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New Oriental Announces Results for the Fourth Quarter and Fiscal Year Ended May 31, 2007
July 24, 2007 at 4:06 AM EDT
BEIJING, July 24, 2007 /Xinhua-PRNewswire via COMTEX News Network/ -- New Oriental Education and Technology Group Inc. (the "Company") (NYSE: EDU), the largest provider of private educational services in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended May 31, 2007(1).
    Highlights for the Fourth Quarter and Fiscal Year Ended May 31, 2007

     -- Total net revenues for the fourth quarter of fiscal year 2007
        increased by 29.1% year-over-year to RMB190.6 million (US$24.9
        million) from RMB147.6 million.
     -- Total net revenues for the fiscal year 2007 increased by 35.5%
        year-over-year to RMB1,044.0 million (US$136.4 million) from
        RMB770.3 million.
     -- Net loss for the fourth quarter of fiscal year 2007 decreased by
        65.3% year-over-year to RMB11.9 million (US$1.6 million) from
        RMB34.3 million in the fourth quarter of fiscal year 2006, and income
        attributable to holders of common shares excluding share-based
        compensation expenses (non-GAAP) increased by 88.8% year-over-year to
        RMB5.6 million (US$0.7 million) from RMB3.0 million in the fourth
        quarter of fiscal year 2006.
     -- Net income for the fiscal year 2007 increased by 359.1%
        year-over-year to RMB226.7 million (US$29.6 million) from RMB49.4
        million in the fiscal year 2006, and income attributable to holders
        of common shares excluding share-based compensation expenses
        (non-GAAP) increased by 198.4% year-over-year to RMB263.5 million
        (US$34.4 million) from RMB88.3 million in the fiscal year 2006.
     -- Basic and diluted loss per ADS for the fourth quarter of fiscal
        year 2007 were RMB0.31 (US$0.04) and RMB0.31 (US$0.04),
        respectively. Excluding share-based compensation expenses
        (non-GAAP), basic and diluted earnings per ADS for the fourth
        quarter of fiscal year 2007 were RMB0.15 (US$0.02) and RMB0.14
        (US$0.02), respectively. Each ADS represents four common shares of
        the Company.
     -- Basic and diluted earnings per ADS for the fiscal year 2007 were
        RMB6.70 (US$0.88) and RMB6.33 (US$0.83), respectively. Excluding
        share-based compensation expenses (non-GAAP), basic and diluted
        earnings per ADS for the fiscal year 2007 were RMB7.79 (US$1.02) and
        RMB7.36 (US$0.96), respectively.
     -- Total student enrollments in language training and test preparation
        courses for the fourth quarter of fiscal year 2007 increased by
        31.5% year-over-year to approximately 314,000 from approximately
        238,700 in the fourth quarter of fiscal year 2006.
     -- Total student enrollments in language training and test preparation
        courses for fiscal year 2007 increased by 22.4% year-over-year to
        approximately 1,067,000 from approximately 872,000 in fiscal year
        2006.
     -- Opened 1 new school in the fourth quarter bringing the total number
        of schools and learning centers to 35 and 130 (including the 35
        schools) as of May 31, 2007, respectively, up from 34 schools and
        128 learning centers (including the 34 schools) as of February 28,
        2007.

"We are pleased to finish our first fiscal year as a public company on a strong note with strong fourth fiscal quarter revenue growth," said Mr. Michael Yu, New Oriental's Chairman and Chief Executive Officer. "As we announced during the third quarter earnings call, in the fourth fiscal quarter of 2007, we initiated a large-scale, nationwide marketing campaign to encourage enrollments in our summer courses. As a result, our sales and marketing expenses for the fourth fiscal quarter of 2007 increased by 47.7% year-over-year to RMB38.5 million (US$5.0 million) from RMB26.1 million in the corresponding quarter of 2006. Our marketing campaign has in part contributed to the outstanding 31.5% increase year-over-year in language training and test prep enrollments for the quarter. We also successfully executed on our strategic expansion plan establishing a new school in Nanchang and we expanded our mobile learning platform in collaboration with Nokia."

