----

----

| R      | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | FOR THE QUARTERLY PERIOD ENDED APRIL 30, 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| OR     |
| £ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | FOR THE TRANSITION PERIOD FROM   TO                                                                                                            |

| Republic of Ireland                      | None                |
|------------------------------------------|---------------------|
| (State or Other Jurisdiction of          | (I.R.S. Employer    |
| Incorporation or Organization)           | Identification No.) |
| 107 Northeastern Boulevard               | 03062               |
| Nashua, New Hampshire                    | (Zip Code)          |
| (Address of Principal Executive Offices) |                |
|                                     |                |

|   |  Large accelerated filer £           |  Accelerated filer £         |   |
|--------|-----------------------------------------------------|---------------------------------------------|--------|
|   |  Non-accelerated filer R                  |  Smaller reporting company £ |   |
|   |  (Do not check if a smaller reporting company) |                                        |   |

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INDEX

|                                                                                                                                                | PAGE NO.  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------|
| PART I — FINANCIAL INFORMATION                                                                                                                |   2  |
| Item 1. Unaudited Consolidated Financial Statements:                                                                                                |   2  |
| Consolidated Balance Sheets as of April 30, 2011 and January 31, 2011                                                                               |   2  |
| Consolidated Statements of Operations for the Three Months Ended April 30, 2011 (Successor) and the Three Months Ended April 30, 2010 (Predecessor) |   3  |
| Consolidated Statements of Cash Flows for the Three Months Ended April 30, 2011 (Successor) and the Three Months Ended April 30, 2010 (Predecessor) |   4  |
| Notes to Consolidated Financial Statements                                                                                                          |   5  |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                 |   27 |
| Item 3. Quantitative and Qualitative Disclosures about Market Risk                                                                                  |   34 |
| Item 4. Controls and Procedures                                                                                                                     |   34 |
| PART II — OTHER INFORMATION                                                                                                                   |   35 |
| Item 1. Legal Proceedings                                                                                                                           |   35 |
| Item 1A. Risk Factors                                                                                                                               |   35 |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                                                                 |   35 |
| Item 3. Defaults Upon Senior Securities                                                                                                             |   35 |
| Item 4. Reserved                                                                                                                                    |   35 |
| Item 5. Other Information                                                                                                                           |   35 |
| Item 6. Exhibits                                                                                                                                    |   35 |
| SIGNATURE                                                                                                                                           |   36 |
| EXHIBIT INDEX                                                                                                                                       |   37 |
| EX-10.1 AMENDMENT NO. 2 - MORAN                                                                                                                     |      |
| EX-10.2 AMENDMENT NO. 2 - NINE                                                                                                                      |      |
| EX-10.3 AMENDMENT NO. 2 - DARCY                                                                                                                     |      |
| EX-31.1 SECTION 302 CERTIFICATION OF CEO                                                                                                  |      |
| EX-31.2 SECTION 302 CERTIFICATION OF CFO                                                                                             |      |
| EX-32.1 SECTION 906 CERTIFICATION OF CEO                                                                                             |      |
| EX-32.2 SECTION 906 CERTIFICATION OF CFO                                                                                        |      |

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Table of Contents

PART I

ITEM 1. — CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED BALANCE SHEETS

|                                                                                                                               |   |  April 30, 2011 |      |   |  January 31, 2011 |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|-----------|--------|------------------------|--------|
|                                                                                                                               |   | (Unaudited)          |      |   |                   |   |
|  ASSETS                                                                                                                       |
| Current assets:                                                                                                                    |   |                 |      |   |                   |   |   |   |
| Cash and cash equivalents                                                                                                          |   | $                    | 70,403    |   |                   | $      | 35,199 |   |
| Restricted cash                                                                                                                    |   |                 | 64        |   |                   |   | 59 |   |
| Accounts receivable, net                                                                                                           |   |                 | 80,162    |   |                   |   | 144,665 |   |
| Deferred tax assets                                                                                                                |   |                 | 1,673     |   |                   |   | 1,644 |   |
| Prepaid expenses and other current assets                                                                                          |   |                 | 26,205    |   |                   |   | 25,717 |   |
| Total current assets                                                                                                               |   |                 | 178,507   |   |                   |   | 207,284 |   |
| Property and equipment, net                                                                                                        |   |                 | 5,597     |   |                   |   | 4,977 |   |
| Goodwill                                                                                                                           |   |                 | 571,494   |   |                   |   | 564,516 |   |
| Intangible assets, net                                                                                                             |   |                 | 563,504   |   |                   |   | 590,162 |   |
| Deferred tax assets                                                                                                                |   |                 | 3,107     |   |                   |   | 2,291 |   |
| Other assets                                                                                                                       |   |                 | 22,697    |   |                   |   | 23,757 |   |
| Total assets                                                                                                                       |   | $                    | 1,344,906 |   |                   | $      | 1,392,987 |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                         |
| Current liabilities:                                                                                                               |   |                 |      |   |                   |   |   |   |
| Current maturities of long term debt                                                                                               |   | $                    | 9,334     |   |                   | $      | 8,487 |   |
| Accounts payable                                                                                                                   |   |                 | 4,534     |   |                   |   | 5,189 |   |
| Accrued compensation                                                                                                               |   |                 | 7,535     |   |                   |   | 16,962 |   |
| Accrued expenses                                                                                                                   |   |                 | 36,051    |   |                   |   | 31,513 |   |
| Deferred tax liabilities                                                                                                           |   |                 | 7,504     |   |                   |   | 4,615 |   |
| Deferred revenue                                                                                                                   |   |                 | 175,612   |   |                   |   | 196,803 |   |
| Total current liabilities                                                                                                          |   |                 | 240,570   |   |                   |   | 263,569 |   |
|                                                                                                                               |   |                 |      |   |                   |   |   |   |
| Long term debt                                                                                                                     |   |                 | 617,565   |   |                   |   | 622,973 |   |
| Deferred tax liabilities                                                                                                           |   |                 | 69,073    |   |                   |   | 75,178 |   |
| Other long term liabilities                                                                                                        |   |                 | 3,804     |   |                   |   | 3,444 |   |
| Total long term liabilities                                                                                                        |   |                 | 690,442   |   |                   |   | 701,595 |   |
| Commitments and contingencies (Note 10)                                                                                            |   |                 |      |   |                   |   |   |   |
| Shareholders’ equity:                                                                                                        |   |                 |      |   |                   |   |   |   |
| Ordinary shares, $1.00 par value:1,000,000,000 shares authorized; 534,513,270 shares issued at April 30, 2011 and January 31, 2011 |   |                 | 534,513   |   |                   |   | 534,513 |   |
| Additional paid-in capital                                                                                                         |   |                 | 325       |   |                   |   | - |   |
| Accumulated deficit                                                                                                                |   |                 | (141,521  | )      |                   |   | (119,090) |   |
| Accumulated other comprehensive income                                                                                             |   |                 | 20,577    |   |                   |   | 12,400 |   |
| Total shareholders’ equity                                                                                                   |   |                 | 413,894   |   |                   |   | 427,823 |   |
| Total liabilities and shareholders’ equity                                                                                   |   | $               | 1,344,906 |   |                   | $      | 1,392,987 |   |

