CAPE CORAL, Fla.--(BUSINESS WIRE)--Nov. 15, 2004--In BW5607 issued Nov. 12, 2004: Fourth graph, third line of release dated Nov. 12, 2004 should read: ...flow for the nine months ended September 30, 2004 was a positive $2.6 million... (instead of ...flow for the nine months ended September 30, 2004 was a positive $5.4 million...).

The corrected release reads:

WHITNEY INFORMATION NETWORK INC. REPORTS CONTINUED REVENUE GROWTH IN THIRD QUARTER 2004

Whitney Information Network, Inc. (OTCBB:RUSS), a leading provider of post-secondary education programs focused on individual wealth creation and personal success, today reported continued revenue growth for the third quarter, ended September 30, 2004. Revenue for the third quarter 2004 was $32.2 million, an increase of 36% over the quarter ended September 30, 2003, which was $23.6 million. Total revenue for the nine months ended September 30, 2004 was $109.3 million, an increase of $55.0 million or 101% over the same period in 2003.

In the judgment of the Company, cash flow, rather than profit or loss, is the primary indicator of its financial results. The reason for this is that revenue from student purchases of courses must be deferred until the course is taken or the student fails to take the course within the required time period. However, all of the costs associated with obtaining the course sales must be realized in the period they are incurred. Thus, the faster the Company grows its revenues, the higher its losses will be under Generally Accepted Accounting Principles, as it cannot report the sales as revenues but must report substantially all of the expenses associated with the sale as an expense. On the other hand, since the Company is entitled to recognize the cash from course sales on its balance sheet when the money is received, cash flow figures provide a more realistic indicator of the Company's performance during any given reporting period.

Deferred revenue, which is the net backlog of training courses purchased by students and not yet delivered, increased by $16.9 million during the first nine months of 2004, compared to $20.3 million for the same period in 2003. This was fueled by a 134% increase in student attendance in the third quarter of 2004 over the same period in 2003, and an increase in students taking classes at or near the time of purchase.

Cash flow for the three months ended September 30, 2004 was a negative $2.1 million for the reasons mentioned below; however, cash flow for the nine months ended September 30, 2004 was a positive $2.6 million. The Company expects continuing positive cash flow in the fourth quarter and near term as its revenue continues to increase as a result of the measures described below.

Net loss for the three months ended September 30, 2004 was $12.0 million, as compared with a net loss of $1.5 million for the three months ended September 30, 2003. Income per share was a net loss of $1.40 as compared to a net loss of $.19 per share in the same period in 2003. Net loss for the nine months ended September 30, 2004 was $16.2 million, as compared to a net loss of $6.5 million for the same period in 2003. Per share loss was $1.89 for the nine months ended September 30, 2003 as compared with $.80 for the same period in 2003.

As previously reported, a third quarter management review of operations indicated that the Company's overstaffing in anticipation of growth and underperformance in certain new marketing initiatives contributed to reductions in its cash position and the current operating loss. In addition, the Company's corporate facilities suffered substantial damage from Hurricane Charley, generating unexpected expenses related to disaster recovery and employee relocation. Management promptly addressed these issues with actions that included important expense reduction initiatives and the elimination of redundant positions throughout its workforce. Prior to making this swift but calculated response, it was determined that these cuts would have a positive impact on the Company's operations and profitability on a going forward basis.

In a statement released on October 22, 2004, Nick Maturo, president of Whitney Information Network, said, "In streamlining the company's employment structure and reducing overlap and waste, we will immediately add to the Company's bottom line performance in the coming quarters." He also noted that the company has operated without a price increase for the past two years. "We have made some upward adjustments to our pricing structure which will bring it more in line with other providers in the market," Maturo said. "Thanks to the overwhelming demand for our training products, we expect that these changes will have a significant and favorable impact on our profit margins as we continue to deliver high quality financial education to our students."

About Whitney Information Network

Whitney Information Network, Inc. (OTCBB:RUSS) is a leading provider of post-secondary education focused on individual wealth creation and personal success. Through its wholly-owned subsidiary, Wealth Intelligence Academy, Whitney Information Network provides its students with comprehensive instruction and mentorship in real estate investment, business development and individual investment strategies. Additional information can be found at http://www.russwhitney.com.

Information included in this news release contains forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995 ("Reform Act"). Such statements are based on current expectations and involve a number of known and unknown risks and uncertainties that could cause the actual results and performance of the Company to differ materially from any expected future results or performance, expressed or implied, by the forward-looking statements. In connection with the safe harbor provisions of the Reform Act, the Company has identified important factors that could cause actual results to differ materially from such expectations, including operating uncertainties, uncertainties relating to economic issues and competition. Reference is made to all of the Company's SEC filings, including the Company's Reports on Forms 10K, 10Q and other periodic reports.

    CONTACT: Whitney Information Network, Inc., Cape Coral
             Ronald Simon 239-542-0643
             Nicholas Maturo 239-542-0643

    SOURCE: Whitney Information Network, Inc.