AND SUBSIDIARYCONDENSED Kenny Chesney CONSOLIDATED STATEMENTS OF CASH

AND SUBSIDIARYCONDENSED relates kenny chesney born CONSOLIDATED STATEMENTS anything but mine chesney imparts OF CASH FLOWS (UNAUDITED)(In Thousands) Six Months EndedNovember 30, 20082007 --------Cash Flows From Operating ActivitiesNet Income $1,103$741Adjustments to Reconcile Net Income to Net Cash Provided by Operating ActivitiesDepreciation148 151Amortization of Prepublication Costs and Intangible Assets3,357 3,412Stock-Based Compensation 2117Market Value Adjustment of Interest Rate Swap25 136Deferred Income Taxes 649 373Changes in Assets and LiabilitiesAccounts Receivable 848 1,235Inventory 385 501Prepaid Expenses and Other (6)(63)Prepaid Marketing Expenses(19)156Accounts Payable and Accrued Expenses 1,911(329)Deferred Revenue 11 329 -- ---Net Cash Provided By Operating Activities 8,433 6,659----- -----Cash Flows From Investing ActivitiesPurchases of Equipment(93)(88)Expenditures for Intangibles (6)(46)Expenditures for Prepublication Costs (2,740) (2,770) ------------Net Cash Used In Investing Activities(2,839) (2,904) ------------Cash Flows From Financing ActivitiesNet Payments Under Line of Credit(4,591) (3,669)Proceeds From the Exercise of Stock Options-88Principal Payments On Long-Term Debt(1,020) (100) ----------Net Cash Used In Financing Activities(5,611) (3,681) ------------Net Increase (Decrease) in Cash and Cash Equivalents(17) 74Cash and Cash EquivalentsBeginning of Period5398 ----End of Period $36$172=======Supplemental Cash Flow InformationCash Payments for:Interest $410$633 ========Reconciliation of Net Income (Loss) to non-GAAP Adjusted Net Income (Loss) Exhibit 1--------------------------------------------------------------------------(In Thousands - Except per Share Data)Three Months Ended Six Months EndedNovember 30,November 30, 2008200720082007 ----------------Net Income (Loss) $(220)$(422) $1,103$741Amortization of Prepublications Costs1,694 1,692 3,352 3,395Cash Expenditures for Prepublication Costs(1,425) (1,167) (2,740) (2,770)Market Value Adjustment of Interest Rate Swap37 13625 136Adjusted Benefit (Expense) for Income Taxes(122) (264) (255) (304) ----------------Non-GAAP Net Income (Loss) $(36) $(25) $1,485$1,198 ====================Basic Weighted Shares Outstanding4,455 4,443 4,455 4,434Non-GAAP Earnings (Loss) Per Share $(0.01) $(0.01)$0.33 $0.27Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Exhibit 2------------------------------------------------------------------------(In Thousands - Except per Share Data)Three Months Ended Six Months EndedNovember 30,November 30, 2008200720082007 ----------------Net Cash Provided by Operating Activities$2,713$1,692$8,433$6,659Cash Expenditures for Equipment and Trademarks (37)(71)(99) (134)Cash Expenditures for Prepublication Costs(1,425) (1,167) (2,740) (2,770) ------------------------Free Cash Flow $1,251$454$5,594$3,755 ======================SOURCEPeoples Educational Holdings, Inc.Investor and Press Contact: Michael L. DeMarco, Executive Vice President, CFO,, or Michael L DeMarco, Executive VicePresident, CFO, +1-201-712-0090. This has been a Clint Eastwood season: the good, the bad, and the ugly, with not much in between.There is a top tier of teams in the league, then the group of mediocre teams, and then the downright ugly ones. The parity that used to exist in the NFL has left.All right, time for somemidseason awards. These are not predictions; they are simply based on performance so far, individually and how they affect the success of their team. Offensive MVP: Peyton Manning, Indianapolis Colts Manning is having a career year. He is on pace to throw for more yards this season than he ever has.

