Quarterly Net Revenues Increased by 45.7% Year-Over-Year

Quarterly Operating Income Increased by 46.3% Year-Over-Year

Quarterly Net Income attributable to New Oriental Increased by 118.7% Year-

                                  Over-Year

Fiscal Year Net Revenues Increased by 32.0% Year-Over-Year

Fiscal Year Operating Income Increased by 26.9% Year-Over-Year

Fiscal Year Net Income attributable to New Oriental Increased by 27.5% Year-

                                  Over-Year

New Oriental Education and Technology Group Inc. (the "Company" or "New Oriental") (NYSE:EDU - News), the largest provider of private educational services in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended May 31, 2010.

    Highlights for the Fourth Fiscal Quarter Ended May 31, 2010
    -- Total net revenues increased by 45.7% year-over-year to US$86.6 million
       from US$59.4 million in the same period of the prior fiscal year.
    -- Net income attributable to New Oriental increased by 118.7% year-over-
       year to US$5.8 million from US$2.6 million in the same period of the
       prior fiscal year.
    -- Non-GAAP net income attributable to New Oriental, which excludes share-
       based compensation expenses, increased by 26.9% year-over-year to
       US$9.0 million from US$7.1 million in the same period of the prior
       fiscal year.
    -- Income from operations increased by 46.3% year-over-year to US$3.7
       million from US$2.5 million in the same period of the prior fiscal year.
       Non-GAAP income from operations, which excludes share-based
       compensation expenses, decreased 0.9% year-over-year to US$6.9 million
       from US$7.0 million in the same period of the prior fiscal year.
    -- Basic and diluted net income attributable to New Oriental per ADS were
       US$0.15 and US$0.15, respectively. Non-GAAP basic and diluted net
       income per ADS attributable to New Oriental, which excludes share-based
       compensation expenses, were US$0.24 and US$0.23, respectively. Each ADS
       represents four common shares of the Company.
    -- Total student enrollments in language training and test preparation
       courses increased by 32.4% year-over-year to approximately 437,200 from
       approximately 330,200 in the same period of the prior fiscal year.

    Highlights for the Fiscal Year Ended May 31, 2010
    -- Total net revenues increased by 32.0% year-over-year to US$386.3
       million from US$292.6 million.
    -- Net income attributable to New Oriental increased by 27.5% year-over-
       year to US$77.8 million from US$61.0 million.
    -- Non-GAAP net income attributable to New Oriental increased by 20.8%
       year-over-year to US$94.0 million from US$77.8 million.
    -- Income from operations increased by 26.9% year-over-year to US$77.3
       million from US$60.9 million. Non-GAAP income from operations increased
       by 20.4% year-over-year to US$93.5 million from US$77.7 million.
    -- Basic and diluted net income attributable to New Oriental per ADS were
       US$2.06 and US$2.01, respectively. Non-GAAP basic and diluted earnings
       per ADS attributable to New Oriental were US$2.49 and US$2.43,
       respectively.
    -- Total student enrollments in language training and test preparation
       courses increased by 19.0% year-over-year to approximately 1,807,700
       from approximately 1,519,500 in the prior fiscal year.
    -- The total number of schools and learning centers increased to 367 as of
       May 31, 2010, up from 270 as of May 31, 2009. The number of schools
       remained at 48, located in 40 cities as of May 31, 2010. The number of
       learning centers increased by 43 in the quarter to 319 as of May 31,
       2010, up from 276 as of February 28, 2010.

Financial and Student Enrollments Summary - Fourth Quarter and Fiscal Year 2010

    (US$ in thousands, except per ADS data, student enrollments and
percentages)

                                          Q4 of         Q4 of          Pct.
                                          FY2010        FY2009        Change
    Net revenues                          86,581        59,426         45.7%
    Net income attributable to New
     Oriental                              5,773         2,640        118.7%
    Non-GAAP net income
     attributable to New Oriental (1)      9,037         7,122         26.9%
    Operating income                       3,653         2,497         46.3%
    Non-GAAP operating income (1)          6,917         6,979         -0.9%
    Net income per ADS attributable
     to New Oriental - basic (2)            0.15          0.07        115.9%
    Net income per ADS attributable
     to New Oriental - diluted (2)          0.15          0.07        116.3%
    Non-GAAP net income per ADS
     attributable to New Oriental
     - basic (1)(2)                         0.24          0.19         25.3%
    Non-GAAP net income per ADS
     attributable to New Oriental
     - diluted (1)(2)                       0.23          0.19         25.5%
    Total student enrollments in
     language training and test
     preparation courses                 437,200       330,200         32.4%


                                          FY2010        FY2009     Pct. Change
    Net revenues                         386,307       292,567         32.0%
    Net income attributable to New
     Oriental                             77,789        61,016         27.5%
    Non-GAAP net income attributable
     to New Oriental (1)                  93,972        77,766         20.8%
    Operating income                      77,314        60,920         26.9%
    Non-GAAP operating income (1)         93,497        77,670         20.4%
    Net income per ADS attributable
     to New Oriental - basic (2)            2.06          1.64         25.9%
    Net income per ADS attributable
     to New Oriental - diluted (2)          2.01          1.59         26.4%
    Non-GAAP net income per ADS
     attributable to New Oriental
     - basic (1)(2)                         2.49          2.09         19.4%
    Non-GAAP net income per ADS
     attributable to New Oriental
     - diluted (1)(2)                       2.43          2.03         19.8%
    Total student enrollments in
     language training and test
     preparation courses               1,807,700     1,519,500         19.0%

    (1) New Oriental provides net income attributable to New Oriental,
        operating income, and net income per ADS attributable to New Oriental
        on a Non-GAAP basis that excludes share-based compensation expenses to
        reflect meaningful supplemental information regarding its operating
        performance. For more information on these Non-GAAP financial measures,
        please see the section captioned "About Non-GAAP Financial Measures"
        and the tables captioned "Reconciliations of Non-GAAP Measures to the
        Most Comparable GAAP Measures" set forth at the end of this release.
    (2) Each ADS represents four common shares.

"We are pleased to report solid fourth fiscal quarter results with continued strong revenue growth of 45.7% and even higher profit growth of over 110%," said Michael Yu, New Oriental's Chairman and Chief Executive Officer. "For the full fiscal year 2010, we achieved outstanding financial results despite the challenges posed by the H1N1 flu outbreak last summer and fall. We saw about 19% year-over-year growth in student enrollments in language training and test preparation courses, which resulted in net revenue growth of 32% to US$386.3 million, exceeding our target of 25-30% growth for fiscal year 2010, and profit growth of 27.5% to US$77.8 million. As we enter fiscal year 2011, we continue to see strong demand for our program offerings this summer, and we are again targeting top line growth of approximately 25-30% for this fiscal year ending May 31, 2011."

"Starting in the fourth fiscal quarter, we accelerated the expansion of our network by adding a net of 43 learning centers in more than 20 cities, which brought our total number of schools and learning centers to 367 at the end of fiscal year 2010, an increase of 97 from a year ago exceeding our target of 70 learning centers for the year. As we enter fiscal year 2011, we plan to continue expanding aggressively by adding about 100 learning centers in existing cities and penetrating two to four new cities. Concurrently, we are launching two exciting, large scale initiatives in fiscal year 2011. Our first initiative is Kids' Math and Kids' Chinese writing programs under our highly successful POP Kids brand, which will target 6- to 12-year-old children and complement our POP Kids English courses. Our second initiative is New Oriental's proprietary new learning system for Middle and High School students, which focuses on English and all-subjects skills assessment, development, testing and improvement. With these new programs being rolled out to our network of schools and learning centers, New Oriental is targeting over 1 million student enrollments for our programs for 6- to 18-year-old students in fiscal year 2011, up from approximately 790,000 in fiscal year 2010. Combined with the over 1 million adult enrollments we are expecting for fiscal year 2011, we are targeting a total of over 2 million student enrollments for the upcoming 12 months, an important milestone for the company and testament to the high quality of our educational programs and service offerings," concluded Mr. Yu.

Louis T. Hsieh, New Oriental's President and Chief Financial Officer, stated, "Our three key business segments continued to perform very well. First, the Middle and High School U-Can all-subjects training program has been rolled out to 39 cities throughout China. Enrollments in non-English U-Can courses in the fourth fiscal quarter were over 36,800, which brought the enrollments for the full fiscal year 2010 to approximately 120,000, and total revenues in non- English U-Can courses for the fiscal year 2010 reached US$34 million. These results are well above our original targets of 80,000 to 90,000 enrollments and revenues of US$25 million. Second, our POP Kids English program recorded year-over-year enrollment growth of more than 50% for the fourth fiscal quarter, growing to over 104,000, and enrollment growth for fiscal year 2010 exceeded 40%, rising to over 434,300, with fiscal year revenue growth of over 44% year-over-year to approximately US$50 million. Third, our Overseas Test Preparation program recorded enrollment growth of 25% and year-over-year revenue growth of over 40% in the fourth fiscal quarter, with fiscal year enrollment growth of 12% to over 256,500 and fiscal year revenue growth of about 30% to approximately US$107 million."

Financial Results for the Fiscal Quarter Ended May 31, 2010

For the fourth fiscal quarter of 2010, New Oriental reported net revenues of US$86.6 million, representing a 45.7% increase year-over-year.

Net revenues from educational programs and services for the fourth fiscal quarter were US$74.3 million, representing a 44.7% increase year-over-year. The growth was mainly driven by the increase in number of student enrollments in language training and test preparation courses. Total student enrollments in language training and test preparation courses in the fourth quarter of fiscal year 2010 increased by 32.4% year-over-year to approximately 437,200 from approximately 330,200 in the same period of the prior fiscal year.

Operating costs and expenses for the quarter were US$82.9 million, a 45.7% increase year-over-year. Non-GAAP operating costs and expenses, which exclude share-based compensation expenses, for the quarter were US$79.7 million, a 51.9% increase year-over-year.

Cost of revenues for the quarter increased by 41.1% year-over-year to US$36.4 million, primarily due to the increased number of courses and the greater number of schools and learning centers in operation.

Selling and marketing expenses for the quarter increased by 69.4% year- over-year to US$17.4 million, primarily due to brand promotion expenses, especially for relatively new programs such as the U-Can all-subjects training program.

General and administrative expenses for the quarter increased by 39.7% year-over-year to US$29.2 million. Non-GAAP general and administrative expenses, which exclude share-based compensation expenses, were US$26.0 million, a 56.2% increase year-over-year, primarily due to increased headcount as the company expanded its network of schools and learning centers.

Total share-based compensation expenses, which were allocated to related operating costs and expenses, decreased by 27.2% to US$3.3 million in the fourth quarter of fiscal year 2010 from US$4.5 million in the same period of the prior fiscal year.

Income from operations for the quarter was US$3.7 million, a 46.3% increase from US$2.5 million in the same period of the prior fiscal year. Non- GAAP income from operations for the quarter was US$6.9 million, a 0.9% decrease from US$7.0 million in the same period of the prior fiscal year.

Operating margin for the quarter was 4.2%, compared to 4.2% in the same period of the prior fiscal year. Non-GAAP operating margin, which excludes share-based compensation expenses, for the quarter was 8.0%, compared to 11.7% in the same period of the prior fiscal year.

Net income attributable to New Oriental for the quarter was US$5.8 million, representing a 118.7% increase from the same period of the prior fiscal year. Basic and diluted net income per ADS attributable to New Oriental were US$0.15 and US$0.15, respectively.

Non-GAAP net income attributable to New Oriental for the quarter was US$9.0 million, representing a 26.9% increase from the same period of the prior fiscal year. Non-GAAP basic and diluted net income per ADS attributable to New Oriental were US$0.24 and US$0.23, respectively.

Capital expenditures for the quarter were US$6.4 million, primarily used to add a net of 43 new learning centers.

As of May 31, 2010, New Oriental had cash and cash equivalents of US$281.1 million, as compared to US$250.8 million as of February 28, 2010. In addition, the Company had US$137.9 million in term deposits at the end of the quarter. Net operating cash flow for the fourth quarter of fiscal year 2010 was approximately US$48.2 million.

The deferred revenue balance, which is cash collected from registered students for courses and recognized proportionally as revenue as the instructions are delivered, at the end of the fourth quarter of fiscal year 2010 was US$107.1 million, an increase of 43.2% as compared to US$74.8 million at the end of the fourth quarter of fiscal year 2009.

Financial Results for the Fiscal Year Ended May 31, 2010

For the fiscal year ended May 31, 2010, New Oriental reported net revenues of US$386.3 million, a 32.0% increase year-over-year.

Net revenues from educational programs and services for the fiscal year ended May 31, 2010 were US$352.9 million, representing a 32.5% increase year- over-year. The growth was mainly driven by the increase in the number of student enrollments in language training and test preparation courses. Total student enrollments in language training and test preparation courses for the fiscal year ended May 31, 2010 increased by 19.0% year-over-year to approximately 1,807,700 from approximately 1,519,500 in the fiscal year ended May 31, 2009.

Income from operations for the fiscal year ended May 31, 2010 was US$77.3 million, a 26.9% increase year-over-year. Non-GAAP income from operations for the fiscal year ended May 31, 2010 was US$93.5 million, a 20.4% increase year- over-year.

Operating margin for the fiscal year ended May 31, 2010 was 20.0%, compared to 20.8% for the fiscal year ended May 31, 2009. Non-GAAP operating margin for the fiscal year ended May 31, 2010 was 24.2%, compared to 26.5% for the fiscal year ended May 31, 2009.

Net income attributable to New Oriental for the fiscal year ended May 31, 2010 was US$77.8 million, representing a 27.5% increase year-over-year. Basic and diluted net income per ADS attributable to New Oriental for the fiscal year ended May 31, 2010 were US$2.06 and US$2.01, respectively.

Non-GAAP net income attributable to New Oriental for the fiscal year ended May 31, 2010 was US$94.0 million, a 20.8% increase year-over-year. Non-GAAP basic and diluted net income per ADS attributable to New Oriental for the fiscal year ended May 31, 2010 were US$2.49 and US$2.43, respectively.

Outlook for First Quarter of Fiscal Year 2011

New Oriental expects its total net revenues in the first quarter of fiscal year 2011 (June 1, 2010 to August 31, 2010) to be in the range of US$188.2 million to US$197.2 million, representing year-over-year growth in the range of 26% to 32%, respectively. This forecast reflects New Oriental's current and preliminary view, which is subject to change.

Conference Call Information

New Oriental's management will host an earnings conference call at 8 AM on July 19, 2010 U.S. Eastern Time (8 PM on July 19, 2010 Beijing/Hong Kong time).

    Dial-in details for the earnings conference call are as follows:

    US:        +1-617-213-8840
    Hong Kong: +852-3002-1672
    UK:        +44-207-365-8426

Please dial-in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is "New Oriental earnings call."

A replay of the conference call may be accessed by phone at the following number until July 26, 2010:

    International: +1-617-801-6888
    Passcode:      88042371

Additionally, a live and archived webcast of the conference call will be available at http://investor.neworien... .

About New Oriental

New Oriental is the largest provider of private educational services in China based on the number of program offerings, total student enrollments and geographic presence. New Oriental offers a wide range of educational programs, services and products consisting primarily of English and other foreign language training, test preparation courses for major admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education. New Oriental's ADSs, each of which represents four common shares, currently trade on the New York Stock Exchange under the symbol "EDU".

For more information about New Oriental, please visit http://english.neworient... .

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the outlook for the first quarter of fiscal year 2010 and quotations from management in this announcement, as well as New Oriental's strategic and operational plans, contain forward-looking statements. New Oriental may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about New Oriental's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our ability to attract students without a significant decrease in course fees; our ability to continue to hire, train and retain qualified teachers; our ability to maintain and enhance our "New Oriental" brand; our ability to effectively and efficiently manage the expansion of our school network and successfully execute our growth strategy; the outcome of ongoing, or any future, litigation or arbitration, including those relating to copyright and other intellectual property rights; competition in the private education sector in China; changes in our revenues and certain cost or expense items as a percentage of our revenues; the expected growth of the Chinese private education market; Chinese governmental policies relating to private educational services and providers of such services; health epidemics and other outbreaks in China; and general economic conditions in China. Further information regarding these and other risks is included in our annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. New Oriental does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and New Oriental undertakes no duty to update such information, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement New Oriental's consolidated financial results presented in accordance with GAAP, New Oriental uses the following measures defined as non- GAAP financial measures by the SEC: net income excluding share-based compensation expenses, operating income excluding share-based compensation expenses, operating costs and expenses excluding share-based compensation expenses, general and administrative expenses excluding share-based compensation expenses, operating margin excluding share-based compensation expenses, and basic and diluted net income per ADS and per share excluding share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.

