Exhibit 99.1

     EDUCATIONAL DEVELOPMENT CORPORATION ANNOUNCES CANCELLATION OF MATERIAL
                              DEFINITIVE AGREEMENT

    TULSA, Okla., Aug. 1 /PRNewswire-FirstCall/ -- Randall White, CEO and
President of Educational Development Corporation (Nasdaq: EDUC) announces that
effective July 26, 2006, the Plan of Reorganization and Dip Financing
Agreement with Intervisual Books, Inc. located in Inglewood, California, that
the Company entered into on July 13, 2006, has been cancelled.

    Intervisual Books, Inc. was operating as a debtor-in-possession in a Chapter
11 bankruptcy case. On July 26, 2006, in the United States Bankruptcy Court in
Los Angeles, California, the court conducted an auction for the assets of
Intervisual Books, Inc. The Company was not the successful bidder in this
auction. However, the Company is actively pursuing other acquisition candidates
that would provide an operational and financial fit for the Company.

    Educational Development Corporation sells the Usborne line of children's
books through its multi-level sales organization, through 5,100 retail stores
and over the Internet. The Company offers over 1,400 different titles for
children of all ages.

SOURCE  Educational Development Corporation
    -0-                             08/01/2006
    /CONTACT:  Randall White, President of Educational Development
Corporation, +1-918-622-4522/
    /Web site:  http://www.edcpub.com /
    (EDUC)