ePals(R) Receives Regulatory Approval for Chinese Joint Venture

ePals(R) Receives Regulatory Approval for Chinese Joint Venture and
Expands Relationship With Neusoft(R) to Include Content Publishing 
WASHINGTON, DC -- (Marketwire) -- 11/28/12 --   ePals Corporation
(TSX VENTURE: SLN), an education media company and the world's
leading safe social learning network, today announced that its joint
venture with NeuEdu for the creation of ePals China under the name
NeuPals has received its Chinese business license and has begun
formal operations, bringing ePals' safe and secure social learning
network into China in partnership with one of China's premiere
technology and education companies.  
"Chinese teachers and students, like their counterparts around the
world, are eager for cultural exchange from different global
perspectives," said Dr. Jiren Liu, Chairman of NeuEdu. "Connecting
Chinese and English language students with each other in authentic
learning experiences is a great way for them to better understand
other cultures while helping each other practice and improve their
written and spoken foreign language skills." 
As outlined in the Ministry of Education's Medium and Long-term
National Educational Reform and Development Plan (2010-2020), the
Chinese government plans investment in the education sector to
strengthen internationalization of the Chinese education system, and
promote global awareness to the younger generation, an initiative
that will impact more than 200 million students from primary through
secondary levels for a market capitalization that Deloitte estimates
around RMB 960 billion (approx. USD 160 billion). 
Separately, ePals announced a long term publishing agreement between
ePals' Publishing Group affiliate, Carus Publishing Inc., with
Neusoft Publishing for the translation, localization and publication
in China of Chinese language versions of ePals' award-winning
children's books, magazines and content from outside of China and use
of that translated Mandarin-language content by ePals outside of
China. In the United States, the American Council on the Teaching of
Foreign Languages reports that Chinese language learning is the
fastest growing language taught in U.S. schools.  
"The translation of ePals content into Mandarin positions ePals to
deliver high-quality physical and digital media products in
languages to major markets around the world," said Thomas Middelhoff,
Chairman of ePals International. "Internationally, new learning
standards focused on critical thinking, problem solving,
communication and non-textbook based learning are emerging, driving
global demand for ePals' award-winning media products and content,"
continued Middelhoff.  
According to China's "Book Retail Market Report 2011," the kids' book
market grew steadily at a rate over 10% from 2009 to 2012, and is
estimated to continue growing. And the China Press and Publication, a
media authority affiliated with the country's General Administration
of Press and Publication, says China's children's publishing market
is in its "Golden Age," with the next growth point focusing on
digital publishing.  
About ePals Corporation
 ePals Corporation (TSX VENTURE: SLN) is a
leading education media and safe social learning company connecting
K-12 schools, students, teachers and parents around the world for
shared, 21st century learning. ePals operates the K-12 market's
premier social learning network, connecting millions of users in over
330,000 schools for collaboration around high quality content and
educational projects. ePals also publishes industry-leading
children's literature in physical and digital formats. These
magazines, books and mobile apps are subscribed to by hundreds of
thousands of families and approximately one-third of all US middle
schools. ePals' award-winning products and brands include: the ePals
Global Community(TM); SchoolMail(R)365; LearningSpace(R);
In2Books(R), Cricket(R) and Cobblestone(R). ePals customers and
partners include the International Baccalaureate, Microsoft
Corporation, Dell Inc., IBM Corp. and leading school districts across
the United States and globally. ePals reaches approximately 850,000
classrooms and millions of teachers, students and parents in
approximately 200 countries and territories. For the ePals Global
Community(TM), visit www.epals.com. 
About NeuEdu Co., Ltd.
 Founded by Neusoft Holdings, NeuEdu is a
leading provider of educational products and services. Benefiting
from its more than 20 years of practical IT industry experience and
profound insight into IT education, NeuEdu is committed to
integrating cutting- edge educational resources and products from
Neusoft and its strategic business partners worldwide by advocating
interactive learning methodologies supported by internet and cloud
computing technologies. NeuEdu provides life-cycle online and offline
educational services targeted to preschool, K-12, and vocational
segments. Its portfolio includes preschool enlightenment,
international SLN and vocational skills promotion, etc. Advocating"
Information technology serves the future of education", NeuEdu
incorporates scientific learning approach with leading learning
technology for educational purpose to improve individual learning
ability and to create more social values continuously. For NeuEdu
Co., Ltd, visit www.neuedu.com 
About Neusoft Publishing 
 Neusoft Publishing ("NP") is an authentic
and fast growing house of publishing recognized by State General
Administration of Press and Publication of P. R. China. NP provides
quality content in the subject of IT related text books for college
students nationwide and children targeted learning materials, popular
books and English learning software for Chinese young learners. NP
also operates Software Engineer, a national key periodical. NP
provides readers with both physical and digital reading experience
plus apps for lower age groups. Based on its strategic partnership
with Key Laboratory of China's Ministry of Education on Child
Development & Science Learning, NP has the theme package of
publications focusing on lower age groups to readers on a monthly
basis. NP's scientific related publications are based on inquiry
theory with 84 theme packages, 420 publications, covering
approximately 300 colleges with millions of students in 20 provinces
in China.  
Chief Financial Officer
Aric Holsinger
ePals Corporation
Phone: (703) 885-3400
Investor Relations
Cory Pala
Phone: (416) 657-2400
SVP, Marketing & Corporate Communications
Will Jarred
ePals Corporation
Phone: (703) 885-3400
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