New Oriental's Chief Financial Officer, Mr. Louis T. Hsieh, added, "Our solid revenue and student enrollment growth in the fourth fiscal quarter and for the full 2007 fiscal year demonstrates the market potential for New Oriental's suite of leading educational offerings. We are very pleased that we achieved over RMB one billion in net revenues and over one million student enrollments for our 2007 fiscal year, which are significant milestones for the company. In the coming quarters, we will continue to expand our school network and course offerings to grow our student enrollments and revenues."

Financial Results for the Fiscal Quarter Ended May 31, 2007

For the fourth fiscal quarter of 2007, New Oriental reported net revenues of RMB190.6 million (US$24.9 million), representing a 29.1% increase year- over-year.

Net revenues from educational programs and services for the fourth fiscal quarter were RM168.9 million (US$22.1 million), representing a 28.8% increase year-over-year. The growth was mainly driven by the increase in the number of student enrollments in language training and test preparation courses. Total student enrollments in language training and test preparation courses in the fourth quarter of fiscal year 2007 increased by 31.5% year-over-year to approximately 314,000 from approximately 238,700 in the fourth quarter of fiscal year 2006.

Total operating costs and expenses for the quarter were RMB217.5 million (US$28.4 million), a 21.8% increase year-over-year.

Cost of revenues increased by 27.0% year-over-year to RMB90.3 million (US$11.8 million), primarily due to the increased number of courses offered to a larger student base and the greater number of schools and learning centers in operation.

Selling and marketing expenses increased by 47.7% year-over-year to RMB38.5 million (US$5.0 million), primarily due to the initiation of a large- scale, nationwide marketing campaign to encourage enrollments in summer courses.

General and administrative expenses increased by 9.1% year-over-year to RMB88.7 million (US$11.6 million) primarily due to increased headcount as the company further expanded its business.

Total share-based compensation expenses, which were allocated to related operating costs and expenses, decreased to RMB17.5 million (US$2.3 million) in the fourth quarter of fiscal year 2007 from RMB37.3 million in the fourth quarter of fiscal year 2006.

Operating margin for the quarter was negative 14.1%, compared to negative 20.9% in the corresponding period of the previous year. Excluding share-based compensation expenses (non-GAAP), operating margin for the quarter was negative 4.9%, compared to positive 4.3% in the corresponding period of the prior year. Operating margins were negatively affected by the increase in marketing expenses and general and administrative expenses as described earlier.

Net loss for the quarter was RMB11.9 million (US$1.6 million), representing a 65.3% decrease from the fourth quarter of fiscal year 2006. Basic and diluted loss per share amounted to RMB0.08 (US$0.01) and RMB0.08 (US$0.01), respectively, and basic and diluted loss per ADS were RMB0.31 (US$0.04) and RMB0.31 (US$0.04), respectively.

Income attributable to holders of common shares excluding share-based compensation expenses (non-GAAP) was RMB5.6 million (US$0.7 million). Basic and diluted earnings per ADS excluding share based compensation expenses (non- GAAP) were RMB0.15 (US$0.02) and RMB0.14 (US$0.02), respectively.

Capital expenditures for the quarter were RMB7.3 million (US$1.0 million).

As of May 31, 2007, New Oriental had cash and cash equivalents of RMB1,563.8 million (US$204.4 million), as compared to RMB3,432.6 million as of February 28, 2007. The decrease in cash and cash equivalents was primarily due to the distribution of the net proceeds during early March from the Company's follow-on offering of approximately RMB2,068 million to selling shareholders in February 2007. Net operating cash flow for the fourth quarter of fiscal year 2007 was RMB217.4 million (US$28.4 million).

Financial Results for the Fiscal Year Ended May 31, 2007

For the fiscal year ended May 31, 2007 New Oriental reported net revenues of RMB1,044.0 million (US$136.4 million), representing a 35.5% increase year- over-year.

