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TAL Education Group Announces Unaudited Financial Results for the Third Fiscal Quarter Ended November 30, 2012

TAL Education Group Announces Unaudited Financial Results for the Third Fiscal
                       Quarter Ended November 30, 2012

- Quarterly Net Revenues Increased by 20.3% Year-Over-Year

- Quarterly Income from Operations Increased by 163.4% Year-Over-Year

- Quarterly Net Income Attributable to TAL Increased by 288.3% Year-Over-Year

PR Newswire

BEIJING, Jan. 22, 2013

BEIJING, Jan. 22, 2013 /PRNewswire/ -- TAL Education Group (NYSE: XRS) ("TAL"
or the "Company"), a leading K-12 after-school tutoring services provider in
China, today announced its unaudited financial results for the quarter ended
November 30, 2012, which is the third quarter of TAL's fiscal year 2013.

Highlights for the Third Quarter of Fiscal Year 2013

  oNet revenues increased by 20.3% year-over-year to US$48.9 million from
    US$40.7 million in the same period of the prior year.
  oIncome from operations increased by 163.4% to US$3.1 million, from US$1.2
    million in the third quarter of fiscal year 2012.
  oNet income attributable to TAL increased by 288.3% year-over-year to
    US$5.6 million from US$1.4 million in the same period of the prior year.
  oNon-GAAP net income attributable to TAL, which excluded share-based
    compensation expenses, increased by 172.0% year-over-year to US$7.9
    million from US$2.9 million in the same period of the prior year.
  oBasic and diluted net income per American Depositary Share ("ADS")[1] were
    both US$0.07. Non-GAAP basic and diluted net income per ADS, excluding
    share-based compensation expenses, were both US$0.10.
  oTotal student enrollments during the third quarter of fiscal year 2013
    increased by 9.0% year-over-year to approximately 153,800.
  oTotal physical network increased to 259 learning centers as of November
    30, 2012 from 257 as of August 31, 2012, but still remained below the 275
    learning centers as of November 30, 2011, as the Company continued to
    improve operational efficiency and enhance the quality of growth during
    the period.

Highlights for the First Nine Months Ended November 30, 2012

  oNet revenues increased by 32.7% year-over-year to US$166.3 million from
    US$125.3 million in the same period of the prior year.
  oIncome from operations increased by 75.2% to US$25.8 million, from US$14.7
    million in the same period of fiscal year 2012.
  oNet income attributable to TAL increased by 58.9% year-over-year to
    US$26.6 million from US$16.7 million in the same period of the prior year.
  oNon-GAAP net income attributable to TAL, which excluded share-based
    compensation expenses, increased by 42.9%year-over-year to US$33.2 million
    from US$23.2 million in the same period of the prior year.
  oBasic and diluted net income per ADS were both US$0.34. Non-GAAP basic and
    diluted net income per ADS, in each case excluding share-based
    compensation expenses, were US$0.43 and US$0.42, respectively.
  oTotal student enrollments during the first nine months of fiscal year 2013
    increased by 22.4% year-over-year to approximately 565,410.
  oTotal physical network decreased to 259 learning centers as of November
    30, 2012 from 270 learning centers as of February 29, 2012, as the Company
    continued to improve operational efficiency and enhance the quality of
    growth during the period.

 [1] Each ADS represents two Class A common
shares.



Financial and Operating Data -- Third Quarter and First Nine Months of Fiscal
Year 2013
(In US$ thousands, except per ADS data, student enrollments and percentages)


                                                   Three Months Ended
                                                   November 30,
                                                   2011    2012    Pct.Change
Net revenues                                       40,652  48,905  20.3%
Net income attributable to TAL                     1,442   5,599   288.3%
Non-GAAP net income attributable to TAL            2,887   7,852   172.0%
Operating income                                   1,166   3,069   163.4%
Non-GAAP operating income                          2,611   5,323   103.9%
Net income per ADS attributable to TAL – basic     0.02    0.07    286.3%
Net income per ADS attributable to TAL – diluted   0.02    0.07    287.7%
Non-GAAP net income per ADS attributable to TAL –  0.04    0.10    170.6%
basic
Non-GAAP net income per ADS attributable to TAL –  0.04    0.10    171.5%
diluted
Total student enrollments in small class,          141,100 153,800 9.0%
one-on-one and online courses
                                                   Nine Months Ended
                                                   November 30,
                                                   2011    2012    Pct.Change
Net revenues                                       125,304 166,283 32.7%
Net income attributable to TAL                     16,731  26,592  58.9%
Non-GAAP net income attributable to TAL            23,196  33,153  42.9%
Operating income                                   14,704  25,759  75.2%
Non-GAAP operating income                          21,169  32,319  52.7%
Net income per ADS attributable to TAL – basic     0.22    0.34    57.2%
Net income per ADS attributable to TAL – diluted   0.21    0.34    58.3%
Non-GAAP net income per ADS attributable to TAL –  0.30    0.43    41.4%
basic
Non-GAAP net income per ADS attributable to TAL –  0.30    0.42    42.4%
diluted
Total student enrollments in small class,          461,800 565,410 22.4%
one-on-one and online courses

