News Release

New Study from Rosetta Stone Shows 90% of Senior Business Leaders Recognize Language Challenges in Their Companies, Yet Only 1 in 3 Engage HR Departments to Overcome These Obstacles Strategically

(Thomson Reuters ONE via COMTEX) --New Study from Rosetta Stone Shows 90% of Senior Business Leaders Recognize Language Challenges in Their Companies, Yet Only 1 in 3 Engage Their Human Resources Departments to Assist in Overcoming These Obstacles Strategically

 ____________________________

Harvard Business School Professor Robert Steven Kaplan to Address Study

and Why Businesses Need a Language Strategy at April 21 Live Q&A Webcast

 for Senior Management Leaders

ARLINGTON, VA (April 20, 2015)- A new study released by Rosetta Stone Inc. (NYSE: RST), a world leader in technology-based learning solutions, shows that despite the obvious need for improved language proficiency, only one-third of companies are tackling this problem strategically by engaging human resources to find solutions to language challenges.  In short: businesses across the board are in dire need of a language strategy that derives from a collaboration between senior management and human resources departments.

The new study reaffirms results of an earlier study released by Rosetta Stone in January 2015, which demonstrated the definitive impact business leaders can have on employees and the overall success of their business by providing language training and the skills needed to be competitive in today's global economy. 

"This study clearly supports my conclusions that, no matter what the industry, language strategy continues to be a 'blind spot' in business strategy and makes global businesses, in particular, vulnerable," said Robert Steven Kaplan, former vice chairman at The Goldman Sachs Group, Inc. and current Professor of Management Practice at Harvard Business School.  "Developing a comprehensive strategy for managing language challenges can help transform that vulnerability into a source of competitive advantage and is integral to good global talent management. A concerted, well-developed language strategy will undoubtedly protect smart global businesses from leaving money on the table."

Professor Kaplan will host a webinar on April 21 drawing upon the new Rosetta Stone study to senior business leaders.  Information can be found here.

"It's disconcerting that despite language permeating every aspect of business, senior management and their HR counterparts are typically not collaborating to close these language proficiency gaps in a coordinated, strategic way," said Judy Verses, President of Global Enterprise and Education at Rosetta Stone.  "The consequences of not connecting the dots here can range from less productive relationships and high employee turnover, to lower levels of customer satisfaction, job injuries and revenue loss."

Rosetta Stone's new survey, which polled 300 business decision makers from companies representing a wide range of industries in the US, UK, Germany, France, China and Brazil, was conducted by IDG Research Services.   

Additional findings from the survey included:

- Nine out of ten senior management leaders report some language-based challenges within their functional area

- More than two out of five organizations believe employees in their functional area need advanced everyday language skills, intermediate and advanced business language skills, and industry-specific language skills

- Two-thirds of those surveyed reported the greatest language proficiency challenges in employee to customer communication; and half reported it as employee to vendor communication

- The effects of language proficiency challenges vary across functional areas, with IT/Technology, Sales/Marketing, and Manufacturing/Operations most often impacted

- The top issues faced by business leaders as a result of language proficiency challenges include less productive relationships,  longer resolution time for customer support, and  increased stress levels across the team

 

 Full survey results are available upon request.

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, Vivity Labs, 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 Contact:

Michelle Alvarez                                                                                             

malvarez@rosettastone.com                                                                   

703.387.5832                                                                                                  

Zoe Whitehorn

zoe.whitehorn@finnpartners.com 

202.884.7338

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.