News Release

Rosetta Stone Strengthens Global Presence with Increased Focus on Asia

Leading Language-Learning Brand Relocates President of Consumer Business to Tokyo

ARLINGTON, Va.--(BUSINESS WIRE)--Jun. 19, 2012-- Furthering a commitment to grow its business in Asia, Rosetta Stone Inc. (NYSE: RST), one of the world’s best-known language-learning brands, has announced that a top executive will relocate to its Tokyo office to oversee the company’s global consumer operations.

Pragnesh Shah, President of Global Consumer Markets at Rosetta Stone, will move from the company’s corporate headquarters in Arlington, VA to its Tokyo office later this summer. While Mr. Shah’s role and responsibilities will not change—he will continue to lead Rosetta Stone’s consumer-facing business around the world—his new posting is expected to achieve deeper penetration in the sizable language-learning markets of Asia. Of the $83 billion global market for language learning, Japan and Korea alone represent nearly $20 billion. Rosetta Stone has offices in both of those countries, as well as Brazil, the U.K., and the US, which remains the foundation of the company’s business.

“Rosetta Stone is a go-anywhere brand, and our products are embraced by individuals and institutions throughout the world,” said CEO Steve Swad. “Asia has become a pillar of growth for us, and this move reflects our commitment to serving that market. We already enjoy strong brand awareness among consumers in Korea and Japan, and we’re working to gain traction in both our consumer and institutional businesses there. Ultimately, our success in Asia requires strong leadership and intense focus, and I am delighted that Prag will bring his leadership experience and expertise to Asia.”

Previously an e-commerce and consumer services executive at Sprint Nextel and Network Solutions, Mr. Shah came to Rosetta Stone in November 2011. He has helped drive growth in the US market, open up new sales channels across Europe and Asia, and launch a new online subscription model—including mobile applications—to complement Rosetta Stone’s well-known CD-Rom product.

“Asia presents a particularly rich opportunity for us—but also a significant challenge,” said Shah. “The language-learning industry in Asia is fragmented and the competitive dynamics are different than in the US, so we need to increase our focus to succeed. I’m looking forward to getting established on the ground in Tokyo and working with our teams throughout Asia to capitalize on what we believe is a huge opportunity to change the way people learn new languages with Rosetta Stone’s unique and powerful technology-based services.”

About Rosetta Stone Inc.

Rosetta Stone Inc. provides cutting-edge interactive technology that is changing the way the world learns languages. The company’s proprietary learning techniques—acclaimed for their power to unlock the natural language-learning ability in everyone—are used by schools, businesses, government organizations and millions of individuals around the world. Rosetta Stone offers courses in 30 languages, from the most commonly spoken (like English, Spanish and Mandarin) to the less prominent (including Swahili, Swedish and Tagalog). The company was founded in 1992 on the core beliefs that learning to speak a language should be a natural and instinctive process, and that interactive technology can activate the language immersion method powerfully for learners of any age. Rosetta Stone is based in Arlington, VA., and has offices in Harrisonburg, VA, Boulder, CO, Tokyo, Seoul, London, and Sao Paulo.

For more information, visit RosettaStone.com.

Source: Rosetta Stone Inc.

Rosetta Stone Inc.
Investor Contact:
Steve Somers, CFA
Vice President, Investor Relations
703-387-5876
ssomers@rosettastone.com
or
Media Contact:
Jonathan Mudd
Senior Director, Global Communications
571-357-7148
jmudd@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.