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

|                                                            |   | Successor                   |    |   | Predecessor |   |
|-----------------------------------------------------------------|--------|-----------------------------|---------|--------|-------------|--------|
|                                                            |   | Three Months EndedApril 30, |    |
|                                                            |   | 2011                        |    |   | 2010        |   |
| Revenue                                                         |   | $                           | 76,395  |   |        | $      | 76,918 |   |
| Cost of revenue                                                 |   |                        | 7,285   |   |        |   | 7,083 |   |
| Cost of revenue – amortization of intangible assets       |   |                        | 15,986  |   |        |   | 32 |   |
| Gross profit                                                    |   |                        | 53,124  |   |        |   | 69,803 |   |
| Operating expenses:                                             |   |                        |    |   |        |   |   |   |
| Research and development                                        |   |                        | 12,954  |   |        |   | 9,669 |   |
| Selling and marketing                                           |   |                        | 27,132  |   |        |   | 24,804 |   |
| General and administrative                                      |   |                        | 8,068   |   |        |   | 8,493 |   |
| Amortization of intangible assets                               |   |                        | 15,669  |   |        |   | 896 |   |
| Acquisition related expenses                                    |   |                        | 308     |   |        |   | 5,322 |   |
| Total operating expenses                                        |   |                        | 64,131  |   |        |   | 49,184 |   |
| Operating (loss) income                                         |   |                        | (11,007 | )      |        |   | 20,619 |   |
| Other (expense) income, net                                     |   |                        | (1,335  | )      |        |   | 111 |   |
| Interest income                                                 |   |                        | 30      |   |        |   | 82 |   |
| Interest expense                                                |   |                        | (14,914 | )      |        |   | (2,370 | ) |
|  (Loss) income before (benefit) provision for income taxes |   |                        | (27,226 | )      |        |   | 18,442 |   |
| (Benefit) provision for income taxes                            |   |                        | (4,795  | )      |        |   | 5,839 |   |
| Net (loss) income                                               |   | $                           | (22,431 | )      |        | $      | 12,603 |   |

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                                     |   | Successor                   |    |   | Predecessor |   |
|------------------------------------------------------------------------------------------|--------|-----------------------------|---------|--------|-------------|--------|
|                                                                                     |   | Three Months EndedApril 30, |    |
|                                                                                     |   | 2011                        |    |   | 2010        |   |
|                                                                                     |   |                        |    |   |        |   |   |   |
| Cash flows from operating activities:                                                    |   |                        |    |   |        |   |   |   |
| Net (loss) income                                                                        |   | $                           | (22,431 | )      |        | $      | 12,603 |   |
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: |   |                        |    |   |        |   |   |   |
| Share-based compensation                                                                 |   |                        | -       |   |        |   | 1,442 |   |
| Depreciation and amortization                                                            |   |                        | 993     |   |        |   | 1,070 |   |
| Amortization of intangible assets                                                        |   |                        | 31,655  |   |        |   | 928 |   |
| (Provision for) recovery of bad debts                                                    |   |                        | (43     | )      |        |   | 109 |   |
| (Benefit) provision for income taxes - non-cash                                          |   |                        | (6,187  | )      |        |   | 3,709 |   |
| Non-cash interest expense                                                                |   |                        | 1,105   |   |        |   | 1,822 |   |
| Tax effect related to exercise of non-qualified stock options                            |   |                        | -       |   |        |   | (323 | ) |
| Changes in current assets and liabilities, net of acquisitions:                          |   |                        |    |   |        |   |   |   |
| Accounts receivable                                                                      |   |                        | 67,595  |   |        |   | 73,768 |   |
| Prepaid expenses and other current assets                                                |   |                        | 72      |   |        |   | 307 |   |
| Accounts payable                                                                         |   |                        | (1,489  | )      |        |   | (1,424 | ) |
| Accrued expenses, including long-term                                                    |   |                        | (3,028  | )      |        |   | (16,671 | ) |
| Deferred revenue                                                                         |   |                        | (24,891 | )      |        |   | (27,399 | ) |
| Net cash provided by operating activities                                                |   |                        | 43,351  |   |        |   | 49,941 |   |
| Cash flows from investing activities:                                                    |   |                        |    |   |        |   |   |   |
| Purchases of property and equipment                                                      |   |                        | (907    | )      |        |   | (230 | ) |
| Purchases of investments                                                                 |   |                        | -       |   |        |   | (2,553 | ) |
| Maturities of investments                                                                |   |                        | -       |   |        |   | 1,850 |   |
| Acquisition of 50 Lessons                                                                |   |                        | (3,820  | )      |        |   | - |   |
| (Increase) decrease in restricted cash, net                                              |   |                        | (5      | )      |        |   | 19 |   |
| Net cash used in investing activities                                                    |   |                        | (4,732  | )      |        |   | (914 | ) |
| Cash flows from financing activities:                                                    |   |                        |    |   |        |   |   |   |
|     Exercise of stock options                                             |   |                        | -       |   |        |   | 2,990 |   |
|     Capital contribution                                                  |   |                        | 325     |   |        |   | - |   |
| Proceeds from employee stock purchase plan                                               |   |                        | -       |   |        |   | 1,666 |   |
| Principal payments on Senior Credit Facilities                                           |   |                        | (4,605  | )      |        |   | (45,101 | ) |
| Tax effect related to exercise of non-qualified stock options                            |   |                        | -       |   |        |   | 323 |   |
| Net cash used in financing activities                                                    |   |                        | (4,280  | )      |        |   | (40,122 | ) |
| Effect of exchange rate changes on cash and cash equivalents                             |   |                        | 865     |   |        |   | (130 | ) |
| Net increase in cash and cash equivalents                                                |   |                        | 35,204  |   |        |   | 8,775 |   |
| Cash and cash equivalents, beginning of period                                           |   |                        | 35,199  |   |        |   | 76,682 |   |
| Cash and cash equivalents, end of period                                                 |   | $                           | 70,403  |   |        | $      | 85,457 |   |

