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SCHOLASTIC ACQUIRES WORLDWIDE RIGHTS TO TIE-IN PUBLISHING FOR THE GOLDEN COMPASS FILM BASED ON PHILIP PULLMAN'S NORTHERN LIGHTS

London, 9th October 2006 - Scholastic UK is pleased to announce that Scholastic has acquired worldwide rights in all languages for the tie-in publishing program for THE GOLDEN COMPASS, the film based on the novel NORTHERN LIGHTS by Philip Pullman, the first book in his best-selling trilogy, HIS DARK MATERIALS.

New Line Cinema began production on its $150 million feature film this month in the UK. THE GOLDEN COMPASS is written and directed by Chris Weitz (About a Boy, Antz), is produced by Deborah Forte, President of Scholastic Media, and is executive produced by Depth of Field Productions' Paul Weitz and Andrew Miano. The cast includes Nicole Kidman as Mrs. Coulter, Daniel Craig as Lord Asriel, Ian McShane as Iofur Raknison, Sam Elliott as Lee Scoresby and newcomer Dakota Blue Richards as Lyra. The film is scheduled for release in November 2007.

Scholastic, the global children's publishing, education and media company, will publish an exciting and innovative range of English-language tie-in books throughout the world; while Scholastic UK will sell publishing rights for non-English-language tie-in books worldwide. Published properties will include a range of titles and formats including an Official Illustrated Movie Companion, a poster book and movie storybooks.

Kate Wilson, Group MD of Scholastic UK said, “We are delighted that Scholastic is playing such a key role in the creation of the publishing programme for THE GOLDEN COMPASS. The HIS DARK MATERIALS trilogy is a jewel in the Scholastic UK crown, and we are looking forward to the film introducing this great story to an even larger audience.”

“We are proud of our dual role in bringing this epic tale by one of the most masterful storytellers of our day, to life both on the big screen with New Line Cinema and through the tie-in publishing properties, ” said Deborah Forte.

New Line's Senior Vice President of Worldwide Licensing and Merchandising David Imhoff adds, “THE GOLDEN COMPASS is truly a global property. We're excited to partner with a company like Scholastic who has a strong understanding of the international publishing market as well as the universal appeal of this story.”

Scholastic Media (SM) is a leading producer of quality, family-oriented content across multiple platforms, including feature films, television programming, videos, interactive products and web sites, and is a major developer and marketer of children's brands worldwide. Among SM's award-winning and top-rated productions are the animated series Clifford The Big Red Dog (PBS KIDS); the Emmy award-winning spin-off series Clifford's Puppy Days (PBS KIDS); I SPY (HBO Family); The Magic School Bus (TLC), and the newest series Maya & Miguelä (PBS KIDS GO!). SM's critically-acclaimed feature films include Clifford's Really Big Movie, The Indian in the Cupboard, and The Mighty. SM is also producing the forthcoming film The Golden Compass, based on the award-winning Philip Pullman trilogy His Dark Materials, for New Line Cinema. SM is the entertainment and media division of Scholastic.

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, www.scholastic.com .

About New Line Cinema Corporation:
Founded almost 40 years ago, New Line Cinema is the most successful independent film company in the world. Its mission is to produce innovative, popular and profitable entertainment in the best creative environment. In addition to the production, marketing and distribution of theatrical motion pictures, the fully-integrated studio has divisions devoted to home entertainment, television, music, theater, merchandising and an international unit. In 2005, New Line partnered with HBO to form Picturehouse, a new theatrical distribution company to release independent films. A pioneer in franchise filmmaking, New Line's Oscar-winning The Lord of the Rings trilogy is one of the most successful film franchises in history. New Line is a division of Time Warner, Inc. (TWX).