July 26- August 2, 2006 Edition

Scholastic to Sue

Distributors for Leak

in Potter Distribution

NEW YORK, NY/7/26/07–Book publisher Scholastic Corp. said it is taking immediate legal action against two companies that distributed the latest Harry Potter books to customers before it went on sale on July 21, according to an item in MarketWatch July 18.

Scholastic Corp, U.S. distributor for the all-time bestseller Harry Potter series, said distributor Levy Home Entertainment broke the on-sale agreement and shipped about one-hundredth of 1% of the total U.S. copies that went on sale at 12:01 a.m. on July 21. Early shipments were also made by, a customer of Levy.

The book, Harry Potter and the Deathly Hallows, is the last of seven installments in the boy wizard series of books by J.K. Rowling and sold 8.3 million copies in the first 24 hours after release.

Early reports estimate that Scholastic broke all publishing records, selling an unprecedented 8.3 million copies of Harry Potter and the Deathly Hallows in its first 24 hours on sale.

“The excitement, anticipation, and just plain hysteria that came over the entire country this weekend was a bit like the Beatles’ first visit to the U.S.”, stated Lisa Holton, Chief Muggle, Scholastic (aka President, Scholastic Trade and Book Fairs). “This weekend kids and adults alike are sitting on buses, in the park, on airplanes and in restaurants reading Harry Potter and the Deathly Hallows. The conversations the readers have been waiting to have for 10 years have just begun.” Holton continued, “The glowing reviews have been calling this book a classic for all time. Congratulations to J.K. Rowling on her tremendous literary achievement.”

Scholastic announced a record breaking first printing of 12 million copies of Harry Potter and the Deathly Hallows, and retailers reported fast-paced pre-sales leading up to the release date.

Harry Potter and the Half-Blood Prince, J.K. Rowling’s sixth Harry Potter book, was released on July 16, 2005, with a first printing of 10.8 million copies. At the time, Harry Potter and the Half-Blood Prince was the fastest-selling book in history, selling 6.9 million copies in the first 24 hours. All six Harry Potter books, Harry Potter and the Sorcerer’s Stone, Harry Potter and the Chamber of Secrets, Harry Potter and the Prisoner of Azkaban, Harry Potter and the Goblet of Fire, Harry Potter and the Order of the Phoenix and Harry Potter and the Half-Blood Prince have been number one bestsellers in the United States, the U.K., and around the world. The American editions of the Harry Potter books are published under Scholastic’s Arthur A. Levine imprint.

Scholastic Corporation (NASDAQ: SCHL) is the world’s largest publisher and distributor of children’s books and a leader in educational technology. Scholastic creates quality educational and entertaining materials and products for use in school and at home, including children’s books, magazines, technology-based products, teacher materials, television programming, film, videos and toys. The Company distributes its products and services through a variety of channels, including proprietary school-based book clubs, school-based book fairs, and school-based and direct-to-home continuity programs; retail stores, schools, libraries and television networks; and the Company’s Internet site,