New Oriental believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based compensation expenses that may not be indicative of its operating performance from a cash perspective. New Oriental believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to New Oriental's historical performance and liquidity. New Oriental computes its non-GAAP financial measures using the same consistent method from quarter to quarter. New Oriental believes these non- GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP measures is that they exclude share-based compensation charge that has been and will continue to be for the foreseeable future a significant recurring expense in our business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

    Contacts

    For investor and media inquiries, please contact:

    In China:

     Ms. Sisi Zhao
     New Oriental Education and Technology Group Inc.
     Tel:   +86-10-6260-5566 x8203
     Email: zhaosisi@staff.neworiental.org

     Mr. Henry Fraser
     Beijing Brunswick Consultancy Ltd.
     Tel:   +86-10-6566-4156
     Email: hfraser@brunswickgroup.com

    In the U.S.:

     Ms. Kate Tellier
     Brunswick Group LLC
     Tel:   +1-212-333-3810
     Email: ktellier@brunswickgroup.com



                NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                (In thousands)
                                               As of May 31  As of February 28
                                                   2010             2010
                                                (Unaudited)      (Unaudited)
                                                    USD              USD
    ASSETS:
    Current assets:
     Cash and cash equivalents                    281,104          250,792
     Restricted cash                                  582              571
     Term deposits                                137,905          120,375
     Accounts receivable, net                       1,922            1,179
     Inventory                                     17,163           13,883
     Deferred tax assets-Current                    2,982            2,291
     Prepaid expenses and other current
      assets                                       22,156           19,298

    Total current assets                          463,814          408,389

     Property, plant and equipment, net           118,118          115,351
     Land use right, net                            3,403            3,425
     Amounts due from related parties                 396              579
     Deferred tax assets                            1,567              808
     Long term deposit                              3,664            3,093
     Long term prepaid rent                         1,851            2,253
     Intangible assets                                787              804
     Goodwill                                       2,818            2,713
     Long term investment                               2                2

    Total assets                                  596,420          537,417

    LIABILITIES AND EQUITY
    Current liabilities:
     Accounts payable-trade                        11,038            6,197
     Accrued expenses and other current
      liabilities                                  44,838           39,139
     Income tax payable                             5,750            6,769
     Amount due to related parties                     14               14
     Deferred revenue                             107,065           69,787

    Total current liabilities                     168,705          121,906

     Deferred tax liabilities                         137              141

    Total long-term liabilities                       137              141

    Total liabilities                             168,842          122,047

    Total New Oriental Education &
     Technology Group Inc. shareholders'
     equity                                       427,567          415,536

    Noncontrolling interests                           11             (166)

    Total equity                                  427,578          415,370

    Total liabilities and equity                  596,420          537,417



                 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             (In thousands except for per share and per ADS amounts)

                                             For the Three Months Ended May 31
                                                     2010              2009
                                                 (Unaudited)       (Unaudited)
                                                     USD                USD
    Net Revenues:
     Educational Programs and services              74,303            51,337
     Books and others                               12,278             8,089
    Total net revenues                              86,581            59,426

    Operating costs and expenses (note 1):
     Cost of revenues                               36,356            25,771
     Selling and marketing                          17,362            10,250
     General and administrative                     29,210            20,908

    Total operating costs and expenses              82,928            56,929
    Operating income                                 3,653             2,497

    Other income, net                                1,563               794

     Provision (benefits) for income taxes             734              (413)
     Less: Net income attributable to the
      noncontrolling interests (note 2)               (177)             (238)
    Net income attributable to New
     Oriental Education & Technology
     Group Inc.                                      5,773             2,640


    Net income per share attributable to
     New Oriental-Basic                               0.04              0.02
    Net income per share attributable to
     New Oriental-Diluted                             0.04              0.02

    Net income per ADS attributable to
     New Oriental-Basic (note 3)                      0.15              0.07
    Net income per ADS attributable to
     New Oriental-Diluted (note 3)                    0.15              0.07

    Notes:

    Note 1: Share-based compensation expenses (in thousands) are included in
            the operating costs and expenses as follows:

                                             For the Three Months Ended May 31
                                                     2010              2009
                                                 (Unaudited)       (Unaudited)
                                                     USD                USD
    Cost of revenues                                    22               138
    Selling and marketing                                2                63
    General and administrative                       3,240             4,281
    Total                                            3,264             4,482

    Note 2: Amount in relation to noncontrolling interests, formerly named
            minority interest, for the three-month period ended May 31, 2009
            is reclassified in accordance with authoritative guidance
            regarding the noncontrolling interests, which was adopted by the
            Company on June 1, 2009.
    Note 3: Each ADS represents four common shares.



                 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
    RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES
                 (In thousands except share and per ADS amounts)

                                             For the Three Months Ended May 31
                                                     2010              2009
                                                 (Unaudited)       (Unaudited)
                                                     USD                USD

    General and administrative expenses             29,210            20,908
    Share-based compensation expense in
     general and administrative expenses             3,240             4,281
    Non-GAAP general and administrative
     expenses                                       25,970            16,627

    Total operating costs and expenses              82,928            56,929
    Share-based compensation expenses                3,264             4,482
    Non-GAAP operating costs and expenses           79,664            52,447

    Operating income                                 3,653             2,497
    Share-based compensation expenses                3,264             4,482
    Non-GAAP operating income                        6,917             6,979

    Operating margin                                  4.2%              4.2%
    Non-GAAP operating margin                         8.0%             11.7%

    Net income attributable to New
     Oriental                                        5,773             2,640
    Share-based compensation expense                 3,264             4,482
    Non-GAAP net income                              9,037             7,122

    Net income per ADS attributable to
     New Oriental- Basic (note 1)                     0.15              0.07
    Net income per ADS attributable to
     New Oriental- Diluted (note 1)                   0.15              0.07

    Non-GAAP net income per ADS
     attributable to New Oriental
     - Basic (note 1)                                 0.24              0.19
    Non-GAAP net income per ADS
     attributable to New Oriental -
     Diluted (note 1)                                 0.23              0.19

    Weighted average shares used in
     calculating basic net income
     per ADS (note 1)                          151,530,498       149,633,634
    Weighted average shares used in
     calculating diluted net income per
     ADS (note 1)                              155,268,339       153,578,336

    Note 1: Each ADS represents four common shares.



                 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             (In thousands except for per share and per ADS amounts)

                                                   For the Year Ended May 31
                                                     2010              2009
                                                 (Unaudited)       (Unaudited)
                                                     USD                USD
    Net Revenues:
     Educational Programs and services             352,857           266,389
     Books and others                               33,450            26,178
    Total net revenues                             386,307           292,567

    Operating costs and expenses (note 1):
     Cost of revenues                              147,261           112,011
     Selling and marketing                          58,396            38,947
     General and administrative                    103,336            80,689

    Total operating costs and expenses             308,993           231,647
    Operating income                                77,314            60,920

    Other income, net                                6,222             7,189

     Provision for income taxes                     (5,974)           (7,256)
     Less: Net income attributable to the
      noncontrolling interests (note 2)                227               163
    Net income attributable to New
     Oriental Education & Technology
     Group Inc.                                     77,789            61,016

    Net income per share attributable to
     New Oriental-Basic                               0.52              0.41
    Net income per share attributable to
     New Oriental-Diluted                             0.50              0.40

    Net income per ADS attributable to
     New Oriental-Basic (note 3)                      2.06              1.64
    Net income per ADS attributable to
     New Oriental-Diluted (note 3)                    2.01              1.59

    Notes:

    Note 1: Share-based compensation expenses (in thousands) are included in
            the operating costs and expenses as follows:

                                                   For the Year Ended May 31
                                                     2010              2009
                                                 (Unaudited)       (Unaudited)
                                                     USD                USD
    Cost of revenues                                   657               316
    Selling and marketing                              117               225
    General and administrative                      15,409            16,209
    Total                                           16,183            16,750

    Note 2: Amount in relation to noncontrolling interests, formerly named
            minority interest, for the year ended May 31, 2009 is reclassified
            in accordance with authoritative guidance regarding the
            noncontrolling interests, which was adopted by the Company on June
            1, 2009.
    Note 3: Each ADS represents four common shares.



                 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
    RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES
                 (In thousands except share and per ADS amounts)

                                                   For the Year Ended May 31
                                                     2010              2009
                                                 (Unaudited)       (Unaudited)
                                                     USD                USD

    General and administrative expenses            103,336            80,689
    Share-based compensation expense in
     general and administrative expenses            15,409            16,209
    Non-GAAP general and administrative
     expenses                                       87,927            64,480

    Total operating costs and expenses             308,993           231,647
    Share-based compensation expenses               16,183            16,750
    Non-GAAP operating costs and expenses          292,810           214,897

    Operating income                                77,314            60,920
    Share-based compensation expenses               16,183            16,750
    Non-GAAP operating income                       93,497            77,670

    Operating margin                                 20.0%             20.8%
    Non-GAAP operating margin                        24.2%             26.5%

    Net income attributable to New
     Oriental                                       77,789            61,016
    Share-based compensation expense                16,183            16,750
    Non-GAAP net income                             93,972            77,766

    Net income per ADS attributable to
     New Oriental- Basic (note 1)                     2.06              1.64
    Net income per ADS attributable to
     New Oriental- Diluted (note 1)                   2.01              1.59

    Non-GAAP net income per ADS
     attributable to New Oriental
     - Basic (note 1)                                 2.49              2.09
    Non-GAAP net income per ADS
     attributable to New Oriental
     - Diluted (note 1)                               2.43              2.03

    Weighted average shares used in
     calculating basic net income per
     ADS (note 1)                              150,952,249       149,090,088
    Weighted average shares used in
     calculating diluted net income per
     ADS (note 1)                              154,831,633       153,528,383

    Note 1: Each ADS represents four common shares.

Founded in 1979, Kinderdance is a unique program that incorporates educational concepts in a developmentally-designed curriculum that places special emphasis on building confidence and self-esteem through movement, music and dance. In class, children engage with both their parents and the instructor in a series of movements to the accompaniment of music aimed at teaching children the importance of expression and interaction.

Under the exclusive agreement, New Oriental will use specialized Kinderdance content, designed for children aged two to six years old, in its early-childhood KinderPlace training centers in Beijing and its Kindergarten of Stars kindergartens in Beijing and Nanjing. The Company plans to expand its network of KinderPlace centers throughout China, and expects to be in over 10 major cities by 2014.

"We are very excited to announce our plan to offer Kinderdance content at New Oriental's early childhood centers," said Michael Yu, New Oriental's chairman and chief executive officer. "With its long history, world-wide reputation and great track record of instilling children with confidence in a fun, supportive educational environment, Kinderdance is the perfect partner for us as we expand our training offerings to pre-school aged children. New Oriental already serves as the lifelong educational partner for Chinese students, and this partnership builds on our ability to reach students at an even younger age."

Mr. Yu noted the size of the pre-school market presents a strong opportunity, with 100 million Chinese children ages 0-6 years old and many Chinese families increasingly placing emphasis on education at an even younger age.

Carol Kay Harsell, the founder of Kinderdance International commented, "At Kinderdance, we believe teaching a preschool child how to learn through developmental-designed and fun ways of expression and interaction has a lasting positive influence throughout his or her school years. By partnering with New Oriental, China's leading private educational provider, we look forward to bringing our innovative content to the huge population of children in China."

About New Oriental

New Oriental is the largest provider of private educational services in the People's Republic of China (the "PRC") based on the number of program offerings, total student enrollments and geographic presence. New Oriental offers a wide range of educational programs, services and products consisting primarily of English and other foreign language training, test preparation courses for major admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education. New Oriental's ADSs, each of which represents four common shares, currently trade on the New York Stock Exchange under the symbol "EDU."

About Kinderdance

Kinderdance(R) places emphasis on building self-confidence and self-esteem in children through learning to share, lead, interact and respond to others' needs as well as their own. The programs incorporate the arts, movement, education, music, fitness and the fun of learning into a young child's life.

    For more information, please contact:

    New Oriental:
    In China:

     Ms. Sisi Zhao
     New Oriental Education and Technology Group Inc.
     Tel:   +86-10-6260-5566 x8203
     Email: zhaosisi@staff.neworiental.org

     Ms. Courtney Shike
     Brunswick Group LLC
     Tel:   +86-10-6566-2256
     Email: cshike@brunswickgroup.com

    In the U.S.:

     Ms. Kate Tellier
     Brunswick Group LLC
     Tel:   +1-212-333-3810
     Email: ktellier@brunswickgroup.com

     KinderDance:
     Mr. Richard Maltese
     Kinderdance(R)
     Tel:   +1-800-554-2334
     Web:   http://www.kinderdance.com

    Highlights for the Second Fiscal Quarter Ended November 30, 2009
    -- Total net revenues increased by 23.8% year-over-year to US$61.2 million
       from US$49.4 million in the same period of the prior fiscal year.
    -- GAAP net income decreased by 63.9% year-over-year to US$1.1 million
       from US$3.1 million in the same period of the prior fiscal year. Non-
       GAAP net income, which excludes share-based compensation expenses,
       decreased by 25.8% year-over-year to US$5.5 million from US$7.4 million
       in the same period of the prior fiscal year.
    -- GAAP loss from operations was US$0.9 million, compared to income from
       operations of US$0.9 million in the same period of the prior fiscal
       year.
       Non-GAAP income from operations decreased by 33.4% year-over-year to
       US$3.5 million from US$5.2 million in the same period of the prior
       fiscal year.
    -- GAAP basic and diluted net income per ADS were US$0.03 and US$0.03,
       respectively. Non-GAAP basic and diluted net income per ADS were
       US$0.15 and US$0.14, respectively. Each ADS represents four common
       shares of the Company.
    -- Total student enrollments in language training and test preparation
       courses increased by 5.1% year-over-year to approximately 307,000 from
       approximately 292,200 in the same period of the prior fiscal year.
    -- The total number of schools remained at 48, located in 40 cities, as of
       November 30, 2009. The number of learning centers increased by 11 to
       250 as of November 30, 2009, up from 239 as of August 31, 2009.

Financial and Student Enrollments Summary -- Second Fiscal Quarter 2010 and First Six Months of FY2010

    (US$ 000, except per ADS data and student enrollments)

                                      Q2 of FY2010 Q2 of FY 2009   Pct. Change
    Net revenues                          61,195        49,430         23.8%
    GAAP net income                        1,107         3,064        -63.9%
    Non-GAAP net income (1)                5,470         7,376        -25.8%
    GAAP operating income (loss)            (911)          870       -204.7%
    Non-GAAP operating income (1)          3,452         5,182        -33.4%
    GAAP net income per ADS basic (2)       0.03          0.08        -64.3%
    GAAP net income per ADS diluted (2)     0.03          0.08        -64.1%
    Non-GAAP net income per ADS
     basic (1)(2)                           0.15          0.20        -26.7%
    Non-GAAP net income per ADS
     diluted (1)(2)                         0.14          0.19        -26.4%
    Total student enrollments in
     language training and test
     preparation courses                 307,000       292,200          5.1%



                                      1H of FY2010  1H of FY2009   Pct. Change
    Net revenues                         210,559       167,692         25.6%
    GAAP net income                       58,173        47,967         21.3%
    Non-GAAP net income (1)               66,237        56,163         17.9%
    GAAP operating income                 60,020        49,735         20.7%
    Non-GAAP operating income (1)         68,084        57,931         17.5%
    GAAP net income per ADS basic (2)       1.54          1.29         19.8%
    GAAP net income per ADS diluted (2)     1.50          1.25         20.5%
    Non-GAAP net income per ADS
     basic (1)(2)                           1.76          1.51         16.5%
    Non-GAAP net income per ADS
     diluted (1)(2)                         1.71          1.46         17.2%
    Total student enrollments in
     language training and test
     preparation courses                 954,500       837,600         14.0%


    (1) New Oriental provides net income, operating income, net income per ADS
        on a Non-GAAP basis that excludes share-based compensation expenses to
        reflect meaningful supplemental information regarding its performance
        and liquidity. For more information on these Non-GAAP financial
        measures, please see the table captioned "Reconciliations of Non-GAAP
        measures to the most comparable GAAP measures" set forth at the end of
        this release.
    (2) Each ADS represents four common shares.

"Despite the continued challenges posed by the H1N1 flu outbreak, we saw sustained year-over-year revenue growth of 23.8% to US$61.2 million in the second quarter of fiscal year 2010," said Michael Yu, New Oriental's Chairman and Chief Executive Officer. "This was driven by strong revenue growth in our middle-high school and kids business lines, namely over 50% growth in middle and high school English and U-Can all-subjects training and over 40% growth in POP Kids English. We recorded blended average selling price year-over-year growth of approximately 13.8% for the quarter, mostly due to strong demand for higher priced one-to-one and small size class offerings. Also we enhanced market coverage during the quarter by adding a net of eleven new learning centers in ten existing cities."

Mr. Yu continued, "Our 5.1% year-over-year increase in enrollments in this quarter was negatively impacted by fear of H1N1, especially as the number of reported cases increased throughout the quarter and peaked in the last week of November. Since that time, however, the challenging situation has stabilized as the initial fear of H1N1 has begun to subside and the H1N1 vaccine has become widely available throughout the country, especially in large cities. As of January 12, 2010 more than 58 million people have been vaccinated in mainland China, and approximately 60% of school-aged children haven been immunized in Beijing and Shanghai. As expected, since early December 2009 we have been seeing a noticeable bounce back in cash receipts (cash collected in advance for enrollments). In the past six weeks, cash receipts have increased at least 30% each week compared to the same period in the prior year."

New Oriental's President and Chief Financial Officer, Louis T. Hsieh, stated, "We are delighted to report continued excellent progress in our non- English U-Can programs, including our new customized learning program of small and one-to-one class offerings. Even the seasonally slowest second fiscal quarter witnessed more than 13,400 U-Can enrollments, up from approximately 5,800 in the year ago period, representing over 100% year-over-year growth. In the first half of fiscal year 2010, we recorded more than 46,900 U-Can enrollments and over US$12 million in revenue, more than double the enrollments and over four times the revenue generated from the U-Can program in the year ago period. We are on track to achieve the US$25 million revenue target in fiscal year 2010 from the non-English U-Can program and our new customized learning program, and another approximately US$40-45 million in middle-high school English revenue."

Mr. Hsieh continued, "Given the much better than expected demand for our U-Can platform offerings, including the new customized learning program, we have made the strategic decision to accelerate our expansion of U-Can offerings to reach over 110 learning centers in 37 cities (previously 30 cities), with one-to-one and small class offerings reaching 30 cities (previously 8 to 10 cities), by our May 31, 2010 fiscal year end. To accomplish these aggressive targets, we plan to hire over 1,000 full and part- time U-Can teachers in fiscal year 2010, bringing the U-Can teacher total to over 1,400. In addition, we plan to significantly augment our U-Can department by adding over 250 staff, primarily in marketing and customer service and R&D- content development. The incremental cost of this accelerated expansion will be approximately US$4-5 million for the remaining two quarters of fiscal year 2010, but this will position us well for our seasonally most important summer quarter and beyond. We are confident that with New Oriental's leading brand and our two-pronged strategy of offering both affordable larger classes and higher priced individualized smaller classes, we will continue to be the leader in China's huge after-school training market."

Mr. Hsieh noted that the second quarter of New Oriental's fiscal year is typically the slowest in terms of revenue quarter as students are occupied with the beginning of the formal school year.

Financial Results for the Fiscal Quarter Ended November 30, 2009

For the second fiscal quarter of 2010, New Oriental reported net revenues of US$61.2 million, representing a 23.8% increase year-over-year.

Net revenues from educational programs and services for the second fiscal quarter were US$53.6 million, representing a 22.2% increase year-over-year. The growth was mainly driven by the increase in the number of student enrollments in language training and test preparation courses. Total student enrollments in language training and test preparation courses in the second quarter of fiscal year 2010 increased by 5.1% year-over-year to approximately 307,000 from approximately 292,200 in the same period of the prior fiscal year.

GAAP operating costs and expenses for the quarter were US$62.1 million, representing a 27.9% increase year-over-year. Non-GAAP operating costs and expenses for the quarter were US$57.7 million, representing a 30.5% increase year-over-year.

Cost of revenues increased by 28.1% year-over-year to US$27.8 million, primarily due to the increased number of courses and the greater number of schools and learning centers in operation.

Selling and marketing expenses increased by 40.8% year-over-year to US$11.7 million, primarily due to brand promotion expenses, especially for new programs such as U-Can and the customized learning program.

