KID CASTLE EDUCATIONAL CORPORATION CONSOLIDATED STATEMENTS OF OPERATION Years Ended December 31 Operating revenue (Note 21) Sales of goods Franchise income Other operating revenue Net operating revenue Cost of goods sold Cost of franchising Other operating costs Total operating costs Gross profit Advertising costs Other operating expenses Profit from operations Interest expense, net (Note 12) Share of profit (loss) of investments Other nonoperating income (loss), net Profit before income taxes and minority interest income Income taxes (expense) benefit (Note 7) Income (loss) after income taxes Minority interest Income Net Income (loss) Income (loss) per share-basic and diluted 2007 (Expressed in U.S. dollars) 2008 7,905,949 2,380,930 2.558,232 12.845.111 (3,357,441) (368,061) (1,777,862) (5.503,364) 7,341,747 (22,735) (6,272,753) 1,046,259 (89,761) 5,109 24.789 986,396 7,671,392 2,205,668 1.359.552 11.236.612 (106,215) 880,181 (41.212) 838,969 0.034 (3,154,509) (451,469) -(491.869) (4.097.847) 7,138,765 (29,241) (5,342.216) 1,767,308 (90,299) 2006 6,774,260 2,080,551 856,772 9,711,583 27,007 552,611 2,256,627 (2,684,650) (337,986) (616,102) (3.638,738) 6,072,845 (278,191) 1,978,436 (101,287) 1,877,149 0.075 (21,833) (5.526,318) 524,694 (179,825) (39,489) (153,803) 151,577 (173.325) (21,748) (24.463) (46,211) (0.002)

KID CASTLY EDUCANOMAL CORPORATION CONSOUDATED STATEMENTS OF OPERATION KID CASTLY EDUCANOMAL CORPORATION CONSOUDATED STATEMENTS OF OPERATION