Renaissance Learning (RLRN) 425 Business combination disclosure

Exhibit 99.1

Item 6.Selected Financial Data

SELECTED HISTORICAL CONSOLIDATED FINANCIAL DATA
(In thousands, except per share amounts)

	Year Ended December 31,
	2004			2003			2002			2001			2000
Consolidated Income Statement Data
Net sales:
Products	$	91,482		$	106,080		$	108,406		$	109,758		$	86,277
Services		20,242			21,552			20,985			21,159			19,445
Total net sales		111,724			127,632			129,391			130,917			105,722
Cost of sales:
Products		6,167			10,656			11,782			14,425			11,310
Services		9,532			9,628			9,243			9,721			9,832
Total cost of sales		15,699			20,284			21,025			24,146			21,142
Gross profit		96,025			107,348			108,366			106,771			84,580
Operating expenses:
Product development		14,536			14,881			14,960			15,626			13,351
Selling and marketing		30,551			27,997			28,013			26,508			21,463
General and administrative		12,005			12,346			12,682			12,305			10,581
Total operating expenses		57,092			55,224			55,655			54,439			45,395
Operating income		38,933			52,124			52,711			52,332			39,185
Other, net		1,640			2,267			3,760			4,177			3,394
Income-continuing operations before income taxes		40,573			54,391			56,471			56,509			42,579
Income taxes-continuing operations		15,012			19,406			21,744			21,673			16,468
Income-continuing operations		25,561			34,985			34,727			34,836			26,111
Loss on discontinued operations, net of income taxes		(2,859	)		(2,444	)		(3,289	)		(4,167	)		(3,178	)
Net income	$	22,702		$	32,541		$	31,438		$	30,669		$	22,933
Basic earnings per share
Continuing operations	$	0.82		$	1.12		$	1.03		$	1.01		$	0.76
Discontinued operations		(0.09	)		(0.07	)		(0.10	)		(0.12	)		(0.09	)
Net income	$	0.73		$	1.05		$	0.93		$	0.89		$	0.67
Diluted earnings per share
Continuing operations	$	0.82		$	1.12		$	1.02		$	1.00		$	0.76
Discontinued operations		(0.09	)		(0.08	)		(0.10	)		(0.12	)		(0.09	)
Net income	$	0.73		$	1.04		$	0.92		$	0.88		$	0.67
Cash dividends declared per share	$	2.31	*	$	—		$	—		$	—		$	—
Consolidated Balance Sheet Data
Working capital	$	41,815		$	103,240		$	74,496		$	83,383		$	59,897
Total assets		114,724			159,601			147,611			159,961			118,221
Shareholders’ equity		84,417			133,330			121,236			136,531			99,670

* Includes a special dividend of $2.15 per share.