EXHIBIT 99.1 -- Press release

PRESS RELEASE

For Immediate Release

Date:     July 6, 2005

Contact:  Michael DeMarco
          Chief Financial Officer
          (201) 712-0090


 PEOPLES EDUCATIONAL HOLDINGS, INC. ANNOUNCES EXERCISE OF OVER-ALLOTMENT OPTION

         Peoples Educational Holdings, Inc. (NASDAQ: PEDH) announced today that
Feltl and Company, the underwriter of the company's recent public offering, has
exercised in full its over-allotment option to purchase an additional 75,000
shares of the company's common stock at a price of $6.30 per share, before
deducting underwriting discounts and commissions.

         A registration statement relating to these securities was declared
effective by the Securities and Exchange Commission on May 27, 2005. This press
release shall not constitute an offer to sell or the solicitation of an offer to
buy, nor shall there be any sale of these securities in any state or
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such state or
jurisdiction.

         A copy of the final prospectus may be obtained by contacting Feltl and
Company at 225 South Sixth Street, Suite 4200, Minneapolis, Minnesota 55402.

         Peoples Educational Holdings, Inc. is a publisher and marketer of print
and electronic supplementary educational materials for the K-12 school market.





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