Total student enrollments in language training and test preparation courses in the fiscal year ended May 31, 2007 increased by 22.4% to approximately 1,067,000 from approximately 872,000 in the fiscal year ended May 31, 2006.

Operating margin for the fiscal year ended May 31, 2007 was 19.9%, compared to 8.3% for the fiscal year ended May 31, 2006.

Net income for the fiscal year ended May 31, 2007 was RMB226.7 million (US$29.6 million), representing a 359.1% increase year-over-year. Basic and diluted earnings per ADS for the fiscal year ended May 31, 2007 amounted to RMB6.70 (US$0.88) and RMB6.33 (US$0.83), respectively. Common shares used in calculating basic and diluted earnings per ADS increased in the fiscal year ended May 31, 2007 due to 34.5 million common shares (equivalent to 8.625 million ADS) issued and sold by the Company in its initial public offering in September 2006, and approximately 2.4 million new common shares (equivalent to approximately 600,000 ADS) issued and sold by the Company in its follow-on offering in February 2007.

As of May 31, 2007, New Oriental had cash and cash equivalents of RMB1,563.8 million (US$204.4 million), as compared to RMB261.9 million as of May 31, 2006. The increase in cash and cash equivalents was primarily due to RMB946.0 million net proceeds from the Company's initial public offering in September 2006, and RMB184.7 million net proceeds from the follow-on offering in February 2007. Net operating cash flow for the fiscal year ended May 31, 2007 was approximately RMB450 million (US$58.8 million).

Outlook for First Fiscal Quarter 2008

New Oriental expects its total net revenues in the first quarter of fiscal year 2008 (June 1, 2007 to August 31, 2007) to be in the range of RMB520.0 million (US$68.0 million) to RMB550.0 million (US$71.9 million), representing year-over-year growth in the range of 21.1% to 28.1%, respectively. This forecast reflects New Oriental's current and preliminary view, which is subject to change.

Conference Call Information

New Oriental's management will host an earnings conference call at 8 AM on July 24, 2007 U.S. Eastern Time (8 PM on July 24, 2007 Beijing/Hong Kong time).

    Dial-in details for the earnings conference call are as follows:

     US:         +1-617-213-8850
     Hong Kong:  +852-3002-1672

Please dial-in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is "New Oriental earnings call."

A replay of the conference call may be accessed by phone at the following number until July 30, 2007:

International: +1-617-801-6888

Passcode: 59542542

Additionally, a live and archived webcast of the conference call will be available at http://investor.neworiental.org .

About New Oriental

New Oriental is the largest provider of private educational services in China based on the number of program offerings, total student enrollments and geographic presence. New Oriental offers a wide range of educational programs, services and products consisting primarily of English and other foreign language training, test preparation courses for major admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education. New Oriental's ADSs, each of which represents four common shares, currently trade on the New York Stock Exchange under the symbol "EDU."

For more information about New Oriental, please visit http://english.neworiental.org .

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the outlook for first quarter of fiscal year 2008 and quotations from management in this announcement, as well as New Oriental's strategic and operational plans, contain forward-looking statements. New Oriental may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about New Oriental's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward- looking statement, including but not limited to the following: our growth strategies; our future business development, results of operations and financial condition; our ability to attract students without a significant decrease in course fees; our ability to continue to hire, train and retain qualified teachers; our ability to maintain and enhance our "New Oriental" brand; our ability to effectively and efficiently manage the expansion of our school network and successfully execute our growth strategy; the outcome of ongoing, or any future, litigation or arbitration, including those relating to copyright and other intellectual property rights; competition in the private education sector in China; changes in our revenues and certain cost or expense items as a percentage of our revenues; the expected growth of the Chinese private education market; and Chinese governmental policies relating to private educational services and providers of such services. Further information regarding these and other risks is included in our registration statement on Form F-1 and other documents filed with the Securities and Exchange Commission. New Oriental does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of July 24, 2007, and New Oriental undertakes no duty to update such information, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement New Oriental's consolidated financial results presented in accordance with GAAP, New Oriental uses the following measures defined as non- GAAP financial measures by the SEC: net income excluding share-based compensation expenses and basic and diluted earnings per share and per ADS excluding share-based compensation expenses. The presentation of these non- GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.