"Third quarter revenues of US$48.9 million came within guidance and reflected
the expected impact from the changes we made to our Beijing mathematics course
curriculum as well as our ongoing efforts to manage the growth of our
one-on-one business. Our small class business in new markets continued to be
the outstanding growth driver, with cities other than Beijing and Shanghai
contributing 28% of small class revenues in the third quarter."

"In fiscal 2013, we focused on improved utilization and systems implementation
to drive operational efficiency rather than maximized top line growth. As we
near the closing month of fiscal 2013, I am pleased to see that our strategic
focus on operational improvements for this year has enhanced the quality of
our revenues, providing us with a solid basis for sustainable growth going
forward. In the coming fiscal year, we will seek to continue to maintain the
gains in operational efficiency we achieved in fiscal 2013, while shifting our
organizational focus back to the 'essence of what makes education education':
an unrelenting focus on the needs of our students and the high quality
tutoring services we must provide in order to meet those needs. In fiscal
2014, we will continue to strengthen our core tutoring competency and will
offer even more innovative and differentiated content to our students," said
TAL's Chairman and Chief Executive Officer, Mr. Bangxin Zhang.

Mr. Joseph Kauffman, Chief Financial Officer, continued, "I am very pleased
with the operational leverage we have achieved as we worked to build a more
efficient business. While we operated only 259 centers in the third quarter as
compared to the peak number of 275 centers in the same year ago period, we
still managed 20% year-on-year revenue growth and more significantly, 163%
operating income growth and a 288% increase in net income."

"We remain optimistic about the attractive growth opportunity ahead of us,
even though we anticipate the impact from the change of the Beijing policy to
be somewhat longer and deeper than originally expected and we will not
aggressively pursue rapid expansion in our one-on-one business for some time.
We are confident that our growth prospects for small class, particularly in
the new cities where we have strong business momentum but are still relatively
underpenetrated, warrant a rebooting of our center expansion. We will,
however, maintain a modest pace of center additions to ensure that our recent
drive to enhance the quality of growth can be sustained," Mr. Kauffman added.

Financial Results for the Third Quarter of Fiscal Year 2013

Net Revenues

For the third quarter of fiscal year 2013, TAL reported net revenues of
US$48.9 million, representing a 20.3% increase from US$40.7 million in the
third quarter of fiscal year 2012. The increase was mainly driven by the
higher average selling prices (ASPs) and an increased number of total student
enrollments. ASP increased by 10.4% from US$288 in the third quarter of fiscal
year 2012 to US$318 in the same quarter of fiscal year 2013. The growth in ASP
was mainly driven by the hourly rate increases in the Company's small class
business. Total student enrollments increased by 9.0% to approximately 153,800
from approximately 141,100 in the same period one year ago. The increase in
total student enrollments was driven primarily by increases of enrollments in
the small class offerings.

Operating Costs and Expenses

Operating costs and expenses were US$46.4 million, a 17.6% increase from
US$39.5 million in the third quarter of fiscal year 2012. Non-GAAP operating
costs and expenses, which exclude share-based compensation expenses, were
US$44.2 million, a 16.1% increase from US$38.0 million in the third quarter of
fiscal year 2012.

Cost of revenues increased by 13.0% to US$26.7 million, from US$23.7 million
in the third quarter of fiscal year 2012. The increase in cost of revenues was
primarily due to an increase in rental costs, teacher compensation, and other
staff costs associated primarily with an expansion of learning center
capacity. Non-GAAP cost of revenues, which exclude share-based compensation
expenses, increased by 13.0% to US$26.7 million, from US$23.6 million in the
third quarter of fiscal year 2012.

