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Oct 10, 2008

English Chinese translation samples--China Education Alliance, Inc. Announces Second Quarter 2008 Results

(By freelance Chinese translator li – based in Harbin,China – English to Chinese translation or Chinese to English translation services - website localization)

HARBIN, Heilongjiang, China, Aug 15, 2008 /Xinhua-PRNewswire-FirstCall via COMTEX/ ----China Education Alliance, Inc. (OTC Bulletin Board: CEUA) ("China Education Alliance" or "the Company"), a leading distributor(提供商) of educational resources, offering high-quality materials and training and tutoring services through both online networks and an on-site training center in China, today reported financial results for the second quarter ended June 30, 2008.

Second Quarter 2008 Results
Revenue in the second quarter increased to $4.5 million, up 2.5% from $4.3 million in the prior year, which was primarily attributable to the online education business and the addition of several new programs for vocational studies(职业学习) and certification programs(证书教育,学历教育).

China Education Alliance provides exam-oriented education to 11-18 year olds, middle and senior high school students, including online downloadable materials and online classrooms, as well as famous instructors(名教)' face-to-face training and tutoring services in training centers. The Company also provides vocational education to students older than 18 years of age and adults, through both on-site and training center channels.

Online education represented 86.4% of total revenue for the second quarter of 2008 versus 85.5% in the same period of last year, while the training center(培训中心) business generated the remaining 13.6% of total revenue for the second quarter of 2008 versus 14.5% in the second quarter last year.

"We experienced a slight increase in our revenue in this quarter led by our online education business," commented Mr. Xiqun Yu, Chairman(董事长) and CEO of China Education Alliance, Inc. "We continue to dominate the online education business in Heilongjiang Province(黑龙江省) and expand into surrounding provinces."

Online education revenue was $3.9 million for the second quarter, up 3.7% from $3.7 million in the second quarter of 2007. Training center revenue for the second quarter was $604,752, a decrease of 4.3% compared to $631,770 in the second quarter of last year.

Overall cost of sales(销售成本) decreased 12.9% to $737,692 in the second quarter of 2008, compared to $847,395 in the same period of 2007. Gross profit(利润总额) increased to $3.7 million in the second quarter, up 6.2% from $3.5 million in the same quarter of 2007. Gross margin(毛利率) for the quarter increased to 83.5% from 80.5% in the same quarter a year ago. The improved gross margin was due to the fact that on-line education costs are somewhat fixed and margins increase with volume(销售量) and an increase in advertising revenue, which has no substantial costs associated with it. This was offset(抵偿) by more amortization(摊销) of training center related intangible assets and decreased payments to lecturers. The online education gross margin increased to 87.5% in second quarter of 2008 from 83.3% in the same period of 2007. The training center gross margin decreased to 57.9% for the three months ended June 30, 2008 from 64% in the same period of last year.

Selling expenses increased 30% to $1.4 million, compared to $1.1 million in the second quarter of 2007, reflecting increased agency fees(代理费用) due to more sales of debit cards(借记卡,付费卡). General and administrative ("G&A") expenses decreased 27.3% to $318,543 from $438,003 in the second quarter of 2007, due primarily to decreased salaries, and a decrease in travel and telephone expenses.

Operating income(营业收益) in the second quarter was $1.8 million, compared to $1.9 million recorded in the same period a year ago. Operating margin was 39.7% in the second quarter of 2008 compared to 43% in the prior year.

Interest expense decreased 94.4% to $21,842 from $388,582 in the second quarter of 2007, which was related to a bridge loan(过桥贷款,临时贷款) made in September 2006.

Net income(净收益) for the second quarter was $1.7 million, up 18.9% from $1.4 million in the year earlier period. Fully diluted earnings per share were $0.07 compared to $0.07 in the comparable period for 2007.

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