Sterling Partners Closes on Sale of Smarterville, Inc.

August 28, 2011

Smarterville, Inc. (“Smarterville” or the “Company”) completed the sale of its distribution and software assets to Sunburst Digital, Inc., an affiliate of Ignite Learning, Inc., and Destination Education, Inc.  In August 2011, Smarterville Productions, LLC, a division of the Company, sold distribution rights to and current inventory of Reading Rainbow to RRKidz, Inc., a Burton Wolfe Entertainment company.  This series of transactions concluded the sale processes of the Company, which began in October 2010 when Hooked on Phonics was sold to Sandviks, Inc.

Smarterville is a distributor of owned and third-party technology-related software, products and solutions to the education market (schools and districts).