Selling and marketing expenses increased by 6.5% to US$6.9 million, from
US$6.5 million in the third quarter of fiscal year 2012. This increase
primarily reflected an increase in salaries and benefits for our sales and
marketing personnel to support a greater number of programs and service
offerings. Non-GAAP selling and marketing expenses, which exclude share-based
compensation expenses, increased by 4.6% to US$6.4 million, from US$6.2
million in the third quarter of fiscal year 2012.

General and administrative expenses increased by 36.8% to US$12.8 million,
from US$9.3 million in the third quarter of fiscal year 2012. The increase in
general and administrative expenses was mainly due to an increase in salaries
and benefits for our general and administrative personnel to support expanded
number of cities in which the Company had learning center operations. Non-GAAP
general and administrative expenses, which exclude share-based compensation
expenses, increased by 33.6% to US$11.0 million, from US$8.2 million in the
third quarter of fiscal year 2012.

Total share-based compensation expenses allocated to the related operating
costs and expenses increased by 55.9% to US$2.3 million in the third quarter
of fiscal year 2013, from US$1.4 million in the same period of fiscal year
2012.

Gross Profit

Gross profit increased by 30.5% to US$22.2 million, from US$17.0 million in
the third quarter of fiscal year 2012.

Income from Operations

Income from operations increased by 163.4% to US$3.1 million, from US$1.2
million in the third quarter of fiscal year 2012. Non-GAAP income from
operations, which excludes share-based compensation expenses, increased by
103.9% to US$5.3 million, from US$2.6 million in the third quarter of fiscal
year 2012.

Other Income/(Expense)

For the third quarter of fiscal year 2013, other income was US$1.8 million,
compared to other expenses of US$0.2 million in the third quarter of fiscal
year 2012. This 1.8 million of other income in the third quarter of fiscal
year 2013 was primarily driven by an exchange gain. As the Company holds the
vast majority of its cash balance in RMB and reports in U.S. dollars, it
benefits from exchange gains in times of relative strength of the RMB and
incur exchange losses in times of relative strength of the U.S. dollar.

Income Tax Expense

Income tax expense was US$0.8 million in the third quarter of fiscal year
2013, as compared to US$0.3 million in the third quarter of fiscal year 2012.
The increase was mainly a result of the growth of income before income tax.

Net Income Attributable to TAL Education Group

Net income attributable to TAL increased by 288.3% to US$5.6 million, from
US$1.4 million in the third quarter of fiscal year 2012. Non-GAAP net income
attributable to TAL, which excludes share-based compensation expenses,
increased by 172.0% to US$7.9 million, from US$2.9 million in the third
quarter of fiscal year 2012.

Basic and Diluted Net Income per ADS

Basic and diluted net income per ADS were both US$0.07 in the third quarter of
fiscal year 2013. Non-GAAP basic and Non-GAAP diluted net income per ADS,
which excludes share-based compensation expenses, were both US$0.10.

Capital Expenditures

Capital expenditures for the third quarter of fiscal year 2013 were US$1.3
million, representing a decrease of US$40.0 million from US$41.3 million in
the third quarter of fiscal year 2012. The decrease was mainly a result of a
payment made by the Company in the third quarter of fiscal year 2012 for
office space purchased last year, which did not recur in the third quarter of
fiscal year 2013.

Cash and Cash Equivalents

As of November 30, 2012, the Company had US$234.4 million of cash and cash
equivalents and US$14.5 million of term deposits, as compared to US$188.6
million of cash and cash equivalents and US$10.3 million of term deposits as
of February 29, 2012.

Deferred Revenue

As of November 30, 2012, the Company's deferred revenue balance was US$107.3
million as compared to US$77.4 million as of November 30, 2011, representing
an increase of 38.6%.

Business Outlook

Based on the Company's current estimates, total net revenues for the fourth
quarter of fiscal year 2013 are expected to be between US$58.0 million and
US$60.0 million, representing an increase of 11% to 15% on a year-over-year
basis.

Taking into account the continued near-term impact of the new Beijing policy
and the Company's efforts to manage the growth of its one-on-one business, the
Company is adjusting its revenue guidance for the full fiscal year 2013 from
that provided on October 23, 2012. For the fiscal year ending February 28,
2013, the Company expects total net revenues to be in the estimated range of
US$224.3 million to US$226.3 million, representing an increase of 26% to 27%
year-over-year.

