-- Quarterly Net Revenues Increased by 47.9% Year-Over-Year    -- Quarterly Non-GAAP Net Income Increased by 58.0% Year-Over-Year    -- Quarterly GAAP Net Income Increased by 49.8% Year-Over-Year     -- Fiscal Year Net Revenues Increased by 45.6% Year-Over-Year    -- Fiscal Year Non-GAAP Net Income Increased by 34.6% Year-Over-Year    -- Fiscal Year GAAP Net Income Increased by 24.5% Year-Over-Year   

New Oriental Education and Technology Group Inc. (the "Company" or "New Oriental") , 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, 2009.

   Highlights for the Fourth Fiscal Quarter Ended May 31, 2009    -- Total net revenues increased by 47.9% year-over-year to US$59.4 million      from US$40.2 million in the same period of the prior fiscal year.   -- Non-GAAP net income, which excludes share-based compensation expenses,      increased by 58.0% year-over-year to US$7.1 million from US$4.5 million      in the same period of the prior fiscal year.  GAAP net income increased      by 49.8% year-over-year to US$2.6 million from US$1.8 million in the      same period of the prior fiscal year.   -- Non-GAAP income from operations, which excludes share-based      compensation expenses, increased by 175.1% year-over-year to US$7.0      million from US$2.5 million in the same period of the prior fiscal      year. GAAP income from operations increased to US$2.5 million from a      loss of US$0.2 million in the same period of the prior fiscal year.   -- Non-GAAP basic and diluted earnings per ADS, which excludes share-based      compensation expenses, were US$0.19 and US$0.19, respectively. GAAP      basic and diluted earnings per ADS were US$0.07 and US$0.07,      respectively. Each ADS represents four common shares of the Company.   -- Total student enrollments in language training and test preparation      courses increased by 8.2% year-over-year to approximately 330,200 from      approximately 305,200 in the same period of the prior fiscal year.    Highlights for the Fiscal Year Ended May 31, 2009    -- Total net revenues for the fiscal year increased by 45.6%      year-over-year to US$292.6 million from US$201.0 million.   -- Non-GAAP net income for the fiscal year increased by 34.6%      year-over-year to US$77.8 million from US$57.8 million. GAAP net income      increased by 24.5% year-over-year to US$61.0 million from US$49.0      million.   -- Non-GAAP income from operations for the fiscal year increased by 43.6%      year-over-year to US$77.7 million from US$54.1 million. GAAP income      from operations increased by 34.4% year-over-year to US$60.9 million      from US$45.3 million.   -- Non-GAAP basic and diluted earnings per ADS for the fiscal year were      US$2.09 and US$2.03, respectively. GAAP basic and diluted earnings per      ADS were US$1.64 and US$1.59, respectively. Each ADS represents four      common shares of the Company.   -- Total student enrollments in language training and test preparation      courses increased by 19.5% year-over-year to approximately 1,519,500      from approximately 1,271,700 in the prior fiscal year.   -- The total number of schools and learning centers increased to 270 as of      May 31, 2009, up from 207 as of May 31, 2008. One new school was opened      in the fourth quarter, bringing the total number of schools to 48 as of      May 31, 2009, up from 47 as of February 28, 2009. The number of      learning centers increased by 12 in the quarter to 222 as of May 31,      2009, up from 210 as of February 28, 2009.      Financial and Student Enrollments Summary - Fourth Quarter and Fiscal Year                                    2009       (US$ in thousands, except per ADS data and student enrollments)                                    Q4 of FY2009  Q4 of FY2008   Pct. Change   Net revenues                          59,426        40,168         47.9%   Non-GAAP net income (1)                7,122         4,507         58.0%   GAAP net income                        2,640         1,762         49.8%   Non-GAAP operating income (1)          6,979         2,537        175.1%   GAAP operating income                  2,497          (208)      1300.5%   Non-GAAP net income per ADS    basic (1)(2)                           0.19          0.12         58.4%   Non-GAAP net income per ADS    diluted (1)(2)                         0.19          0.12         60.5%   GAAP net income per ADS    basic (2)                              0.07          0.05         50.2%   GAAP net income per ADS    diluted (2)                            0.07          0.05         52.2%   Total student enrollments    in language training and    test preparation courses            330,200       305,200          8.2%                                           FY2009        FY2008   Pct. Change   Net revenues                         292,567       201,003         45.6%   Non-GAAP net income (1)               77,766        57,755         34.6%   GAAP net income                       61,016        49,013         24.5%   Non-GAAP operating income (1)         77,670        54,077         43.6%   GAAP operating income                 60,920        45,335         34.4%   Non-GAAP net income per ADS    basic (1)(2)                           2.09          1.54         35.5%   Non-GAAP net income per ADS    diluted (1)(2)                         2.03          1.48         37.2%   GAAP net income per ADS    basic (2)                              1.64          1.31         25.2%   GAAP net income per ADS    diluted (2)                            1.59          1.25         26.9%   Total student enrollments    in language training and    test preparation courses          1,519,500     1,271,700         19.5%      (1) New Oriental provides net income, operating income, net income per       ADS on a Non-GAAP basis that excludes share-based compensation       expenses to reflect meaningful supplemental information regarding its       performance and liquidity. 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.   (2) Each ADS represents four common shares.   