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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|                       |   | Three Months Ended April 30, 2010 |   |
|----------------------------|--------|-----------------------------------|--------|
| Cost of revenue            |   |  $                           | 13     |   |
| Research and development   |   |                              | 201    |   |
| Selling and marketing      |   |                              | 523    |   |
| General and administrative |   |                              | 705    |   |

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|                            |   | Assumptions |
|---------------------------------|--------|-------------|
| Expected term (years)           |   |        | 6.11 |   |
| Expected Volatility             |   |        | 56.93 | % |
| Risk-free interest rate         |   |        | 2.55 | % |
| Dividend Yield                  |   |        | 0 | % |
| Fair Value of Underlying Shares |   | $           | 100.00 |   |

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|                                    |   | Assumptions |
|-----------------------------------------|--------|-------------|
| Assumed time to liquidity event (years) |   |        | 5 |   |
| Expected Volatilities                   |   |        | 58.52 | % |
| Risk-free interest rate                 |   |        | 1.21 | % |
| Dividend Yield                          |   |        | 0 | % |
| Fair Value of Underlying Shares         |   | $           | 100.00 |   |

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| Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Amount  |      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|-----------|
| Current assets                                                                                                             |   | $       | 125,089   |   |
| Property and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |    | 5,842     |   |
| Goodwill                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |    | 561,055   |   |
| Other intangible assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |    | 656,558   |   |
| Current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |    | (141,960  | ) |
| Deferred revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |    | (77,400   | ) |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |  $ | 1,129,184 |   |

| Description                            |   | Amount  |    | Life   |
|----------------------------------------|--------|---------|---------|--------|
| Trademark/tradename - SkillSoft        |   | $       | 129,900 |   | indefinite |
| Trademark/tradename – Books 24X7 |   |    | 14,700  |   | 10 years |
| Developed software and courseware      |   |    | 247,958 |   | 2 to 5 years |
| Customer relationships                 |   |    | 218,900 |   | 10 years |
| Backlog                                |   |    | 45,100  |   | 6 years |
|                                   |   | $  | 656,558 |   |   |

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|                                                      |   | THREE MONTHS ENDED |    |
|-----------------------------------------------------------|--------|--------------------|---------|
|                                                      |   | APRIL 30, 2010     |    |
| Revenue                                                   |   | $                  | 44,670  |   |
| Cost of revenue                                           |   |               | 7,070   |   |
| Cost of revenue – amortization of intangible assets |   |               | 15,986  |   |
| Gross profit                                              |   |               | 21,614  |   |
| Operating expenses:                                       |   |               |    |   |
| Research and development                                  |   |               | 9,468   |   |
| Selling and marketing                                     |   |               | 20,308  |   |
| General and administrative                                |   |               | 7,952   |   |
| Amortization of intangible assets                         |   |               | 12,056  |   |
| Acquisition related expenses                              |   |               | 5,322   |   |
| Total operating expenses                                  |   |               | 55,106  |   |
| Operating loss                                            |   |               | (33,492 | ) |
| Other (expense), net                                      |   |               | 111     |   |
| Interest income                                           |   |               | 82      |   |
| Interest expense                                          |   |               | (14,953 | ) |
| Loss before benefit from income taxes                     |   |               | (48,252 | ) |
| Benefit from income taxes                                 |   |               | (2,508  | ) |
| Net loss                                                  |   | $                  | (45,744 | ) |

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|                                      |   | April 30, 2011        |    |   | January 31, 2011         |
|-------------------------------------------|--------|-----------------------|---------|--------|--------------------------|
|                                      |   | Gross Carrying Amount |    |   | Accumulated Amortization |   |   | Net Carrying Amount |   |   | Gross Carrying Amount |   |   | Accumulated Amortization |   |   | NetCarrying Amount |   |
| Internally developed software/ courseware |   | $                     | 249,038 |   |                     | $ | 59,914 |   |   | $ | 189,124 |   |   | $ | 247,958 |   |   | $ | 43,828 |   |   | $ | 204,130 |   |
| Customer contracts/ relationships         |   |                  | 230,031 |   |                     |   | 31,083 |   |   |   | 198,948 |   |   |   | 225,688 |   |   |   | 21,993 |   |   |   | 203,695 |   |
| Trademarks and trade names                |   |                  | 14,780  |   |                     |   | 1,968 |   |   |   | 12,812 |   |   |   | 14,700 |   |   |   | 1,465 |   |   |   | 13,235 |   |
| Backlog                                   |   |                  | 45,100  |   |                     |   | 12,380 |   |   |   | 32,720 |   |   |   | 45,100 |   |   |   | 5,898 |   |   |   | 39,202 |   |
| SkillSoft trademark                       |   |                  | 129,900 |   |                     |   | - |   |   |   | 129,900 |   |   |   | 129,900 |   |   |   | - |   |   |   | 129,900 |   |
|                                      |   | $                     | 668,849 |   |                     | $ | 105,345 |   |   | $ | 563,504 |   |   | $ | 663,346 |   |   | $ | 73,184 |   |   | $ | 590,162 |   |

| Fiscal Year |   | AmortizationExpense |
|-------------|--------|---------------------|
| 2012        |   | $                   | 95,279 |   |
| 2013        |   |                | 102,805 |   |
| 2014        |   |                | 84,797 |   |
| 2015        |   |                | 60,025 |   |
| 2016        |   |                | 30,049 |   |
| 2017        |   |                | 19,201 |   |
| 2018        |   |                | 15,666 |   |
| 2019        |   |                | 12,803 |   |
| 2020        |   |                | 10,435 |   |
| 2021        |   |                | 2,544 |   |
| Total       |   | $                   | 433,604 |   |

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|                                                                              |   | Three Months EndedApril 30, |    |
|-----------------------------------------------------------------------------------|--------|-----------------------------|---------|
|                                                                              |   | 2011                        |    |   | 2010 |   |
| Comprehensive income:                                                             |   |                        |    |   |   |   |   |   |
| Net (loss) income                                                                 |   | $                           | (22,431 | ) |   | $ | 12,603 |   |
| Other comprehensive income (loss) — Foreign currency adjustment, net of tax |   |                        | 8,177   |   |   |   | (10 | ) |
| Unrealized losses on available-for-sale securities                                |   |                        | -       |   |   |   | (1 | ) |
| Comprehensive (loss) income                                                       |   | $                           | (14,254 | ) |   | $ | 12,592 |   |

