RANCHO DOMINGUEZ, Calif., Jan. 9 -- Educational Insights, Inc. announced today that it has completed its major restructuring wherein the Company will be comprised of two divisions, the Education Division and the Sea-Monkeys� Division. Each division will be headed by a President- COO who will report to the Company's CEO, G. Reid Calcott. Each division President will focus on product development and marketing for his respective division. Mr. Calcott will continue to oversee finance and operations for the entire Company.
The Education Division is solidly founded on the Company's long history in the development and sales of effective educational products and is being headed by James A. Whitney, a 27-year veteran in the field of educational products. Approximately two-thirds of this division's sales are made to schools via the Company's well-established dealer network. Approximately one-third of this division's sales are made to the Specialty Retail Toy Store market which features educational products for consumers. In 2002, the Education Division expects to introduce over 70 new products, including a major new release, Classroom Jeopardy�, which is being produced under an exclusive license for the school market from Sony Pictures Consumer Products.
The Sea-Monkeys Division will operate under its exclusive world-wide license for The Amazing Live Sea-Monkeys� brand and is being headed by George C. Atamian, a 20-year veteran in science activity-based products and, for the past few years, the Company's Sea-Monkeys product line. International sales of this "first-pet" product continues to expand with significant 2001 penetration in both South America and Europe, and anticipated sales in 2002 to consumers in over 15 countries from the Western Hemisphere to the Far East. Since 1993, Mr. Atamian has headed the Company's mass market ExploraToy division. ExploraToy operations per se were discontinued at the end of 2001, thereby allowing Mr. Atamian to focus completely upon global expansion of the unique Sea-Monkeys franchise.
The Company expects to report revenue for 2001 of approximately $25.5 million and an operating loss of approximately $2.8 million.
The Company also announced that its largest shareholder, Burt Cutler, has provided $1.5 million dollars of subordinated debt in order to provide financial support for the implementation of the Company's restructuring strategy and its efforts to return the Company to profitability.
Educational Insights, Inc. designs, develops and markets a variety of educational products, including electronic learning aids, electronic games, activity books, science and nature products, board games and other materials for use in both schools and homes. The Company's product line, including its most popular product, GeoSafari�, appeals to children as well as students ranging mainly from pre-kindergarten to eighth grade and is designed to make learning fun.
Except for the historical information contained herein, this press release contains forward-looking statements which involve a number of risks and uncertainties, including but not limited to continued successful development and acceptance of new products, dependence on off-shore contract manufacturers, competitive factors, dependence on new distribution channels, dependence on education funding by Federal, State and local governments, dependence on key development and marketing personnel, general economic conditions and other risk factors.
