Press Releases

Spectrum K12 School Solutions Announces Letter of Intent to Acquire Tranquility Solutions Inc.

Merger of Two Leading Providers Gives Spectrum K12 School Solutions Clear Leadership Position in Special Population Management Segment

TOWSON, Md. — August 2, 2005 — Spectrum K12 School Solutions (4GL), the leading provider of comprehensive management solutions for special populations in K-12 education, today announced it has signed a letter of intent to acquire Tranquility Solutions Inc., developers and marketers of a software-based, process management tool for special education practitioners.

The Tranquility product line has been implemented in more than 150 school districts throughout the United States, including more than 40 districts with student enrollments in excess of 10,000. This acquisition will nearly double Spectrum K12 School Solutions’ market share as well as provide a foothold in key states and market segments where it has yet to establish a presence. Tranquility’s strong success in small- to medium-sized school districts will additionally help accelerate 4GL’s recent entry into the under 10,000-student segment, via a new service deployment model for its ENCORE!® suite of software and service solutions, announced earlier this year.

Trends within K-12 education are driving increasing demand among districts of all sizes for Web-based solutions that help manage special populations. According to the National Center for Education Statistics, more than one in 10 students in grades K-12 now have individualized education plans, fall under Individuals with Disabilities Education Act (IDEA) regulations, and must be tracked and reported on by districts. In addition, the Individuals with Disabilities Education Improvement Act of 2004 aligns IDEA more closely to the No Child Left Behind legislation, making it even more likely that students will need to be monitored using a formalized process consistent with federal reporting regulations.

While Spectrum K12 School Solutions has been a leader in the K-12 market through delivering innovative solutions that assist schools in meeting these demands, a broader reach into previously untapped territories will even further accelerate the company’s success, says Allison Duquette, president and CEO of 4GL Schools Solutions.

“In the past year we’ve continued to lead the large district market in special education data management solutions that enable teachers to spend more time in the classroom and less time on paperwork. We have also introduced several new products to track other special populations, automate the Medicaid claims process, and analyze special education information for key trends. The response has been overwhelmingly positive,” she said. “Tranquility Solutions is a highly-respected organization with a strong and loyal client base. This acquisition gives us access to geographical areas we haven’t yet fully penetrated, and also provides an opportunity to offer their clients additional 4GL products and services that supplement the Tranquility products. We look forward to continuing to support the Tranquility clients through the expanded resources available to the organization as a result of the acquisition.”

“The insight and vision that has enabled Spectrum K12 School Solutions to be the most successful solution provider for managing special populations in some of the nation’s largest and most complex school districts is very admirable,” said James Stukenborg, president and CEO of Tranquility Solutions. “We are pleased to become part of a very progressive organization and, more so, to be able to offer our Tranquility customers the benefits of Spectrum K12 School Solutions’ experience and financial strength.”

Formally endorsed by the Council of Administrators of Special Education (CASE), 4GL’s ENCORE! is an award-winning, Web-based solution suite. ENCORE! uses effective business practices and proven data and process management systems to help districts eliminate compliance issues, reduce the administrative paperwork burden, increase efficiency and revenue recovery, improve staff morale, ensure accountability, automate Medicaid claims processing, and support successful achievement of individual education program goals — directly and positively impacting student learning.

The acquisition is expected to be complete within 30 days. Terms of the transaction will not be disclosed.

About Spectrum K12 School Solutions

Spectrum K12 School Solutions Inc. is the leading provider of comprehensive management solutions for special populations. Building upon its deep expertise in special education, 4GL helps school districts more effectively manage the individualized learning process for all students receiving special services or interventions, including special education, at-risk, Section 504 and Limited English Proficient (LEP) students.

4GL works collaboratively with districts of all sizes to deliver scalable, easy-to-use software solutions that lift the burden of paperwork from education professionals so they can focus on the most important part of their work: educating children and improving student achievement.

Founded in 1996, Spectrum K12 School Solutions is based in Towson, Md. For more information, visit http://www.4glschools.com or call 1-800-490-84GL (8445).