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|                             |   | Three Months EndedApril 30, |   |
|----------------------------------|--------|-----------------------------|--------|
|                             |   | 2011                        |   |   | 2010 |   |
| Revenue:                         |   |                        |   |   |   |   |   |   |
| United States                    |   | $                           | 58,897 |   |   | $ | 57,090 |   |
| United Kingdom                   |   |                        | 7,897  |   |   |   | 8,599 |   |
| Canada                           |   |                        | 4,231  |   |   |   | 3,814 |   |
| Europe, excluding United Kingdom |   |                        | 4,193  |   |   |   | 2,145 |   |
| Australia/New Zealand            |   |                        | 4,460  |   |   |   | 3,357 |   |
| Other                            |   |                        | 2,032  |   |   |   | 1,913 |   |
| Purchase accounting adjustments  |   |                        | (5,315 | ) |   |   | - |   |
| Total revenue                    |   | $                           | 76,395 |   |   | $ | 76,918 |   |

|                          |   | April 30,2011 |   |   | January 31,2011 |   |
|-------------------------------|--------|---------------|--------|--------|-----------------|--------|
| Professional fees             |   | $             | 3,372  |   |            | $      | 4,088 |   |
| Sales tax payable/VAT payable |   |          | 2,858  |   |            |   | 6,587 |   |
| Accrued royalties             |   |          | 2,724  |   |            |   | 1,447 |   |
| Accrued tax                   |   |          | 1,896  |   |            |   | 578 |   |
| Interest payable              |   |          | 16,168 |   |            |   | 7,616 |   |
| Other accrued liabilities     |   |          | 9,033  |   |            |   | 11,197 |   |
| Total accrued expenses        |   | $        | 36,051 |   |            | $      | 31,513 |   |

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|                                                |   | April 30,2011 |   |   | January 31,2011 |   |
|-----------------------------------------------------|--------|---------------|--------|--------|-----------------|--------|
| Debt financing cost – long term (See Note 15) |   | $             | 21,999 |   |            | $      | 23,048 |   |
| Other                                               |   |          | 698    |   |            |   | 709 |   |
| Total other assets                                  |   | $        | 22,697 |   |            | $      | 23,757 |   |

|                                                                        |   | April 30,2011 |   |   | January 31,2011 |   |
|-----------------------------------------------------------------------------|--------|---------------|--------|--------|-----------------|--------|
| Uncertain tax positions; including interest and penalties – long term |   |          | 3,562  |   |            |   | 3,230 |   |
| Other                                                                       |   |          | 242    |   |            |   | 214 |   |
| Total other long-term liabilities                                           |   | $        | 3,804  |   |            | $      | 3,444 |   |

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|   | · | a percentage initially expected to be 50% (subject to reduction to 25% and 0% based upon the Company’s leverage ratio) of the Company’s annual excess cash flow; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 100% of the net cash proceeds of certain asset sales and casualty and condemnation events, subject to reinvestment rights and certain other exceptions; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 100% of the net cash proceeds of any incurrence of certain debt, other than debt permitted under the Company’s Senior Credit Facilities. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

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| Fiscal 2012 |   | $      | 9,334   |   |
|-------------|--------|--------|---------|--------|
| Fiscal 2013 |   |   | 3,250   |   |
| Fiscal 2014 |   |   | 3,250   |   |
| Fiscal 2015 |   |   | 3,250   |   |
| Fiscal 2016 |   |   | 3,250   |   |
| Fiscal 2017 |   |   | 3,250   |   |
| Fiscal 2018 |   |   | 293,187 |   |
| Total       |   | $      | 318,771 |   |

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|   | · | Level 1: | Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. |
|--------|--------|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 2: | Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. |
|--------|--------|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 3: | Unobservable inputs that reflect the Company’s assumptions about the assumptions that market participants would use in pricing the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available. |
|--------|--------|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|         |   | Three Months Ended April 30, 2011 |    |
|--------------|--------|-----------------------------------|---------|
|         |   | Carrying Value                    |    |   | Fair Value |   |
| Senior Notes |   | $                                 | 310,000 |   |   | $ | 350,689 |   |