New Oriental believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based expenses that may not be indicative of its operating performance from a cash perspective. New Oriental believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to New Oriental's historical performance and liquidity. New Oriental computes its non-GAAP financial measures using the same consistent method from quarter to quarter. New Oriental believes these non- GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP net income excluding share-based compensation expenses, and basic and diluted earnings per share and per ADS excluding share-based compensation expenses is that these non-GAAP measures exclude share-based compensation charge that has been and will continue to be for the foreseeable future a significant recurring expense in our business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

         (1):  The Company's financial statements are stated in RMB.
               The translation of RMB amounts at and for the year ended
               May 31, 2007 into United States dollar("US$") is included
               solely for the convenience of the readers and has been made
               at the rate of RMB7.6516 to US$1, the approximate free rate
               of exchange at May 31, 2007. Such translations should not be
               construed as representations that RMB amounts could be
               converted into US$ at that rate or any other rate, or to be
               the amounts that would have been reported under US GAAP.



                NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (In thousands)

                                                            As of      As of
                                        As of May 31      February 28  May 31
                                            2007             2007       2006
                                        (Unaudited)      (Unaudited)  (Note 1)
                                          RMB      USD        RMB        RMB
    ASSETS:
    Current assets:
    Cash and cash equivalents        1,563,819  204,378  3,432,623    261,854
    Restricted cash                      3,057      400      3,069      3,000
    Term deposits                       23,000    3,006      3,000         --
    Accounts receivable, net             4,109      537      3,059      3,035
    Inventory                           49,028    6,408     39,257     36,418
    Prepaid expenses and other
     current assets                     47,149    6,162     44,615     35,655

    Total current assets             1,690,162  220,891  3,525,623    339,962

    Property, plant and equipment,
     net                               693,045   90,575    702,084    706,565
    Land use right, net                 24,903    3,255     25,041     25,456
    Deposit for acquiring property
     and equipment                          --       --         --      1,175
    Amounts due from related parties       244       32        523      8,527
    Deferred tax assets                  8,345    1,091      4,952      5,163
    Long term prepaid rent                  --       --         --      1,077
    Trade mark                           1,637      214      1,637      1,637
    Long term investment                    15        2         15         --

    Total assets                     2,418,351  316,060  4,259,875  1,089,562

    LIABILITIES AND SHAREHOLDERS'
     EQUITY
    Current liabilities:
    Short-term borrowings                   --       --         --     35,000
    Accounts payable-trade              43,282    5,657     38,185     36,183
    Accrued expenses and other
     current liabilities               137,455   17,965    122,893     91,596
    Dividend payable                        --       --         --        772
    Income tax payable                  15,343    2,005     14,996      9,151
    Current portion of long-term
     debt                                   --       --         --     47,603
    Amount due to related parties           97       13  2,067,820        389
    Deferred revenue                   330,763   43,228    135,025    244,524

    Total current liabilities          526,940   68,868  2,378,919    465,218

    Long-term debt, less current
     portion                                --       --         --    102,638

    Total long-term liabilities             --       --         --    102,638

    Total liabilities                  526,940   68,868  2,378,919    567,856

    Minority interest                    1,818      238      1,886        200

    Total shareholders' equity       1,889,593  246,954  1,879,070    521,506

    Total liabilities and
     shareholders' equity            2,418,351  316,060  4,259,875  1,089,562


    Notes:
    Note 1:  Data derived from audited financial statements.




                NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
           (In thousands except for per share and per ADS amounts)

                                          For the Three Months Ended May 31
                                                   2007              2006
                                                 (Unaudited)      (Unaudited)
                                                RMB        USD        RMB
    Net Revenues:
    Educational Programs and services        168,860     22,069     131,072
    Books and others                          21,729      2,840      16,570
    Total net revenues                       190,589     24,909     147,642

    Operating costs and expenses (note 1):
    Cost of revenues                          90,344     11,807      71,151
    Selling and marketing                     38,533      5,036      26,082
    General and administrative                88,665     11,588      81,301

    Total operating costs and expenses       217,542     28,431     178,534
    Operating income (loss)                  (26,953)    (3,522)    (30,892)

    Other income (expenses), net              14,898      1,947      (2,653)

    Income tax expense                          (124)       (16)       (744)
    Minority interest, net of tax                286         37          --

    Income (loss) from continuing
     operations                              (11,893)    (1,554)    (34,289)

    Income on discontinued operations             --         --          --

    Net Income (loss)                        (11,893)    (1,554)    (34,289)
    Dividend in kind                              --         --          --
    Income (loss) attributable to holders
     of common shares                        (11,893)    (1,554)    (34,289)

    Net income (loss) per share-basic          (0.08)     (0.01)      (0.34)
    Net income (loss) per share-diluted        (0.08)     (0.01)      (0.34)

    Net income(loss) per ADS-basic (note 2)    (0.31)     (0.04)      (1.37)
    Net income (loss) per ADS-diluted
     (note 2)                                  (0.31)     (0.04)      (1.37)


    Notes:
    Note 1: Share based compensation expenses (in thousands) are included in
            the operating costs and expenses as follows:


                                          For the Three Months Ended May 31
                                                  2007              2006
                                                Unaudited        Unaudited
                                              RMB        USD         RMB
            Cost of revenues                1,830        239         327
            Selling and marketing             509         67         617
            General and administrative     15,197      1,986      36,334


    Note 2: Each ADS represents four common shares



                NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
           (In thousands except for per share and per ADS amounts)

                                          For the Twelve Months Ended May 31
                                                     2007             2006
                                                  (Unaudited)       (Note 1)
                                                RMB         USD        RMB
    Net Revenues:
    Educational Programs and services         972,991    127,162     721,497
    Books and others                           71,028      9,283      48,762
    Total net revenues                      1,044,019    136,445     770,259

    Operating costs and expenses (note 2):
    Cost of revenues                          422,664     55,239     320,895
    Selling and marketing                     128,008     16,730      82,121
    General and administrative                285,732     37,343     303,084

    Total operating costs and expenses        836,404    109,312     706,100
    Operating income (loss)                   207,615     27,133      64,159

    Other income (expenses), net               32,627      4,265     (10,434)

    Income tax expense                        (14,512)    (1,897)    (13,923)
    Minority interest, net of tax                 998        130         (12)

    Income (loss) from continuing operations  226,728     29,631      39,790

    Income on discontinued operations              --         --       9,595

    Net Income (loss)                         226,728     29,631      49,385
    Dividend in kind                               --         --     (25,526)
    Income (loss) attributable to holders
     of common shares                         226,728     29,631      23,859

    Net income (loss) per share-basic            1.68       0.22        0.24
    Net income (loss) per share-diluted          1.58       0.21        0.21

    Net income(loss) per ADS-basic (note 3)      6.70       0.88        0.95
    Net income (loss) per ADS-diluted (note 3)   6.33       0.83        0.86


    Notes:
    Note 1: Data derived from audited financial statements.
    Note 2: Share based compensation expenses (in thousands) are included in
            the operating costs and expenses as follows:


                                         For the Twelve Months Ended May 31
                                                  2007              2006
                                                Unaudited         (Note 1)
                                              RMB        USD          RMB
            Cost of revenues                2,452        320          392
            Selling and marketing             828        108        1,410
            General and administrative     33,527      4,382       62,655

    Note 3: Each ADS represents four common shares



                NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
   RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES
               (In thousands except share and per ADS amounts)

                                           For the Three Months Ended May 31
                                                    2007               2006
                                                  (Unaudited)     (Unaudited)
                                               RMB          USD          RMB

