National Education Corp., Irvine

Nature of Business: Operates accredited private schools in technical, industrial and vocational training; leases educational libraries.

Total Employees: U.S. work force, 4,134; Orange County, 234

Stock Designation: Listed on NYSE and PSE as “NatEdu” Ticker Symbol: “NEC”

Friday’s Stock Close: $8.00; Change: +$0.38

Analyst Review: The company is being misinterpreted today by many investors because of some of the problems they have had over the past two years. But this company has done a tremendous job restructuring itself. The current president has been successfully dealing with the problems, reassigning lines of credit and substantially reducing the amounts of borrowing; he cut $50 million of operating expenses, and he plans to pay a 30% debt ratio down to zero. I think he’s methodically set a stage for the company to resume its growth pattern of the early 1980s. Within two to five years, odds are high this company will be an acquisition target.

--Jeffrey L. Kilpatrick, president

Newport Securities Corp., Costa Mesa

YEAR SUMMARY: REVENUES VS. PROFITS

Fiscal year ending Dec. 31 Dec. 31 Dec. 31 Dec. 31 2 Qrtrs 1987 1988 1989 1990 1991 Net Revenue $396.2 $457.5 $400.8 $371.4 $177.1 Net Profit (Loss) -$.68 $46.1 -$29.3 -$14.9 -$6.9

Corporate Outlook: “We believe that our results for the first six months of 1991 indicate that we are well on our way to completing a turnaround. Despite the company’s recent losses from operations, cash flow remains positive and the company believes it will continue its steady improvement through the balance of the year.”

Jerome W. Cwiertnia, chief executive officer

5-YEAR SUMMARY: RETURN ON STOCKHOLDER INVESTMENT

Fiscal year ending Dec. 31 Dec. 31 Dec. 31 Dec. 31 1987 1988 1989 1990 52-Week High $27.50 $30.88 $27.50 $8.13 52-Week Low $15.00 $19.00 $5.75 $1.88 Price Per Share $19.75 $23.25 $6.88 $4.38 Net Earnings (Loss) Per Share ($0.03) $1.52 ($0.99) ($0.50) Price to Earnings Ratio N/A 15:1 N/A N/A Average Return to Investor N/A 25% N/A N/A

Fiscal year ending 2 Qrtrs 1991 52-Week High $8.13 52-Week Low $4.50 Price Per Share $7.00 Net Earnings (Loss) Per Share ($0.23) Price to Earnings Ratio N/A Average Return to Investor N/A

For information write National Education Corp., 18400 Von Karman Ave., Irvine, Calif. 92715. (714) 474-9400

Source: National Education Corp.; Newport Securities