VCampus Wins $1.2 Million Contract to Provide E-Learning to the Department of Veterans Affairs

May 7, 2002

VCampus® Corporation (Nasdaq:VCMP) announced it has signed a $1.2 million contract to implement, host and manage the employee e-Learning solution for the U.S. Department of Veterans Affairs. Following on the heels of other recent government contract wins for VCampus, the agreement secures VCampus’ position as the e-Learning Application Service Provider (ASP) with the greatest reach into the civilian Federal employee base.

The contract is for an initial 12-month period and VA has the option to extend it annually through February 2006. The $1.2 million award covers the set-up, launch, and initial library licenses for the e-Learning campus. As VA’s 225,000 employees increase their usage, the revenue potential to VCampus will also increase. The contract was awarded to VCampus by technology integrator CORE6 Solutions, LLC., after a successful six-month pilot in which VCampus delivered e-Learning to approximately 2,000 VA employees.

VCampus, partnering with the Veterans Health Administration’s Employee Education System, will design and launch the e-Learning portal and provide the hosting, learning management functions, and reporting tools for the VA Learning University. VCampus will provide 1,100 to 1,500 courses, delivering content from its own ContentMatters™ library as well as from SkillSoft Corp., through a teaming agreement. These e-Learning courses will be available to 225,000 VA employees. In accordance with its normal practices, VCampus will pay royalties to third-party content providers under this contract. VCampus will also provide custom course development and delivery services.

“Because of the e-Government requirements, the pace at which government agencies are adopting e-Learning is increasing,” said Cushing Anderson, Program Manager for IDC’s Learning Services Research. “VCampus has positioned itself to provide effective solutions to agencies, as evidenced by its contracts with VA, the General Services Administration, the Social Security Administration and others.”

VCampus has experienced significant momentum in the government arena since Executive Order 13111 directed Federal government agencies to enhance employee training opportunities through training technology. VCampus currently delivers e-Learning solutions to the General Services Administration, Social Security Administration, Environmental Protection Agency, Bureau of Census, Army, and the National Credit Union Administration. Together, the agencies where VCampus provides the core e-Learning solution comprise 17% of the civilian workforce in the Executive branch of the Federal Government by employee count, making VCampus the leading e-Learning provider in this market.

“With 225,000 employees at the Department of Veterans Affairs, we believe the potential value of this contract, if renewed annually, could well exceed $5 million over the next four years,” said Daniel Neal, President and CEO, VCampus. “The award is the latest result of a concerted effort by VCampus to expand the services we provide to government agencies. The government workforce is hungry for online learning of a variety of types, which VCampus is uniquely qualified and positioned to deliver rapidly through a full-service model. We intend to leverage our industry-leading solutions to serve more government agencies.”

“VA’s vision to increase the quality of its workforce and help establish the Department as an employer of choice through e-Learning is exactly on target with the intent of Executive Order 13111,” said Ron Freedman, VCampus Vice President of Government Sales and Security Solutions. “VCampus’ end-to-end model, which meshes the rapid-implementation processes of an outsourced solution with a heavy emphasis on service and flexibility, is an excellent fit for the needs of the Federal government. We back this up with seven years of solid experience delivering e-Learning, giving agencies confidence in the long term success of their programs.”

The e-Learning platform and content will be in compliance with Section 508 of the Federal Rehabilitation Act, as well as with Aviation Industry CBT Committee (AICC), Shareable Course Object Reference Model (SCORM), and Advanced Distributed Learning (ADL) guidelines. VCampus plans to integrate its e-Learning solution with other existing VA technology systems and provide VA with full scalability to meet future growth of the campus. All technology upgrades will be managed by VCampus, thereby reducing the need for VA to dedicate substantial IT staff to the project as it evolves.

About VCampus

VCampus® Corporation (Nasdaq:VCMP) is the leading provider of end-to-end e-Learning solutions. The company develops, manages and hosts turnkey, web-based learning solutions for corporations, government agencies and higher education institutions. VCampus enables these organizations to offer complete global distance learning solutions to their customers, employees, distributors, suppliers and students. VCampus’ e-Learning solutions are designed to help clients deliver higher education programs to adult students; improve the performance of their distribution channels and suppliers; measure and develop their employees’ knowledge, skills and abilities; and increase their customers’ satisfaction and loyalty. VCampus distributes a courseware library of more than 5,000 web-based courses and has delivered more than 2.3 million courses to over 640,000 adult learners. VCampus Corporation is headquartered in Reston, VA. For more information, call 800-915-9298, or visit the VCampus website at “VCampus” is a registered trademark of VCampus Corporation.

CONTACT: VCampus Corporation, Reston

Joanne Rasch, (703) 893-7800 ext. 264


VCampus Corporation

Lisa Sherwin Wulf, (703) 893-7800 ext. 296