Boston Globe July 27, 2007

HEADLINE: Education Company K12 plans IPO

NEW YORK --Technology-based education company K12 Inc. plans an initial public offering of its common stock, according to a regulatory filing Friday with the Securities and Exchange Commission.

K12 did not disclose the expected number or price range of the shares to be offered, but indicated the offering price could total up to $172.5 million. The company noted that the total offering price was estimated solely to calculate the registration fee and may change.

The Herndon, Va.-based company indicated that a group of stockholders would also sell shares in the IPO.

K12 offers proprietary curriculum, software and educational services for online delivery to students in kindergarten through 12th grade, primarily through virtual public schools. The company plans to expand its offering to high schools as well.

K12 plans to use the net proceeds from the IPO to repay about $6.5 million in debt. Proceeds will also be used for general corporate purposes, including working capital, capital expenditures and the development of new courses and product offerings.

For the nine months ended March 31, K12 reported earnings of $8.2 million, compared with $7.2 million in the prior year. During the same period, the company said revenues grew to $104.9 million, from $90.1 million.

Morgan Stanley and Credit Suisse Securities are underwriting the offering.

K12 plans to list its shares on the New York Stock Exchange under the symbol "LRN."