----

Table of Contents

|                                                       | Issuer |      |    | Guarantor |   |      | Non-Guarantor |   | Elimination |   |   | Consolidated |       |
|------------------------------------------------------------|--------|-----------|---------|-----------|--------|-----------|---------------|--------|-------------|--------|--------|--------------|------------|
|                                                       |   |      |    |      |   |      |          |   |        |   |   |         |       |
| ASSETS                                                     |
|                                                       |   |      |    |      |   |      |          |   |        |   |   |         |       |
| Current assets:                                            |   |      |    |      |   |      |          |   |        |   |   |         |       |
| Cash and cash equivalents                                  | $      | 238       |    |      | $      | 56,496    |          |   | $           | 13,669 |   | $            | -          |   |   | $ | 70,403 |   |
| Restricted cash                                            |   | -         |    |      |   | -         |          |   |        | 64     |   |         | -          |   |   |   | 64 |   |
| Accounts receivable, net                                   |   | -         |    |      |   | 65,253    |          |   |        | 14,909 |   |         | -          |   |   |   | 80,162 |   |
| Intercompany receivables                                   |   | -         |    |      |   | 333,579   |          |   |        | -      |   |         | (333,579   | ) |   |   | - |   |
| Deferred tax assets                                        |   | -         |    |      |   | 1,673     |          |   |        | -      |   |         | -          |   |   |   | 1,673 |   |
| Prepaid expenses and other current assets                  |   | 1,495     |    |      |   | 21,923    |          |   |        | 2,650  |   |         | 137        |   |   |   | 26,205 |   |
| Total current assets                                       |   | 1,733     |    |      |   | 478,924   |          |   |        | 31,292 |   |         | (333,442   | ) |   |   | 178,507 |   |
| Property and equipment, net                                |   | -         |    |      |   | 5,590     |          |   |        | 7      |   |         | -          |   |   |   | 5,597 |   |
| Goodwill                                                   |   | -         |    |      |   | 543,531   |          |   |        | 27,963 |   |         | -          |   |   |   | 571,494 |   |
| Intangible assets, net                                     |   | -         |    |      |   | 538,924   |          |   |        | 24,580 |   |         | -          |   |   |   | 563,504 |   |
| Investment in subsidiaries                                 |   | 1,057,605 |    |      |   | 1,212,482 |          |   |        | 402    |   |         | (2,270,489 | ) |   |   | - |   |
| Investment in, and advances to, nonconsolidated affiliates |   | -         |    |      |   | 137       |          |   |        | -      |   |         | (137       | ) |   |   | - |   |
| Deferred tax assets                                        |   | -         |    |      |   | 3,040     |          |   |        | 67     |   |         | -          |   |   |   | 3,107 |   |
| Other assets                                               |   | 8,727     |    |      |   | 13,948    |          |   |        | 22     |   |         | -          |   |   |   | 22,697 |   |
| Total assets                                               | $      | 1,068,065 |    |      | $      | 2,796,576 |          |   | $           | 84,333 |   | $            | (2,604,068 | ) |   | $ | 1,344,906 |   |
|                                                       |   |      |    |      |   |      |          |   |        |   |   |         |       |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                       |
|                                                       |   |      |    |      |   |      |          |   |        |   |   |         |       |   |   |   |   |   |
| Current liabilities:                                       |   |      |    |      |   |      |          |   |        |   |   |         |       |   |   |   |   |   |
|                                                       |   |      |    |      |   |      |          |   |        |   |   |         |       |   |   |   |   |   |
| Current maturities of long term debt                       | $      | -         |    |      | $      | 9,334     |          |   | $           | -      |   | $            | -          |   |   | $ | 9,334 |   |
| Accounts payable                                           |   | -         |    |      |   | 4,480     |          |   |        | 54     |   |         | -          |   |   |   | 4,534 |   |
| Accrued expenses                                           |   | 14,437    |    |      |   | 18,742    |          |   |        | 2,872  |   |         | -          |   |   |   | 36,051 |   |
| Accrued compensation                                       |   | (2        | )  |      |   | 6,744     |          |   |        | 793    |   |         | -          |   |   |   | 7,535 |   |
| Intercompany payable                                       |   | 331,607   |    |      |   | 807,847   |          |   |        | 35,596 |   |         | (1,175,050 | ) |   |   | - |   |
| Other liabilities                                          |   | -         |    |      |   | -         |          |   |        | 400    |   |         | (400       | ) |   |   | - |   |
| Deferred tax liabilities                                   |   | -         |    |      |   | 7,503     |          |   |        | 1      |   |         | -          |   |   |   | 7,504 |   |
| Deferred revenue                                           |   | -         |    |      |   | 151,585   |          |   |        | 24,027 |   |         | -          |   |   |   | 175,612 |   |
| Total current liabilities                                  |   | 346,042   |    |      |   | 1,006,235 |          |   |        | 63,743 |   |         | (1,175,450 | ) |   |   | 240,570 |   |
|                                                       |   |      |    |      |   |      |          |   |        |   |   |         |       |   |   |   |   |   |
| Long term debt                                             |   | 308,129   |    |      |   | 309,436   |          |   |        | -      |   |         | -          |   |   |   | 617,565 |   |
| Deferred tax liabilities                                   |   | -         |    |      |   | 63,913    |          |   |        | 5,160  |   |         | -          |   |   |   | 69,073 |   |
| Other long term liabilities                                |   | -         |    |      |   | 2,513     |          |   |        | 1,291  |   |         | -          |   |   |   | 3,804 |   |
| Total long term liabilities                                |   | 308,129   |    |      |   | 375,862   |          |   |        | 6,451  |   |         | -          |   |   |   | 690,442 |   |
| Total shareholders' equity                                 |   | 413,894   |    |      |   | 1,414,479 |          |   |        | 14,139 |   |         | (1,428,618 | ) |   |   | 413,894 |   |
| Total liabilities and shareholders' equity                 | $      | 1,068,065 |    |      | $      | 2,796,576 |          |   | $           | 84,333 |   | $            | (2,604,068 | ) |   | $ | 1,344,906 |   |

