Lightspan.com Virtual Community E-commerce Kimberly Malone Kimberly Saxton Lin Lee Daisuke Ichihara Ho-Jun Bin

Contents Background Education Market & Internet Web-site Demo Business Model Competitors Analysis Pros & Cons Future Outlook

The Lightspan Partnership Founded in 1993 by Josten Learning Corp veterans John Kernan and Carl Zeiger Achieve Now software aimed at K-6 market released in January 1996 The Lightspan Network online subscription service launched in 1997 Lightspan PageOne introduced December 1999 lightspan.com portal launched February 16, 2000

LSPN Financial Data IPO February 9, 2000 at $12 a share Current market capitalization $769MM Key investors include Cinar, Microsoft, Gateway

The Education Market and the Internet U.S. education market over $700 billion Comparison: 1999 global e-commerce spending $111 billion K-12 market the largest segment 110,472 public schools 53 million students 3.1 million teachers

The Education Market and the Internet 95% of schools have internet access 63% of classrooms are wired

K-12 Market Revisited 7,605 schools use lightspan.com products and services 2,375 schools use Achieve Now software and services 1,231 schools subscribe to the Lightspan Network 11.4 million 2-12 years old are currently online (expected to double by 2003) 110,472 public schools 53 million students 3.1 million teachers

Lightspan.com Lightspan.com My Class Online Page Your School Online sample The Lightspan Network Lightspan Achieve Now

Business Model Virtual Community Product / Service Development E-commerce Advertising Contents Product / Service Development Virtual Community

Business Model Lightspan’s Business Revenue Stream Lightspan provides educational tools and platform for students, teachers, and parents to help develop students’ skills using computers and network. Revenue Stream Product Sales (Lightspan Achieve Now) Subscription Fee (Lightspan Network) Transaction Fee (smarterkids.com) Advertisement

Competitors Major Content Unique Services Community Structure E-Commerce - pre-selected 13,000 educational sites - free H/W, S/W and broad-band Internet connectivity by satellites - extending its N/W into home - school supplies - network equip. (established in 1995) - research service - state-wide assessment - connecting to elibrary, ProQuest & Webed - national wide - local community - by interests, topic, & region (established in 2000) - school/classroom homepages - curriculum activities - extensive lesson plans - educational search engine - segments dedicated to parents, teachers, and kids - The Learning Store in association with SmarterKids.com (established in 1993)

Pros and Cons Pros: Cons: Establish strong brand image in the traditional educational market Strong investors Early mover in online education networks (1997) Cons: Highly competitive market (easy to replicate online community) Unclear pricing from user’s perspective Potential Barrier Financial (School Budget) fRegulatory scrutiny Resistance to adopt new technology

Future Outlook Enhance the visibility in the market Continue to build user base Continue to improve contents of educational material available online in order to sustain revenue

Questions?