GAAP general and administrative expenses were US$22.6 million, representing a 21.9% increase year-over-year. Non-GAAP general and administrative expenses for the quarter increased by 28.5% year-over-year to US$18.5 million, primarily due to increased headcount as the Company expanded its network of schools and learning centers.

Total share-based compensation expenses, which were allocated to related operating costs and expenses, increased slightly to US$4.4 million in the second quarter of fiscal year 2010 from US$4.3 million in the same period of the prior fiscal year.

GAAP loss from operations for the quarter was US$0.9 million, compared to an income from operations of US$0.9 million in the same period of the prior fiscal year, and Non-GAAP income from operations for the quarter was US$3.5 million, compared to US$5.2 million in the same period of the prior fiscal year.

GAAP operating margin for the quarter was negative 1.5%, compared to 1.8% in the same period of the prior fiscal year. Non-GAAP operating margin for the quarter was 5.6%, compared to 10.5% in the same period of the prior fiscal year. This decline in operating margin was primarily due to the negative impact from the H1N1 flu pandemic and the increased marketing expenses for brand promotion, especially for new programs such as U-Can and the customized learning program.

GAAP net income for the quarter was US$1.1 million, representing a 63.9% decrease from the same period of the prior fiscal year. Basic and diluted net income per ADS were US$0.03 and US$0.03, respectively.

Non-GAAP net income was US$5.5 million, representing a 25.8% decrease from the same period of the prior fiscal year. Non-GAAP basic and diluted net income per ADS were US$0.15 and US$0.14, respectively.

Capital expenditures for the quarter were US$3.4 million, which was primarily used to add a net of 11 new learning centers and remodel older learning centers during the quarter.

As of November 30, 2009, New Oriental had cash and cash equivalents of US$210.6 million, as compared to US$238.7 million as of August 31, 2009. In addition, the Company had US$141.7 million in term deposits at the end of the quarter. Net operating cash flow generated for the second quarter of fiscal year 2010 was US$9.6 million.

The deferred revenue balance (cash collected from registered students for courses and to be recognized proportionally as revenue as the instructions are delivered) at the end of the second quarter of fiscal year 2010 was US$71.1 million, representing an increase of 34.9% from US$52.7 million at the end of the second quarter of fiscal year 2009.

Financial Results for the Six Months Ended November 30, 2009

For the first six months of fiscal year 2010, New Oriental reported net revenues of US$210.6 million, representing a 25.6% increase year-over-year.

Total student enrollments in language training and test preparation courses in the first six months of fiscal year 2010 increased by 14.0% to approximately 954,500 from approximately 837,600 in the same period of the prior fiscal year.

GAAP income from operations for the first six months of fiscal year 2010 was US$60.0 million, representing a 20.7% increase year-over-year. Non-GAAP income from operations for the first six months of fiscal year 2010 was US$68.1 million, representing a 17.5% increase year-over-year.

GAAP operating margin for the first six months of fiscal year 2010 was 28.5%, compared to 29.7% for the same period of the prior fiscal year. Non- GAAP operating margin for the first six months of fiscal year 2010 was 32.3%, compared to 34.5% for the same period of the prior fiscal year.

GAAP net income for the first six months of fiscal year 2010 was US$58.2 million, representing a 21.3% increase year-over-year. GAAP basic and diluted earnings per ADS for the first six months of fiscal year 2010 amounted to US$1.54 and US$1.50, respectively.

Non-GAAP net income for the first six months of fiscal year 2010 was US$66.2 million, representing a 17.9% increase year-over-year. Non-GAAP basic and diluted earnings per ADS for the first six months of fiscal year 2010 amounted to US$1.76 and US$1.71, respectively.

Outlook for the Third Quarter of Fiscal Year 2010

New Oriental expects its total net revenues in the third quarter of fiscal year 2010 (December 1, 2009 to February 28, 2010) to be in the range of US$82.5 million to US$85.1 million, representing year-over-year growth in the range of 26% to 30%, respectively. Please note that Chinese New Year 2010 will occur on February 14, 19 days later than the corresponding date in 2009 when Chinese New Year occurred on January 26, 2009. The Company believes that the late timing of Chinese New Year in 2010 will have the effect of pushing some enrollments into the fourth quarter of fiscal year 2010 at the expense of the third quarter of fiscal year 2010 as students return to their formal studies and enroll in New Oriental's Spring classes in early March 2010. The opposite occurred in 2009, due to the early timing of Chinese New Year, when students returned to their formal studies in mid-February 2009 and enrolled in Spring classes in the third quarter instead of the fourth quarter of fiscal year 2009. Therefore, in fiscal year 2009, New Oriental recorded third quarter enrollment growth of 31% and fourth quarter enrollment growth of only 8% as enrollments shifted to the third quarter of 2009 from the fourth quarter of 2009. This forecast reflects New Oriental's current and preliminary view, which is subject to change.

Conference Call Information

New Oriental's management will host an earnings conference call at 8 AM on January 19, 2010 U.S. Eastern Time (9PM on January 19, 2010 Beijing/Hong Kong time).

    Dial-in details for the earnings conference call are as follows:

    US:             + 1-617-213-8054
    Hong Kong:      + 852-3002-1672
    UK:             + 44-207-365-8426

Please dial-in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is "New Oriental earnings call."

A replay of the conference call may be accessed by phone at the following number until January 26, 2010:

International: +1-617-801-6888

Passcode: 76618020

Additionally, a live and archived webcast of the conference call will be available at http://investor.neworien... .

About New Oriental

New Oriental is the largest provider of private educational services in China based on the number of program offerings, total student enrollments and geographic presence. New Oriental offers a wide range of educational programs, services and products consisting primarily of English and other foreign language training, test preparation courses for major admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education. New Oriental's ADSs, each of which represents four common shares, currently trade on the New York Stock Exchange under the symbol "EDU."

For more information about New Oriental, please visit http://english.neworient... .

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the outlook for the third quarter of fiscal year 2010 and quotations from management in this announcement, as well as New Oriental's strategic and operational plans, contain forward-looking statements. New Oriental may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about New Oriental's beliefs and expectations, are forward-looking statements. Forward- looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our ability to attract students without a significant decrease in course fees; our ability to continue to hire, train and retain qualified teachers; our ability to maintain and enhance our "New Oriental" brand; health epidemics and other outbreaks in China; our ability to effectively and efficiently manage the expansion of our school network and successfully execute our growth strategy; the outcome of ongoing, or any future, litigation or arbitration, including those relating to copyright and other intellectual property rights; competition in the private education sector in China; changes in our revenues and certain cost or expense items as a percentage of our revenues; the expected growth of the Chinese private education market; Chinese governmental policies relating to private educational services and providers of such services; and general economic conditions in China. Further information regarding these and other risks is included in our annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. New Oriental does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, unless indicated otherwise, and New Oriental undertakes no duty to update such information, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement New Oriental's consolidated financial results presented in accordance with GAAP, New Oriental uses the following measures defined as non- GAAP financial measures by the SEC: net income excluding share-based compensation expenses, operating income excluding share-based compensation expenses, operating costs and expenses excluding share-based compensation expenses, general and administrative expenses excluding share-based compensation expenses, operating margin excluding share-based compensation expenses, and basic and diluted net income per ADS excluding share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliation of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.

New Oriental believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based compensation expenses that may not be indicative of its operating performance from a cash perspective. New Oriental believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to New Oriental's historical performance and liquidity. New Oriental computes its non-GAAP financial measures using the same consistent method from quarter to quarter. New Oriental believes these non- GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude the share- based compensation charge that has been and will continue to be for the foreseeable future a significant recurring expense in our business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

                NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
                UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                                (In thousands)

                                            As of November 30  As of August 31
                                                   2009             2009
                                                    USD              USD
    ASSETS:
    Current assets:
    Cash and cash equivalents                     210,574          238,709
    Restricted cash                                   571              541
    Term deposits                                 141,666          129,027
    Accounts receivable, net                        2,039            1,985
    Inventory                                      14,577           13,672
    Deferred tax assets-Current                     2,043            1,855
    Prepaid expenses and other current
     assets                                        17,437           16,963

    Total current assets                          388,907          402,752

    Property, plant and equipment, net            113,213          112,721
    Land use right, net                             3,445            3,464
    Amounts due from related parties                  396              396
    Deferred tax assets                               854              664
    Long term deposit                               3,050            2,861
    Long term prepaid rent                          1,138            1,223
    Intangible assets                                 821              837
    Goodwill                                        2,712            2,711
    Long term investment                                2                2

    Total assets                                  514,538          527,631

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities:
    Accounts payable-trade                          9,110            8,300
    Accrued expenses and other current
     liabilities                                   32,930           45,398
    Income tax payable                              6,189            7,801
    Amount due to related parties                      36               51
    Deferred revenue                               71,061           57,941

    Total current liabilities                     119,326          119,491

    Deferred tax liabilities                          142              149

    Total long-term liabilities                       142              149

    Total liabilities                             119,468          119,640

    Total New Oriental Education &
     Technology Group Inc. shareholders'
     equity                                       395,157          407,991

    Noncontrolling interest (note 1)                  (87)              --

    Total equity                                  395,070          407,991

    Total liabilities and equity                  514,538          527,631



                 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             (In thousands except for per share and per ADS amounts)

                                        For the Three Months Ended November 30
                                                     2009              2008
                                                      USD               USD
    Net Revenues:
    Educational Programs and services               53,581            43,833
    Books and others                                 7,614             5,597
    Total net revenues                              61,195            49,430

    Operating costs and expenses (note 2):
    Cost of revenues                                27,823            21,719
    Selling and marketing                           11,676             8,291
    General and administrative                      22,607            18,550

    Total operating costs and expenses              62,106            48,560
    Operating income (loss)                           (911)              870

    Other income, net                                1,635             2,605

    Provision for income taxes                         296              (411)
    Less: Net income attributable to the
     noncontrolling interest (note 3)                   87                --

     Net income attributable to New
      Oriental Education & Technology
      Group Inc.                                     1,107             3,064

    Net income per share-basic                        0.01              0.02
    Net income per share-diluted                      0.01              0.02

    Net income per ADS-basic (note 4)                 0.03              0.08
    Net income per ADS-diluted (note 4)               0.03              0.08



    Notes:
    Note 1: Amount in relation to noncontrolling interest, formerly named
            minority interest, as of May 31, 2009 is separately presented as a
            component of stockholders' equity on the unaudited condensed
            consolidated financial statements in accordance with FASB
            Statement No. 160, Noncontrolling Interest, which was adopted by
            the Company on June 1, 2009.
    Note 2: Share-based compensation expenses (in thousands) are included in
            the operating costs and expenses as follows:

                                        For the Three Months Ended November 30
                                                     2009              2008
                                                  (Unaudited)      (Unaudited)
                                                      USD               USD
    Cost of revenues                                   173                83
    Selling and marketing                               52                52
    General and administrative                       4,138             4,177
    Total                                            4,363             4,312


    Note 3: Amount in relation to noncontrolling interest, formerly named
            minority interest, for the three-month period ended November 30,
            2008 is reclassified in accordance with FASB Statement No. 160,
            Noncontrolling Interest, which was adopted by the Company on June
            1, 2009.
    Note 4: Each ADS represents four common shares.



                 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
    RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES
                 (In thousands except share and per ADS amounts)

                                        For the Three Months Ended November 30
                                                    2009              2008
                                                 (Unaudited)       (Unaudited)
                                                     USD               USD

    General and administrative expenses             22,607            18,550
    Share-based compensation expense in
     general and administrative expenses             4,138             4,177
    Non-GAAP general and administrative
     expenses                                       18,469            14,373

    Total operating costs and expenses              62,106            48,560
    Share-based compensation expenses                4,363             4,312
    Non-GAAP operating costs and expenses           57,743            44,248

    Operating income (loss)                           (911)              870
    Share-based compensation expenses                4,363             4,312
    Non-GAAP operating income                        3,452             5,182

    Operating margin                                 -1.5%              1.8%
    Non-GAAP operating margin                         5.6%             10.5%

    Net income                                       1,107             3,064
    Share-based compensation expense                 4,363             4,312
    Non-GAAP net income                              5,470             7,376

    Net income per ADS - basic (note 1)               0.03              0.08
    Net income per ADS - diluted (note 1)             0.03              0.08

    Non-GAAP net income per ADS - basic
     (note 1)                                         0.15              0.20
    Non-GAAP net income per ADS - diluted
     (note 1)                                         0.14              0.19

    Weighted average shares used in
     calculating basic net income per ADS
     (note 1)                                  150,684,203       148,852,433
    Weighted average shares used in
     calculating diluted net income per
     ADS (note 1)                              154,578,625       153,437,244

    Note 1: Each ADS represents four common shares.




                 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             (In thousands except for per share and per ADS amounts)

                                          For the Six Months Ended November 30
                                                    2009              2008
                                                     USD               USD
    Net Revenues:
    Educational Programs and services              196,002           155,054
    Books and others                                14,557            12,638
    Total net revenues                             210,559           167,692

    Operating costs and expenses (note 1):
    Cost of revenues                                75,475            60,205
    Selling and marketing                           27,186            18,150
    General and administrative                      47,878            39,602

    Total operating costs and expenses             150,539           117,957
    Operating income                                60,020            49,735

    Other income, net                                3,098             4,468

    Provision for income taxes                      (5,270)           (6,637)
    Less: Net income attributable to the
     noncontrolling interest (note 2)                  325               401

     Net income attributable to New
      Oriental Education & Technology
      Group Inc.                                    58,173            47,967

    Net income per share-basic                        0.39              0.32
    Net income per share-diluted                      0.38              0.31

    Net income per ADS-basic (note 3)                 1.54              1.29
    Net income per ADS-diluted (note 3)               1.50              1.25



    Notes:
    Note 1: Share-based compensation expenses (in thousands) are included in
            the operating costs and expenses as follows:

                                          For the Six Months Ended November 30
                                                     2009              2008
                                                  (Unaudited)      (Unaudited)
                                                      USD               USD
    Cost of revenues                                   366               313
    Selling and marketing                              106               114
    General and administrative                       7,592             7,769
    Total                                            8,064             8,196

    Note 2: Amount in relation to noncontrolling interest, formerly named
            minority interest, for the six-month period ended November 30,
            2008 is reclassified in accordance with FASB Statement No. 160,
            Noncontrolling Interest, which was adopted by the Company on June
            1, 2009
    Note 3: Each ADS represents four common shares.



                 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
    RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES
                 (In thousands except share and per ADS amounts)

                                         For the Six Months Ended November 30
                                                    2009              2008
                                                 (Unaudited)       (Unaudited)
                                                     USD               USD

    General and administrative expenses             47,878            39,602
    Share-based compensation expense in
     general and administrative expenses             7,592             7,769
    Non-GAAP general and administrative
     expenses                                       40,286            31,833

    Total operating costs and expenses             150,539           117,957
    Share-based compensation expenses                8,064             8,196
    Non-GAAP operating costs and expenses          142,475           109,761

    Operating income                                60,020            49,735
    Share-based compensation expenses                8,064             8,196
    Non-GAAP operating income                       68,084            57,931

    Operating margin                                 28.5%             29.7%
    Non-GAAP operating margin                        32.3%             34.5%

    Net income                                      58,173            47,967
    Share-based compensation expense                 8,064             8,196
    Non-GAAP net income                             66,237            56,163

    Net income per ADS - basic (note 1)               1.54              1.29
    Net income per ADS - diluted (note 1)             1.50              1.25

    Non-GAAP net income per ADS - basic
     (note 1)                                         1.76              1.51
    Non-GAAP net income per ADS - diluted
     (note 1)                                         1.71              1.46

    Weighted average shares used in
     calculating basic net income per ADS
     (note 1)                                  150,638,331       148,770,074
    Weighted average shares used in
     calculating diluted net income per
     ADS (note 1)                              154,726,841       153,718,565

    Note 1: Each ADS represents four common shares.


    For investor and media inquiries, please contact:

    In China:
     Ms. Sisi Zhao
     New Oriental Education and Technology Group Inc.
     Tel:   +86-10-6260-5568
     Email: zhaosisi@staff.neworiental.org

     Ms. Courtney Shike
     Brunswick Group LLC
     Tel:   +86-10-6566-2256
     Email: cshike@brunswickgroup.com

   In the U.S.:
     Ms. Kate Tellier
     Brunswick Group LLC
     Tel:   +1-212-333-3810
     Email: ktellier@brunswickgroup.com

BEIJING, Oct. 20 /PRNewswire-Asia/ -- New Oriental Education and Technology Group Inc. (the "Company" or "New Oriental") (NYSE: EDU - News), the largest provider of private educational services in China, today announced its unaudited financial results for the first quarter ended August 31, 2009, which is the first quarter of New Oriental's fiscal year 2010.

    Highlights for the First Fiscal Quarter Ended August 31, 2009
    -- Total net revenues increased by 26.3% year-over-year to US$149.4
       million from US$118.3 million in the same period of the prior fiscal
       year.
    -- GAAP net income increased by 27.1% year-over-year to US$57.1 million
       from US$44.9 million in the same period of the prior fiscal year.
       Non-GAAP net income, which excludes share-based compensation expenses,
       increased by 24.6% year-over-year to US$60.8 million from US$48.8
       million in the same period of the prior fiscal year.
    -- GAAP income from operations increased by 24.7% year-over-year to
       US$60.9 million from US$48.9 million in the same period of the prior
       fiscal year. Non-GAAP income from operations increased by 22.5%
       year-over-year to US$64.6 million from US$52.7 million in the same
       period of the prior fiscal year.
    -- GAAP basic and diluted net income per ADS were US$1.52 and US$1.47,
       respectively. Non-GAAP basic and diluted net income per ADS were
       US$1.61 and US$1.57, respectively. Each ADS represents four common
       shares of the Company.
    -- Total student enrollments in language training and test preparation
       courses increased by 18.7% year-over-year to approximately 647,500 from
       approximately 545,400 in the same period of the prior fiscal year.
    -- The total number of schools and learning centers increased to 287 as of
       August 31, 2009, up from 270 as of May 31, 2008. The total number of
       schools remained at 48, located in 40 cities, as of August 31, 2009.
       The number of learning centers increased by 17 in the quarter to 239 as
       of August 31, 2009, up from 222 as of May 31, 2009.



