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News Release

Press Release January 9, 2008

Embanet partners with rSmart to deliver more choice to clients



TORONTO, Ontario, January, 9, 2008 - Embanet, a leader in online education, is pleased to announce a new partnership with The rSmart Group, the leading full-service provider of open source software solutions for education. Together, the two companies will provide a full suite of support options for institutions wishing to power their online learning programs with Sakai open source course management and collaboration system.

"Through our partnership with rSmart, Embanet now supports every online educational platform available today in North America, making us truly the most comprehensive provider of end-to-end solutions to the education market," said Rick Ness, President, Embanet. "rSmart is excited to be working with Embanet. The opportunity to combine open source innovation with Embanet's expertise in the areas of user support and hosting is ideal," said Tom Chapman, CFO and VP, Business Development, rSmart.

Embanet will support the full spectrum of the feature-rich Sakai software application, which facilitates teaching and learning, project collaboration, group interaction and ePortfolio construction, to provide its clients with cost savings combined with greater innovation and collaboration capabilities.

"Our ability to support the Sakai system expands our opportunities for future relationships with post-secondary educational institutions, by offering full support in their chosen software," said Ness.

About Embanet

Founded in 1995, Embanet is a leading, full service provider of online program design and development, marketing, and enrollment and technology support services for postsecondary educational institutions. Embanet works with partner schools to help them develop and expand their online graduate and undergraduate programs and provides superior support services that result in industry-leading graduation rates. For more information on Embanet, please visit www.embanet.com.

About The rSmart Group

The rSmart Group is the leading open source application software company serving the education market. rSmart packages, certifies, deploys, and supports a suite of enterprise financial and collaborative learning applications for colleges, universities, and institutions serving grades K-12. As an active member of open source projects like Kuali and Sakai, rSmart is able to provide its clients with software applications specifically designed to meet the unique needs of educational institutions. For more information on Embanet, please visit www.rsmart.com.


Press Relations Contact:

Bart Levitt
S.VP of Sales and Marketing
416-494-6622 Ext. 3519
blevitt@embanet.com
  Investor Relations Contact:

Rick Ness
Chief Executive Officer
416-494-6622 Ext. 2259
rick.ness@embanet.com