----

Table of Contents

|                                                       |   | Issuer |      |   | Guarantor |   |      | Non-Guarantor |   | Elimination |   |   | Consolidated |       |
|------------------------------------------------------------|--------|--------|-----------|--------|-----------|--------|-----------|---------------|--------|-------------|--------|--------|--------------|------------|
|                                                       |   |   |      |   |      |   |      |          |   |        |   |   |         |       |
| ASSETS                                                     |
|                                                       |   |   |      |   |      |   |      |          |   |        |   |   |         |       |
| Current assets:                                            |   |   |      |   |      |   |      |          |   |        |   |   |         |       |
| Cash and cash equivalents                                  |   | $      | 3         |   |      | $      | 19,719    |          |   | $           | 15,477 |   | $            | -          |   |   | $ | 35,199 |   |
| Restricted cash                                            |   |   | -         |   |      |   | -         |          |   |        | 59     |   |         | -          |   |   |   | 59 |   |
| Accounts receivable, net                                   |   |   | -         |   |      |   | 127,849   |          |   |        | 16,816 |   |         | -          |   |   |   | 144,665 |   |
| Intercompany receivables                                   |   |   | -         |   |      |   | 365,302   |          |   |        | -      |   |         | (365,302   | ) |   |   | - |   |
| Deferred tax assets                                        |   |   | -         |   |      |   | 1,554     |          |   |        | 90     |   |         | -          |   |   |   | 1,644 |   |
| Prepaid expenses and other current assets                  |   |   | 1,460     |   |      |   | 21,585    |          |   |        | 2,546  |   |         | 126        |   |   |   | 25,717 |   |
| Total current assets                                       |   |   | 1,463     |   |      |   | 536,009   |          |   |        | 34,988 |   |         | (365,176   | ) |   |   | 207,284 |   |
| Property and equipment, net                                |   |   | -         |   |      |   | 4,972     |          |   |        | 5      |   |         | -          |   |   |   | 4,977 |   |
| Goodwill                                                   |   |   | -         |   |      |   | 538,624   |          |   |        | 25,892 |   |         | -          |   |   |   | 564,516 |   |
| Intangible assets, net                                     |   |   | -         |   |      |   | 566,413   |          |   |        | 23,749 |   |         | -          |   |   |   | 590,162 |   |
| Investment in subsidiaries                                 |   |   | 1,062,759 |   |      |   | 1,191,397 |          |   |        | 402    |   |         | (2,254,558 | ) |   |   | - |   |
| Investment in, and advances to, nonconsolidated affiliates |   |   | -         |   |      |   | 126       |          |   |        | -      |   |         | (126       | ) |   |   | - |   |
| Deferred tax assets                                        |   |   | -         |   |      |   | 2,108     |          |   |        | 183    |   |         | -          |   |   |   | 2,291 |   |
| Other assets                                               |   |   | 9,091     |   |      |   | 14,650    |          |   |        | 16     |   |         | -          |   |   |   | 23,757 |   |
| Total assets                                               |   | $      | 1,073,313 |   |      | $      | 2,854,299 |          |   | $           | 85,235 |   | $            | (2,619,860 | ) |   | $ | 1,392,987 |   |
|                                                       |   |   |      |   |      |   |      |          |   |        |   |   |         |       |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                       |
|                                                       |   |   |      |   |      |   |      |          |   |        |   |   |         |       |   |   |   |   |   |
| Current liabilities:                                       |   |   |      |   |      |   |      |          |   |        |   |   |         |       |   |   |   |   |   |
|                                                       |   |   |      |   |      |   |      |          |   |        |   |   |         |       |   |   |   |   |   |
| Current maturities of long term debt                       |   | $      | -         |   |      | $      | 8,487     |          |   | $           | -      |   | $            | -          |   |   | $ | 8,487 |   |
| Accounts payable                                           |   |   | -         |   |      |   | 5,160     |          |   |        | 29     |   |         | -          |   |   |   | 5,189 |   |
| Accrued expenses                                           |   |   | 5,806     |   |      |   | 22,531    |          |   |        | 3,176  |   |         | -          |   |   |   | 31,513 |   |
| Accrued compensation                                       |   |   | 9         |   |      |   | 15,032    |          |   |        | 1,921  |   |         | -          |   |   |   | 16,962 |   |
| Intercompany payable                                       |   |   | 331,589   |   |      |   | 819,593   |          |   |        | 66,359 |   |         | (1,217,541 | ) |   |   | - |   |
| Other liabilities                                          |   |   | -         |   |      |   | -         |          |   |        | 400    |   |         | (400       | ) |   |   | - |   |
| Deferred tax liabilities                                   |   |   | -         |   |      |   | 5,117     |          |   |        | (502   | )      |         | -          |   |   |   | 4,615 |   |
| Deferred revenue                                           |   |   | -         |   |      |   | 174,398   |          |   |        | 22,405 |   |         | -          |   |   |   | 196,803 |   |
| Total current liabilities                                  |   |   | 337,404   |   |      |   | 1,050,318 |          |   |        | 93,788 |   |         | (1,217,941 | ) |   |   | 263,569 |   |
|                                                       |   |   |      |   |      |   |      |          |   |        |   |   |         |       |   |   |   |   |   |
| Long term debt                                             |   |   | 308,086   |   |      |   | 314,887   |          |   |        | -      |   |         | -          |   |   |   | 622,973 |   |
| Deferred tax liabilities                                   |   |   | -         |   |      |   | 76,466    |          |   |        | (1,288 | )      |         | -          |   |   |   | 75,178 |   |
| Other long term liabilities                                |   |   | -         |   |      |   | 2,260     |          |   |        | 1,184  |   |         | -          |   |   |   | 3,444 |   |
| Total long term liabilities                                |   |   | 308,086   |   |      |   | 393,613   |          |   |        | (104   | )      |         | -          |   |   |   | 701,595 |   |
| Total shareholders' equity                                 |   |   | 427,823   |   |      |   | 1,410,368 |          |   |        | (8,449 | )      |         | (1,401,919 | ) |   |   | 427,823 |   |
| Total liabilities and shareholders' equity                 |   | $      | 1,073,313 |   |      | $      | 2,854,299 |          |   | $           | 85,235 |   | $            | (2,619,860 | ) |   | $ | 1,392,987 |   |

----

Table of Contents

|                                                     |   | Issuer |    |   | Guarantor |   |    | Non-Guarantor |   |   | Elimination |   |   | Consolidated |    |
|----------------------------------------------------------|--------|--------|---------|--------|-----------|--------|---------|---------------|--------|--------|-------------|--------|--------|--------------|---------|
|                                                     |   |   |    |   |      |   |    |          |   |   |        |   |   |         |    |
| Revenue                                                  |   | $      | -       |   |      | $      | 72,261  |          |   | $      | 10,453      |   |   | $            | (6,319  | ) |   | $ | 76,395 |   |
| Cost of revenue                                          |   |   | -       |   |      |   | 7,282   |          |   |   | 6,322       |   |   |         | (6,319  | ) |   |   | 7,285 |   |
| Cost of revenue - amortization of intangible assets      |   |   | -       |   |      |   | 15,986  |          |   |   | -           |   |   |         | -       |   |   |   | 15,986 |   |
| Gross profit                                             |   |   | -       |   |      |   | 48,993  |          |   |   | 4,131       |   |   |         | -       |   |   |   | 53,124 |   |
| Operating expenses:                                      |   |   |    |   |      |   |    |          |   |   |        |   |   |         |    |   |   |   |   |   |
| Research and development                                 |   |   | -       |   |      |   | 12,954  |          |   |   | -           |   |   |         | -       |   |   |   | 12,954 |   |
| Selling and marketing                                    |   |   | -       |   |      |   | 24,340  |          |   |   | 2,792       |   |   |         | -       |   |   |   | 27,132 |   |
| General and administrative                               |   |   | 69      |   |      |   | 7,822   |          |   |   | 177         |   |   |         | -       |   |   |   | 8,068 |   |
| Amortization of intangible assets                        |   |   | -       |   |      |   | 14,648  |          |   |   | 1,021       |   |   |         | -       |   |   |   | 15,669 |   |
| Acquisition related expenses                             |   |   | -       |   |      |   | 302     |          |   |   | 6           |   |   |         | -       |   |   |   | 308 |   |
| Total operating expenses                                 |   |   | 69      |   |      |   | 60,066  |          |   |   | 3,996       |   |   |         | -       |   |   |   | 64,131 |   |
| Operating loss                                           |   |   | (69     | )      |      |   | (11,073 | )             |   |   | 135         |   |   |         | -       |   |   |   | (11,007 | ) |
| Other income (expense), net                              |   |   | -       |   |      |   | 10,545  |          |   |   | (1,112      | )      |   |         | (10,768 | ) |   |   | (1,335 | ) |
| Interest income                                          |   |   | -       |   |      |   | 20      |          |   |   | 10          |   |   |         | -       |   |   |   | 30 |   |
| Interest expense                                         |   |   | (9,030  | )      |      |   | (5,884  | )             |   |   | -           |   |   |         | -       |   |   |   | (14,914 | ) |
|   Loss before benefit of income taxes               |   |   | (9,099  | )      |      |   | (6,392  | )             |   |   | (967        | )      |   |         | (10,768 | ) |   |   | (27,226 | ) |
| Equity in (losses) earnings of subsidiaries before taxes |   |   | (18,127 | )      |      |   | (757    | )             |   |   | -           |   |   |         | 18,884  |   |   |   | - |   |
| (Benefit of) provision for income taxes                  |   |   | (4,795  | )      |      |   | (4,585  | )             |   |   | (210        | )      |   |         | 4,795   |   |   |   | (4,795 | ) |
| Net loss                                                 |   | $      | (22,431 | )      |      | $      | (2,564  | )             |   | $      | (757        | )      |   | $            | 3,321   |   |   | $ | (22,431 | ) |

