| June 2, 2004   Dear Colleagues: We are making changes at Rocky Mountain Academy in order
                    to ensure the continued viability of RMA and to better serve
                    our students. The past few months have seen a decline in
                    enrollment at RMA. The CEDU Education management team has
                    taken a hard look at our options and decided that increased
                    emphasis on substance abuse counseling can better meet the
                    needs of current students while attracting new students to
                    RMA. By building on our experience in emotional growth education,
                    with a keener focus on substance abuse, we will offer more
                    to students now enrolled in RMA and provide much-needed programs
                    for kids in danger from substance abuse and dependency. To effectively bring increased emphasis on substance abuse
                    counseling, we are making changes in RMA staff. Five people
                    will be leaving RMA. We are working to transfer some of them
                    to other schools. We will be hiring new staff members whose
                    substance abuse expertise is necessary for the successful
                    implementation of our enhanced program. RMA will switch campus locations with Northwest Academy.
                    RMA will gain smaller more tightly grouped facilities. NWA’s
                    larger student body will enjoy facilities that better match
                    its needs. This move is a win for both schools, our students
                    and for CEDU. We are in the business of helping kids get their lives on
                    course, but we must make our financial goals while doing
                    our good work. The changes I’ve described meet both those
                    goals. I hope you will support this change that will make
                    RMA regain its status as one of the premier programs in our
                    industry. As always, thank you for your interest and involvement in
                    CEDU Education. Sincerely,Bob Naples
 CEO and President
 CEDU Education
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