News Release

ROSETTA STONE UNVEILS GROUNDBREAKING DIGITAL READING PRODUCT FOR KIDS

(Thomson Reuters ONE via COMTEX) -- 

ROSETTA STONE UNVEILS GROUNDBREAKING DIGITAL READING PRODUCT FOR KIDS

As Parents Seek an Educational Leg Up for their Children, Language Company Leverages

Its New Lexia Learning Division to Help Kids Learn to Read

ARLINGTON, VA (November 6, 2014)-Rosetta Stone Inc. (NYSE:RST), the world's leading provider of technology-based learning solutions, today introduced a comprehensive digital literacy product designed to help young children learn to read. Created in partnership with the literacy experts at Lexia Learning-the Boston-based reading technology company Rosetta Stone acquired in 2013-Rosetta Stone® Kids Reading is designed to help children ages 3-7 get a jump-start on their education by developing core literacy skills at home.  Representing the most significant move to date in Rosetta Stone's expansion beyond language-learning and into the broader education-technology market, Rosetta Stone® Kids Reading offers U.S. consumers a fun, affordable, technology-driven learning experience to help kids gain foundational reading skills.

"Learning to read is a life-changing achievement," said Steve Swad, President and CEO of Rosetta Stone. "Kids who learn to read early are better equipped to succeed in school and in life. Our Lexia Reading® Core5® solution is already helping millions of children in America learn to read at grade-level in school; now, with Rosetta Stone Kids Reading, we're providing an engaging, effective way for parents to help their kids learn to read at home."

By adapting Lexia Learning's heralded blueprint for literacy development-used by schools across America to help over two million students improve their reading-Rosetta Stone Kids Reading leverages a proven, research-based approach to instruction that accelerates reading success. The solution covers the five most important reading skills: phonological awareness, phonics, fluency, vocabulary and comprehension.  A ten-level, curriculum-based program that includes 600 units of learning material and 50 activities and games, Rosetta Stone Kids Reading is designed to keep children entertained while they gain the necessary skills needed to become confident, successful readers.

Expanding on the endearing world of the Lingos that was unveiled in Rosetta Stone's popular mobile app "Lingo Letter Sounds"-which won a prestigious Academics' Choice Smart Media Award earlier this year-Rosetta Stone Kids Reading transports kids to Lingo Land, a magical place where imagination inspires learning. Kids learn key reading skills with the help of loveable Lingos, colorful, animated characters who love to read books and tell stories. The Lingos lead children on a series of thoughtfully engineered skill-building adventures, including sounding out words, matching rhyming pairs, and boosting reading comprehension.

Designed to support families with multiple children, Rosetta Stone® Kids Reading is equipped with a Parent's Corner for monitoring the progress of up to four learners through every stage of development. Like Rosetta Stone's world-renowned language-learning solutions, the product features adaptive technology that responds to the individual learner's various strengths and weaknesses, providing immediate, targeted instruction when they struggle with new skills. As a result, kids can learn at their own pace as they explore the levels of the product and choose the age-appropriate games and activities they enjoy most.

Available both online and in downloadable versions for iOS and Android tablets, the first lesson of each level of Rosetta Stone® Kids Reading is free to access. Customers have the option to purchase digital subscriptions at $19.99/month or $99.99/year, each providing full access to content in ten distinct lesson levels. Each level introduces kids to a new location, and each location presents a story-based problem for them to solve as they learn new skills. As a holiday gift-giving alternative, parents (and grandparents) can upgrade the annual subscription to include a special-edition, hardcover copy of Little Red Riding Hood. Rosetta Stone's version of this classic children's tale-featuring the colorful Lingo characters-has been totally reimagined to instill a love of books while promoting reading automaticity and fluency.

"With Rosetta Stone Kids Reading, we're breaking new ground in the area of reading technology for consumers," said Nick Macey, Chief Product Officer at Rosetta Stone. "Never before have parents and kids outside the classroom had access to a reading program that provides this level of research-based rigor in a highly engaging, game-based learning environment. It's fun, it's challenging, and best of all, it works."

For more information and to watch a demo of the Rosetta Stone Kids Reading, please visit www.rosettastone.com/kids.

About Rosetta Stone

Rosetta Stone Inc. (NYSE: RST) is dedicated to changing the way the world learns. The company's innovative technology-driven language, reading and brain fitness 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). Since 2013, Rosetta Stone has expanded beyond language and deeper into education-technology with its acquisitions of Livemocha, Lexia Learning, Fit Brains, and Tell Me More. Rosetta Stone is based in Arlington, VA, and has offices around the world.

For more information, visit www.rosettastone.com.

"Rosetta Stone" and related trademarks used herein are the property of Rosetta Stone and are used and/or registered in the United States and other countries.

Media Contacts:

Jonathan Mudd | Rosetta Stone | 571.357.7148 | jmudd@rosettastone.com

Michelle Alvarez | Rosetta Stone | 202.390.0032 | malvarez@rosettastone.com

Miranda Harper | Finn Partners | 917.558.1771 | miranda.harper@finnpartners.com

Investor Contact:

Steve Somers | Rosetta Stone | 703-387-5876 | ssomers@rosettastone.com

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.

The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Rosetta Stone via Globenewswire

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"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.