The Carlyle Group Buys Wall Street Institute (WSI) From Laureate Education

Washington, DC – Global private equity firm The Carlyle Group today announced that it has purchased Wall Street Institute (WSI), a global provider of English language instruction services, from Laureate Education, formerly Sylvan Learning Systems. Citigroup Private Equity, an affiliate of Citigroup Inc., will also be an investor in the company. The transaction closed today. Financial terms were not disclosed.

WSI Chief Executive Officer Timothy Daniels said, "Carlyle’s purchase of WSI is a significant milestone in our history. Carlyle brings management expertise and a global network that will foster our profitability, growth and product innovation."

Carlyle Managing Director Brooke Coburn said, "With English as the common language of global business, demand for quality instruction is growing rapidly around the world – particularly in Asia. Wall Street Institute is one of the premier global brands in the English language instruction market, with a 30-year track record of educating more than a million students worldwide. Additionally, the WSI global platform fits well with Carlyle’s global footprint – we have local personnel in all of WSI’s major markets and are well positioned to support local growth initiatives. WSI is a good business with exceptional potential and we are excited to partner with WSI’s management and franchisees to help manage and grow this business."

Founded in Italy in 1972, WSI has become a global operator and franchisor of English language instruction services with more than 285 centers and operations in 24 countries. WSI is headquartered in Baltimore, Maryland and employs more than 1,400 people around the globe.

WSI’s learning method combines live instruction with comprehensive, computer-based multimedia, Internet-based courses and traditional didactic methods. At the end of 2004, WSI had more than 134,000 students enrolled worldwide. The company’s learning centers are essentially identical around the globe, with a similar look and feel and consistent instruction method. WSI students are primarily working adults between the ages of 28 and 35, half of whom study English for work-related purposes.

Funds for the transaction will come from Carlyle Venture Partners II (CVP II), a $600 million U.S. growth capital fund. CVP II invests in emerging growth companies that specialize in technology, telecommunications and media, business services and healthcare devices.

This is Carlyle’s fourth investment in the education sector. In May 1999, Carlyle invested in Blackboard, Inc, (Nasdaq: BBBB) the leading provider of software platform for colleges, universities and other education providers to bring their academic, administrative and campus community services online. Additionally, Carlyle is an investor in LearningMate Solutions and Educomp Datamatics, both based in India.

# # #