Knowledge House Mindful of Market Potential

[Halifax, NOVA SCOTIA] Knowledge House Inc. announced today it will acquire all of the outstanding
limited partnership units of the Knowledge House Limited Partnership (KHLP) on December 28, 2000 in
exchange for the issues of 646,875 common shares from treasury to the current holders of the limited
partnership units.

Last month, Knowledge House Inc. was named Canadian training agency for Intel of Canada’s Teach to
the Future program. Knowledge House, as part of its agreement with Intel, has reviewed and updated
Intel’s American curriculum to meet Canadian education requirements. The curriculum, which consists of
10, four-hour modules, includes the use of the Internet, Web page design, multimedia and publishing
software. Teachers learn how, when and where to incorporate technology tools and resources into their
current lesson plans, create assessment tools, and align lessons with provincial standards.

Since its inception in 1998, Halifax-based KHLP has released a suite of transformational new
technology-enabled learning programs utilizing the Internet and related technologies. Systems for personal
and professional development are also part of the company’s product offering. The KEY Certification
Program and the advanced studies program, hosted on the company’s SmarterTeams e-learning platform,
are among the products ready for market.

The KEY Certification Program, conceived in partnership with The Conference Board of Canada,
addresses the critical skills gap associated with employability and technology skills in the knowledge and
Internet-based economy. Targeted to secondary and post-secondary students, as well as individuals
entering, or already in the workforce, the program will be rolled out during the first quarter of 2001.

The company’s advanced studies program is an innovative advanced curriculum for Grade 11 and 12
students that meets the outcomes for high school graduation and provides students with the opportunity to
qualify for undergraduate university credits and advanced standing.

The two-year program, comprised of eight, fully-integrated modules, built around highly engaging learning
challenges, distinguishes itself from other advanced studies programs such as the Advanced Placement
Program or the International Baccalaureate by virtue of its multidisciplinary, collaborative, problem-based
learning curriculum that leverages the Internet and related technologies. The advanced studies program is
currently scheduled to be available for delivery commencing September 2001.

Last week, Knowledge House and McKenzie College confirmed the completion of a series of business
transactions, which have resulted in the purchase of the Centre for Distance Education Ltd. by McKenzie
College and an investment in McKenzie College by Knowledge House.

The Centre for Distance Education is an education provider specializing in the distance delivery of
multimedia and business diploma education programs. Each course is designed to meet the needs of adult
students as they adapt to opportunities in the workplace. Its offices and instructors are ho

used in the
Silicon Island Art and Innovation Centre in Sydney, Nova Scotia.

McKenzie College is a private sector digital arts and design post-secondary institution in Atlantic Canada.
It delivers industry-relevant, leading edge education and training in design and technology skills for the
digital new media industry.

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