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Houghton Mifflin Harcourt Acquires Channel One News to Expand Digital Content Offering, Production Capabilities

Global education leader Houghton Mifflin Harcourt (HMH) today announced the acquisition of Channel One News, a digital content provider dedicated to encouraging kids to be informed, digitally-savvy global citizens. The acquisition represents HMH’s strategic investment in the continued development of high-quality digital content for students, teachers and parents across multiple modalities, and will bring significant video and cross-media production capabilities in-house.

Established in 1989, Channel One News produces Peabody and Telly award-winning daily news programs that are broadcast to nearly five million upper elementary, middle and high school students across the U.S. via satellite and online at ChannelOne.com.

“Channel One News is a long-time K-12 industry player that shares our commitment to high quality digital content and the importance of curiosity in learning,” said Linda Zecher, President and CEO of Houghton Mifflin Harcourt. “By coming together, we continue to innovate around modes of content delivery that educate and engage today’s students in new and meaningful ways.”

Aligned to Common Core State Standards, Channel One and its supplementary educational resources are designed to spark conversations on current events and foster critical thinking skills. The acquisition will enable HMH to further integrate informative, engaging and standards-aligned nonfiction video content into its core product offerings and beyond.

“We are thrilled to join the HMH family – a global, educational powerhouse that combines world class content, cutting edge technology and digital multimedia tools to engage students and support teachers," added C.J. Kettler, CEO of Channel One. “By joining forces, Channel One News can leverage HMH's leading K-12 market position and its deep relationships with school districts across the U.S. to offer innovative digital content and resources on an even broader scale."

Channel One News and its employees will continue to be based in New York City.

About Houghton Mifflin Harcourt
Houghton Mifflin Harcourt (NASDAQ:HMHC) is a global learning company with the mission of changing people’s lives by fostering passionate, curious learners. Among the world’s largest providers of pre-K–12 education solutions and one of its longest-established publishing houses, HMH combines cutting-edge research, editorial excellence and technological innovation to improve teaching and learning environments and solve complex literacy and education challenges. HMH’s interactive, results-driven education solutions are utilized by more than 50 million students in over 150 countries, and its renowned and awarded novels, non-fiction, children's books and reference works are enjoyed by readers throughout the world. For more information, visit www.hmhco.com.

About Channel One, LLC
Channel One, LLC is a digital content provider focused on encouraging young people to be informed, digital-savvy global citizens. The Company’s primary offering, Channel One News, is a daily nonfiction video program with supplementary educational resources, aligned to Common Core State Standards, to help students, teachers and parents interpret the news of the day and spark important conversations. The award-winning Channel One News program is broadcast to approximately five million young people in upper elementary schools, middle schools and high schools across the country.

Forward Looking Statements
This news release may contain certain statements that are not historical facts, including information regarding our intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects, growth, strategies, the industry in which we operate and potential business decisions. Those statements constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from the results express in or implied by our forward-looking statements, including, but not limited to, changes in state and local education funding and/or related programs, legislation and procurement processes; adverse or worsening economic trends or the continuation of current economic conditions; changes in consumer demand for, and acceptance of, our products; industry cycles and trends; conditions and/or changes in the publishing industry; and other factors discussed in our news releases, public statements and/or filings with the U.S. Securities and Exchange Commission, including our most recent Annual and Quarterly Reports on Form 10-K and Form 10-Q. We undertake no obligation, and do not expect, to publicly update or publicly revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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