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There are also several national chains, such as Bright Horizons Family Solutions, La Petite Academy, Learning Care Group (ABC Learning) and Nobel Learning Communities, or regional for-profit companies with sizeable numbers of centers and similar economies of scale in curriculum development, marketing and site development. Competitive Landscape within Early Childhood Education oes pee Public Sector Agencies For-Profit Child Education 5% Non Profit Child fo ee A Vie /, A wh Source: Harris Nesbitt Research, Education and Training, September 2005 and The National Childcare Association. KLC OpCo successfully competes against these companies, with the following differentiating factors: (i) strong brand equity; (ii) a strong management team; (iii) grass roots level marketing; and (iv) a larger network of community centers. KLC also has a number of employer-sponsored centers that gives the Company greater breadth and depth. Finally, KLC is the only large competitor in the sector owned by an education company. Following is a brief description of each of several of the national competitors. @ ABC Learning (Public, traded on the ASX) The Learning Care Group, ABC Learning's U.S. operating segment, has over 30,000 children enrolled (full and part-time) nationwide. Under the Childtime and Tutor Time segments, Learning Care operates child care centers and under the Franchise segment it licenses and provides developmental and administrative support to franchises operating under the Tutor Time brand. As of October 14, 2005, Childtime generated LTM sales of $220.7 million across 460 childcare centers in the U.S. (328 of which are company owned and 132 of which are franchised locations). On January 11, ABC announced it had successfully completed the acquisition of the Learning Care Group, Inc. for $159 million in cash. In addition to the 460 centers located in the U.S., ABC operates 707 centers in Australia and New Zealand. @ Bright Horizons (Public) Founded in 1986, Bright Horizon

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