Business Highlights

--  Acquired Parlo.com, the platform for our new, fee-based, English
    training and assessment business in China and globally, targeting
    corporations, governments and educational and training institutions. 
    
--  Expanded our online offerings to include fee-based training solutions
    which are going to be marketed under the brand Parlo. The offerings will
    include a reporting platform and Learning Management System (LMS) as
    part of the training solution and are expected to be completed by
    January 2010. Parlo will also develop and launch a consumer website to
    offer an off-the-shelf solution. 
    
--  Completed a realignment of its operations to ensure that each business
    unit can be positioned as a stand alone unit, including our English
    language learning ("ELL") print-based publishing, our ELL free to
    user/ad supported online community (Conversational Advertising(TM)), and
    our ELL fee-based training and assessment service.  
    
--  Modified our corporate overhead structure to take advantage of
    outsourcing as a way to best manage costs, skills, and efficiencies.
    Additionally, Lingo Media is working with a leading software developer
    in India whose capabilities include state of the art design, code, test
    and launch of English language learning solutions along with extensive
    experience in creative and branding. 
    
--  Successfully co-published Lingo Media's 319 millionth unit through our
    Lingo Learning Inc. subsidiary with publishing partner, People's
    Education Press. 

Michael Kraft, President & CEO of Lingo Media said, "During this past quarter we have been very active in realigning our core divisions and finding opportunities to reduce costs while maintaining our goal to deliver the best technology-based solutions for learning English. We also purchased a well known English language learning brand, Parlo, a fee-based online portal that is already attracting attention for us in the education space. Our focus has been to identify and create products to enhance the English learning experience online, to build partnerships to enable Lingo Media to access English learners around the world and to enhance our abilities to sell our services.