BEIJING, June 11 /Xinhua-PRNewswire-FirstCall/ -- ChinaEdu Corporation (Nasdaq: CEDU), an educational services provider in China ("ChinaEdu" or the "Company"), announced today that its Board of Directors has approved a share repurchase program.
The Board has authorized ChinaEdu to repurchase up to US$5 million of its outstanding American Depositary Shares ("ADSs"). Under the terms of the approved program, repurchases may be made from time to time over a period of 12 months. The method, timing and amount of any repurchases will depend on market conditions, the trading price of the ADSs and other factors, and such repurchases will be subject to, and in compliance with, relevant rules under United States securities regulations. The share repurchase program may be suspended, modified or discontinued at any time.
The share repurchase program will be funded with the Company's available working capital. As of March 31, 2008, the Company had cash and cash equivalents of approximately RMB432 million (US$61.6 million), representing cash per ADS of US$3.16.
Ms. Julia Huang, Chief Executive Officer of ChinaEdu, commented, "The Board's authorization of the share repurchase program reflects our continued confidence in ChinaEdu's growth opportunities and our strong commitment to enhancing shareholder value. We believe current share price levels do not accurately reflect the fundamental strength of our business."
"Our strong balance sheet enables ChinaEdu to engage in a share repurchase program while continuing to strategically invest in our business to drive long-term growth," Ms. Huang concluded.
About ChinaEdu
ChinaEdu Corporation is an educational services provider in China, incorporated as an exempted limited liability company in the Cayman Islands. Established in 1999, the Company's primary business is to provide comprehensive services to the online degree programs of leading Chinese universities. These services include academic program development, technology services, enrollment marketing, student support services and finance operations. The Company's other lines of businesses include the operation of private primary and secondary schools, online interactive tutoring services and providing marketing and support for international curriculum programs.
The Company believes it is the largest service provider to online degree programs in China in terms of the number of higher education institutions that are served and the number of student enrollments supported. The Company currently has strategic relationships with twelve universities to operate online degree programs, ten of which are under long-term, exclusive contracts that vary from 15 to 50 years in length.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, expectations, goals, and projections, which are subject to numerous assumptions, risks, and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and contingencies, many of which are beyond our control which may cause actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. The Company's actual results could differ materially from those contained in the forward-looking statements due to a number of factors, including those described under the heading "Risk Factors" in the Company's final prospectus filed with the Securities and Exchange Commission on December 11, 2007, and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. Unless required by law, the Company undertakes no obligation to (and expressly disclaim any such obligation to) update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For investor information, please contact:
Julia Huang
Chief Executive Officer
ChinaEdu Corporation
Phone: +86-10-8418 6655 x1001
Email: ir@chinaedu.net
Pamela Leung
Taylor Rafferty, Hong Kong
Phone: +852 3196 3712
Email: chinaedu@taylor-rafferty.com
Jessica McCormick,
Taylor Rafferty, New York
Phone: +1 212 889 4350
Email: chinaedu@taylor-rafferty.com
SOURCE ChinaEdu Corporation
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