----

Table of Contents

|                                                     |   | Issuer |   |   | Guarantor |   |   | Non-Guarantor |   |   | Elimination |   |   | Consolidated |    |
|----------------------------------------------------------|--------|--------|--------|--------|-----------|--------|--------|---------------|--------|--------|-------------|--------|--------|--------------|---------|
|                                                     |   |   |   |   |      |   |   |          |   |   |        |   |   |         |    |
| Revenue                                                  |   | $      | -      |   |      | $      | 73,106 |          |   | $      | 7,426       |   |   | $            | (3,614  | ) |   | $ | 76,918 |   |
| Cost of revenue                                          |   |   | -      |   |      |   | 7,037  |          |   |   | 3,660       |   |   |         | (3,614  | ) |   |   | 7,083 |   |
| Cost of revenue - amortization of intangible assets      |   |   | -      |   |      |   | 648    |          |   |   | -           |   |   |         | (616    | ) |   |   | 32 |   |
| Gross profit                                             |   |   | -      |   |      |   | 65,421 |          |   |   | 3,766       |   |   |         | 616     |   |   |   | 69,803 |   |
| Operating expenses:                                      |   |   |   |   |      |   |   |          |   |   |        |   |   |         |    |   |   |   |   |   |
| Research and development                                 |   |   | -      |   |      |   | 9,380  |          |   |   | 289         |   |   |         | -       |   |   |   | 9,669 |   |
| Selling and marketing                                    |   |   | -      |   |      |   | 22,202 |          |   |   | 2,602       |   |   |         | -       |   |   |   | 24,804 |   |
| General and administrative                               |   |   | -      |   |      |   | 8,280  |          |   |   | 213         |   |   |         | -       |   |   |   | 8,493 |   |
| Amortization of intangible assets                        |   |   | -      |   |      |   | 11,892 |          |   |   | -           |   |   |         | (10,996 | ) |   |   | 896 |   |
| Acquisition related expenses                             |   |   | -      |   |      |   | 5,322  |          |   |   | -           |   |   |         | -       |   |   |   | 5,322 |   |
| Total operating expenses                                 |   |   | -      |   |      |   | 57,076 |          |   |   | 3,104       |   |   |         | (10,996 | ) |   |   | 49,184 |   |
| Operating loss                                           |   |   | -      |   |      |   | 8,345  |          |   |   | 662         |   |   |         | 11,612  |   |   |   | 20,619 |   |
| Other income (expense), net                              |   |   | -      |   |      |   | 11,178 |          |   |   | (299        | )      |   |         | (10,768 | ) |   |   | 111 |   |
| Interest income                                          |   |   | -      |   |      |   | 56     |          |   |   | 26          |   |   |         | -       |   |   |   | 82 |   |
| Interest expense                                         |   |   | -      |   |      |   | (2,370 | )             |   |   | -           |   |   |         | -       |   |   |   | (2,370 | ) |
|   Loss before benefit of income taxes               |   |   | -      |   |      |   | 17,209 |          |   |   | 389         |   |   |         | 844     |   |   |   | 18,442 |   |
| Equity in (losses) earnings of subsidiaries before taxes |   |   | -      |   |      |   | 1,233  |          |   |   | -           |   |   |         | (1,233  | ) |   |   | - |   |
| Provision for (benefit of) income taxes                  |   |   | -      |   |      |   | 5,839  |          |   |   | 64          |   |   |         | (64     | ) |   |   | 5,839 |   |
| Net loss                                                 |   | $      | -      |   |      | $      | 12,603 |          |   | $      | 325         |   |   | $            | (325    | ) |   | $ | 12,603 |   |

----

Table of Contents

|                                                            |   | Issuer |     |   | Guarantor Subsidiaries |    |    | Non-Guarantor Subsidiaries |   |   | Eliminations |   |   | Consolidated |    |
|-----------------------------------------------------------------|--------|--------|----------|--------|------------------------|---------|---------|----------------------------|--------|--------|--------------|--------|--------|--------------|---------|
| Cash flows from operating activities:                           |   |   |     |   |                   |    |    |                       |   |   |         |   |   |         |    |
| Net cash (used in) provided by operating activities             |   |   | (108     | )      |                   |    | 52,499  |                       |   |   | 1,728        |   |   |         | (10,768 | )  |   |   | 43,351 |   |
| Cash flows from investing activities:                           |   |   |     |   |                   |    |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Purchases of property and equipment                             |   |   | -        |   |                   |    | (904    | )                          |   |   | (3           | )      |   |         | -       |   |   |   | (907 | ) |
| Acquisition of 50 Lessons, net of cash acquired                 |   |   | -        |   |                   |    | (3,820  | )                          |   |   | -            |   |   |         | -       |   |   |   | (3,820 | ) |
| Decrease in restricted cash                                     |   |   | -        |   |                   |    | -       |                       |   |   | (5           | )      |   |         | -       |   |   |   | (5 | ) |
| Net cash provided by (used in) investing activities             |   |   |   - |   |                   |    | (4,724  | )                          |   |   | (8           | )      |   |         | -       |   |   |   | (4,732 | ) |
| Cash flows from financing activities:                           |   |   |     |   |                   |    |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Proceeds from intercompany investment in subsidiaries           |   |   | -        |   |                   |    | -       |                       |   |   | -            |   |   |         | -       |   |   |   | - |   |
| Proceeds from capital contribution                              |   |   | 325      |   |                   |    | -       |                       |   |   | -            |   |   |         | -       |   |   |   | 325 |   |
| Proceeds from payments (on) intercompany loans                  |   |   | 18       |   |                   |    | (6,403  | )                          |   |   | (4,383       | )      |   |         | 10,768  |   |   |   | - |   |
| Proceeds from issuance of ordinary shares                       |   |   | -        |   |                   |    | -       |                       |   |   | -            |   |   |         | -       |   |   |   | - |   |
| Proceeds from issuance of Senior Credit Facilities, net of fees |   |   | -        |   |                   |    | -       |                       |   |   | -            |   |   |         | -       |   |   |   | - |   |
| Proceeds from issuance of Senior Notes, net of fees             |   |   | -        |   |                   |    | -       |                       |   |   | -            |   |   |         | -       |   |   |   | - |   |
| Principal payments on Senior Credit Facilities                  |   |   | -        |   |                   |    | (4,605  | )                          |   |   | -            |   |   |         | -       |   |   |   | (4,605 | ) |
| Net cash provided by (used in) financing activities             |   |   | 343      |   |                   |    | (11,008 | )                          |   |   | (4,383       | )      |   |         | 10,768  |   |   |   | (4,280 | ) |
| Effect of exchange rate changes on cash and cash equivalents    |   |   | -        |   |                   |    | 10      |                       |   |   | 855          |   |   |         | -       |   |   |   | 865 |   |
| Net increase in cash and cash equivalents                       |   |   | 235      |   |                   |    | 36,777  |                       |   |   | (1,808       | )      |   |         | -       |   |   |   | 35,204 |   |
| Cash & cash equivalents, at beginning of period             |   |   | 3        |   |                   |    | 19,719  |                       |   |   | 15,477       |   |   |         | -       |   |   |   | 35,199 |   |
| Cash & cash equivalents, at end of period                   |   | $      | 238      |   |                   |  $ | 56,496  |                       |   | $      | 13,669       |   |   | $            | -       |   |   | $ | 70,403 |   |