    Financial and Student Enrollments Summary - First Quarter 2010
    (US$ 000, except per ADS data and student enrollments)

                                      Q1 of FY2010  Q1 of FY2009   Pct. Change
    Net revenues                         149,364       118,262         26.3 %
    Non-GAAP net income (1)               60,767        48,787         24.6 %
    GAAP Net income                       57,066        44,903         27.1 %
    Non-GAAP operating income (1)         64,632        52,749         22.5 %
    GAAP Operating income                 60,931        48,865         24.7 %
    Non-GAAP net income per ADS
     basic (1)(2)                           1.61          1.31         23.0 %
    Non-GAAP net income per ADS
     diluted (1)(2)                         1.57          1.27         23.9 %
    GAAP Net income per ADS basic (2)       1.52          1.21         25.5 %
    GAAP Net income per ADS diluted (2)     1.47          1.17         26.4 %
    Total student enrollments in
     language training and test
     preparation courses                 647,500       545,400         18.7 %

    (1) New Oriental provides net income, operating income, and net income per
        ADS on a Non-GAAP basis that excludes share-based compensation
        expenses to reflect meaningful supplemental information regarding its
        performance and liquidity. For more information on these Non-GAAP
        financial measures, please see the table captioned "Reconciliation of
        Non-GAAP measures to the most comparable GAAP measures" set forth at
        the end of this release.
    (2) Each ADS represents four common shares.

"We are pleased to finish the first quarter of fiscal year 2010 with revenue growth of 26.3% to approximately US$149.4 million and even higher net income growth of 27.1% to over US$57 million," said Mr. Michael Yu, New Oriental's chairman and chief executive officer. "Strong first fiscal quarter student enrollments, with enrollment growth in language training and test preparation courses increasing 18.7% year-over-year to over 647,500, drove solid results despite the global economic slowdown and challenges resulting from the H1N1 flu pandemic. We estimate that the H1N1 flu pandemic negatively impacted our top line growth by 2-4% with a more significant negative percentage impact on our bottom line for the quarter. In particular, fear of the H1N1 flu adversely impacted enrollments as we received tens of thousands of inquiries from concerned parents and students, and a large percentage of the students decided not to enroll in New Oriental classes during the summer as an extra precaution. Further, we experienced record cancellations and deferments in enrollments from registered students, and we closed or cancelled classes and summer camps across China whenever an enrolled student was diagnosed with the H1N1 flu, as required by applicable local health regulations. We are hopeful that the adverse effects on our business from the fear of H1N1 will gradually subside as the H1N1 flu vaccine has been made available in China this month and will become widely available across the country with over 60 million doses planned in the months ahead. Our strong financial results in the face of these challenging external factors underline the strength of the New Oriental brand and the important role we play in the lives of Chinese students."

Mr. Yu continued, "We are delighted and excited to announce that during the quarter we officially launched our customized learning program for 6- to 18-year-olds, offering one-to-one tutoring and small class size tutoring (up to five students per class), in all subjects classes required for the gaokao (Chinese National College Entrance Examination) and zhongkao (Chinese National High School Entrance Examination). This will complement our very successful U-Can program, launched last year targeting class sizes of 20 to 50 students, which recorded over 55,000 enrollments in non-English subjects in its first year. This two-pronged strategy of offering affordable larger classes of 20 or more students and higher priced individualized small and one-to-one classes for school aged students will enable New Oriental to expand our leading position in the multi-billion dollar after school training market in China, targeting the approximately 190 million students aged 6 to 18 years old. We are targeting over US$25 million in revenue in fiscal year 2010 from non-English U-Can and our new individualized small class offerings, more than triple the revenue generated from U-Can last fiscal year."

Louis T. Hsieh, New Oriental's president and chief financial officer, stated, "During the first fiscal quarter notwithstanding the challenges to our business posed by the fear of the H1N1 flu, we saw continued strong growth in our three key growth segments; (i) POP Kids English with enrollments up over 34% to approximately 131,200 and over 40% revenue growth, (ii) English for Middle and High School Students enrollments, including U-Can, up over 18% to approximately 157,800 and over 40% revenue growth, and U-Can non-English all subjects enrollments up over 100% to approximately 32,400, and (iii) Overseas Test Preparation with enrollments up over 14% to approximately 74,800 and over 27% revenue growth. We recorded blended average selling price growth of approximately 9.5% for the quarter, mostly driven by students electing higher priced smaller size class offerings."

Financial Results for the Fiscal Quarter Ended August 31, 2009

For the first fiscal quarter of 2010, New Oriental reported net revenues of US$149.4 million, representing a 26.3% increase year-over-year.

Net revenues from educational programs and services for the first fiscal quarter were US$142.4 million, representing a 28.1% increase year-over-year. The growth was mainly driven by the increase in the number of student enrollments in language training and test preparation courses. Total student enrollments in language training and test preparation courses in the first quarter of fiscal year 2010 increased by 18.7% year-over-year to approximately 647,500 from approximately 545,400 in the same period of the prior fiscal year.

GAAP operating costs and expenses for the quarter were US$88.4 million, a 27.4% increase year-over-year. Non-GAAP operating costs and expenses for the quarter were US$84.7 million, a 29.3% increase year-over-year.

Cost of revenues increased by 23.8% year-over-year to US$47.7 million, primarily due to the increased number of courses and the greater number of schools and learning centers in operation.

Selling and marketing expenses increased by 57.3% year-over-year to US$15.5 million, primarily due to new program and brand promotion expenses related to POP Kids English, U-Can and the launch of New Oriental's customized learning program.

GAAP general and administrative expenses were US$25.3 million, a 20.0% increase year-over-year. Non-GAAP general and administrative expenses for the quarter increased by 25.0% year-over-year to US$21.8 million, primarily due to increased headcount as the Company expanded its network of schools and learning centers.

Total share-based compensation expenses, which were allocated to related operating costs and expenses, decreased slightly to US$3.7 million in the first quarter of fiscal year 2010 from US$3.9 million in the same period of the prior fiscal year.

GAAP income from operations for the quarter was US$60.9 million, a 24.7% increase from US$48.9 million in the same period of the prior fiscal year, and Non-GAAP income from operations for the quarter was US$64.6 million, compared to US$52.7 million in the same period of the prior fiscal year.

GAAP operating margin for the quarter was 40.8%, compared to 41.3% in the same period of the prior fiscal year. Non-GAAP operating margin for the quarter was 43.3%, compared to 44.6% in the same period of the prior fiscal year. This decline in operating margin was primarily due to increased marketing expenses related to POP Kids English, U-Can and the launch of New Oriental's customized learning program.

GAAP net income for the quarter was US$57.1 million, representing a 27.1% increase from the same period of the prior fiscal year. Basic and diluted net income per ADS were US$1.52 and US$1.47, respectively.

Non-GAAP net income was US$60.8 million, representing a 24.6% increase from the same period of the prior fiscal year. Non-GAAP basic and diluted net income per ADS were US$1.61 and US$1.57, respectively.

Capital expenditures for the quarter were US$5.2 million, which was primarily used to add a net of 17 new learning centers and remodel older learning centers during the quarter.

As of August 31, 2009, New Oriental had cash and cash equivalents of US$238.7 million, as compared to US$254.8 million as of May 31, 2009. In addition, the Company had US$129.0 million in term deposits at the end of the quarter. Net operating cash flow for the first quarter of fiscal year 2010 was US$61.2 million.

The deferred revenue balance (cash collected from registered students for courses and recognized proportionally as revenue as the instructions are delivered) at the end of the first quarter of fiscal year 2010 was US$57.9 million, an increase of 36.2% from US$42.6 million at the end of the first quarter of fiscal year 2009.

Outlook for Second Quarter of Fiscal Year 2010

New Oriental expects its total net revenues in the second quarter of fiscal year 2010 (September 1, 2009 to November 30, 2009) to be in the range of US$60.8 million to US$62.8 million, representing year-over-year growth in the range of 23.0% to 27.0%, respectively. We expect our student enrollments to continue to be negatively impacted by fear of the H1N1 flu during our second fiscal quarter. This forecast reflects New Oriental's current and preliminary view, which is subject to change.

Conference Call Information

New Oriental's management will host an earnings conference call at 8 AM on October 20, 2009 U.S. Eastern Time (8 PM on October 20, 2009 Beijing/Hong Kong time).

Dial-in details for the earnings conference call are as follows: US: +1-617-213-8837 Hong Kong: +852-3002-1672 UK: +44-207-365-8426

Please dial-in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is "New Oriental earnings call."

A replay of the conference call may be accessed by phone at the following number until October 27, 2009:

International: +1-617-801-6888

Passcode: 80512116

Additionally, a live and archived webcast of the conference call will be available at http://investor.neworien... .

About New Oriental

New Oriental is the largest provider of private educational services in China based on the number of program offerings, total student enrollments and geographic presence. New Oriental offers a wide range of educational programs, services and products consisting primarily of English and other foreign language training, test preparation courses for major admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education. New Oriental's ADSs, each of which represents four common shares, currently trade on the New York Stock Exchange under the symbol "EDU."

For more information about New Oriental, please visit http://english.neworient... .

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the outlook for the second quarter of fiscal year 2010 and quotations from management in this announcement, as well as New Oriental's strategic and operational plans, contain forward-looking statements. New Oriental may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about New Oriental's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our ability to attract students without a significant decrease in course fees; our ability to continue to hire, train and retain qualified teachers; our ability to maintain and enhance our "New Oriental" brand; health epidemics and other outbreaks in China; our ability to effectively and efficiently manage the expansion of our school network and successfully execute our growth strategy; the outcome of ongoing, or any future, litigation or arbitration, including those relating to copyright and other intellectual property rights; competition in the private education sector in China; changes in our revenues and certain cost or expense items as a percentage of our revenues; the expected growth of the Chinese private education market; Chinese governmental policies relating to private educational services and providers of such services; and general economic conditions in China. Further information regarding these and other risks is included in our annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. New Oriental does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and New Oriental undertakes no duty to update such information, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement New Oriental's consolidated financial results presented in accordance with GAAP, New Oriental uses the following measures defined as non-GAAP financial measures by the SEC: net income excluding share-based compensation expenses, operating income excluding share-based compensation expenses, operating costs and expenses excluding share-based compensation expenses, general and administrative expenses excluding share-based compensation expenses, operating margin excluding share-based compensation expenses, and basic and diluted net income per ADS excluding share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliation of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.

New Oriental believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based compensation expenses that may not be indicative of its operating performance from a cash perspective. New Oriental believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to New Oriental's historical performance and liquidity. New Oriental computes its non-GAAP financial measures using the same consistent method from quarter to quarter. New Oriental believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude the share-based compensation charge that has been and will continue to be for the foreseeable future a significant recurring expense in our business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

For investor and media inquiries, please contact: In China: Ms. Maria Xin New Oriental Education and Technology Group Inc. Tel: +86-10-6260-5566 x8931 Email: xinyi@staff.neworiental.org Ms. Courtney Shike Brunswick Group LLC Tel: +86-10-6566-2256 Email: cshike@brunswickgroup.com In the U.S.: Ms. Kate Tellier Brunswick Group LLC Tel: +1-212-333-3810 Email: ktellier@brunswickgroup.com NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) As of August 31, As of May 31, 2009 2009 (Unaudited) (Unaudited) USD USD ASSETS: Current assets: Cash and cash equivalents 238,709 254,772 Restricted cash 541 540 Term deposits 129,027 59,845 Accounts receivable, net 1,985 1,539 Inventory 13,672 15,188 Deferred tax assets-Current 1,855 1,621 Prepaid expenses and other current assets 16,963 14,222 Total current assets 402,752 347,727 Property, plant and equipment, net 112,721 109,785 Land use right, net 3,464 3,485 Amounts due from related parties 396 396 Deferred tax assets 664 1,077 Long term deposit 2,861 2,021 Long term prepaid rent 1,223 1,331 Intangible assets 837 866 Goodwill 2,711 2,712 Long term investment 2 2 Total assets 527,631 469,402 LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable-trade 8,300 9,295 Accrued expenses and other current liabilities 45,398 29,854 Income tax payable 7,801 3,728 Amount due to related parties 51 102 Deferred revenue 57,941 74,782 Total current liabilities 119,491 117,761 Deferred tax liabilities 149 157 Total long-term liabilities 149 157 Total liabilities 119,640 117,918 Total New Oriental Education & Technology Group Inc. shareholders' equity 407,991 351,246 Noncontrolling interests (note 1) 0 238 Total equity 407,991 351,484 Total liabilities and equity 527,631 469,402 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except for per share and per ADS amounts) For the Three Months Ended August 31, 2009 2008 (Unaudited) (Unaudited) USD USD Net Revenues: Educational Programs and services 142,421 111,221 Books and others 6,943 7,041 Total net revenues 149,364 118,262 Operating costs and expenses (note 2): Cost of revenues 47,652 38,486 Selling and marketing 15,510 9,859 General and administrative 25,271 21,052 Total operating costs and expenses 88,433 69,397 Operating income 60,931 48,865 Other income, net 1,463 1,863 Provision for income taxes (5,566) (6,226) Less: Net income attributable to the noncontrolling interests (note 3) 238 401 Net income attributable to New Oriental Education & Technology Group Inc. 57,066 44,903 Net income per share-basic 0.38 0.30 Net income per share-diluted 0.37 0.29 Net income per ADS-basic (note 4) 1.52 1.21 Net income per ADS-diluted (note 4) 1.47 1.17 Notes: Note 1: Amount in relation to noncontrolling interest, formerly named minority interest, as of May 31, 2009 is reclassified in accordance with FASB Statement No. 160, Noncontrolling Interest, which was adopted by the Company on June 1, 2009 Note 2: Share-based compensation expenses (in thousands) are included in the operating costs and expenses as follows: For the Three Months Ended August 31, 2009 2008 (Unaudited) (Unaudited) USD USD Cost of revenues 193 230 Selling and marketing 54 62 General and administrative 3,454 3,592 Total 3,701 3,884 Note 3: Amount in relation to noncontrolling interest, formerly named minority interest, for the three-month period ended August 31, 2008 is reclassified in accordance with FASB Statement No. 160, Noncontrolling Interest, which was adopted by the Company on June 1, 2009. Note 4: Each ADS represents four common shares. NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES (In thousands except share and per ADS amounts) For the Three Months Ended August 31, 2009 2008 (Unaudited) (Unaudited) USD USD General and administrative expenses 25,271 21,052 Share-based compensation expense in general and administrative expenses 3,454 3,592 Non-GAAP general and administrative expenses 21,817 17,460 Total operating costs and expenses 88,433 69,397 Share-based compensation expenses 3,701 3,884 Non-GAAP operating costs and expenses 84,732 65,513 Operating income 60,931 48,865 Share-based compensation expenses 3,701 3,884 Non-GAAP operating income 64,632 52,749 Operating margin 40.8% 41.3% Non-GAAP operating margin 43.3% 44.6% Net income 57,066 44,903 Share-based compensation expense 3,701 3,884 Non-GAAP net income 60,767 48,787 Net income per ADS - basic (note 1) 1.52 1.21 Net income per ADS - diluted (note 1) 1.47 1.17 Non-GAAP net income per ADS - basic (note 1) 1.61 1.31 Non-GAAP net income per ADS - diluted (note 1) 1.57 1.27 Weighted average shares used in calculating basic net income per ADS (note 1) 150,592,959 148,688,611 Weighted average shares used in calculating diluted net income per ADS (note 1) 154,875,557 154,000,783 Note 1: Each ADS represents four common shares.

New Oriental Education and Technology Group Inc. (the "Company" or "New Oriental") (NYSE: EDU - News), the largest provider of private educational services in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended May 31, 2009.

Highlights for the Fourth Fiscal Quarter Ended May 31, 2009 -- Total net revenues increased by 47.9% year-over-year to US$59.4 million from US$40.2 million in the same period of the prior fiscal year. -- Non-GAAP net income, which excludes share-based compensation expenses, increased by 58.0% year-over-year to US$7.1 million from US$4.5 million in the same period of the prior fiscal year. GAAP net income increased by 49.8% year-over-year to US$2.6 million from US$1.8 million in the same period of the prior fiscal year. -- Non-GAAP income from operations, which excludes share-based compensation expenses, increased by 175.1% year-over-year to US$7.0 million from US$2.5 million in the same period of the prior fiscal year. GAAP income from operations increased to US$2.5 million from a loss of US$0.2 million in the same period of the prior fiscal year. -- Non-GAAP basic and diluted earnings per ADS, which excludes share-based compensation expenses, were US$0.19 and US$0.19, respectively. GAAP basic and diluted earnings per ADS were US$0.07 and US$0.07, respectively. Each ADS represents four common shares of the Company. -- Total student enrollments in language training and test preparation courses increased by 8.2% year-over-year to approximately 330,200 from approximately 305,200 in the same period of the prior fiscal year. Highlights for the Fiscal Year Ended May 31, 2009 -- Total net revenues for the fiscal year increased by 45.6% year-over-year to US$292.6 million from US$201.0 million. -- Non-GAAP net income for the fiscal year increased by 34.6% year-over-year to US$77.8 million from US$57.8 million. GAAP net income increased by 24.5% year-over-year to US$61.0 million from US$49.0 million. -- Non-GAAP income from operations for the fiscal year increased by 43.6% year-over-year to US$77.7 million from US$54.1 million. GAAP income from operations increased by 34.4% year-over-year to US$60.9 million from US$45.3 million. -- Non-GAAP basic and diluted earnings per ADS for the fiscal year were US$2.09 and US$2.03, respectively. GAAP basic and diluted earnings per ADS were US$1.64 and US$1.59, respectively. Each ADS represents four common shares of the Company. -- Total student enrollments in language training and test preparation courses increased by 19.5% year-over-year to approximately 1,519,500 from approximately 1,271,700 in the prior fiscal year. -- The total number of schools and learning centers increased to 270 as of May 31, 2009, up from 207 as of May 31, 2008. One new school was opened in the fourth quarter, bringing the total number of schools to 48 as of May 31, 2009, up from 47 as of February 28, 2009. The number of learning centers increased by 12 in the quarter to 222 as of May 31, 2009, up from 210 as of February 28, 2009. Financial and Student Enrollments Summary - Fourth Quarter and Fiscal Year 2009 (US$ in thousands, except per ADS data and student enrollments) Q4 of FY2009 Q4 of FY2008 Pct. Change Net revenues 59,426 40,168 47.9% Non-GAAP net income (1) 7,122 4,507 58.0% GAAP net income 2,640 1,762 49.8% Non-GAAP operating income (1) 6,979 2,537 175.1% GAAP operating income 2,497 (208) 1300.5% Non-GAAP net income per ADS basic (1)(2) 0.19 0.12 58.4% Non-GAAP net income per ADS diluted (1)(2) 0.19 0.12 60.5% GAAP net income per ADS basic (2) 0.07 0.05 50.2% GAAP net income per ADS diluted (2) 0.07 0.05 52.2% Total student enrollments in language training and test preparation courses 330,200 305,200 8.2% FY2009 FY2008 Pct. Change Net revenues 292,567 201,003 45.6% Non-GAAP net income (1) 77,766 57,755 34.6% GAAP net income 61,016 49,013 24.5% Non-GAAP operating income (1) 77,670 54,077 43.6% GAAP operating income 60,920 45,335 34.4% Non-GAAP net income per ADS basic (1)(2) 2.09 1.54 35.5% Non-GAAP net income per ADS diluted (1)(2) 2.03 1.48 37.2% GAAP net income per ADS basic (2) 1.64 1.31 25.2% GAAP net income per ADS diluted (2) 1.59 1.25 26.9% Total student enrollments in language training and test preparation courses 1,519,500 1,271,700 19.5% (1) New Oriental provides net income, operating income, net income per ADS on a Non-GAAP basis that excludes share-based compensation expenses to reflect meaningful supplemental information regarding its performance and liquidity. For more information on these Non-GAAP financial measures, please see the table captioned "Reconciliations of Non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release. (2) Each ADS represents four common shares.

"We are pleased to finish our 2009 fiscal year with a strong fourth fiscal quarter, recording revenue growth of 47.9% and even higher non-GAAP operating income growth of 175%," said Michael Yu, New Oriental's chairman and chief executive officer. "This brings our net revenue for the 2009 fiscal year to US$292.6 million, an increase of 45.6% year-over-year, and non-GAAP operating income to US$77.7 million for the fiscal year, an increase of 43.6% year-over-year. Further, we achieved non-GAAP EPS of US$2.09 per ADS, up over 35% year-over-year. We attained these financial results notwithstanding the current global economic slowdown, the aftermath of the Sichuan earthquake, the negative impact of the Beijing Olympics on our all-important summer quarter in 2008 and the current challenges posed by the H1N1 flu outbreak. This is a testament to the strength of the New Oriental brand in China and the determination of Chinese families to make the education of their child or children a top priority."

"New Oriental's objective is to be the lifelong education partner of Chinese students from age five through adulthood. To accomplish this goal, we strive to provide the best quality language training and test preparation programs to meet the needs of Chinese families," concluded Mr. Yu.

New Oriental's president and chief financial officer, Louis T. Hsieh, stated, "Our strong student enrollment growth in language training and test preparation courses continued in fiscal year 2009 with 1,519,500 enrollments, an increase of 19.5% year-over-year, which allowed us to achieve our target of between 1,475,000 and 1,500,000 student enrollments for fiscal year 2009. We also continued executing our expansion plan in the fourth fiscal quarter by opening one new school in the city of Xuzhou and adding a net of 12 new learning centers in more than 10 existing cities. Including these additions, we added a total of 63 new facilities in fiscal year 2009, consisting of 7 schools and 56 learning centers, which brings our total number of schools and learning centers to 270 at the end of fiscal year 2009."

Mr. Hsieh continued, "We have rolled out U-Can all-subjects middle and high school training program in more than 30 cities throughout China with enrollments of more than 13,000 in non-English subject classes in the fourth fiscal quarter, which brings the enrollments in non-English courses for the whole fiscal year 2009 to over 58,000, exceeding the top end of our target of 40,000 to 50,000. We are also pleased to see continued high growth in our POP Kids English program for ages 5 to 12 with over 67,400 enrollments in the fourth fiscal quarter, an increase of 48% year-over-year, bringing our total POP Kids enrollments for fiscal year 2009 to over 307,800, an increase of 50% year-over-year. Although it is early in the quarter, we are pleased to report that this strong momentum in POP Kids English and middle school U-Can program enrollments has carried into our current all-important summer quarter, the first quarter of fiscal year 2010."

Recent Developments -- Adoption of Share Repurchase Program

On July 20, 2009, New Oriental's board of directors authorized the repurchase of up to US$30 million of the Company's ADSs during the period from August 5, 2009 through December 31, 2009.

Under this share repurchase program, the ADSs will be purchased from time to time on the open market at prevailing market prices, in negotiated transactions off the market, in block trades, pursuant to a 10b5-1 plan (which allows New Oriental to repurchase its ADSs during periods in which it may be in possession of material non-public information) or otherwise, subject to any restrictions under applicable law. The timing and extent of any purchases will depend upon market conditions, the trading price of ADSs and other factors.

New Oriental expects to implement this share repurchase program in a manner consistent with market conditions and the interests of the shareholders. New Oriental's board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size accordingly. New Oriental plans to fund repurchases made under this program from available cash balance.

Financial Results for the Fiscal Quarter Ended May 31, 2009

For the fourth fiscal quarter of 2009, New Oriental reported net revenues of US$59.4 million, representing a 47.9% increase year-over-year.

Net revenues from educational programs and services for the fourth fiscal quarter were US$51.3 million, representing a 45.7% increase year-over-year. The growth was mainly driven by the increase in the number of student enrollments in language training and test preparation courses. Total student enrollments in language training and test preparation courses in the fourth quarter of fiscal year 2009 increased by 8.2% year-over-year to approximately 330,200 from approximately 305,200 in the same period of the prior fiscal year.

Non-GAAP operating costs and expenses for the quarter were US$52.4 million, a 39.4% increase year-over-year. GAAP operating costs and expenses for the quarter were US$56.9 million, a 41.0% increase year-over-year.

Cost of revenues increased by 45.9% year-over-year to US$25.8 million, primarily due to the increased number of courses and the greater number of schools and learning centers in operation.

Selling and marketing expenses increased by 36.8% year-over-year to US$10.3 million, primarily due to selling and marketing department headcount, which includes registration verification personnel, increasing by about 500 over the same period of the prior fiscal year, and increased brand promotion expenses.

Non-GAAP general and administrative expenses were US$16.6 million, a 30.7% increase year-over-year. GAAP general and administrative expenses for the quarter increased by 37.4% year-over-year to US$20.9 million, primarily due to increased headcount as the Company expanded its network of schools and learning centers.

Total share-based compensation expenses, which were allocated to related operating costs and expenses, increased by 63.3% to US$4.5 million in the fourth quarter of fiscal year 2009 from US$2.7 million in the same period of the prior fiscal year. Approximately US$746,000 of the increase was due to a year-end adjustment to account for a lower-than-expected forfeiture rate in fiscal year 2009 due to the fact that fewer New Oriental employees who received stock-based compensation awards left the Company and forfeited their unvested awards than anticipated.

Non-GAAP income from operations for the quarter was US$7.0 million, a 175.1% increase from US$2.5 million in the same period of the prior fiscal year, and GAAP income from operations for the quarter was US$2.5 million, compared to a loss of US$0.2 million in the same period of the prior fiscal year.

Non-GAAP operating margin for the quarter was 11.7%, compared to 6.3% in the same period of the prior fiscal year. GAAP operating margin for the quarter was 4.2%, compared to negative 0.5% in the same period of the prior fiscal year. This rise was primarily due to improved operating efficiency as revenue growth outpaced the growth in operating cost and expenses.

Non-GAAP net income was US$7.1 million, representing a 58.0% increase from the same period of the prior fiscal year. Basic and diluted earnings per ADS excluding share-based compensation expenses (Non-GAAP) were US$0.19 and US$0.19, respectively.

GAAP net income for the quarter was US$2.6 million, representing a 49.8% increase from the same period of the prior fiscal year. Basic and diluted earnings per ADS were US$0.07 and US$0.07, respectively.

Capital expenditures for the quarter were US$2.9 million, which were primarily used to add one new school and a net of 12 new learning centers in the quarter.

As of May 31, 2009, New Oriental had cash and cash equivalents of US$254.8 million, as compared to US$224.0 million as of February 28, 2009. In addition, the Company had US$59.8 million in term deposits at the end of the quarter. Net operating cash flow for the fourth quarter of fiscal year 2009 was approximately US$28 million.

The deferred revenue balance, which is cash collected from registered students for courses and recognized proportionally as revenue as the instructions are delivered, at the end of the fourth quarter of fiscal year 2009 was US$74.8 million, an increase of 26.3% as compared to US$59.2 million at the end of the fourth quarter of fiscal year 2008.

Financial Results for the Fiscal Year Ended May 31, 2009

For the fiscal year ended May 31, 2009, New Oriental reported net revenues of US$292.6 million, a 45.6% increase year-over-year.

Net revenues from educational programs and services for the fiscal year ended May 31, 2009 were US$266.4 million, representing a 44.8% increase year-over-year. The growth was mainly driven by the increase in the number of student enrollments in language training and test preparation courses. Total student enrollments in language training and test preparation courses for the fiscal year ended May 31, 2009 increased by 19.5% year-over-year to approximately 1,519,500 from approximately 1,271,700 in the fiscal year ended May 31, 2008.

Non-GAAP income from operations for the fiscal year ended May 31, 2009 was US$77.7 million, a 43.6% increase year-over-year. GAAP income from operations for the fiscal year ended May 31, 2009 was US$60.9 million, a 34.4% increase year-over-year.

Non-GAAP operating margin for the fiscal year ended May 31, 2009 was 26.5%, compared to 26.9% for the fiscal year ended May 31, 2008. GAAP operating margin for the fiscal year ended May 31, 2009 was 20.8%, compared to 22.6% for the fiscal year ended May 31, 2008.

Non-GAAP net income for the fiscal year ended May 31, 2009 was US$77.8 million, a 34.6% increase year-over-year. Non-GAAP basic and diluted earnings per ADS for the fiscal year ended May 31, 2009 were US$2.09 and US$2.03, respectively.

GAAP net income for the fiscal year ended May 31, 2009 was US$61.0 million, representing a 24.5% increase year-over-year. GAAP basic and diluted earnings per ADS for the fiscal year ended May 31, 2009 were US$1.64 and US$1.59, respectively.

Outlook for First Quarter of Fiscal Year 2010

New Oriental expects its total net revenues in the first quarter of fiscal year 2010 (June 1, 2009 to August 31, 2009) to be in the range of US$146.6 million to US$152.6 million, representing year-over-year growth in the range of 24% to 29%, respectively. This forecast reflects New Oriental's current and preliminary view, which is subject to change.

Conference Call Information

New Oriental's management will host an earnings conference call at 8 AM on July 21, 2009 U.S. Eastern Time (8 PM on July 21, 2009 Beijing/Hong Kong time).

Dial-in details for the earnings conference call are as follows: US: +1.617.213.8838 Hong Kong: +852.3002.1672 UK: +44.207.365.8426

Please dial-in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is "New Oriental earnings call."

A replay of the conference call may be accessed by phone at the following number until July 28, 2009:

International: +1.617.801.6888

Passcode: 74420799

Additionally, a live and archived webcast of the conference call will be available at http://investor.neworien... .

About New Oriental

New Oriental is the largest provider of private educational services in China based on the number of program offerings, total student enrollments and geographic presence. New Oriental offers a wide range of educational programs, services and products consisting primarily of English and other foreign language training, test preparation courses for major admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education. New Oriental's ADSs, each of which represents four common shares, currently trade on the New York Stock Exchange under the symbol ''EDU.''

For more information about New Oriental, please visit http://english.neworient... .

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the outlook for the first quarter of fiscal year 2010 and quotations from management in this announcement, as well as New Oriental's strategic and operational plans, contain forward-looking statements. New Oriental may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about New Oriental's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our growth strategies; our future business development, results of operations and financial condition; our ability to attract students without a significant decrease in course fees; our ability to continue to hire, train and retain qualified teachers; our ability to maintain and enhance our "New Oriental" brand; our ability to effectively and efficiently manage the expansion of our school network and successfully execute our growth strategy; the outcome of ongoing, or any future, litigation or arbitration, including those relating to copyright and other intellectual property rights; competition in the private education sector in China; changes in our revenues and certain cost or expense items as a percentage of our revenues; the expected growth of the Chinese private education market; Chinese governmental policies relating to private educational services and providers of such services; and general economic conditions in China. Further information regarding these and other risks is included in our annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. New Oriental does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and New Oriental undertakes no duty to update such information, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement New Oriental's consolidated financial results presented in accordance with GAAP, New Oriental uses the following measures defined as non-GAAP financial measures by the SEC: net income excluding share-based compensation expenses, operating income excluding share-based compensation expenses, operating costs and expenses excluding share-based compensation expenses, general and administrative expenses excluding share-based compensation expenses, operating margin excluding share-based compensation expenses, and basic and diluted net income per ADS and per share excluding share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.

New Oriental believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based compensation expenses that may not be indicative of its operating performance from a cash perspective. New Oriental believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to New Oriental's historical performance and liquidity. New Oriental computes its non-GAAP financial measures using the same consistent method from quarter to quarter. New Oriental believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP measures is that they exclude share-based compensation charge that has been and will continue to be for the foreseeable future a significant recurring expense in our business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) As of May 31 As of February 28 2009 2009 (Unaudited) (Unaudited) USD USD ASSETS: Current assets: Cash and cash equivalents 254,772 223,955 Restricted cash 540 531 Term deposits 59,845 62,549 Accounts receivable, net 1,539 1,375 Inventory 15,188 14,514 Deferred tax assets-Current 1,621 1,141 Prepaid expenses and other current assets 14,222 16,053 Total current assets 347,727 320,118 Property, plant and equipment, net 109,785 109,373 Land use right, net 3,485 3,499 Amounts due from related parties 396 395 Deferred tax assets 1,077 1,833 Long term deposit 2,021 -- Long term prepaid rent 1,331 1,439 Intangible assets 866 909 Goodwill 2,712 2,159 Long term investment 2 2 Total assets 469,402 439,727 LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable-trade 9,295 9,194 Accrued expenses and other current liabilities 29,815 28,426 Income tax payable 3,728 4,962 Amount due to related parties 141 54 Deferred revenue 74,782 55,423 Total current liabilities 117,761 98,059 Deferred tax liabilities 157 -- Total long-term liabilities 157 -- Total liabilities 117,918 98,059 Minority interest 238 -- Total shareholders' equity 351,246 341,668 Total liabilities, minority interest and shareholders' equity 469,402 439,727 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except for per share and per ADS amounts) For the Three Months Ended May 31 2009 2008 (Unaudited) (Unaudited) USD USD Net Revenues: Educational Programs and services 51,337 35,226 Books and others 8,089 4,942 Total net revenues 59,426 40,168 Operating costs and expenses (note 1): Cost of revenues 25,771 17,669 Selling and marketing 10,250 7,492 General and administrative 20,908 15,215 Total operating costs and expenses 56,929 40,376 Operating income (loss) 2,497 (208) Other income, net 794 1,119 Provision for income taxes (413) 806 Minority interest, net of taxes (238) 45 Net Income 2,640 1,762 Net income per share-basic 0.02 0.01 Net income per share-diluted 0.02 0.01 Net income per ADS-basic (note 2) 0.07 0.05 Net income per ADS-diluted (note 2) 0.07 0.05 Notes: Note 1: Share-based compensation expenses (in thousands) are included in the operating costs and expenses as follows: For the Three Months Ended May 31 2009 2008 (Unaudited) (Unaudited) USD USD Cost of revenues 138 206 Selling and marketing 63 41 General and administrative 4,281 2,498 Total 4,482 2,745 Note 2: Each ADS represents four common shares. NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES (In thousands except share and per ADS amounts) For the Three Months Ended May 31 2009 2008 (Unaudited) (Unaudited) USD USD General and administrative expenses 20,908 15,215 Share-based compensation expense in general and administrative expenses 4,281 2,498 Non-GAAP general and administrative expenses 16,627 12,717 Total operating costs and expenses 56,929 40,376 Share-based compensation expenses 4,482 2,745 Non-GAAP operating costs and expenses 52,447 37,631 Operating income (loss) 2,497 (208) Share-based compensation expenses 4,482 2,745 Non-GAAP operating income 6,979 2,537 Operating margin 4.2% -0.5% Non-GAAP operating margin 11.7% 6.3% Net income 2,640 1,762 Share-based compensation expense 4,482 2,745 Non-GAAP net income 7,122 4,507 Net income per ADS - basic (note 1) 0.07 0.05 Net income per ADS - diluted (note 1) 0.07 0.05 Non-GAAP net income per ADS - basic (note 1) 0.19 0.12 Non-GAAP net income per ADS - diluted (note 1) 0.19 0.12 Weighted average shares used in calculating basic net income per ADS (note 1) 149,633,634 149,975,585 Weighted average shares used in calculating diluted net income per ADS (note 1) 153,578,336 155,980,034 Note 1: Each ADS represents four common shares. NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except for per share and per ADS amounts) For the Year Ended May 31 2009 2008 (Unaudited) (Unaudited) USD USD Net Revenues: Educational Programs and services 266,389 183,917 Books and others 26,178 17,086 Total net revenues 292,567 201,003 Operating costs and expenses (note 1): Cost of revenues 112,011 77,219 Selling and marketing 38,947 25,617 General and administrative 80,689 52,832 Total operating costs and expenses 231,647 155,668 Operating income 60,920 45,335 Other income, net 7,189 7,149 Provision for income taxes (7,256) (3,644) Minority interest, net of taxes 163 173 Net Income 61,016 49,013 Net income per share-basic 0.41 0.33 Net income per share-diluted 0.40 0.31 Net income per ADS-basic (note 2) 1.64 1.31 Net income per ADS-diluted (note 2) 1.59 1.25 Notes: Note 1: Share-based compensation expenses (in thousands) are included in the operating costs and expenses as follows: For the Year Ended May 31 2009 2008 (Unaudited) (Unaudited) USD USD Cost of revenues 316 707 Selling and marketing 225 226 General and administrative 16,209 7,809 Total 16,750 8,742 Note 2: Each ADS represents four common shares. NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES (In thousands except share and per ADS amounts) For the Year Ended May 31 2009 2008 (Unaudited) (Unaudited) USD USD General and administrative expenses 80,689 52,832 Share-based compensation expense in general and administrative expenses 16,209 7,809 Non-GAAP general and administrative expenses 64,480 45,023 Total operating costs and expenses 231,647 155,668 Share-based compensation expenses 16,750 8,742 Non-GAAP operating costs and expenses 214,897 146,926 Operating income 60,920 45,335 Share-based compensation expenses 16,750 8,742 Non-GAAP operating income 77,670 54,077 Operating margin 20.8% 22.6% Non-GAAP operating margin 26.5% 26.9% Net income 61,016 49,013 Share-based compensation expense 16,750 8,742 Non-GAAP net income 77,766 57,755 Net income per ADS - basic (note 1) 1.64 1.31 Net income per ADS - diluted (note 1) 1.59 1.25 Non-GAAP net income per ADS - basic (note 1) 2.09 1.54 Non-GAAP net income per ADS - diluted (note 1) 2.03 1.48 Weighted average shares used in calculating basic net income per ADS (note 1) 149,090,088 149,992,200 Weighted average shares used in calculating diluted net income per ADS (note 1) 153,528,173 156,449,101 Note 1: Each ADS represents four common shares. For investor and media inquiries, please contact: In China: Ms. Sisi Zhao New Oriental Education and Technology Group Inc. Tel: +86-10-6260-5566 x8203 Email: zhaosisi@staff.neworiental.org Ms. Cynthia He Brunswick Group LLC Tel: +86-10-6566-9504 Email: che@brunswickgroup.com In the U.S.: Ms. Kate Tellier Brunswick Group LLC Tel: +1-212-333-3810 Email: ktellier@brunswickgroup.com

    Dial-in details for the earnings conference call are as follows:

     US:        +1-617-213-8838
     Hong Kong: +852-3002-1672
     UK:        +44-207-365-8426

Please dial-in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is "New Oriental earnings call."