These estimates reflect the Company's current expectation, which is subject to
change.

Conference Call

The Company will host a conference call and live webcast to discuss its
financial results for the third fiscal quarter of fiscal year 2013 ended
November 30, 2012 at 8:00 a.m. Eastern Time on January 22, 2013 (9:00 p.m.
Beijing time on January 22, 2013).

The dial-in details for the live conference call are as follows:

- U.S. toll                                  +1-866-519-4004
free:
- China toll free:                           800-819-0121
- Hong Kong toll free:                       800-930-346
- U.S. toll / International:                 +1-718-354-1231
Conference ID:                               85475543

A live and archived webcast of the conference call will be available on the
Investor Relations section of TAL's website at en.xueersi.org.

A telephone replay of the conference call will be available through January
29, 2013.

The dial-in details for the replay are as follows:

- U.S. toll:                           +1-718-354-1232
- China toll:                          400-692-0026
- Hong Kong toll:                      800-901-596
- International                        +61-2-8235-5000
toll:
Conference ID:                         85475543

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 the fourth quarter of fiscal year 2013 and the
fiscal year ending February 28, 2013, quotations from management in this
announcement, as well as TAL Education Group's strategic and operational
plans, contain forward-looking statements. The Company may also make written
or oral forward-looking statements in its reports filed with, or furnished to,
the U.S. Securities and Exchange Commission, in its annual reports 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 the
Company'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: its ability to continue to attract students to enroll in its
courses; its ability to continue to recruit, train and retain qualified
teachers; its ability to improve the content of its existing course offerings
and to develop new courses; its ability to maintain and enhance its brand; its
ability to maintain and continue to improve its teaching results; and its
ability to compete effectively against its competitors. Further information
regarding these and other risks is included in the Company's reports filed
with, or furnished to the Securities and Exchange Commission. All information
provided in this press release and in the attachments is as of the date of
this press release, and TAL Education Group undertakes no duty to update such
information or any forward-looking statement, except as required under
applicable law.

About TAL Education Group

TAL Education Group, which operates under the brand "Xueersi," is a leading
K-12 after-school tutoring service provider in China. Its tutoring services
cover the core subjects in China's school curriculum, including mathematics,
English, Chinese, physics, chemistry and biology, and are delivered through
three formats: small class, one-on-one, and online courses. The Company's
network includes 259 physical learning centers as of November 30, 2012,
located in 15 key cities in China: Beijing, Shanghai, Guangzhou, Shenzhen,
Tianjin, Wuhan, Xi'an, Chengdu, Nanjing, Hangzhou, Taiyuan, Zhengzhou,
Chongqing, Suzhou and Shenyang. It also operates www.eduu.com, a leading
online education platform in China. The Company's ADSs trade on the New York
Stock Exchange under the symbol "XRS."

About Non-GAAP Financial Measures

In evaluating its business, TAL considers and uses the following measures
defined as non-GAAP financial measures by the SEC as supplemental metrics to
review and assess its operating performance: non-GAAP operating costs and
expenses, non-GAAP cost of revenues, non-GAAP selling and marketing expenses,
non-GAAP general and administrative expenses, non-GAAP income from operations,
non-GAAP net income attributable to TAL, non-GAAP basic and non-GAAP diluted
net income per ADS. To present each of these non-GAAP measures, the Company
excludes 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.

TAL 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. TAL believes that both management and investors
benefit from 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 TAL's historical
performance and liquidity. TAL computes its non-GAAP financial measures using
the same consistent method from quarter to quarter and from period to period.
TAL 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 measures is that these non-GAAP measures exclude
share-based compensation charges that have been and will continue to be for
the foreseeable future a significant recurring expense in the Company's
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.