    GAAP net income (loss)                  (11,893)      (1,554)     (34,289)
    Dividend in kind                             --           --           --
    GAAP Income (loss) attributable to
     holders of common shares               (11,893)      (1,554)     (34,289)
    Share-based compensation expense         17,536        2,292       37,278
    Non-GAAP income attributable to
     holders of common shares                 5,643          738        2,989

    GAAP net income (loss) per ADS -
     basic (note 1)                           (0.31)       (0.04)       (1.37)
    GAAP net income (loss) per ADS -
     diluted (note 1)                         (0.31)       (0.04)       (1.37)

    Non-GAAP net income per ADS -
     basic (note 1)                            0.15         0.02         0.12
    Non-GAAP net income per ADS -
     diluted (note 1)                          0.14         0.02         0.11

    Shares used in calculated basic net
     income (loss) per ADS (note 1)     152,004,707  152,004,707  100,000,000
    Shares used in calculated diluted
     net income (loss)  per ADS
     (note 1)                           152,004,707  152,004,707  100,000,000
    Shares used in calculated basic
     non-GAAP net income per ADS
     (note 1)                           152,004,707  152,004,707  100,000,000
    Shares used in calculated diluted
     non-GAAP net income per ADS
     (note 1)                           158,618,688  158,618,688  111,111,111


    Note 1: Each ADS represents four common shares



                NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
   RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES
               (In thousands except share and per ADS amounts)

                                          For the Twelve Months Ended May 31
                                                    2007               2006
                                                (Unaudited)          (Note 1)
                                              RMB          USD          RMB

    GAAP net income (loss)                  226,728       29,631       49,385
    Dividend in kind                             --           --      (25,526)
    GAAP Income (loss) attributable to
     holders of common shares               226,728       29,631       23,859
    Share-based compensation expense         36,807        4,810       64,457
    Non-GAAP income attributable to
     holders of common shares               263,535       34,441       88,316

    GAAP net income (loss) per ADS -
     basic (note 2)                            6.70         0.88         0.95
    GAAP net income (loss) per ADS -
     diluted (note 2)                          6.33         0.83         0.86

    Non-GAAP net income per ADS -
     basic (note 2)                            7.79         1.02         3.53
    Non-GAAP net income per ADS -
     diluted (note 2)                          7.36         0.96         3.18

    Shares used in calculated basic net
     income (loss) per ADS (note 2)     135,326,711  135,326,711  100,000,000
    Shares used in calculated diluted
     net income (loss)  per ADS
     (note 2)                           143,202,314  143,202,314  111,111,111
    Shares used in calculated basic
     non-GAAP net income per ADS
     (note 2)                           135,326,711  135,326,711  100,000,000
    Shares used in calculated diluted
     non-GAAP net income per ADS
     (note 2)                           143,202,314  143,202,314  111,111,111


    Notes:
    Note 1: Data derived from audited financial statements.
    Note 2: Each ADS represents four common shares.


    For more information, please contact:

    For investor and media inquiries:

    In China:
     Ms. Sisi Zhao
     New Oriental Education and Technology Group Inc.
     Tel:   +86-10-6260-5566 x8203
     Email: zhaosisi@staff.neworiental.org

     Mr. Rory Macpherson
     Ogilvy Public Relations Worldwide
     Tel:   +86-10-8520-6553
     Email: rory.macpherson@ogilvy.com

    In the United States:
     Mr. Thomas Smith
     Ogilvy Public Relations Worldwide
     Tel:   +1-212-880-5269
     Email: thomas.smith@ogilvypr.com

SOURCE New Oriental Education and Technology Group Inc.

In China - Ms. Sisi Zhao of New Oriental Education and Technology Group Inc.,
+86-10-6260-5566 x8203, or zhaosisi@staff.neworiental.org; or Mr. Rory Macpherson of
Ogilvy Public Relations Worldwide, +86-10-8520-6553, or rory.macpherson@ogilvy.com;
or in the United States - Mr. Thomas Smith of Ogilvy Public Relations Worldwide, +1-
212-880-5269, or thomas.smith@ogilvypr.com
http://english.neworiental.org