The Lightspan Network Extended to All 185 Bureau of Indian Affairs Schools Nationwide

July 23, 2002

The contract is a one-year amendment to a previous agreement under which The Lightspan Network was provided to 43 BIA-funded schools.

William Mehojha, Director of the Office of Indian Education Programs, said: “The BIA initially selected Lightspan because of the company’s experience with large district- and statewide implementations, and the extensive body of research that shows Lightspan products can help improve academic achievement for all students. The Lightspan Network’s flexibility has allowed us to tailor many of its features to meet the specific needs of our diverse student population and we look forward to building upon the success of this project.”

Lightspan CEO and Chairman John Kernan said: “Lightspan is proud to be chosen as a partner in this important initiative. Our products are in thousands of schools and we look forward to bringing our experience and record of success to all BIA-funded schools across the country.”

Flexibility built into The Lightspan Network allows it to be tailored to meet the needs of particular schools. Some examples from the BIA’s


— A homepage that reflects Native American culture, interests and concerns

— An online multicultural newspaper

— Thematic units to teach how American Indian people have patterned their lives around the cycle of the seasons

— Talking Circle — an online bulletin board to address topics of local interest or announce events

About Lightspan

Lightspan(R), Inc. (Nasdaq: LSPN), develops curriculum-based educational software and Internet products and services that increase student achievement and enhance teacher professional development. These products are used in schools and homes and align to all key federal education reform initiatives, offering school districts a complete solution to assess, align, instruct and evaluate, as a comprehensive achievement and accountability system. More than 900 independent studies prove that Lightspan products enhance student achievement, improve teacher effectiveness and help build stronger connections with families.

Lightspan offers products in the following areas: early reading (the Lightspan Early Reading Program(TM) and the Lightspan Reading Center(TM)), K-8 interactive curriculum (Lightspan Achieve Now(TM)), K-12 online teacher resources and professional development (The Lightspan Network(R)), assessment (Lightspan eduTest Assessment(TM) and Lightspan Assessment Builder(TM)), and secondary and higher education (Interactive Mathematics, Interactive English, and ).

“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This release contains forward looking statements, including statements related to product implementation and government funding, that are subject to risks and uncertainties, including, but not limited to, changes in economic conditions in the Company’s market areas; changes in policies by regulatory agencies and educational organizations; the volatility of the Company’s expenses and operating results; market acceptance of the Company’s curriculum based software and Internet products; management of rapid growth; risks associated with expanding the Company’s Internet business; changes in funding for public schools; technological advances and risks related thereto and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission including its Annual Report on Form 10-K for the fiscal year ended January 31, 2002 filed with the Commission on April 30, 2002. The Company cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims any obligation, to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause the Company’s actual results for fiscal 2003 and beyond to differ materially from those expressed in any forward looking statements by, or on behalf of, the Company.


Robert S. Scheid

+1-866-251-6694 toll free, or

Michael A. Sicuro, +1-858-824-8370, both for Lightspan, Inc.

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