CAPE CORAL, Fla.--(BUSINESS WIRE)--May 15, 2006--Whitney Information Network, Inc. (OTCBB:RUSS) will restate financial results for the years 2004 and 2005 and the related quarterly periods. The cumulative restatements have no effect on the timing or amount of the Company's consolidated operating cash flows or its cash position.

    Restatement

    The financial restatements reflect:

    --  a modification associated with a change in revenue recognition
        policy solely at its United Kingdom subsidiary and restatement
        of revenue from expired contracts in the United Kingdom
        recorded in 2005 that relate to 2004;

    --  reclassifications in prior period line item expense categories
        and the timing of accruals necessary for comparability to the
        current period's presentation; and

    --  a revision to the revenue recognition policy with respect to
        the Company's teleconferencing product and service offering.

    Quarter ended March 31, 2006

The Company had $43.7 million of cash, cash equivalents and restricted cash on its consolidated balance sheets as of March 31, 2006, as compared to $38.7 million at December 31, 2005. Consolidated cash flows from operations for the three months ended March 31, 2006 increased 16.6% to $8.7 million over the comparable period in 2005. The cumulative restatements have no effect on the timing or amount of the Company's consolidated operating cash flows or its cash position.

Background

In connection with the review of the Company's Registration Statement on Form S-1, the Company had discussions with Staff members of the Securities and Exchange Commission (SEC) regarding the May 2005 change in policy with respect to revenue recognition in the United Kingdom. The Company elected to amend its policy in the United Kingdom with respect to the acceptance of students allowed to take courses subsequent to the expiration of the contract the Company had with the student.

The original policy was established at the inception of the Company's European operations and was initially driven by customer service and capacity considerations. As the United Kingdom operations matured, the Company sought to establish conformity with its North American operations; therefore, the policy changed in May 2005 to recognize revenue upon the student contract's expiry. In the second quarter of 2005, the Company changed its policy and recorded $1.3 million in revenue in connection with expired contracts.

The Company intends to modify the May 2005 policy associated with delivering education content to those students who will attend classes after the expiration of the contract. The Company will also restate revenue from expired contracts in the United Kingdom recorded in 2005 that relate to 2004. The United Kingdom subsidiary represented approximately 3.0% of the Company's cash received from course or product sales in 2005. These restatements will have no cumulative effect on the Company's consolidated statement of cash flows.

The Company also reviewed the classification of expenses by both period and line item, and will restate prior periods necessary for comparability with the current period's presentation. These changes and reclassifications will have no cumulative effect on reported earnings or cash flows or adjusted earnings before interest taxes depreciation and amortization (EBITDA).

Upon review of the Company's revenue recognition policies for all service and product offerings, the Company concluded the previous revenue recognition policy with respect to its teleconferencing offering needed to comply with Financial Accounting Standard Board's Emerging Issues Task Force Issue No. 00-21, Revenue Arrangements with Multiple Deliverables. Teleconferencing represented approximately 0.8% of cash received from course or product sales in 2005. This restatement has no effect on the Company's consolidated cash flows from operations.

Release of First Quarter 2006 Results

In order to apply its new revenue recognition policies, the Company will delay its announcement of financial results for the first quarter ended March 31, 2006 until Monday, May 22, 2006. Subsequently, the Company will amend and refile its Form 10-K for the years ended December 31, 2004 and 2005 consistent with the new revenue recognition policies.

About Whitney Information Network, Inc.

Whitney Information Network, Inc. (OTCBB:RUSS) is a provider of postsecondary education focused on individual wealth creation and personal success. Whitney Information Network, Inc. provides students with comprehensive education and mentorship in real estate and financial markets education and investment strategies in the United States, United Kingdom, Canada and Costa Rica. Additional information can be found at http://www.russwhitney.com.

Information in this press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements deal with our current plans, intentions, beliefs, expectations, and statements of future economic performance. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," or "predicts" or the negative of such terms. These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, competition, expected activities and expenditures as we pursue our business plan, and the adequacy of our available cash resources. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Forward-looking statements involve known and unknown risks and uncertainties which may cause our actual results in future periods to differ materially from what is currently anticipated. No forward-looking statement is a guarantee of future performance, and you should not place undue reliance on any forward-looking statement. We undertake no obligation to update publicly any forward-looking statements for any reason, even if new information becomes available or other events occur in the future. Industry data and other statistical information used in this presentation are based on independent publications, government publications, reports by market research firms or other published independent sources. Some data are based on our good faith estimates, derived from our review of internal surveys and the independent sources just listed. Although we believe these sources to be reliable, we have not independently verified the information.

CONTACT: Whitney Information Network, Inc., Cape Coral
Nicholas S. Maturo, 239-540-6521
or
Alfred R. Novas, 239-540-6522
or
Wolfe Axelrod Weinberger Assoc. LLC
Stephen D. Axelrod or Alisa D. Steinberg, 212-370-4500
Fax: 212-370-4505
steve@wolfeaxelrod.com / alisa@wolfeaxelrod.com
or
MWW Group
Matthew Rose, 212-704-9727

SOURCE: Whitney Information Network, Inc.