NEW YORK, Sept. 5 /PRNewswire-FirstCall/ --
Edison Schools Inc. (Nasdaq: EDSN), America's leading private manager of
public schools, announced today that it has reluctantly decided to suspend
efforts to build a new headquarters and an elementary school on a New York
City-owned site at 109th - 110th Streets between Fifth and Madison Avenues in
East Harlem.
The proposed $125 million project, which was overwhelmingly supported by
the community and elected officials, was planned to include a 15-story Edison
headquarters building for 450 employees, a 650-student elementary school to be
built on the City-owned site, and a new home for the Museum for African Art.
Benno C. Schmidt, Jr., chairman of Edison said, "We were enthusiastic
about the positive impact of this project for the Harlem and East Harlem
communities. However, in the current financial environment, Edison is obliged
to focus its energy and financial resources on our core business of managing
great public schools. We regret that under the circumstances it is not
advisable for us to move forward with the headquarters project. We continue to
support the community's hopes for the positive development of this important
site. In addition, we hope this decision will enable the Museum for African
Art to move forward with its plans for the development of its new home.
"I want to express Edison's appreciation to the East Harlem community for
supporting our headquarters project," Benno Schmidt continued. "We are
especially grateful to Congressman Charles Rangel, to Manhattan Borough
President C. Virginia Fields, to Senator Olga B. Mendez and to New York City
Council Member Philip Reed for their vision and leadership. The New York City
Economic Development Corporation has been very helpful and supportive and we
hope to have an opportunity to work with them in the future. We also thank the
many individuals, institutions, community residents and neighborhood groups
for their wholehearted support."
Edison Schools manages 150 public schools with a total enrollment of
approximately 84,000 students. Through contracts with local school districts
and public charter school boards, Edison generally assumes educational and
operational responsibility for individual schools in return for funding that
is comparable to that spent on other public schools in the area.
Over the course of three years of intensive research, Edison's team of
leading educators and scholars developed an innovative, research-based
curriculum and school design. Edison opened its first four schools in August
1995, and has grown rapidly in every subsequent year. For more information,
please visit http://www.edisonschools.com.
Any statements in this press release and any other press release issued by
Edison on or about the date hereof about future expectations, plans and
prospects for Edison, including statements containing the words "believes,"
"anticipates," "plans," "expects," "will," and similar expressions, constitute
forward-looking statements within the meaning of The Private Securities
Litigation Reform Act of 1995. Actual results may differ materially from those
indicated by such forward-looking statements as a result of various important
factors, including the risk factors discussed in our most recent quarterly
report filed with the SEC, and other factors such as, among other things, the
possibility that: (1) Edison, its independent auditors and/or the SEC may
identify additional items that materially and adversely affect Edison's
financial results; (2) the financing discussed here by Edison may not be
consummated; and (3) the events relating to the informal SEC inquiry or its
settlement may result in defaults under Edison's material agreements or give
rise to costly and protracted litigation against Edison. The forward-looking
statements included in this press release represent Edison's estimates as of
September 5, 2002. Edison anticipates that subsequent events and developments
will cause its estimates to change. While Edison may elect to update these
forward-looking statements at some point in the future, Edison specifically
disclaims any obligation to do so. These forward-looking statements should not
be relied upon as representing Edison's estimates or views as of any date
subsequent to September 5, 2002.
SOURCE Edison Schools Inc.
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Related links:
http://www.edisonschools.com
CONTACT:
Adam Tucker, VP Communications, Edison
Schools Inc., +1-212-419-1602; or George Arzt, +1-212-608-0333
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