A replay of the conference call may be accessed by phone at the following number until July 28, 2009:

International: +1-617-801-6888

Passcode: 74420799

Additionally, a live and archived webcast of the conference call will be available at http://investor.neworien... .

About New Oriental

New Oriental is the largest provider of private educational services in the People's Republic of China (the "PRC") based on the number of program offerings, total student enrollments and geographic presence. New Oriental offers a wide range of educational programs, services and products consisting primarily of English and other foreign language training, test preparation courses for major admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education. New Oriental's ADSs, each of which represents four common shares, currently trade on the New York Stock Exchange under the symbol "EDU."

For investor and media inquiries, please contact: In China: Ms. Sisi Zhao New Oriental Education and Technology Group Inc. Tel: +86-10-6260-5566 x8203 Email: zhaosisi@staff.neworiental.org Ms. Cynthia He Brunswick Group LLC Tel: +86-10-6566-9504 Email: che@brunswickgroup.com In the U.S.: Ms. Kate Tellier Brunswick Group LLC Tel: +1-212-333-3810 Email: ktellier@brunswickgroup.com

Holders of record of the Company's common shares at the close of business on March 31, 2009 are entitled to vote at the annual general meeting and any adjournment or postponement thereof. Registered holders of the American depositary shares ("ADSs") who wish to exercise their voting rights for the underlying common shares must act through the depositary of the Company's ADSs, Deutsche Bank Trust Company Americas.

The Company has filed its annual report on Form 20-F (the "Annual Report"), which includes the Company's audited financial statements for the fiscal year ended May 31, 2008, with the U.S. Securities and Exchange Commission (the "SEC"). The Company's Annual Report can be accessed on the investor relations section of its website at english.neworiental.org, as well as on the SEC's website at http://www.sec.gov .

Holders of the Company's common shares or ADSs may obtain a hard copy of the Annual Report free of charge by emailing to zhaosisi@staff.neworiental.org or by writing to:

     No. 6 Hai Dian Zhong Street
     Haidian District
     Beijing 100080, People's Republic of China
     Attention: Ms. Sisi Zhao

About New Oriental

New Oriental is the largest provider of private educational services in the People's Republic of China (the "PRC") based on the number of program offerings, total student enrollments and geographic presence. New Oriental offers a wide range of educational programs, services and products consisting primarily of English and other foreign language training, test preparation courses for major admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education. New Oriental's ADSs, each of which represents four common shares, currently trade on the New York Stock Exchange under the symbol "EDU."

    For investor and media inquiries, please contact:

    In China:
     Ms. Sisi Zhao
     New Oriental Education and Technology Group Inc.
     Tel:   +86... x8203
     Email: zhaosisi@staff.neworiental.org

     Ms. Cynthia He
     Brunswick Group LLC
     Tel:   +86-10-6566-9504
     Email: edu@brunswickgroup.com

    In the U.S.:
     Mr. Michael Guerin
     Brunswick Group LLC
     Tel:   +1-212-333-3810
     Email: mguerin@brunswickgroup.com

   Highlights for the Fiscal Quarter Ended February 28, 2009

    -- Total net revenues increased by 36.1% year-over-year to US$65.4 million
       from US$48.1 million in the same period of the prior fiscal year.
    -- Net income excluding share-based compensation expenses ("Non-GAAP")
       increased by 4.3% year-over-year to US$14.5 million from US$13.9
       million in the same period of the prior fiscal year.  GAAP net income
       decreased by 10.3% year-over-year to US$10.4 million from US$11.6
       million in the same period of the prior fiscal year.
    -- Non-GAAP income from operations increased by 2.4% year-over-year to
       US$12.8 million from US$12.5 million in the same period of the prior
       fiscal year. GAAP income from operations decreased by 14.7% year-over-
       year to US$8.7 million from US$10.2 million in the same period of the
       prior fiscal year.
    -- Non-GAAP basic and diluted earnings per ADS were US$0.39 and US$0.38,
       respectively. GAAP basic and diluted earnings per ADS were US$0.28 and
       US$0.27, respectively. Each ADS represents four common shares of the
       Company.
    -- Total student enrollments in language training and test preparation
       courses increased by 31.0% year-over-year to approximately 351,700 from
       approximately 268,400 in the same period of the prior fiscal year.
    -- The total number of schools and learning centers increased by ten to
       257 in the quarter ended February 28, 2009, up from 247 as of the end
       of the prior quarter. New Oriental opened a kindergarten in Nanjing and
       added a net of nine learning centers during the quarter. This brings
       the total number of schools and learning centers to 47 and 210,
       respectively, as of February 28, 2009.

Financial Summary - Third Fiscal Quarter 2009 and First Nine Months of FY2009

(US$ 000, except per ADS data and student enrollments) Q3 of FY2009 Q3 of FY 2008 Pct. Change Net revenues 65,449 48,098 36.1% Non-GAAP net income (1) 14,481 13,886 4.3% GAAP net income 10,409 11,603 -10.3% Non-GAAP operating income (1) 12,760 12,463 2.4% GAAP operating income 8,688 10,180 -14.7% Non-GAAP net income per ADS basic (1)(2) 0.39 0.37 5.3% Non-GAAP net income per ADS diluted (1)(2) 0.38 0.35 7.2% GAAP net income per ADS basic (2) 0.28 0.31 -9.4% GAAP net income per ADS diluted (2) 0.27 0.29 -7.8% Total student enrollments in language training and test preparation courses 351,700 268,400 31.0% YTD 9-Mo YTD 9-Mo Pct. Change FY2009 FY2008 Net revenues 233,141 160,835 45.0% Non-GAAP net income (1) 70,644 53,247 32.7% GAAP net income 58,376 47,251 23.5% Non-GAAP operating income (1) 70,691 51,387 37.6% GAAP operating income 58,423 45,391 28.7% Non-GAAP net income per ADS basic (1)(2) 1.90 1.42 33.6% Non-GAAP net income per ADS diluted (1)(2) 1.84 1.36 35.6% GAAP net income per ADS basic (2) 1.57 1.26 24.4% GAAP net income per ADS diluted (2) 1.52 1.21 26.2% Total student enrollments in language training and test preparation courses 1,189,300 966,500 23.1% (1) New Oriental provides net income, operating income, net income per ADS on a Non-GAAP basis that excludes share-based compensation expenses to reflect meaningful supplemental information regarding its operating performance and liquidity. For more information on these Non-GAAP financial measures, please see the table captioned "Reconciliations of Non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release. (2) Each ADS represents four common shares.

"During this quarter, the economic slowdown in China had a greater than anticipated effect on our adult English courses. To reflect our revised expectations, in mid-February 2009, we issued a press release adjusting our third fiscal quarter 2009 revenue guidance downwards to the range of US$62 million to US$65 million. As it turns out, adult English enrollments for the quarter were approximately 50,300, up slightly from approximately 50,100 in the year ago period, but below our prior expectations," said Michael Yu, New Oriental's Chairman and Chief Executive Officer. "Furthermore, our financial results were negatively impacted by the early timing of Chinese New Year this year which occurred on January 26, 2009, almost two weeks earlier than last year. Several of our schools, including our second largest school in Shanghai, experienced a dramatic slowdown in enrollments and revenues in the second half of January due to scheduling problems with class start times resulting from the compressed time frame between when students completed their regular school sessions and the early Chinese New Year holidays. Despite these challenges, we are pleased to report revenue increased 36.1% year-over-year to US$65.4 million, exceeding the top end of the revised guidance range. In addition, we are pleased that a strong bounce back in enrollments in February boosted total student enrollments in language training and test preparation courses for the quarter to about 351,700, an increase of 31% year-over-year."

Mr. Yu continued, "Despite the challenging global economic conditions, we continue to benefit from Chinese families' strong demand for education services for their children. Enrollments in our POP Kids English program were up over 48% year-over-year to approximately 85,800 during this quarter. To further expand capacity in our POP Kids English program, we added a net of nine learning centers in various cities. We are also pleased with the continued excellent progress in our middle and high school all-subjects training programs and gaokao test preparation courses. During this quarter, these programs had enrollments in non-English courses of over 23,000. For the first nine months of fiscal year 2009, we had approximately 45,000 non-English enrollments for middle and high school courses and we have already achieved our target of 40,000 to 50,000 enrollments for non-English courses for the whole fiscal year 2009, with one quarter still to come."

Financial Results for the Fiscal Quarter Ended February 28, 2009

For the third fiscal quarter of 2009, New Oriental reported net revenues of US$65.4 million, representing a 36.1% increase year-over-year.

Net revenues from educational programs and services for the third fiscal quarter were US$60.0 million, representing a 34.7% increase year-over-year. The growth was mainly driven by the increase in the number of student enrollments in language training and test preparation courses. Total student enrollments in language training and test preparation courses in the third quarter of fiscal year 2009 increased by 31.0% year-over-year to approximately 351,700.

Non-GAAP operating costs and expenses for the quarter were US$52.7 million, a 47.9% increase year-over-year. GAAP operating costs and expenses for the quarter were US$56.8 million, a 49.7% increase year-over-year.

Cost of revenues increased by 40.9% year-over-year to US$26.0 million, primarily due to the increased number of courses and the greater number of schools and learning centers in operation.

Selling and marketing expenses increased by 51.9% year-over-year to US$10.5 million, primarily due to brand promotion expenses.

Non-GAAP general and administrative expenses were US$16.0 million, a 55.0% increase year-over-year. GAAP general and administrative expenses for the quarter increased by 61.4% year-over-year to US$20.2 million, primarily due to increased headcount as the Company expanded its network of schools and learning centers.

Total share-based compensation expenses, which were allocated to operating costs and expenses, increased to US$4.1 million in the third quarter of fiscal year 2009 from US$2.3 million in the same period of the prior fiscal year.

Non-GAAP income from operations for the quarter was US$12.8 million, a 2.4% increase from US$12.5 million in the same period of the prior fiscal year. GAAP income from operations for the quarter was US$8.7 million, a 14.7% decrease from US$10.2 million in the same period of the prior fiscal year.

Non-GAAP operating margin for the quarter was 19.5%, compared to 25.9% in the same period of the prior fiscal year. GAAP operating margin for the quarter was 13.3%, compared to 21.2% in the same period of the prior fiscal year. The decline of operating margin was primarily due to decreased operating efficiency as the growth in operating costs and expenses outpaced the revenue growth.

Non-GAAP net income was US$14.5 million, representing a 4.3% increase from the same period of the prior fiscal year. Basic and diluted earnings per ADS excluding share-based compensation expenses (Non-GAAP) were US$0.39 and US$0.38, respectively.

GAAP net income for the quarter was US$10.4 million, representing a 10.3% decrease from the same period of the prior fiscal year. Basic and diluted earnings per ADS were US$0.28 and US$0.27, respectively.

Capital expenditures for the quarter were US$4.4 million, which was primarily used to add one new school and a net of 9 learning centers.

As of February 28, 2009, New Oriental had cash and cash equivalents of US$224.0 million. In addition, the company had US$62.5 million in term deposits at the end of the quarter. Net operating cash in-flow for the third quarter of fiscal year 2009 was US$21.7 million, an increase of 32.9% as compared to US$16.3 million during the same period of the prior fiscal year.

The deferred revenue balance, which is cash collected from registered students for courses and recognized proportionally as revenue as the instructions are delivered, at the end of the third quarter of fiscal year 2009 was US$55.4 million, a 54.8% increase year-over-year.

Financial Results for the Nine Months Ended February 28, 2009

For the nine months ended February 28, 2009, New Oriental reported net revenues of US$233.1 million, a 45.0% increase year-over-year.

Total student enrollments in language training and test preparation courses for the nine months ended February 28, 2009 increased by 23.1% year- over-year to approximately 1,189,300 from approximately 966,500 in the nine months ended February 29, 2008.

Non-GAAP income from operations for the nine months ended February 28, 2009 was US$70.7 million, a 37.6% increase year-over-year. GAAP income from operations for the nine months ended February 28, 2009 was US$58.4 million, a 28.7% increase year-over-year.

Non-GAAP operating margin for the nine months ended February 28, 2009 was 30.3%, compared to 32.0% for the nine months ended February 29, 2008. GAAP operating margin for the nine months ended February 28, 2009 was 25.1%, compared to 28.2% for the nine months ended February 29, 2008.

Non-GAAP net income for the nine months ended February 28, 2009 was US$70.6 million, a 32.7% increase year-over-year. Non-GAAP basic and diluted earnings per ADS for the nine months ended February 28, 2009 were US$1.90 and US$1.84, respectively.

GAAP net income for the nine months ended February 28, 2009 was US$58.4 million, representing a 23.5% increase year-over-year. GAAP basic and diluted earnings per ADS for the nine months ended February 28, 2009 were US$1.57 and US$1.52, respectively.

Outlook for the Fourth Quarter of Fiscal Year 2009

New Oriental expects its total net revenues in the fourth quarter of fiscal year 2009 (March 1, 2009 to May 31, 2009) to be in the range of US$50.5 million to US$53.5 million, representing year-over-year growth in the range of 25.7% to 33.2%, respectively. This forecast reflects New Oriental's current and preliminary view, which is subject to change.

Conference Call Information

New Oriental's management will host an earnings conference call at 8 AM on April 21, 2009, U.S. Eastern Time (8 PM on April 21, 2009, Beijing/Hong Kong time).

Dial-in details for the earnings conference call are as follows: US: +1-... Hong Kong: +852-3002-1672 UK: +44-207-365-8426

Please dial-in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is "New Oriental earnings call."

A replay of the conference call may be accessed by phone at the following number until April 28, 2009:

International: +1-617-801-6888

Passcode: 13625330

Additionally, a live and archived webcast of the conference call will be available at http://investor.neworiental.org .

About New Oriental

New Oriental is the largest provider of private educational services in China based on the number of program offerings, total student enrollments and geographic presence. New Oriental offers a wide range of educational programs, services and products consisting primarily of English and other foreign language training, test preparation courses for major admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education. New Oriental's ADSs, each of which represents four common shares, currently trade on the New York Stock Exchange under the symbol "EDU."

For more information about New Oriental, please visit http://english.neworiental.org .

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the outlook for the fourth quarter of fiscal year 2009 and quotations from management in this announcement, as well as New Oriental's strategic and operational plans, contain forward-looking statements. New Oriental may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about New Oriental's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our growth strategies; our future business development, results of operations and financial condition; our ability to attract students without a significant decrease in course fees; our ability to continue to hire, train and retain qualified teachers; our ability to maintain and enhance our "New Oriental" brand; our ability to effectively and efficiently manage the expansion of our school network and successfully execute our growth strategy; the outcome of ongoing, or any future, litigation or arbitration, including those relating to copyright and other intellectual property rights; competition in the private education sector in China; changes in our revenues and certain cost or expense items as a percentage of our revenues; the expected growth of the Chinese private education market; and Chinese governmental policies relating to private educational services and providers of such services. Further information regarding these and other risks is included in our annual report on Form 20-F and other documents furnished or filed with the Securities and Exchange Commission. New Oriental does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and New Oriental undertakes no duty to update such information, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement New Oriental's consolidated financial results presented in accordance with GAAP, New Oriental uses the following measures defined as Non-GAAP financial measures by the SEC: net income excluding share-based compensation expenses, income from operations excluding share-based compensation expenses, operating margin excluding share-based compensation expenses, general and administrative expenses excluding share-based compensation expenses, total operating costs and expenses excluding share-based compensation expenses and basic and diluted earnings per ADS excluding share-based compensation expenses. The presentation of these Non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these Non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.

New Oriental believes that these Non-GAAP financial measures provide meaningful supplemental information regarding its operating performance and liquidity by excluding share-based compensation expenses that may not be indicative of its operating performance from a cash perspective. New Oriental believes that both management and investors benefit from referring to these Non-GAAP financial measures in assessing its operating performance and when planning and forecasting future periods. These Non-GAAP financial measures also facilitate management's internal comparisons to New Oriental's historical performance and liquidity. New Oriental will compute its Non-GAAP financial measures using the same consistent method from quarter to quarter. New Oriental believes these Non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using Non-GAAP financial measures excluding share-based compensation expenses is that share-based compensation charge has been and will continue to be for the foreseeable future a significant recurring expense in our business. Management compensates for these limitations by providing specific information regarding the GAAP amount excluded from each Non-GAAP measure. The accompanying tables have more details on the reconciliations between Non-GAAP financial measures and their most comparable GAAP financial measures.

