3/08/06 CHAMP to become a major investor in the private education sector

Media Release

CHAMP Private Equity (CHAMP), in partnership with Petersen Investments, has signed an agreement to purchase Study Group International Limited, a leading worldwide private provider of education to international students, from its owner DMG International, a subsidiary of the U.K. Daily Mail Group, for A$176.4 million.

Study Group provides a full range of university pathway and degree courses for international students, covering academic qualifications, training and vocational Study and English language, through a network of colleges and teaching centres in Australia, U.K., U.S.A., New Zealand and Canada.

Operating through well respected brands such as Taylors College in Australia, Bellerbys in the U.K., and Embassy CES worldwide, Study Group’s 940 teachers last year taught over 35,000 international students, who were mostly recruited by the Group’s global network of over 2,300 active agents which are independent businesses.

Study Group’s teaching establishments and offices include 23 branded teaching centres in 20 locations worldwide, 15 regional offices throughout Asia, Europe and South America, and 3 admission centres in Australia, U.K. and U.S.A. CHAMP Director Mr. Ben Sebel said, “No single competitor has Study Group’s breadth and depth of product offerings on an international basis.”

“CHAMP Private Equity intends to continue management’s successful growth strategy and is interested to pursue further partnership opportunities,” Mr. Sebel said.

Study Group’s Managing Director, Mr. Andrew Thick said, “Our students have historically achieved superior results from those of our competitors, and well above the national average.”

“The Group has invested in building modern, flexible, purpose-built teaching and accommodation facilities over the past five years,” Mr. Thick added.

Along with tuition, Study Group offers placement services, accommodation and vacation campus centres.

Petersen Investments Director Mr. Arvid Petersen, who was previously a Director of Study Group International, is set to become Chairman of the Group.

Mr. Petersen said, “Study Group has more university relationships in key English speaking markets than any of its competitors, with over 90 university partners worldwide. We place a very high value on our partnerships with universities.”

From 1997-2004, the number of international students in the main English speaking countries is estimated to have grown by 5% p.a., and this growth is expected to increase to 6.7% p.a. for the period 2005-2010.

“Growth of international students has and will continue to be driven by an increase in the wealth of the population in developing countries particularly China, India, Brazil and Russia” Mr. Petersen said.

He observed, “There is an increasing desire of families in developing countries to educate their children overseas. At the same time there is an undersupply of university places in these countries.”

“CHAMP and Petersen Investments share a strong belief in, and commitment to, the future of the Private Education sector and to Study Group International providing products and services to increasing numbers of students wishing to access educational opportunities worldwide,” Mr. Sebel said.

For more information please contact: