a global basis. Message boards are teacher-supervised to ensure that emails and blogs circulate exclusively in the educational environment.

In2Books®, an evidence-based literacy curricula (www.In2Books.com), developed by a team of national literacy experts, provides a rich, engaging and authentic online learning experience built around a pen-pal dialogue between a student and an adult mentor. Independent studies have shown that students participating in In2Books significantly outperform other students in standardized reading tests, and increase critical thinking and writing proficiency.

All of ePals' tools are optimized for policy-managed security standards so that each school district or campus can regulate student interactions with the site based on its own specific Internet policies.

For more information on ePals and ePals services, please visit www.ePals.com or our corporate site, www.ePalsCorp.com

About ePals

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, enabling educators and students in more than 129,000 classrooms across 200 countries and territories to safely connect, exchange ideas, and work together. The company's mission is to support lifelong learning through collaborative experiences that empower and inspire.