1. Private Education Industry 1.Language trainings and test preparation – Foreign language courses and entrance exam preparation courses for higher education 2.Professional and occupational trainings – Training courses for professional qualification exam 3.General education and schooling – Primary and secondary schools, and other pre- schools and post-secondary schools

2. Private Education Industry First mover – NOE established in 1993 Other schools followed 95,200 private schools in China in 2007

3. Private Education Industry Education CompaniesFounding TimesIPO Times & Places Market Leaders NOE19932006/NYSE Global IELTS19972008 Ambow20002008 Other Major Players 21Edu Co. Ltd.20012010 Oriental Standard19992009 Juren19942010 ChinaEdu19982008/NASDAQ Source: ResearchInChina

4. Private Education Industry Segment Attractiveness MeasureImportance Weight Language trainings & Test preparation Professional & occupational trainings General education & schooling Market size and projected growth rate 0.310/3.08/2.49/2.7 Intensity of competition0.23/0.6 Segment profitability0.159/1.357/1.05 Resource requirement0.14/0.45/0.5 Societal, political, regulatory and environment 0.25 9/2.257/1.759/2.25 Sum of the assigned weights1.0 Overall industry attractiveness scores 7.66.37.1 Weighted Segment Attractiveness Scores

5. Private Education Industry Competitive Strength MeasureImportance Weight Language trainings & test preparation Professional & occupational trainings General education & schooling Comparable profitability0.157/1.056/0.9 Relative market share0.39/2.76/1.87/2.1 Brand name and reputation0.210/26/1.27/1.4 Key product attributes0.159/1.356/0.9 Ability to benefit from strategic fits 0.28/1.6 Sum of the assigned weights1.0 Overall industry attractiveness scores 8.76.46.9 Weighted Segment Attractiveness Scores

6. Language trainings & test preparation Professional & occupational trainings General education & schooling Segment Attractiveness Competitive Strength/Market Position High Low Weak Medium AverageStrong McKinsey Matrix Private Education Industry

7. Industry Life Cycle

8. 1.Increasing number of private schools – Low barrier of entry 2.Huge potential for industry development – Averagely low education level in China – PRC government’s initiative to increase educational spending

9. Industry Life Cycle 3.Observable rapid growth of the industry – In 2007, YOY growth rate = 30% English training services was valued at RMB 15billion Source: New Oriental Corporate Fact Sheet

10. Industry Life Cycle 4.Increasing demand for private educational services – College graduates from 2.5M (2004)  4.79M (2007) – Continuous rise in number of people pursuing bachelor and master degrees