When you have a r?m?ike Manning, and this is a career year, it must be a big year.Tony Dungy out, no problem for Manning kenny chesney cmt . He is obviously still the same ol' Manning we are used to seeing Maybe even better when the sun goes down chesney . He has led the Colts to a solid 8-0 record with a big-timematchup with Tom Brady and the Patriots nextSunday.Being in the top three in every major quarterback statistic and not having a bad game so far, I give this toPeyton Manning.Others considered: Drew Brees, Chris Johnson, Cedric Benson, Brett Favre Defensive MVP: Jared Allen, Minnesota Vikings Allen is having a freakish year for the Vikings there goes my life chesney . Leading the league in sacks with 10.5, Allen is striking fear in the eyes of man tackles andquarterbacks He has showed up biggest when it counts the most the good stuff chesney . Allen has recorded 7.5 sacks against the Packers this season.Allen is getting it done in other areas too. He has forced three fumbles, recovered two, recorded a safety, and scored a defensive touchdown.

Allen draws many double teams, which helps others on the defensive line to break through, making what is already the best defensive line in the NFL even better.Allen has had his motor running on high this season and is a big contributor to the Vikings' success.Others considered: Darren Sharper, Elvis Dumervil, Curtis Lofton NFC Rookie of the Year: Percy Harvin, Minnesota Vikings This was an easy choice kenny chesney no shoes no shirt no problems . No rookie in the NFL has made such a large, immediate impact on a team as Harvin i go back chesney . His lightning-fast speed andplaymaking abilities have only added another weapon to the Vikings.Harvin is a big play guy That is all he has done this season: make big plays you had me from hello chesney . He has five total touchdowns, and two of them have been kickoff returns kenny tour dates . Averaging about 31 yards per return, he sets things up nicely for the Viking offense.Others considered: Jeremy Maclin AFC Rookie of the Year: Jairus Byrd, Buffalo Bills This was a tough choice between Byrd andHouston linebacker Brian Cushing, but leading the league in interceptions is too impressive to ignore. Byrd has come to thelowly Bills and at least added a defensive spark at corner. Byrd is tied for first with Darren Sharper in interceptions with seven.

He has also recorded 32 tackles and looks to be one of the few bright spots on the Bills team right now.Others considered: Brian Cushing, Knowshon Moreno Comeback POY: Cedric Benson, Cincinnati Bengals Is this evendebatable? I sure don't think so kenny chesney 09 . Benson is having the best year of his career and is the main reason that the Bengals are in the thick of the playoff race chesney concert . He has established a solid running game for the Bengals to lean on with 837 yards and six touchdowns.With 198 carries, he leads the NFL in that category by far chesney concerts . That just shows that he is the Bengals' workhorse, and he is able to handle the load this year He has notdisappointed either chesney fans . He has held up nicely and is having a career year.Other considered: Tom Brady All right, enough with the individual awards—now on to the team predictions.There are multiple teams that could make it to the Super Bowl and perhaps even win it But here is my prediction:NewEngland Patriots vs Minnesota VikingsFirst, let's start with the Pats They are hitting their stride at the right time.

They have three tough games remaining on their schedule, with the Colts, Saints, and Texans, all on the road . This team is experienced and knows how to handle tough situations though.I think they will get a bye in the first round of the playoffs and will be able to make it to the Super Bowl over the Colts and Steelers.In the NFC, I'm going with the Vikes lyrics chesney . They are going under the radar right now in the NFC because of the success of the Saints.The main reason I went with the Vikings is because I like their chances of home field advantage throughout the playoffs cma chesney . They have three teams that currently have a winning record left this season, those being the Cardinals, Bengals, and Giants . They go on the road to play Arizona but get New York and Cincinnati at home.With games against the Lions, Seahawks, Bears twice, and Panthers, I see them ending with a 14-2 record at the worst.Their NFC foe, the New Orleans Saints, have a tougher road ahead. They finish the season with games against the Patriots, at Atlanta, Dallas, and at Carolina.