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) As of As of February 28 November 30 2009 2008 (Unaudited) (Unaudited) USD USD ASSETS: Current assets: Cash and cash equivalents 223,955 182,831 Restricted cash 531 531 Term deposits 62,549 86,536 Accounts receivable, net 1,375 1,315 Inventory 14,514 12,866 Deferred tax assets-Current 1,141 -- Prepaid expenses and other current assets 16,053 16,131 Total current assets 320,118 300,210 Property, plant and equipment, net 109,373 107,988 Land use right, net 3,499 3,527 Amounts due from related parties 395 396 Deferred tax assets 1,833 1,570 Long term prepaid rent 1,439 738 Intangible assets 909 955 Goodwill 2,159 2,163 Long term investment 2 2 Total assets 439,727 417,549 LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable-trade 9,194 8,139 Accrued expenses and other current liabilities 28,426 25,121 Income tax payable 4,962 4,268 Amount due to related parties 54 9 Deferred revenue 55,423 52,660 Total current liabilities 98,059 90,197 Total liabilities 98,059 90,197 Total shareholders' equity 341,668 327,352 Total liabilities, minority interest and shareholders' equity 439,727 417,549 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except for per share and per ADS amounts) For the Three For the Three Months Ended Months Ended February 28 February 29 2009 2008 (Unaudited) (Unaudited) USD USD Net Revenues: Educational Programs and services 59,998 44,555 Books and others 5,451 3,543 Total net revenues 65,449 48,098 Operating costs and expenses (note 1): Cost of revenues 26,035 18,475 Selling and marketing 10,547 6,942 General and administrative 20,179 12,501 Total operating costs and expenses 56,761 37,918 Operating income 8,688 10,180 Other income, net 1,927 2,303 Provision for income taxes (206) (922) Minority interest, net of taxes -- 42 Net Income 10,409 11,603 Net income per share-basic 0.07 0.08 Net income per share-diluted 0.07 0.07 Net income per ADS-basic (note 2) 0.28 0.31 Net income per ADS-diluted (note 2) 0.27 0.29 Notes: Note 1: Share-based compensation expenses (in thousands) are included in the operating costs and expenses as follows: For the Three For the Three Months Ended Months Ended February 28 February 29 2009 2008 (Unaudited) (Unaudited) USD USD Cost of revenues (135) 60 Selling and marketing 48 59 General and administrative 4,159 2,164 Total 4,072 2,283 Note 2: Each ADS represents four common shares. NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES (In thousands except share and per ADS amounts) For the Three For the Three Months Ended Months Ended February 28 February 29 2009 2008 (Unaudited) (Unaudited) USD USD General and administrative expenses 20,179 12,501 Share-based compensation expense in general and administrative expenses 4,159 2,164 Non-GAAP general and administrative expenses 16,020 10,337 Total operating costs and expenses 56,761 37,918 Share-based compensation expenses 4,072 2,283 Non-GAAP operating costs and expenses 52,689 35,635 Operating income 8,688 10,180 Share-based compensation expenses 4,072 2,283 Non-GAAP operating income 12,760 12,463 Operating margin 13.3% 21.2% Non-GAAP operating margin 19.5% 25.9% Net income 10,409 11,603 Share-based compensation expense 4,072 2,283 Non-GAAP net income 14,481 13,886 Net income per ADS - basic (note 1) 0.28 0.31 Net income per ADS - diluted (note 1) 0.27 0.29 Non-GAAP net income per ADS - basic (note 1) 0.39 0.37 Non-GAAP net income per ADS - diluted (note 1) 0.38 0.35 Weighted average shares used in calculating basic net income per ADS (note 1) 149,185,159 150,657,358 Weighted average shares used in calculating diluted net income per ADS (note 1) 153,095,816 157,333,384 Non-GAAP Income per share - basic 0.10 0.09 Non-GAAP Income per share - diluted 0.09 0.09 Note 1: Each ADS represents four common shares. NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except for per share and per ADS amounts) For the Nine For the Nine Months Ended Months Ended February 28 February 29 2009 2008 (Unaudited) (Unaudited) USD USD Net Revenues: Educational Programs and services 215,052 148,691 Books and others 18,089 12,144 Total net revenues 233,141 160,835 Operating costs and expenses (note 1): Cost of revenues 86,240 59,550 Selling and marketing 28,697 18,125 General and administrative 59,781 37,769 Total operating costs and expenses 174,718 115,444 Operating income 58,423 45,391 Other income, net 6,395 6,182 Provision for income taxes (6,843) (4,450) Minority interest, net of taxes 401 128 Net Income 58,376 47,251 Net income per share-basic 0.39 0.32 Net income per share-diluted 0.38 0.30 Net income per ADS-basic (note 2) 1.57 1.26 Net income per ADS-diluted (note 2) 1.52 1.21 Notes: Note 1: Share-based compensation expenses (in thousands) are included in the operating costs and expenses as follows: For the Nine For the Nine Months Ended Months Ended February 28 February 29 2009 2008 (Unaudited) (Unaudited) USD USD Cost of revenues 178 501 Selling and marketing 162 185 General and administrative 11,928 5,310 Total 12,268 5,996 Note 2: Each ADS represents four common shares. NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES (In thousands except share and per ADS amounts) For the Nine For the Nine Months Ended Months Ended February 28 February 29 2009 2008 (Unaudited) (Unaudited) USD USD General and administrative expenses 59,781 37,769 Share-based compensation expense in general and administrative expenses 11,928 5,310 Non-GAAP general and administrative expenses 47,853 32,459 Total operating costs and expenses 174,718 115,444 Share-based compensation expenses 12,268 5,996 Non-GAAP operating costs and expenses 162,450 109,448 Operating income 58,423 45,391 Share-based compensation expenses 12,268 5,996 Non-GAAP operating income 70,691 51,387 Operating margin 25.1% 28.2% Non-GAAP operating margin 30.3% 32.0% Net income 58,376 47,251 Share-based compensation expense 12,268 5,996 Non-GAAP net income 70,644 53,247 Net income per ADS - basic (note 1) 1.57 1.26 Net income per ADS - diluted (note 1) 1.52 1.21 Non-GAAP net income per ADS - basic (note 1) 1.90 1.42 Non-GAAP net income per ADS - diluted (note 1) 1.84 1.36 Weighted average shares used in calculating basic net income per ADS (note 1) 148,906,915 149,997,779 Weighted average shares used in calculating diluted net income per ADS (note 1) 153,509,461 156,839,600 Non-GAAP Income per share - basic 0.47 0.35 Non-GAAP Income per share - diluted 0.46 0.34 Note 1: Each ADS represents four common shares. For investor and media inquiries, please contact: In China: Ms. Sisi Zhao New Oriental Education and Technology Group Inc. Tel: +86... x8203 Email: zhaosisi@staff.neworiental.org Ms. Cynthia He Brunswick Group LLC Tel: +86-10-6566-9504 Email: edu@brunswickgroup.com In the U.S.: Mr. Michael Guerin Brunswick Group LLC Tel: +1-212-333-3810 Email: mguerin@brunswickgroup.com

    Dial-in details for the earnings conference call are as follows:

    US:            +1-617-597-5358
    Hong Kong:     +852-3002-1672
    UK:            +44-207-365-8426

Please dial-in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is 'New Oriental earnings call.'

A replay of the conference call may be accessed by phone at the following number until April 28, 2009:

International: +1-617-801-6888

Passcode: 13625330

Additionally, a live and archived webcast of the conference call will be available at http://investor.neworiental.org .

About New Oriental

New Oriental is the largest provider of private educational services in China based on the number of program offerings, total student enrollments and geographic presence. New Oriental offers a wide range of educational programs, services and products consisting primarily of English and other foreign language training, test preparation courses for major admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education. New Oriental's ADSs, each of which represents four common shares, currently trade on the New York Stock Exchange under the symbol 'EDU'. For more information about New Oriental, please visit http://english.neworiental.org .

    For investor and media inquiries, please contact:

    In China:

     Ms. Sisi Zhao
     New Oriental Education and Technology Group Inc.
     Tel:   +86-10-6260-5566 x8203
     Email: zhaosisi@staff.neworiental.org

     Ms. Cynthia He
     Brunswick Group LLC
     Tel:   +86-10-6566-9504
     Email: edu@brunswickgroup.com

    In the U.S.:

     Mr. Michael Guerin
     Brunswick Group LLC
     Tel:   +1-212-333-3810
     Email: mguerin@brunswickgroup.com

SOURCE New Oriental Education and Technology Group Inc.

Source: PR Newswire (March 31, 2009 - 4:00 AM EDT)

New Oriental currently expects third fiscal quarter 2009 total net revenues to be in the range of US$62.0 million to US$65.0 million, representing year-over-year growth in the range of 28.9% to 35.1%, respectively, and compared to the previously stated guidance range of US$65.5 million to US$67.5 million.

'The economic downturn in China has had a greater than anticipated effect on New Oriental's cash proceeds (cash collected from students in advance for course enrollments) over the past several weeks and we are therefore revising our third fiscal quarter 2009 revenue guidance downwards to reflect current expectations,' said Louis T. Hsieh, New Oriental's chief financial officer. 'We believe that this is a short term effect, as Chinese families place a high priority on spending for their children's education, behind only food and housing. As the trusted leader in China's private education market New Oriental should continue to benefit from these strong underlying fundamentals.'

About New Oriental

New Oriental is the largest provider of private educational services in China based on the number of program offerings, total student enrollments and geographic presence. New Oriental offers a wide range of educational programs, services and products consisting primarily of English and other foreign language training, test preparation courses for major admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education. New Oriental's ADSs, each of which represents four common shares, currently trade on the New York Stock Exchange under the symbol 'EDU.'

For more information about New Oriental, please visit http://english.neworiental.org .

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as 'will,' 'expects,' 'anticipates,' 'future,' 'intends,' 'plans,' 'believes,' 'estimates' and similar statements. Among other things, the outlook for the third quarter of fiscal year 2009 and quotations from management in this announcement, as well as New Oriental's strategic and operational plans, contain forward-looking statements. New Oriental may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about New Oriental's beliefs and expectations, are forward-looking statements.

Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our growth strategies; our future business development, results of operations and financial condition; our ability to attract students without a significant decrease in course fees; our ability to continue to hire, train and retain qualified teachers; our ability to maintain and enhance our 'New Oriental' brand; our ability to effectively and efficiently manage the expansion of our school network and successfully execute our growth strategy; the outcome of ongoing, or any future, litigation or arbitration, including those relating to copyright and other intellectual property rights; competition in the private education sector in China; changes in our revenues and certain cost or expense items as a percentage of our revenues; the expected growth of the Chinese private education market; and Chinese governmental policies relating to private educational services and providers of such services. Further information regarding these and other risks is included in our annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. New Oriental does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and New Oriental undertakes no duty to update such information, except as required under applicable law.

    For investor and media inquiries, please contact:

    In China:

     Ms. Sisi Zhao
     New Oriental Education and Technology Group Inc.
     Tel:    +86-10-6260-5566 x8203
     Email:  zhaosisi@staff.neworiental.org

     Ms. Cynthia He
     Brunswick Group LLC
     Tel:    +86-10-6566-9504
     Email:  edu@brunswickgroup.com

    In the U.S.:

     Mr. Michael Guerin
     Brunswick Group LLC
     Tel:    +1-212-333-3810
     Email:  mguerin@brunswickgroup.com

SOURCE New Oriental Education and Technology Group Inc.

Source: PR Newswire (February 12, 2009 - 4:42 AM EST)

Non-GAAP Net Income Increased by 84.9% Year-Over-Year

GAAP Net Income Increased by 57.5% Year-Over-Year

BEIJING, Jan. 19 /PRNewswire-Asia/ -- New Oriental Education and Technology Group Inc. (the 'Company') (NYSE: EDU), the largest provider of private educational services in China, today announced its unaudited financial results for the fiscal quarter ended November 30, 2008, which is the second quarter for New Oriental's fiscal year 2009.

    Highlights for the Fiscal Quarter Ended November 30, 2008

    -- Total net revenues increased by 53.7% year-over-year to US$49.4 million
       from US$32.2 million in the same period of the prior fiscal year.

    -- Net income, excluding share-based compensation expenses (Non-GAAP),
       increased by 84.9% year-over-year to US$7.4 million from US$4.0 million
       in the same period of the prior fiscal year.  GAAP net income increased
       by 57.5% year-over-year to US$3.1 million from US$1.9 million in the
       same period of the prior fiscal year.

    -- Non-GAAP income from operations increased by 170% year-over-year to
       US$5.2 million from US$1.9 million in the same period of the prior
       fiscal year. GAAP income from operations increased to US$0.9 million
       from a loss of US$0.1 million in the same period of the prior fiscal
       year.

    -- Non-GAAP basic and diluted earnings per ADS were US$0.20 and US$0.19,
       respectively. GAAP basic and diluted earnings per ADS were US$0.08 and
       US$0.08, respectively. Each ADS represents four common shares of the
       Company.

    -- Total student enrollments in language training and test preparation
       courses increased by 13.4% year-over-year to approximately 292,200 from
       approximately 257,700 in the same period of the prior fiscal year.

    -- The total number of schools and learning centers increased by 25 to 247
       in the quarter ended November 30, 2008, up from 222 in previous quarter.
       New Oriental opened one new school and a net of 22 new learning centers
       during the quarter, and we completed the acquisition of 100% equity
       interest of the two Tongwen schools in Changchun, Tongwen High School
       and a Tongwen school for re-takers of the gaokao, China's national
       college entrance examination. This brings the total number of schools
       and learning centers to 46 and 201, respectively, as of November 30,
       2008.



    Financial Summary - Second Fiscal Quarter 2009 and First Six Months
     of FY2009
    (US$ 000, except per ADS data and student enrollments)

                                    Q2 of FY2009 Q2 of FY 2008    Pct. Change
    Net revenues                       US$49,430     US$32,159         53.7 %
    Non-GAAP net income (1)                7,376         3,989         84.9 %
    GAAP net income                        3,064         1,946         57.5 %
    Non-GAAP operating income (1)          5,182         1,919        170.0 %
    GAAP operating income                    870          (124)            -
    Non-GAAP net income per ADS
     basic (1)(2)                           0.20          0.11         86.5 %
    Non-GAAP net income per ADS
     diluted (1)(2)                         0.19          0.10         89.4 %
    GAAP net income per ADS basic (2)       0.08          0.05         58.8 %
    GAAP net income per ADS diluted (2)     0.08          0.05         61.3 %
    Total student enrollments in
     language training and test
     preparation courses                 292,200       257,700         13.4 %


                                    1H of FY2009  1H of FY2008    Pct. Change
    Net revenues                      US$167,692    US$112,737         48.7 %
    Non-GAAP net income (1)               56,163        39,361         42.7 %
    GAAP net income                       47,967        35,648         34.6 %
    Non-GAAP operating income (1)         57,931        38,995         48.6 %
    GAAP operating income                 49,735        35,282         41.0 %
    Non-GAAP net income per ADS
     basic (1)(2)                           1.51          1.05         43.5 %
    Non-GAAP net income per ADS
     diluted (1)(2)                         1.46          1.01         45.4 %
    GAAP net income per ADS basic (2)       1.29          0.95         35.4 %
    GAAP net income per ADS diluted (2)     1.25          0.91         37.1 %
    Total student enrollments in
     language training and test
     preparation courses                 837,700       698,200         20.0 %


    (1) New Oriental provides net income, operating income, net income per
        ADS on a Non-GAAP basis that excludes share-based compensation
        expenses to reflect meaningful supplemental information regarding its
        performance and liquidity. For more information on these Non-GAAP
        financial measures, please see the table captioned 'Reconciliations
        of Non-GAAP measures to the most comparable GAAP measures' set forth
        at the end of this release.
    (2) Each ADS represents four common shares.

'Despite the challenging global economic conditions, we are pleased to see continued strong demand for New Oriental's educational programs and services. We achieved year-over-year revenue growth of 53.7% to US$49.4 million in the second quarter of fiscal year 2009, and Non-GAAP earnings growth of 84.9% to US$7.4 million,' said Michael Yu, New Oriental's Chairman and Chief Executive Officer. 'We also continued to execute on our expansion plan during the second quarter by completing the acquisition of the two Tongwen schools in Changchun (the capital city of Jilin province in northeastern China), opening one new school in the city of Nanning (the capital city of Guangxi province in southern China), and opening more than 20 new learning centers in existing markets nationwide, bringing the total number of learning centers in operation to over 200.'

Mr. Yu continued, 'We were particularly pleased with the stellar growth in our POP Kids English program, (the language training program for children of ages 5 to 12). Enrollments in the program were up over 43% year-over-year to over 56,000 during our second fiscal quarter, which is typically the slowest quarter of our fiscal year, and up over 51% for the first half of fiscal year 2009 to over 154,000. To enhance our fast-growing POP Kids English program, in November 2008, we began a cooperation with Cambridge ESOL's sole representative in China, the Sino-British Academic Exchange Center for Education Management (SBC), for administration of the Cambridge Young Learners English exam (YLE) to our students. Currently, we are administering the YLE exam for our POP Kids English students in 13 cities across mainland China. We are the first and only language training school in China authorized by SBC to administer the exam on a national scale.'

Mr. Yu concluded, 'We are pleased to report continued excellent progress in our U-Can programs, which provide all subjects after-school tutoring and gaokao test preparation. Our U-Can programs had enrollments in non-English courses of over 5,800 in the seasonally slowest second fiscal quarter and enrollments of over 22,000 for the first half of fiscal year 2009. We recorded over 143,000 enrollments for middle and high school English courses in the same period. In addition, we expect a pick-up in U-Can enrollments in the second half of fiscal year 2009 ending in May because the gaokao exam is given once a year in June and students typically begin preparing in earnest as the all-important exam nears. We remain on track to achieve our 40,000 to 50,000 enrollment target for U-Can non-English enrollments for fiscal year 2009.'

New Oriental's Chief Financial Officer, Louis T. Hsieh, stated, 'We expected enrollment growth abatement during the second fiscal quarter after our exceptional, albeit unsustainable, student enrollment growth of 23.8% to over 545,000 enrollments in the first fiscal quarter, our seasonally strongest summer quarter. We are pleased to report that the enrollment growth abatement was moderate, and we achieved enrollment growth of 13.4% to over 292,200 for our second fiscal quarter, bringing enrollments to over 837,700 for the first half of fiscal year 2009 ending November 30, 2008, up 20.0% over the year ago period. Furthermore, we experienced a strong enrollment pick-up for the first six weeks of our third fiscal quarter from December 1, 2008 through January 11, 2009 as compared to the same period in the prior year with enrollments up 34% to approximately 160,000 enrollments from approximately 118,000 in the year ago period. We believe this enrollment pick-up is attributable, in part, to the early timing of Chinese New Year, which falls on January 26, 2009 this year compared to February 7, 2008 last year. Although we expect the student enrollment growth rate to abate from the 34% for the remainder of the third fiscal quarter, we are on track to achieve our target of between 1,475,000 to 1,500,000 student enrollments for fiscal year 2009 ending in May, up 16% to 18% from approximately 1,271,000 enrollments in fiscal year 2008.'

Financial Results for the Fiscal Quarter Ended November 30, 2008

For the second fiscal quarter of 2009, New Oriental reported net revenues of US$49.4 million, representing a 53.7% increase year-over-year.

Net revenues from educational programs and services for the second fiscal quarter were US$43.8 million, representing a 56.5% increase year-over-year. The growth was mainly driven by the increase in the number of student enrollments in language training and test preparation courses. Total student enrollments in language training and test preparation courses in the second quarter of fiscal year 2009 increased by 13.4% year-over-year to approximately 292,200 from approximately 257,700 in the same period of the prior fiscal year.

Non-GAAP operating costs and expenses for the quarter were US$44.2 million, a 46.3% increase year-over-year. GAAP operating costs and expenses for the quarter were US$48.6 million, a 50.4% increase year-over-year.