For further information, please contact:

Mei Li
Investor Relations
TAL Education Group
Tel: +86 10 5292 6658
Email: ir@xueersi.com

Caroline Straathof
IR Inside
Tel: +31 6 5462 4301
Email: info@irinside.com



TAL EDUCATION GROUP

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In U.S. dollars)


                                            Asof              As of
                                            February29,2012
                                                               November30,2012
ASSETS
Current assets
 Cash and cash equivalents                 $ 188,579,767      $ 234,434,001
 Term deposits                             10,328,116         14,454,348
 Restricted cash                           -                  1,382,206
 Available-for-sale securities             361,803            327,388
 Inventory                                 223,611            174,988
 Deferred tax assets-current               1,729,758          2,267,562
 Prepaid expenses and other current assets 9,011,975          12,532,633
Total current assets                        210,235,030        265,573,126
 Property and equipment, net               76,726,219         75,362,803
 Deferred tax assets-non-current           490,222            514,857
 Rental deposit                            4,545,605          4,986,899
 Intangible assets, net                    183,523            1,756,023
 Goodwill                                  548,825            554,731
 Long-term prepayments                     1,923,481          665,094
Long-term Investment                        -                  2,409,058
Total assets                                $ 294,652,905      $ 351,822,591
LIABILITIES AND EQUITY
Current liabilities
Accounts payable (including accounts
payable of the

 consolidated VIEs without recourse to TAL
Education                                   $ 2,863,596        $ 3,614,159

 Group of 1,993,297 and 3,232,613 as of
February 29, 2012,

and November 30, 2012, respectively)
Deferred revenue (including deferred
revenue of the

 consolidated VIEs without recourse to TAL
Education                                   85,594,032         107,314,276

 Group of 50,395,945 and 73,057,663 as of
February 29, 2012,

and November 30, 2012, respectively)
Dividend payable                            -                  39,030,038
Accrued expenses and other current
liabilities (including

 accrued expenses and other current
liabilities of the

 consolidated VIEs without recourse to TAL 15,284,190         17,447,583
Education

 Group of 9,546,915 and 11,692,561 as of
February 29, 2012,

and November 30, 2012, respectively)
Income tax payable (including income tax
payable of the

consolidated VIEs without recourse to TAL
Education                                   637,302            1,636,112

Group of 2,206,266 and 2,111,222 as of
February 29, 2012,

and November 30, 2012, respectively)
Total current liabilities                   104,379,120        169,042,168
Deferred tax liabilities-non-current
(including deferred tax

 liabilities-non-current of the
consolidated VIEs without
                                            156,494            64,375
recourse to TAL Education Group of 45,881
and 39,535

asofFebruary 29, 2012, and November 30,
2012,respectively)
Total liabilities                           104,535,614        169,106,543
TAL Education Group Shareholders'
Equity
Class A common shares                       45,277             68,314
Class B common shares                       109,681            87,806
Additional paid-in capital                  119,769,989        84,293,335
Statutory reserve                           10,502,713         10,502,122
Retained earnings                           54,779,267         81,371,838
Accumulated other comprehensive income      4,910,364          6,392,633
Total TAL Education Group's equity          190,117,291        182,716,048
Total liabilities and equity                $ 294,652,905      $ 351,822,591

TAL EDUCATION GROUP

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
Comprehensive Income

(In U.S. dollars, except share, ADS, per share and per ADS data)


                          For the Three Months Ended  For the Nine Months
                                                      Ended
                          November 30,
                                                      November 30,
                          2011          2012          2011         2012
                                                     
                          $ 40,651,679  $ 48,904,852               $
Net revenues                                          $            166,283,279
                                                      125,304,116
Cost of revenues          23,660,238    26,737,436    67,076,381   84,359,651
Gross profit              16,991,441    22,167,416    58,227,735   81,923,628
Operating expenses (note
1)
 Selling and marketing   6,482,474     6,904,319     17,633,020   20,049,555
 General and             9,343,453     12,786,196    25,964,093   36,746,145
administrative
 Impairment loss on      -             -             139,660      -
goodwill
Total operating expenses  15,825,927    19,690,515    43,736,773   56,795,700
Government Subsidies      -             592,570       213,270      630,639
Income from operations    1,165,514     3,069,471     14,704,232   25,758,567
Interest income           729,388       1,547,025     2,590,532    3,911,054
Other income / (expenses) (177,216)     1,823,454     2,731,107    891,706
Income before income tax  1,717,686     6,439,950     20,025,871   30,561,327
provision
Provision for income tax  (275,839)     (841,338)     (3,294,395)  (3,969,347)
Net income                1,441,847     5,598,612     16,731,476   26,591,980
Total net income                                      $            $
attributable              $ 1,441,847   $ 5,598,612   16,731,476   26,591,980
 to TAL Education Group
Net income per common
share
Basic                     $ 0.01        $ 0.04        $ 0.11       $ 0.17
Diluted                   0.01          0.04          0.11         0.17
Net income per ADS (note
2)
Basic                     0.02          0.07          0.22         0.34
Diluted                   $ 0.02        $ 0.07        $ 0.21       $ 0.34
Other comprehensive       (11,564)      2,251,418     1,975,159    1,482,269
income, net of tax
Comprehensive income      1,430,283     7,850,030     18,706,635   28,074,249
Comprehensive income                                  $            $
attributable to TAL       $ 1,430,283   $ 7,850,030   18,706,635   28,074,249
Education Group


