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ePals(TM) Partners With Neumedias to Provide Children's Digital Media Apps Throughout China

WASHINGTON, DC -- (Marketwired) -- 04/16/14 -- ePals Corporation (TSX VENTURE: SLN), an education media and social learning company, today announced an agreement with Dalian Neumedias Information Technology Co., Ltd to develop and distribute interactive digital media products based on ePals' award winning children's magazines for children throughout China. Under the agreement, four brands of dual English-Chinese language apps and content for toddlers and young children will be offered on smartphones, tablets and smart TVs through Neumedias' NeuStore digital media platform, with the potential to expand to additional ePals' brands.

"We are very excited to partner with Neumedias to meet the growing demand among Chinese parents for high-quality, educational digital apps that help their young children acquire vital reading and English language skills," said Katya Andresen, CEO of ePals. "Through this agreement, we will offer throughout China, products that enlighten and educate children in the home and on the go, across all the devices their families use."

Neumedias is a digital publishing company owned by Neusoft, the largest IT services company in China. Under the agreement, Neumedias will be producing bi-lingual interactive magazine apps based on the award-winning Babybug, Ladybug, Click and Ask brands. The products are expected to be released this summer.

"In China, families want their children to gain strong English language and academic skills at the youngest of ages. The Neumedias platform's capabilities of digital media production and distribution with a focus on mobile is a strong offering for the home market -- and the ePals brands and highest quality content when offered in English and Chinese together -- makes it even stronger," said Jianning Wu, CEO of Neumedias.

China represents a rapidly expanding marketplace, where parents and schools have shown enthusiasm for purchasing digital services that increase their children's knowledge and academic performance. The Neumedias partnership allows ePals to extend into the early childhood and home markets as a complement to its joint venture NeuPals' focus on the school market and the Chinese Ministry of Education's 2010-2020 Medium and Long-term National Educational Reform and Development Plan to impact more than 150 million Chinese students from primary through secondary levels.

This partnership between ePals and Neumedias builds on the relationship in China between ePals and the Neusoft family of companies, which includes the NeuPals joint venture providing Chinese schools with a platform for collaborative learning. The relationship between ePals and Neumedias is separate from that joint venture.

About Neumedias
Neumedias Information Technology Co., Ltd is a leading provider of digital publishing in China. Based on Neusoft's Information Technology expertise and educational resources, Neumedias provides an industry changing digital media platform. Its core business is to provide a digital publishing platform for clients to create digital solutions for distribution both domestically and internationally. The platform provides a quality reading experience for mobile digital readers and features state-of-the-art data collection and analysis for targeted marketing. For more information, please visit http://www.neumedias.com/intro/index.html.

About ePals Corporation

ePals Corporation, operating under the brand Cricket Media is an education media company that provides award-winning content on a safe and secure learning network for children, families and teachers across the world. Cricket Media's 14 popular media brands for toddlers to teens include Babybug, Ladybug, Cricket® and Cobblestone® with multiple language editions and apps in English, Spanish and Chinese. The Company's innovative web-based K12 tools for school and home include the ePals community and virtual classroom for global collaboration as well as In2Books®, a Common Core eMentoring program that builds reading, writing and critical thinking skills. Cricket Media serves approximately one million classrooms and millions of teachers, students and parents in over 200 countries and territories through its platform and NeuPals, its joint venture with China's leading IT services company Neusoft. Cricket Media also licenses its content and platform to top publishing and educational companies worldwide. For more information, please visit www.Cricketmag.com, www.ePals.com and www.In2Books.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

FOR FURTHER INFORMATION PLEASE CONTACT:
Aric Holsinger
Chief Financial Officer
(703) 885-3400
[email protected]

Cory Pala
Investor Relations
(416) 657-2400
[email protected]

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