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Kaplan To Acquire U.K.’s Financial Training Corp. (FTC)

First Acquisition Outside U.S. to Expand
Growing Professional Business
FTC to Benefit from Kaplan Learning Technologies

NEW YORK - In a move that further extends its reach in financial services training, Kaplan, Inc. today announced that it has conditionally agreed with the principal shareholders to acquire The Financial Training Company (FTC), a leader in test preparation services for accounting and financial service professionals with operations in the U.K. and Asia. The agreement is conditioned upon acceptance of Kaplan's offer by the remaining shareholders as well as certain other conditions. The acquisition, on which Kaplan places a gross value of at £55.4 million ($89.1 million based on current exchange rates), is the second-largest in Kaplan's history, and the first of a company based outside the U.S. FTC is privately held by investors including Royal Bank of Scotland Private Equity, as well as FTC management and certain employees.

FTC prepares over 25,000 students a year for professional exams such as the ACA™ (Institute of Chartered Accountants), ACCA® (Association for Chartered Certified Accountants) and CIMA™ (Chartered Institute of Management Accountants), as well as tax qualification programs and courses for investment professionals. The company, based in London, has 18 training centers in the U.K. and has a growing presence in Asia, with operations in Hong Kong and Singapore. One of the U.K.'s longest-established financial training companies, FTC had 2002 revenue of £33.9 million ($54.5 million), with £6.6 million ($10.6 million) in operating income, based on unaudited accounts.

The acquisition by Kaplan will enable FTC to leverage Kaplan's extensive educational expertise and resources, including its sophisticated learning technologies. Kaplan and FTC already have an established co-branding relationship in which FTC delivers Chartered Financial Analystâ training products in Europe and Asia.

"FTC has significant compatibility with Kaplan's financial service businesses, and holds quality relationships with many of the same clients we have in the U.S.," said Jonathan Grayer, Kaplan chairman and chief executive officer. "This acquisition will broaden our menu of offerings, as well as the geographic distribution of our financial service products. We look forward to

"FTC has been growing well over the past several years, and this move will help catalyze further growth," said William Macpherson, chief executive officer of FTC. "In addition, this will enable FTC to tap into Kaplan's extensive resources and expertise in the field of education and professional training. Kaplan has a strong track record of supporting and growing acquired businesses, so this is a move that could offer significant upside for us."

Kaplan is one of the largest providers of financial services training programs in the U.S. Long known as a test prep company, Kaplan has grown dramatically in the past five years, entering a variety of new education industries and becoming one of the largest and most diverse educational businesses in the U.S., with $621 million in 2002 revenue. Kaplan is The Washington Post Company's second largest revenue producer, and could become the largest as early as this year. Today, Kaplan's professional division features a wide range of offerings for financial service, insurance, real estate and IT professionals through market-leading brand names such as Dearborn Financial and Schweser Study Program.

Kaplan, Inc. ( is a premier provider of educational and career services for individuals, schools and businesses and is comprised of four divisions: Kaplan Test Prep, which offers test prep and admissions services worldwide, including K12 services for schools; SCORE!, which offers after-school learning programs for kids; Kaplan Professional, which offers licensing and continuing education training and compliance tracking; and Kaplan Higher Education, which offers post-secondary educational certificate and degree programs online and through 46 campus-based schools. Kaplan is a wholly-owned subsidiary of The Washington Post Company (NYSE: WPO).