Sibling Group Announces Education Management Organization

NEW YORK and ATLANTA, Feb 16, 2012 — /PRNewswire/ — Sibling Group Holdings, Inc. (OTCQB:SIBE.PK) (“the Company”) announced that it will expand its operating subsidiary structure with the formation of The Teaching Alliance, Inc., which will be based in Atlanta, Georgia. The Teaching Alliance will be the education management organization (EMO) for the Company, housing acquired school management businesses.
“We see tremendous opportunities in the school management area, particularly within the charter school area nationally, and with private school and tutoring operations internationally,” said Gerald Sullivan, Chairman of the Company. The business will be managed by Mr. Rob Copenhaver, recently named CEO for the Company.
Mr. Copenhaver explained the strategy by saying, “The Teaching Alliance intends to acquire existing EMOs. We believe that economies of scale will be recognized via repeatable best practices combined with improved administrative, and learning technologies. With this unique approach we intend to reduce wasteful spending on outdated processes, content, and technologies. Further, we expect that by replacing these outmoded approaches with a more cost effective learning approach it may significantly improve operating margins as a result of the use of better quality administrative tools and processes, while increasing the quality of the education experience.”
According to a report recently issued by The National Education Policy Center, the national landscape for EMO’s is growing rapidly, and includes the following key points:
• The number of states in which for-profit EMOs operated was 33 in 2010-2011;
• In 2010-2011, 35% of all public charter schools in the U.S. were operated by private EMOs, and these schools accounted for almost 42% of all students enrolled in charter schools;
• Since the 1995-1996 school year, the number of for-profit EMOs has increased from 5 to 99, and the number of schools operating has increased from 6 to 758. It is estimated that enrollment has grown from approximately 1,000 students in 1995-1996 to 394,096 in 2010-2011;
• Large-sized for-profit EMOs account for 74.8% of all students enrolled in EMO managed schools, which has increased from 73.7% in 2009-2010. Medium for profit EMOs account for 13.5% and small for-profits only account for 11.8% of the total enrollment.
• Large-sized EMOs tend to have a larger average enrollment (588) than medium-size EMOs (439) and small-sized EMOs (461). The average enrollments for for-profit schools are much larger than nonprofit-managed schools’ enrollments.

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