The Washington Post Company’s Kaplan, Inc., Subsidiary Will Acquire Quest Education In All-Cash Tender Offer

WASHINGTON DC (June 27, 2000)  Kaplan, Inc., a subsidiary of The Washington Post Company (NYSE: WPO), has agreed to acquire all the outstanding shares of Quest Education Corporation (NASDAQ: QEDC), a leading provider of post-secondary education, for $18.35 per share, the companies announced today. The total purchase price, including related transaction fees, is expected to be approximately $165 million.

Under the agreement, a wholly-owned subsidiary of Kaplan will commence a tender offer within the next five business days. Assuming the 51 percent (or more) of Quest’s outstanding shares are tendered, regulatory approvals are received, and other closing conditions are satisfied, the transaction is expected to close in late July.

The Washington Post Company said the transaction will be financed primarily through additional borrowings.

"Quest is an excellent company with experienced management and a bright future," said Donald E. Graham, chairman and chief executive officer of The Washington Post Company. "With this acquisition Kaplan’s largest Kaplan becomes an even more important and diverse education company."

"This is an important strategic move for Kaplan that will support our goal of helping individuals acquire the skills they need to succeed in school and in their careers," said Jonathan Grayer, president and chief executive officer of Kaplan. "We will now be able to offer an even broader spectrum of services, including regionally-accredited associate and baccalaureate degrees, to a much wider array of potential students."

Gary Kerber, president and chief executive officer of Quest, said: "This is an exceptional opportunity for Quest. Kaplan has the resources and depth of expertise in critical areas such as technology, curriculum development, teacher training, and customer service to help us maximize our growth potential."

Headquartered in Atlanta, Quest currently serves more than 13,400 students in 30 schools located in 11 states. The company’s schools offer bachelor degrees, associate degrees, and diploma programs designed to provide students with the knowledge and skills necessary to qualify them for entry-level employment, primarily in the fields of health care, business, and information technology. Its programs cover ten of the 15 fastest growing occupations (measured by percentage growth from 1994 through 2005), as projected by the U.S. Department of Labor. For the year ending March 31, 2000, Quest had $115 million in net revenues, net income of $7.5 million, and earnings per share (on a diluted basis) of $0.91.

"We believe that Gary and his team have built an excellent company," added Mr. Grayer. "We look forward to having them continue in their roles as we add new customers to existing programs, develop new offerings, and expand to new locations. In addition, we will adapt appropriate Quest and Kaplan content for online delivery to a variety of audiences."

About Kaplan, Inc.

Kaplan, Inc. (www.kaplan.com) is a premier provider of educational and career services for individuals, schools and businesses. Its divisions include Test Preparation and Admissions (www.kaptest.com); SCORE! Learning Corporation, offering after-school programs for kids and resources for parents and kids through eSCORE (www.escore.com); educational training programs for adults (www.kaplanprofessional.com); and KaplanCollege.com, a distance learning division including on-site education and professional development at schools and universities, books and software, and professional education services. Kaplan is also a shareholder in BrassRing Inc. (BrassRing.com), which combines recruiting, career development and hiring management services for employers and employees. Kaplan is a subsidiary of The Washington Post Company.

For Immediate Release

Contacts:      
Guyon Knight                        
Washington Post Company
202-334-6642                                  

Melissa Mack
Kaplan, Inc.
212-492-5849

Vince Pisano
Quest Education Corporation
770-510-2000

Press Contact: pubrel@kaplan.com, (212) 492-5965