McGraw-Hill and New Oriental to Form Joint Venture Providing 21st Century Skills Critical to the Development of China's Workforce
Partnership Strengthens McGraw-Hill Education's Leadership Position in the Global College and Career Readiness Services Market
Partnership Extends New Oriental's Market Leading Position in China's K-College Afterschool Tutoring and Test Preparation Markets
BEIJING, Nov. 9, 2011 /PRNewswire-Asia/ -- Students across China will soon have the opportunity to participate in premier, after-school programs that advance their 21st century skills through an agreement announced today between McGraw-Hill Education (NYSE: MHP) and New Oriental Education & Technology Group (NYSE: EDU), two of the world's leaders in educational services. Harold McGraw III, chairman, president and chief executive officer of The McGraw-Hill Companies and Michael Yu, founder, chairman and CEO of New Oriental announced the agreement between the organizations to form a joint venture company, which will operate "MaxEn Centers" for students ranging in age from 4 to 15. The announcement was made yesterday afternoon at the closing bell of the New York Stock Exchange.
The planned formation of the joint venture highlights McGraw-Hill Education's global expansion in the English-language skills development and college and career readiness services market, as well as its highly advanced digital capabilities. For New Oriental, the joint venture extends the company's market leading position in language and core curriculum skills targeting the K-College afterschool tutoring market in China. In addition to being an equity owner in the MaxEn Centers, McGraw-Hill is providing its deep educational expertise, which includes curriculum development and instructional design, to co-develop the courses.
"The demand for skills development in China and many other countries around the world is large and growing. This partnership puts McGraw-Hill and New Oriental in a position of strength to deliver critical 21st century skills to students across China," Mr. McGraw said.
New Oriental's Mr. Yu explained, "For many Chinese families, education and the development of strong English-language skills provide the pathway to higher-paying jobs, opportunities to work for multinational firms in China, and the potential to attend universities overseas. Through our partnership with McGraw-Hill Education, the MaxEn Centers will provide much more than English language skills development. The centers will provide the skills that enable Chinese students to thrive globally and strengthen China's educational and workforce development capabilities."
"Businesses worldwide are rapidly adopting new technologies and moving at a pace that is bypassing traditional educational resources," said Robert Bahash, president of McGraw-Hill Education. "Through our partnership with New Oriental, we will develop the tools and programs that provide students with the skills that are vital to their professional and even personal success. It will help them become life-long learners in a learning-centric world."
The MaxEn Centers will utilize McGraw-Hill's curriculum, integrating Western pedagogy and equipping students with the 21st century skills in creative thinking, collaboration and teambuilding, which are necessary for success in college and in the workforce. The MaxEn/McGraw-Hill curriculum will be the ideal complement to the core skills-based learning currently delivered in traditional and digitally enabled classrooms throughout China.
McGraw-Hill Education will work with New Oriental to develop in-class instruction, online modules and digital learning tools, and teacher training materials that will enable students to enhance their English-language skills in a contemporary style and setting. The courses, which are based on international standards, include lessons in global citizenship, test preparation and oral communications.
The market for education services in China, estimated at $286 billion in 2010, is expanding rapidly. In addition to government spending, private spending on education has increased dramatically, with education now representing the second-largest urban household spending category in China.
The joint venture currently has five MaxEn centers in the cities of Beijing, Tianjin, Chengdu and Fuzhou. In the years to come, the joint venture plans to open MaxEn Centers providing skills development programs to students throughout China's largest urban markets.
About New Oriental
New Oriental is the largest provider of private educational services in China based on the number of program offerings, total student enrollments and geographic presence. New Oriental offers a wide range of educational programs, services and products consisting primarily of English and other foreign language training, test preparation courses for major admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education. New Oriental trades on the New York Stock Exchange under the symbol ''EDU.'' For more information about New Oriental, please visit http://english.neworiental.org.
About McGraw-Hill Education
McGraw-Hill Education is a content, software and services-based education company that draws on its more than 100 years of educational expertise to offer solutions, which improve learning outcomes around the world. McGraw-Hill is the adaptive education technology leader with the vision for creating a highly personalized learning experience that prepares students of all ages for the world that awaits. The company has offices across North America, India, China, Europe, the Middle East and South America, and makes its learning solutions available in more than 65 languages. For additional information, visit www.mheducation.com.
For investor and media inquiries, please contact:
Ms. Sisi Zhao
New Oriental Education and Technology Group Inc.
Mr. Martin Reidy
Beijing Brunswick Consultancy Ltd.
Tel: +86-10-5960 8616
In the U.S.:
Ms. Cindy Zheng
Brunswick Group LLC
Tel: +1-212 333 3810
SOURCE New Oriental Education and Technology Group Inc.