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Rosetta Stone Launches Kids Division, Introduces Blended Reading & Language Product for Children 3-6

(Thomson Reuters ONE via COMTEX) --Rosetta Stone Launches Kids Division, Introduces Blended Reading & Language Product for Children 3-6

Game-Focused App for iPhone and iPad Signals Company's Move into Kids EdTech Market

ARLINGTON, VA-September 17, 2013- Rosetta Stone Inc. (NYSE:RST) a leading provider of education technology solutions, today introduced a groundbreaking app-Rosetta Stone® Kids Lingo Letter Sounds-designed specifically for kids. The app, available now on the App Store for iPhone, iPad and iPod touch, is the debut offering from the new Rosetta Stone Kids(TM) division, and represents the company's first foray into early childhood language and literacy.

Designed and built by Rosetta Stone's recently established San Francisco and Austin product development teams, Lingo Letter Sounds harnesses the company's pioneering language immersion methodology and proprietary speech recognition technology to deliver core English reading skills alongside a fun and interactive introduction to Spanish. Unique to the children's consumer education market, the blended solution provides an educational resource for parents eager to introduce their children to both basic literacy skills and a foreign language at an early age.

"Enhancing early language development skills gives kids an important edge in their overall education and enables them to get ahead," said Steve Swad, President and CEO of Rosetta Stone. "Rosetta Stone has a long, proud tradition of leadership in language-learning technology for adults and students K through 12, and we're excited to leverage that expertise to help younger kids learn. This app will give kids a great start down the road of reading and speaking-in English and Spanish."

Rosetta Stone Kids Lingo Letter Sounds includes original content to support two hours of game play, including activities that promote English phonetic awareness, pronunciation of letter sounds, and a grasp of everyday Spanish phrases. Cleverly designed around a magical world of original cartoon creatures and fantasy landscapes, the app quickly engages kids through fun and entertainment, all the while accelerating their mastery of critical reading and speaking skills. Importantly, Lingo Letter Sounds also features a Parent Corner where adults can monitor their child's progress on the app every step of the way.

"Rosetta Stone Kids Lingo Letter Sounds is a powerful learning tool parents will love wrapped in a super-sticky game that kids won't want to put down," said West Stringfellow, Rosetta Stone's Chief Product Officer. "We want to address the language and literacy needs of people of every age and in every stage of their lives, so providing a fun and effective app for kids is a natural next step for Rosetta Stone's expanding product portfolio. And there's plenty more to come-for kids and adults alike."

On the heels of its July acquisition of the children's reading technology company Lexia Learning Inc., Rosetta Stone is continuing its expansion deeper into language and beyond it, positioning itself squarely in the center of today's education-technology movement. The company's cloud-based learning solutions are used by millions of individuals and thousands of schools, businesses and government organizations around the world, and the consumer-oriented Rosetta Stone Kids division now broadens its product portfolio to serve all ages.

The Rosetta Stone Kids Lingo Letter Sounds App is available for free from the App Store on iPhone, iPad and iPod touch or at www.AppStore.com.

For more information and to watch a demo of the Rosetta Stone Kids Lingo Letter Sounds app, please visit www.rosettastone.com/rosettastonekids.

About Rosetta Stone Inc.

Rosetta Stone Inc. (NYSE: RST) is dedicated to changing the way the world learns. The company's innovative technology-driven language and reading solutions are used by thousands of schools, businesses, government organizations and millions of individuals around the world. Founded in 1992, Rosetta Stone pioneered the use of interactive software to accelerate language learning. Today the company offers courses in 30 languages, from the most commonly spoken (such as English, Spanish and Mandarin) to the less prominent (including Swahili, Swedish and Tagalog). In 2013, Rosetta Stone expanded beyond language and deeper into education-technology with its acquisitions of Livemocha and Lexia Learning. Rosetta Stone is based in Arlington, VA, and has offices in Harrisonburg, VA, Boulder, CO, Austin, TX, San Francisco, CA, Seattle, WA, Concord, MA, Tokyo, Seoul, London, Dubai and Sao Paulo.

For more information, visit www.rosettastone.com.

"Rosetta Stone" is a registered trademark or trademark of Rosetta Stone Ltd. in the United States and other countries.

Media Contact:

Jonathan Mudd

jmudd@rosettastone.com

571-357-7148

Investor Contact:

Steve Somers, CFA

ssomers@rosettastone.com

703-387-5876

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.

The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the

information contained therein.

Source: Rosetta Stone via Thomson Reuters ONE

HUG#1729462

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Rosetta Stone PR's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.
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