Weighted average shares
used in calculating net
income per common share
Basic                 154,958,044   155,747,816   153,683,266  155,363,214
 Diluted               155,873,150   156,115,200   155,722,906  156,316,199
Note1: Share-based compensation expenses are included in the operating costs
and expenses as follows:


                          For the Three Months        For the Nine Months
                          Ended November 30           Ended November 30
                          2011          2012          2011         2012
Cost of revenues          $ 18,340      $ 13,307      $ 346,625    $ 102,018
Selling and marketing     323,061       464,440       1,136,102    1,531,300
General and               1,103,866     1,775,362     4,981,545    4,927,532
administrative
Total                     $ 1,445,267   $ 2,253,109   $ 6,464,272  $ 6,560,850
Note 2: Each ADS represents two Class A common shares.



TAL EDUCATION GROUP

Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures

(In U.S. dollar, except share, ADS, per share and per ADS data)


                                               For the Three Months    For the Nine Months
                                               Ended November 30,      Ended
                                                                       November 30,
                                               2011        2012        2011         2012
Cost of revenues                               $           $           $            $
                                               23,660,238  26,737,436  67,076,381   84,359,651
Share-based compensation                      18,340      13,307      346,625      102,018
expense in cost of revenues
Non-GAAP cost of revenues                      23,641,898  26,724,129  66,729,756   84,257,633
Sellingandmarketingexpenses 6,482,474   6,904,319   17,633,020   20,049,555
Share-based compensation
expense in selling and                       323,061     464,440     1,136,102    1,531,300
 marketing expenses
Non-GAAP selling and                           6,159,413   6,439,879   16,496,918   18,518,255
marketing expenses
General and administrative expenses       9,343,453   12,786,196  25,964,093   36,746,145
Share-based compensation
 expensein general and                       1,103,866   1,775,362   4,981,545    4,927,532
 administrative expenses
Non-GAAP general and administrative expenses   8,239,587   11,010,834  20,982,548   31,818,613
Operating costs and expenses                   39,486,165  46,427,951  110,813,154  141,155,351
Share-based compensation
 expense in operating costs                   1,445,267   2,253,109   6,464,272    6,560,850
 and expenses
Non-GAAP operating costs and expenses          38,040,898  44,174,842  104,348,882  134,594,501
Income from operations                         1,165,514   3,069,471   14,704,232   25,758,567
Share based compensation expenses              1,445,267   2,253,109   6,464,272    6,560,850
Non-GAAP income from operations                2,610,781   5,322,580   21,168,504   32,319,417
Net income attributable to                    1,441,847   5,598,612   16,731,476   26,591,980
TAL Education Group
Share based compensation expenses              1,445,267   2,253,109   6,464,272    6,560,850
Non-GAAP net income attributable to            $           $           $            $
TAL Education Group                            2,887,114   7,851,721   23,195,748   33,152,830
Net income per ADS
Basic                                          $ 0.02      $ 0.07      $ 0.22       $ 0.34
Diluted                                        0.02        0.07        0.21         0.34
Non-GAAP Net income per ADS
(note 3)
Basic                                          0.04        0.10        0.30         0.43
Diluted                                        $ 0.04      $ 0.10      $ 0.30       $ 0.42
ADSsusedincalculatingnetincomeperADS
Basic                                          77,479,022  77,873,908  76,841,633   77,681,607
Diluted                                        77,936,575  78,057,600  77,861,453   78,158,100
Note 3: The Non-GAAP adjusted net income per ADS is computed using Non-GAAP adjusted net income
and the same number of ADSs used in GAAP basic and diluted EPS calculation.

SOURCE TAL Education Group
 
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