"We are pleased to finish our 2009 fiscal year with a strong fourth fiscal quarter, recording revenue growth of 47.9% and even higher non-GAAP operating income growth of 175%," said Michael Yu, New Oriental's chairman and chief executive officer. "This brings our net revenue for the 2009 fiscal year to US$292.6 million, an increase of 45.6% year-over-year, and non-GAAP operating income to US$77.7 million for the fiscal year, an increase of 43.6% year-over-year. Further, we achieved non-GAAP EPS of US$2.09 per ADS, up over 35% year-over-year. We attained these financial results notwithstanding the current global economic slowdown, the aftermath of the Sichuan earthquake, the negative impact of the Beijing Olympics on our all-important summer quarter in 2008 and the current challenges posed by the H1N1 flu outbreak. This is a testament to the strength of the New Oriental brand in China and the determination of Chinese families to make the education of their child or children a top priority."

"New Oriental's objective is to be the lifelong education partner of Chinese students from age five through adulthood. To accomplish this goal, we strive to provide the best quality language training and test preparation programs to meet the needs of Chinese families," concluded Mr. Yu.

New Oriental's president and chief financial officer, Louis T. Hsieh, stated, "Our strong student enrollment growth in language training and test preparation courses continued in fiscal year 2009 with 1,519,500 enrollments, an increase of 19.5% year-over-year, which allowed us to achieve our target of between 1,475,000 and 1,500,000 student enrollments for fiscal year 2009. We also continued executing our expansion plan in the fourth fiscal quarter by opening one new school in the city of Xuzhou and adding a net of 12 new learning centers in more than 10 existing cities. Including these additions, we added a total of 63 new facilities in fiscal year 2009, consisting of 7 schools and 56 learning centers, which brings our total number of schools and learning centers to 270 at the end of fiscal year 2009."

Mr. Hsieh continued, "We have rolled out U-Can all-subjects middle and high school training program in more than 30 cities throughout China with enrollments of more than 13,000 in non-English subject classes in the fourth fiscal quarter, which brings the enrollments in non-English courses for the whole fiscal year 2009 to over 58,000, exceeding the top end of our target of 40,000 to 50,000. We are also pleased to see continued high growth in our POP Kids English program for ages 5 to 12 with over 67,400 enrollments in the fourth fiscal quarter, an increase of 48% year-over-year, bringing our total POP Kids enrollments for fiscal year 2009 to over 307,800, an increase of 50% year-over-year. Although it is early in the quarter, we are pleased to report that this strong momentum in POP Kids English and middle school U-Can program enrollments has carried into our current all-important summer quarter, the first quarter of fiscal year 2010."

Recent Developments -- Adoption of Share Repurchase Program

On July 20, 2009, New Oriental's board of directors authorized the repurchase of up to US$30 million of the Company's ADSs during the period from August 5, 2009 through December 31, 2009.

Under this share repurchase program, the ADSs will be purchased from time to time on the open market at prevailing market prices, in negotiated transactions off the market, in block trades, pursuant to a 10b5-1 plan (which allows New Oriental to repurchase its ADSs during periods in which it may be in possession of material non-public information) or otherwise, subject to any restrictions under applicable law. The timing and extent of any purchases will depend upon market conditions, the trading price of ADSs and other factors.

New Oriental expects to implement this share repurchase program in a manner consistent with market conditions and the interests of the shareholders. New Oriental's board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size accordingly. New Oriental plans to fund repurchases made under this program from available cash balance.

Financial Results for the Fiscal Quarter Ended May 31, 2009

For the fourth fiscal quarter of 2009, New Oriental reported net revenues of US$59.4 million, representing a 47.9% increase year-over-year.

Net revenues from educational programs and services for the fourth fiscal quarter were US$51.3 million, representing a 45.7% 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 2009 increased by 8.2% year-over-year to approximately 330,200 from approximately 305,200 in the same period of the prior fiscal year.

Non-GAAP operating costs and expenses for the quarter were US$52.4 million, a 39.4% increase year-over-year. GAAP operating costs and expenses for the quarter were US$56.9 million, a 41.0% increase year-over-year.

Cost of revenues increased by 45.9% year-over-year to US$25.8 million, primarily due to the increased number of courses and the greater number of schools and learning centers in operation.

Selling and marketing expenses increased by 36.8% year-over-year to US$10.3 million, primarily due to selling and marketing department headcount, which includes registration verification personnel, increasing by about 500 over the same period of the prior fiscal year, and increased brand promotion expenses.

Non-GAAP general and administrative expenses were US$16.6 million, a 30.7% increase year-over-year.