Petaluma, California, June 11, 2003 - IntelliTools®, Inc. (www.intellitools.com), for over 20 years the pioneer in learning solutions for the diverse classroom, is pleased to announce that it has received a significant three-year grant award to conduct research and develop an in-depth, supplemental reading software program for grades 4-8 students. The program, under a working title of Balanced Literacy II, will be designed to help students who have not progressed into the intermediate stages of reading ability, addressing a critical need in many of today's schools.

The full award amount of the two-phase fast-track grant, entitled "Reading to Learn," is anticipated at $1.3 million. Both phases have been authorized for funding by the National Institute of Child Health & Human Development, under the direction of Dr. Reid Lyon, and have been approved by a NICHD-designated panel of peer reviewers.

The first phase of funding - at $268,000 - has been allocated for September 2003, while the second phase - at $1 million - is scheduled to begin in March of 2004.

"From kindergarten through the third grade, students learn to read. From fourth grade on, they read to learn. Millions of students have reading skills that stagnate at a level somewhere between the middle of second grade and the end of third. These students have not crossed the threshold into the ability to read chapter books and informational text at grade level. They have difficulty reading to learn," explains Arjan Khalsa, IntelliTools' co-founder and CEO.

"From fourth grade on, students are expected to read as a significant part of their learning experience," Khalsa continues. "Ideally, they discover the pleasure of reading. They read books, magazines, the newspaper, subtitles in foreign films, the back of the cereal box, operating instructions for things they purchase, age-appropriate information on the Internet. They read a great deal. Yet, imagine the person who has not gotten past the third grade level. He or she is operating on the sound-letter-word level. This person is not equipped to read to learn."

"Our Reading to Learn grant will enable us to work with students in schools across the country in five trial sites as we research and develop the software program," Khalsa explains. "Balanced Literacy II will include reading selections, listening selections, word study, and writing. As with all IntelliTools products, we will research and develop a solution that meets the needs of diverse learners, including those with physical, visual, and cognitive disabilities."

Advisors on the IntelliTools' research and development grant project include:

• Dr. David Chard, Director of Graduate Studies for Special Education and Director of Middle-Secondary Teacher Education, University of Oregon

• Dr. Karen Erickson, Director of the Center for Literacy and Disability Studies, University of North Carolina at Chapel Hill

• Dr. Kevin Feldman, Director of Reading and Early Intervention, Sonoma County Office of Education

• And Dr. Caroline Musselwhite, Pati King DeBaun, and Dr. Denise C. DeCoste - all leaders in the literacy and disability movement.

About Balanced Literacy

IntelliTools produced its first reading program, IntelliTools® Reading: Balanced Literacy, in 2001, under an earlier grant from the NICHD. Balanced Literacy is a nine-unit program that provides a full year of supplementary literacy instruction at a first-grade skill level. It was extensively researched with students and teachers across the country, and findings showed dramatic improvement in phonemic awareness and recognition of onsets and rimes. Balanced Literacy correlates to NETS Standards for Students (ISTE Standards), TESOL (ESL), as well as to ELA Standards for selected states.

Balanced Literacy has been adopted by schools across the country, and it has won numerous awards, including the Technology & Learning Award of Excellence on its release in 2001 and the 2003 Best in Educational Software (BESSIE) Award from ComputED Gazette. IntelliTools received the 2002 Tibbetts Award from the Small Business Administration's Small Business Innovations Research Program, recognizing IntelliTools' use of federal grant funding for the research and development of Balanced Literacy.

Editors:

You are invited to learn more about this ambitious grant award and IntelliTools at NECC in Seattle June 30 - July 2, and to interview Arjan Khalsa, IntelliTools Chief Executive Officer, and Lucinda Ray, Director of Curriculum Development. Both Arjan Khalsa and Lucinda Ray are available to discuss Balanced Literacy II, as well as to provide demonstrations of IntelliTools products, at IntelliTools' Booth #517 at NECC. Private meetings can be scheduled in advance of these events or onsite.

For more information contact:
Paula Irons, Director, Marketing
IntelliTools, Inc.
1720 Corporate Circle, Petaluma, CA 94954
(800) 899-6687; pirons@intellitools.com