Company Profile For Rosetta Stone Inc.

Rosetta Stone Inc. (Rosetta Stone) is a provider of technology-based language learning solutions. The Company develops, markets and sells language learning solutions consisting of software, online services and audio practice tools primarily under its Rosetta Stone brand. The Company’s teaching method (called by the name Dynamic Immersion) is designed to use the innate, natural language learning ability that children use to learn their native language. Rosetta Stone’s courses are based on its own interactive technologies and pedagogical content, and utilize a sequencing of images, text and sounds to teach a new language without translation or grammar explanation. As of September 23, 2008, the Company offered its self-study language learning solutions in 31 languages. The Company’s customers include individuals, educational institutions, armed forces, government agencies and corporations.

BRIEF: For the six months ended 30 June 2009, Rosetta Stone Inc.'s revenues increased 28% to $106.7M. Net loss totaled $4.1M vs. an income of $2.9M. Revenues reflect an ncrease in product sales and higher subscription & service income. Net loss reflects an increase in sales & marketing expenses, higher research & development expenses, a rsie in general & administrative expense and a decrease in interest income.