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capability that is expected to increase in line with the 13.5% Adjusted EBITDA CAGR projected until 2011.

k12 continues to grow at an impressive rate, with annual enrollment growth projected in excess of 25% over the next two years
— Many of k12's direct costs are semi-fixed in nature (e.g., school administration) creating strong economies of scale as this business continues to grow.
— With $70 million invested in the development of the platform for kindergarten to 9th grade classes, extension of the offering into new states and schools is expected to be achieved at relatively low costs.

■ Leading market position in early childhood education with significant brand equity

Leading market positions in early childhood education and before and after school programs
— Largest U.S. provider of ECE services (1,934 centers).

[TABLE]
Organization | Capacity | LTM Revenue¹ | Centers | Owner
--- | --- | --- | --- | ---
KLC OpCo | 253,000 | $1,477.7² | 1,934 | KUE
La Petite Academy | 89,000 | 411.1 | 649 | JP Morgan
Bright Horizons | 66,350 | 625.3 | 616 | Public
ABC Learning³ | 69,000 | 220.7 | 460 | Public

¹ LTM revenue in millions. KLC OpCo and Bright Horizons LTM as of 12/31/05, La Petite LTM as of 2/28/06, ABC (Learning Care Group) LTM as of 10/14/05.
² Pro forma for the effects of the acquisition of KinderCare in January 2005 and for the separation of KLC into KLC OpCo and KLC PropCo in November 2005, as if those transactions and related financing had occurred on January 1, 2004.
³ Represents ABC's presence within the U.S. pro forma for the acquisition of the Learning Care Group. ABC has approximately 1,167 total centers (707 of which are located in Australia and New Zealand) and combined LTM revenue of $441.1 million using Learning Care Group LTM revenue of $220.7 million as of 10/14/05 and ABC LTM revenue of $292.7 million AUD as of 6/30/05, converted at an average exchange rate of .753 AUD/USD from 6/30/04 to 6/30/05.

— Second largest U.S. provider of ECE to employers (122 centers).
— Largest U.S. for-profit provider of before and after school programs (573 sites).

High brand awareness and customer recognition
— The programs are marketed primarily under the KinderCare, Children's Discovery Centers, Knowledge Beginnings, and Children's World brand names. KinderCare enjoyed 87% aided awareness as of November 2005.¹¹

■ Superior competitive position of KLC OpCo as a result of proprietary curriculum, standards of excellence and experience and scale

¹¹ Source: Parthenon Conjoint Survey.

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