News Release

Rosetta Stone Transforms English Instruction in Korea
Rosetta Stone ReFLEX and Rosetta Stone Version 4 TOTALe Launch in Korea, Showcasing Company's New, Innovative English Language-Learning Offerings

ARLINGTON, Va., Aug 09, 2011 (BUSINESS WIRE) --

Rosetta Stone Inc. (NYSE:RST), a leading provider of technology-based language-learning solutions, today announced two innovative products for English language learners in Korea:

  • Rosetta Stone(R) ReFLEX(TM), a solution designed specifically for English learners who want to unlock listening and speaking confidence.
  • Rosetta Stone Version 4 TOTALe(TM), the company's comprehensive language-learning experience for beginning learners, now including learners as young as five years old.

These products transform the Asian language-learning market from a "book-smart" and test-taking market into one that values the real reason people learn languages: to speak confidently with other people.

Rosetta Stone ReFLEX, sold only as an online subscription, is specifically designed to help adult English learners in Asia 'wake up their English.' This disruptive approach focuses solely on unlocking listening and speaking confidence, leveraging the existing knowledge many learners have built up from years of study driven by written tests. This new solution does not teach new words or grammar concepts, but rather acts as a catalyst, activating a latent knowledge of English into conversational fluency.

Rosetta Stone ReFLEX leverages the significant investments the company has made in recent years in the areas of nonnative speech recognition and integrated, live online instruction. Structured as short, daily sessions, Rosetta Stone ReFLEX allows learners to practice a dialogue in context, such as ordering in a coffee shop, by first interacting with virtual characters and then seamlessly transitioning to a similar live conversation with a native speaker of American English. Each dialogue context is more than a single script; it's actually a rich set of highly interwoven interactions, so that there are hundreds of variations to experience. This allows learners to gain confidence speaking many useful phrases, while keeping them from memorizing entire conversations.

Rosetta Stone ReFLEX also heralds an increasing focus on adaptive learning in Rosetta Stone products. Each step for every learner is based on both their performance and also the performance of other learners in the past. So, while the system adapts to a single learner each session, it is also adapting to all learners it has seen. "This is really a system that learns how to most effectively unlock latent speaking ability," said Mike Fulkerson, Ph.D., chief technology officer of Rosetta Stone. "Over time, the Rosetta Stone ReFLEX environment will gain insight into what the individual learner should practice when -- in order to ensure the best outcome, both in that session and over several months."

The second product release brings the critically acclaimed Rosetta Stone Version 4 TOTALe language-learning solution to even more learners. With the introduction of Rosetta Stone TOTALe English to Korea, Korean learners as young as five can now participate in live coaching sessions and online games. Rosetta Stone TOTALe has been available in other markets only to learners 13 and older. Now in Korea, younger learners can access separate, live coaching sessions and participate in a kids-only, restricted version of our safe online community.

Koreans spend over $9.1 billion each year on language training -- more per capita than any other country in the world. "We're thrilled to introduce new solutions that are tuned to a range of Korean learners," said Tom Adams, CEO of Rosetta Stone. "Starting today, Korean parents have a better option for their children to learn English. With Rosetta Stone TOTALe, Korean children will be able to interactively discover the English language and then activate their learning in conversational training sessions with native speakers online. And for adults that have studied English for years but are still struggling with conversational fluency, Rosetta Stone ReFLEX is a revolutionary system that makes conversation training with native speakers of English easy and fun, with great results along the way."

Both products include Companion apps for the iPad(R), iPhone(R) and iPod touch(R) that encourage learners to continue their journey toward language-learning success while on the go. The Rosetta Stone ReFLEX and Rosetta Stone TOTALe experiences are also enhanced by the company's world-class customer support team, offering advice and encouragement to learners. More information is available at RosettaStone.co.kr.

About Rosetta Stone

Rosetta Stone Inc. is changing the way the world learns languages. Rosetta Stone provides interactive solutions that are acclaimed for the speed and power to unlock the natural language-learning ability in everyone. Available in more than 30 languages, Rosetta Stone language-learning solutions are used by schools, organizations and millions of individuals in over 150 countries throughout the world. The company was founded in 1992 on the core beliefs that learning a language should be natural and instinctive and that interactive technology can replicate and activate the immersion method powerfully for learners of any age. The company is based in Arlington, Va., with international offices in the United Kingdom, Korea, Japan, Brazil and Germany. For more information, visit www.RosettaStone.com.

"Rosetta Stone," "ReFLEX," "TOTALe" and other names used herein are registered trademarks or trademarks of Rosetta Stone Ltd. in the United States and other countries.

Apple, iPod touch, iPhone, iPod, iPad and iTunes Store are trademarks of Apple Inc.

SOURCE: Rosetta Stone Inc.

Rosetta Stone Inc.
Media Contact:
Miranda Harper, 212-715-1641
harperm@ruderfinn.com
or
Investor Contact:
Investor Relations, 703-522-9970
IR@RosettaStone.com
"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.