Princeton Review raises $10 million via 5% convertible preferred private placement

Nashville, June 7- The Princeton Review Inc. announced Monday that it has completed a $10 million private placement of a new 5% convertible preferred stock to Fletcher International Ltd., an affiliate of Fletcher Asset Management.

In addition, Princeton Review also said it has established a $5 million credit facility with Commerce Bank, which will be secured by the company's receivables.

Princeton Review said it expects to use proceeds to fund expansion of its K-12 educational business, pursue strategic acquisitions and for general corporate purposes.

The convertible dividends are payable in cash or common stock at Princeton Review's option.

The issue is convertible into 909,091 shares at an initial conversion price of $11.00. Princeton Review shares closed Monday up 15 cents, or 2.05%, to $7.45

Princeton Review also said that Fletcher has the right to invest up to an additional $20 million at similar terms beginning July 1, 2005.

"We are pleased to be included in Fletcher International's portfolio of responsible companies," said John Katzman, chief executive officer of The Princeton Review, "especially given the inspirational commitment of the team at Fletcher Asset Management to education."

Based in New York, Princeton Review is a provider of test preparation, educational support and college admissions services.

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