Cost of revenues increased by 39.9% year-over-year to US$21.7 million, primarily due to the increased number of courses and the greater number of schools and learning centers in operation.

Selling and marketing expenses increased by 62.9% year-over-year to US$8.3 million, primarily due to brand promotion expenses.

Non-GAAP general and administrative expenses were US$14.4 million, a 43.4% increase year-over-year. GAAP general and administrative expenses for the quarter increased by 58.9% year-over-year to US$18.6 million, primarily due to increased headcount as the Company expanded its network of schools and learning centers.

Total share-based compensation expenses, which were allocated to related operating costs and expenses, increased to US$4.3 million in the second quarter of fiscal year 2009 from US$2.0 million in the same period of the prior fiscal year.

Non-GAAP income from operations for the quarter was US$5.2 million, a 170% increase from US$1.9 million in the same period of the prior fiscal year, and GAAP income from operations for the quarter was US$0.9 million, compared to a loss of US$0.1 million in the same period of the prior fiscal year.

Non-GAAP operating margin for the quarter was 10.5%, compared to 6.0% in the same period of the prior fiscal year. GAAP operating margin for the quarter was 1.8%, compared to negative 0.4% in the same period of the prior fiscal year. This rise was primarily due to improved operating efficiency as revenue growth outpaced the growth in operating cost and expenses.

Non-GAAP net income was US$7.4 million, representing an 84.9% increase from the same period of the prior fiscal year. Basic and diluted earnings per ADS excluding share-based compensation expenses (Non-GAAP) were US$0.20 and US$0.19, respectively.

GAAP net income for the quarter was US$3.1 million, representing a 57.5% increase from the same period of the prior fiscal year. Basic and diluted earnings per ADS were US$0.08 and US$0.08, respectively.

Capital expenditures for the quarter were US$3.2 million, which was primarily used to add the one new school and a net of 22 new learning centers in the quarter.

As of November 30, 2008, New Oriental had cash and cash equivalents of US$182.8 million, as compared to US$196.9 million as of August 31, 2008. In addition, we had US$86.5 million in term deposits at the end of the quarter. Net operating cash flow for the second quarter of fiscal year 2009 was US$5.3 million.

The deferred revenue balance (cash collected from registered students for courses and recognized proportionally as revenue as the instructions are delivered) at the end of the second quarter of fiscal year 2009 was US$52.7 million, an increase of 39.5% as compared to US$37.7 million at the end of the second quarter of fiscal year 2008.

Financial Results for the Six Months Ended November 30, 2008

For the first six months of fiscal year 2009, New Oriental reported net revenues of US$167.7 million, representing a 48.7% increase year-over-year.

Total student enrollments in language training and test preparation courses in the first six months of fiscal year 2009 increased by 20.0% to approximately 837,700 from approximately 698,200 in the same period of the prior fiscal year.

Non-GAAP income from operations for the first six months of fiscal year 2009 was US$57.9 million, a 48.6% increase year-over-year. GAAP income from operations for the first six months of fiscal year 2009 was US$49.7 million, a 41.0% increase year-over-year.

Non-GAAP operating margin for the first six months of fiscal year 2009 was 34.5%, compared to 34.6% for the same period of the prior fiscal year; GAAP operating margin for the first six months of fiscal year 2009 was 29.7%, compared to 31.3% for the same period of the prior fiscal year.

Non-GAAP net income for the first six months of fiscal year 2009 was US$56.2 million, representing a 42.7% increase year-over-year. Non-GAAP basic and diluted earnings per ADS for the first six months of fiscal year 2009 amounted to US$1.51 and US$1.46, respectively.

GAAP net income for the first six months of fiscal year 2009 was US$48.0 million, representing a 34.6% increase year-over-year. GAAP basic and diluted earnings per ADS for the first six months of fiscal year 2009 amounted to US$1.29 and US$1.25, respectively.

Outlook for Third Quarter of Fiscal Year 2009

New Oriental expects its total net revenues in the third quarter of fiscal year 2009 (December 1, 2008 to February 28, 2009) to be in the range of US$65.5 million to US$67.5 million, representing year-over-year growth in the range of 36.2% to 40.3%, respectively. This forecast reflects New Oriental's current and preliminary view, which is subject to change.

Conference Call Information

New Oriental's management will host an earnings conference call at 8 AM on January 20, 2009 U.S. Eastern Time (9 PM on January 20, 2009 Beijing/Hong Kong time).

    Dial-in details for the earnings conference call are as follows:

     US:         + 1 617.213.8847
     Hong Kong:  + 852 3002.1672
     UK:         + 44 207.365.8426

Please dial-in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is 'New Oriental earnings call.'

A replay of the conference call may be accessed by phone at the following number until January 27, 2009:

International: + 1 617.801.6888

Passcode: 42733134

Additionally, a live and archived webcast of the conference call will be available at http://investor.neworiental.org.

About New Oriental

New Oriental is the largest provider of private educational services in China based on the number of program offerings, total student enrollments and geographic presence. New Oriental offers a wide range of educational programs, services and products consisting primarily of English and other foreign language training, test preparation courses for major admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education. New Oriental's ADSs, each of which represents four common shares, currently trade on the New York Stock Exchange under the symbol 'EDU.'

For more information about New Oriental, please visit http://english.neworiental.org .

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as 'will,' 'expects,' 'anticipates,' 'future,' 'intends,' 'plans,' 'believes,' 'estimates' and similar statements. Among other things, the outlook for the third quarter of fiscal year 2009 and quotations from management in this announcement, as well as New Oriental's strategic and operational plans, contain forward-looking statements. New Oriental may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about New Oriental's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our growth strategies; our future business development, results of operations and financial condition; our ability to attract students without a significant decrease in course fees; our ability to continue to hire, train and retain qualified teachers; our ability to maintain and enhance our 'New Oriental' brand; our ability to effectively and efficiently manage the expansion of our school network and successfully execute our growth strategy; the outcome of ongoing, or any future, litigation or arbitration, including those relating to copyright and other intellectual property rights; competition in the private education sector in China; changes in our revenues and certain cost or expense items as a percentage of our revenues; the expected growth of the Chinese private education market; and Chinese governmental policies relating to private educational services and providers of such services. Further information regarding these and other risks is included in our annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. New Oriental does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and New Oriental undertakes no duty to update such information, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement New Oriental's consolidated financial results presented in accordance with GAAP, New Oriental uses the following measures defined as non-GAAP financial measures by the SEC: net income excluding share-based compensation expenses and basic and diluted earnings per ADS excluding share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned 'Reconciliations of non-GAAP measures to the most comparable GAAP measures' set forth at the end of this release. New Oriental believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based expenses that may not be indicative of its operating performance from a cash perspective. New Oriental believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to New Oriental's historical performance and liquidity. New Oriental computes its non-GAAP financial measures using the same consistent method from quarter to quarter. New Oriental believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP net income excluding share-based compensation expenses, and basic and diluted earnings per share and per ADS excluding share-based compensation expenses is that these non-GAAP measures exclude share-based compensation charge that has been and will continue to be for the foreseeable future a significant recurring expense in our business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

    For investor and media inquiries, please contact:

    In China:

     Ms. Sisi Zhao
     New Oriental Education and Technology Group Inc.
     Tel:    +86-10-6260-5566 x8203
     Email:  zhaosisi@staff.neworiental.org

     Ms. Cynthia He
     Brunswick Group LLC
     Tel:    +86-10-6566-9504
     Email:  edu@brunswickgroup.com

     In the U.S.:

     Mr. Michael Guerin
     Brunswick Group LLC
     Tel:    +1-212-333-3810
     Email:  mguerin@brunswickgroup.com



                 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (In thousands)
                                            As of November 30  As of August 31
                                                    2008              2008
                                                (Unaudited)       (Unaudited)
                                                    USD               USD
    ASSETS:
    Current assets:
      Cash and cash equivalents                    182,831           196,885
      Restricted cash                                  531               530
      Term deposits                                 86,536            68,939
      Accounts receivable, net                       1,315             1,410
      Inventory                                     12,866            13,071
      Prepaid expenses and other current assets     16,131            15,870

    Total current assets                           300,210           296,705

      Property, plant and equipment, net           107,988           107,432
      Land use right, net                            3,527             3,547
      Amounts due from related parties                 396               396
      Deferred tax assets                            1,570             1,622
      Long term prepaid rent                           738               583
      Deposits for business acquisition                  -               366
      Intangible assets                                955               660
      Goodwill                                       2,163             1,401
      Long term investment                               2                 2

    Total assets                                   417,549           412,714

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities:
      Accounts payable-trade                         8,139             9,474
      Accrued expenses and other current
       liabilities                                  25,121            32,509
      Income tax payable                             4,268             8,286
      Amount due to related parties                      9             1,506
      Deferred revenue                              52,660            42,554

    Total current liabilities                       90,197            94,329

    Total liabilities                               90,197            94,329

    Total shareholders' equity                     327,352           318,385

    Total liabilities and shareholders' equity     417,549           412,714




                 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             (In thousands except for per share and per ADS amounts)

                                                      For the Three Months
                                                       Ended November 30
                                                     2008              2007
                                                 (Unaudited)       (Unaudited)
                                                     USD               USD
    Net Revenues:
      Educational Programs and services             43,833            28,004
      Books and others                               5,597             4,155
    Total net revenues                              49,430            32,159

    Operating costs and expenses (note 1):
      Cost of revenues                              21,719            15,523
      Selling and marketing                          8,291             5,089
      General and administrative                    18,550            11,671

    Total operating costs and expenses              48,560            32,283
    Operating income (loss)                            870              (124)

    Other income, net                                2,605             2,221

      Provision for income taxes                      (411)             (191)
      Minority interest, net of taxes                    -                40

    Net Income                                       3,064             1,946

    Net income per share-basic                        0.02              0.01
    Net income per share-diluted                      0.02              0.01

    Net income per ADS-basic (note 2)                 0.08              0.05
    Net income per ADS-diluted (note 2)               0.08              0.05



                 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             (In thousands except for per share and per ADS amounts)

                                                      For the Six Months
                                                       Ended November 30
                                                     2008              2007
                                                 (Unaudited)      (Unaudited)
                                                     USD               USD
    Net Revenues:
      Educational Programs and services            155,054           104,136
      Books and others                              12,638             8,601
    Total net revenues                             167,692           112,737

    Operating costs and expenses (note 1):
      Cost of revenues                              60,205            41,075
      Selling and marketing                         18,150            11,183
      General and administrative                    39,602            25,197

    Total operating costs and expenses             117,957            77,455
    Operating income                                49,735            35,282

    Other income, net                                4,468             3,808

      Provision for income taxes                    (6,637)           (3,528)
      Minority interest, net of taxes                  401                86

    Net Income                                      47,967            35,648

    Net income per share-basic                        0.32              0.24
    Net income per share-diluted                      0.31              0.23

    Net income per ADS-basic (note 2)                 1.29              0.95
    Net income per ADS-diluted (note 2)               1.25              0.91

    Notes:

    Note 1: Share-based compensation expenses (in thousands) are included in
            the operating costs and expenses as follows:

                                                      For the Three Months
                                                       Ended November 30
                                                     2008              2007
                                                 (Unaudited)      (Unaudited)
                                                       USD               USD
    Cost of revenues                                    83               326
    Selling and marketing                               52                67
    General and administrative                       4,177             1,650
    Total                                            4,312             2,043

    Note 2: Each ADS represents four common shares.


    Notes:

    Note 1: Share-based compensation expenses (in thousands) are included in
            the operating costs and expenses as follows:

                                                       For the Six Months
                                                        Ended November 30
                                                      2008             2007
                                                 (Unaudited)      (Unaudited)
                                                       USD               USD
    Cost of revenues                                   313               441
    Selling and marketing                              114               126
    General and administrative                       7,769             3,146
    Total                                            8,196             3,713

    Note 2: Each ADS represents four common shares.



                 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
    RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES
                 (In thousands except share and per ADS amounts)

                                                     For the Three Months
                                                       Ended November 30
                                                    2008              2007
                                                (Unaudited)       (Unaudited)
                                                     USD               USD

    General and administrative expenses             18,550            11,671
    Share-based compensation expense in
     general and administrative expenses             4,177             1,650
    Non-GAAP general and administrative
     expenses                                       14,373            10,021

    Total operating costs and expenses              48,560            32,283
    Share-based compensation expenses                4,312             2,043
    Non-GAAP operating costs and expenses           44,248            30,240

    Operating income                                   870              (124)
    Share-based compensation expenses                4,312             2,043
    Non-GAAP operating income                        5,182             1,919

    Operating margin                                  1.8%             (0.4%)
    Non-GAAP operating margin                        10.5%              6.0%

    Net income                                       3,064             1,946
    Share-based compensation expense                 4,312             2,043
    Non-GAAP net income                              7,376             3,989

    Net income per ADS - basic (note 1)               0.08              0.05
    Net income per ADS - diluted (note 1)             0.08              0.05

    Non-GAAP net income per ADS - basic (note 1)      0.20              0.11
    Non-GAAP net income per ADS - diluted (note 1)    0.19              0.10

    Weighted average shares used in
     calculating basic net income per ADS
     (note 1)                                  148,852,433       150,163,711
    Weighted average shares used in
     calculating diluted net income per
     ADS (note 1)                              153,437,244       157,175,447


    Note 1: Each ADS represents four common shares.




                 NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
    RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES
                 (In thousands except share and per ADS amounts)

                                                      For the Six Months
                                                       Ended November 30
                                                     2008             2007
                                                (Unaudited)       (Unaudited)
                                                     USD              USD

    General and administrative expenses             39,602            25,197
    Share-based compensation expense in
     general and administrative expenses             7,769             3,146
    Non-GAAP general and administrative
     expenses                                       31,833            22,051

    Total operating costs and expenses             117,957            77,455
    Share-based compensation expenses                8,196             3,713
    Non-GAAP operating costs and expenses          109,761            73,742

    Operating income                                49,735            35,282
    Share-based compensation expenses                8,196             3,713
    Non-GAAP operating income                       57,931            38,995

    Operating margin                                 29.7%             31.3%
    Non-GAAP operating margin                        34.5%             34.6%

    Net income                                      47,967            35,648
    Share-based compensation expense                 8,196             3,713
    Non-GAAP net income                             56,163            39,361

    Net income per ADS - basic (note 1)               1.29              0.95
    Net income per ADS - diluted (note 1)             1.25              0.91

    Non-GAAP net income per ADS - basic (note 1)      1.51              1.05
    Non-GAAP net income per ADS - diluted (note 1)    1.46              1.01

    Weighted average shares used in
     calculating basic net income per ADS
     (note 1)                                  148,770,074       149,669,791
    Weighted average shares used in
     calculating diluted net income per
     ADS (note 1)                              153,718,565       156,594,510


    Note 1: Each ADS represents four common shares.

SOURCE New Oriental Education and Technology Group Inc

Source: PR Newswire (January 19, 2009 - 3:24 AM EST)

New Oriental to Report Second Fiscal Quarter Financial Results on January 20,

2009

BEIJING, Dec. 31 /PRNewswire-Asia/ -- New Oriental Education and Technology Group Inc. (NYSE: EDU), the largest provider of private educational services in China, today announced that it will report its financial results for the second fiscal quarter ended November 30, 2008, before the U.S. market opens on January 20, 2009. New Oriental's management will host an earnings conference call at 8 AM on January 20, 2009 U.S. Eastern Time (9 PM on January 20, 2009 Beijing/Hong Kong time).

    Dial-in details for the earnings conference call are as follows:

     US:         + 1 617.213.8847
     Hong Kong:  + 852 3002.1672
     UK:         + 44 207.365.8426

Please dial-in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is 'New Oriental earnings call.'

A replay of the conference call may be accessed by phone at the following number until January 27, 2009:

International: + 1 617.801.6888

Passcode: 42733134

Additionally, a live and archived webcast of the conference call will be available at http://investor.neworiental.org .

About New Oriental

New Oriental is the largest provider of private educational services in China based on the number of program offerings, total student enrollments and geographic presence. New Oriental offers a wide range of educational programs, services and products consisting primarily of English and other foreign language training, test preparation courses for major admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education. New Oriental's ADSs, each of which represents four common shares, currently trade on the New York Stock Exchange under the symbol ''EDU.'' For more information about New Oriental, please visit http://english.neworiental.org .

    For investor and media inquiries, please contact:

    In China:
     Ms. Sisi Zhao
     New Oriental Education and Technology Group Inc.
     Tel:   +86-10-6260-5566 x8203
     Email: zhaosisi@staff.neworiental.org

     Ms. Cynthia He
     Brunswick Group LLC
     Tel:   +86-10-6566-9504
     Email: edu@brunswickgroup.com

    In the U.S.:
     Mr. Michael Guerin
     Brunswick Group LLC
     Tel:   +1-212-333-3810
     Email: mguerin@brunswickgroup.com

SOURCE New Oriental Education and Technology Group Inc.

Source: PR Newswire (January 5, 2009 - 3:00 AM EST)

    Dial-in details for the earnings conference call are as follows:

     US:         + 1 617.213.8847
     Hong Kong:  + 852 3002.1672
     UK:         + 44 207.365.8426

Please dial-in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is 'New Oriental earnings call.'

A replay of the conference call may be accessed by phone at the following number until January 26, 2009:

International: + 1 617.801.6888

Passcode: 42733134

Additionally, a live and archived webcast of the conference call will be available at http://investor.neworiental.org .

About New Oriental

New Oriental is the largest provider of private educational services in China based on the number of program offerings, total student enrollments and geographic presence. New Oriental offers a wide range of educational programs, services and products consisting primarily of English and other foreign language training, test preparation courses for major admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education. New Oriental's ADSs, each of which represents four common shares, currently trade on the New York Stock Exchange under the symbol ''EDU.'' For more information about New Oriental, please visit http://english.neworiental.org .

    For investor and media inquiries, please contact:

    In China:
     Ms. Sisi Zhao
     New Oriental Education and Technology Group Inc.
     Tel:   +86-10-6260-5566 x8203
     Email: zhaosisi@staff.neworiental.org

     Ms. Cynthia He
     Brunswick Group LLC
     Tel:   +86-10-6566-9504
     Email: edu@brunswickgroup.com

    In the U.S.:
     Mr. Michael Guerin
     Brunswick Group LLC
     Tel:   +1-212-333-3810
     Email: mguerin@brunswickgroup.com

SOURCE New Oriental Education and Technology Group Inc.

Source: PR Newswire (December 31, 2008 - 3:00 AM EST)