**EXHIBIT 99.1**

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Stockholders

The Aristotle Corporation:

Under date of March 30, 2007, wereported on the consolidated balance sheets of The Aristotle Corporation andsubsidiaries as of December 31, 2006 and 2005, and the related consolidatedstatements of earnings, stockholders' equity and comprehensive earnings, and cashflows for each of the years in the three-year period ended December 31, 2006, whichare included in the 2006 annual report on Form 10-K.  In connection with our auditsof the aforementioned consolidated financial statements, we also audited the relatedconsolidated financial statement schedule.  This financial statement schedule is theresponsibility of the Company's management.  Our responsibility is to express anopinion on the financial statement schedule based on our audits.

In our opinion, such financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.

 

/s/ KPMG LLP

 

Milwaukee, Wisconsin

March 30, 2007

 

**SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED**

**DECEMBER 31, 2006, 2005 AND 2004**

 

| **DESCRIPTION**        |                    | **BALANCE AT BEGINNING OF PERIOD** |   | **CHARGED TO COSTS AND EXPENSES** |   | **CHARGED TO OTHER ACCOUNTS** |   | **DEDUCTIONS** |   | **BALANCE AT END OF PERIOD** |
|------------------------|-------------------------|------------------------------------|--------|-----------------------------------|--------|-------------------------------|--------|----------------|--------|------------------------------|
|                   |                    |                               |   |                              |   |                          |   |           |   |                         |
| Allowance for doubtful |                    |                               |   |                              |   |                          |   |           |   |                         |
|                   | receivables             |                               |   |                              |   |                          |   |           |   |                         |   |
|                   |                    |                               |   |                              |   |                          |   |           |   |                         |
|                   | Year ended December 31, |                               |   |                              |   |                          |   |           |   |                         |
|                   |                    | 2004                               | $      | 487,000                           | $      | 79,000                        |   | $              | -      | $                            | (34,000) | (a) | $ | 532,000 |
|                   |                    | 2005                               | $      | 532,000                           | $      | 84,000                        |   | $              | -      | $                            | (102,000) | (a) | $ | 514,000 |
|                   |                    | 2006                               | $      | 514,000                           | $      | 84,000                        |   | $              | -      | $                            | (102,000) | (a) | $ | 514,000 |
|                   |                    |                               |   |                              |   |                          |   |           |   |                         |   |   |
| Inventory reserves     |                    |                               |   |                              |   |                          |   |           |   |                         |   |   |
|                   | Year ended December 31, |                               |   |                              |   |                          |   |           |   |                         |   |   |
|                   |                    | 2004                               | $      | 1,049,000                         | $      | 386,000                       |   | $              | -      | $                            | (137,000) | (a) | $ | 1,298,000 |
|                   |                    | 2005                               | $      | 1,298,000                         | $      | 401,000                       |   | $              | -      | $                            | (386,000) | (a) | $ | 1,313,000 |
|                   |                    | 2006                               | $      | 1,298,000                         | $      | 401,000                       |   | $              | -      | $                            | (386,000) | (a) | $ | 1,313,000 |

 

 (a) Includes write-offs of trade accounts receivable, net of recoveries of amounts previously written-off and write-offs of obsolete inventory.