News Release

Rosetta Stone Provides Update on Strategic Action Plan

(Thomson Reuters ONE via COMTEX) --Rosetta Stone Provides Update on Strategic Action Plan

ARLINGTON, VA - July 7, 2015 - Rosetta Stone Inc. (NYSE:RST) today announced that in conjunction with its previously announced strategic plan, the Company has retained outside financial and legal advisors to assist management and its Board with their ongoing comprehensive review to analyze potential options to improve financial performance and enhance shareholder value.  There is no set timetable for the review process. The Company does not intend to disclose or comment on further developments unless and until its Board approves a specific action, it otherwise concludes its review or as required by law.

The Company also stated that it is continuing to implement its previously announced strategic plan, which it believes will deliver attractive value for shareholders.  The Company's strategic plan focuses its corporate strategy to align resources around its Global Enterprise and Education (E&E) segment, optimize the profitability of its Consumer segment, and simplify and improve efficiency across its businesses.

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About Rosetta Stone

Rosetta Stone Inc. (NYSE: RST) is dedicated to changing people's lives through the power of language and literacy education. The company's innovative, personalized language and reading programs drive positive learning outcomes in thousands of schools, businesses, government organizations and for millions of individual learners around the world.

Founded in 1992, Rosetta Stone pioneered the use of interactive software to accelerate language learning and is widely recognized today as the industry leader in providing effective language programs. The company's cloud-based programs allow users to learn online or on-the-go via tablet or smartphone, whether in a classroom, in a corporate setting, or in a personal learning environment. Rosetta Stone is also a leader in the literacy education space, helping millions of students build fundamental reading skills through its Lexia Learning division. Additionally, the company's Fit Brains business offers personalized brain training programs developed by neuroscientists and award-winning game designers to be fun and help keep your brain sharp.

Rosetta Stone is based in Arlington, VA, and has offices and operations around the world.  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:

The Abernathy MacGregor Group

Chuck Burgess / Kendell Moore

212-371-5999

clb@abmac.com / kem@abmac.com

Investor Contact:

Frank Milano

703-387-5876

ir@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

HUG#1935254

"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.