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|                                                          |   | Issuer |   |   | Guarantor Subsidiaries |    |    | Non-Guarantor Subsidiaries |   |   | Eliminations |   |   | Consolidated |    |
|---------------------------------------------------------------|--------|--------|--------|--------|------------------------|---------|---------|----------------------------|--------|--------|--------------|--------|--------|--------------|---------|
| Cash flows from operating activities:                         |   |   |   |   |                   |    |    |                       |   |   |         |   |   |         |    |
| Net cash provided by operating activities                     |   |   | -      |   |                   |    | 58,079  |                       |   |   | 2,630        |   |   |         | (10,768 | ) |   |   | 49,941 |   |
| Cash flows from investing activities:                         |   |   |   |   |                   |    |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Purchases of property and equipment                           |   |   | -      |   |                   |    | (230    | )                          |   |   | -            |   |   |         | -       |   |   |   | (230 | ) |
| Purchases of investments                                      |   |   | -      |   |                   |    | (2,553  | )                          |   |   | -            |   |   |         | -       |   |   |   | (2,553 | ) |
| Maturity of investments                                       |   |   | -      |   |                   |    | 1,850   |                       |   |   | -            |   |   |         | -       |   |   |   | 1,850 |   |
| Decrease in restricted cash                                   |   |   | -      |   |                   |    | 18      |                       |   |   | 1            |   |   |         | -       |   |   |   | 19 |   |
| Net cash (used in) provided by investing activities           |   |   | -      |   |                   |    | (915    | )                          |   |   | 1            |   |   |         | -       |   |   |   | (914 | ) |
| Cash flows from financing activities:                         |   |   |   |   |                   |    |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Exercise of share options                                     |   |   | -      |   |                   |    | 2,990   |                       |   |   | -            |   |   |         | -       |   |   |   | 2,990 |   |
| Proceeds from employee share purchase plan                    |   |   | -      |   |                   |    | (5,871  | )                          |   |   | (4,897       | )      |   |         | 10,768  |   |   |   | - |   |
| Proceeds from payments (on) intercompany loans                |   |   | -      |   |                   |    | 1,666   |                       |   |   | -            |   |   |         | -       |   |   |   | 1,666 |   |
| Principal payments on long term debt                          |   |   | -      |   |                   |    | (45,101 | )                          |   |   | -            |   |   |         | -       |   |   |   | (45,101 | ) |
| Tax effect related to exercise of non-qualified stock options |   |   | -      |   |                   |    | 323     |                       |   |   | -            |   |   |         | -       |   |   |   | 323 |   |
| Net cash (used in) provided by financing activities           |   |   | -      |   |                   |    | (45,993 | )                          |   |   | (4,897       | )      |   |         | 10,768  |   |   |   | (40,122 | ) |
| Effect of exchange rate changes on cash and cash equivalents  |   |   | -      |   |                   |    | (238    | )                          |   |   | 108          |   |   |         | -       |   |   |   | (130 | ) |
| Net decrease in cash and cash equivalents                     |   |   | -      |   |                   |    | 10,933  |                       |   |   | (2,158       | )      |   |         | -       |   |   |   | 8,775 |   |
| Cash & cash equivalents, at beginning of period           |   |   | -      |   |                   |    | 64,214  |                       |   |   | 12,468       |   |   |         | -       |   |   |   | 76,682 |   |
| Cash & cash equivalents, at end of period                 |   | $      | -      |   |                   |  $ | 75,147  |                       |   | $      | 10,310       |   |   | $            | -       |   |   | $ | 85,457 |   |

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ITEM 2. — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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|                                                                              |   | Three Months EndedApril 30, 2011 |   |
|-----------------------------------------------------------------------------------|--------|----------------------------------|--------|
| Current period impact to reductions to deferred revenue in purchase accounting    |   | $                                | 5.3    |   |
| Amortization of intangible assets related to content and technology               |   |                             | 16.0   |   |
| Current period impact to reductions to prepaid commissions in purchase accounting |   |                             | (0.5   | ) |
| Amortization of intangible assets                                                 |   |                             | 15.6   |   |
| Interest expense from borrowings                                                  |   |                             | 14.9   |   |
| Subtotal of acquisition and acquisition related activities                        |   | $                                | 51.3   |   |

|   | · | cross selling and up selling; |
|--------|--------|-------------------------------|

|   | · | evaluating new markets; |
|--------|--------|-------------------------|

|   | · | acquiring new customers; |
|--------|--------|--------------------------|

|   | · | carefully managing our spending; |
|--------|--------|----------------------------------|

|   | · | continuing to execute on our new product and technologies and telesales distribution initiatives; |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | continuing to evaluate merger and acquisition and possible partnership opportunities that could contribute to our long-term objectives; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | focus more and improve on retaining existing customers. |
|--------|--------|---------------------------------------------------------|

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|                                       |   | THREE MONTHS ENDEDAPRIL 30, |   |   | Dollar Increase/(Decrease) |   | Percent Change |
|--------------------------------------------|--------|-----------------------------|--------|--------|----------------------------|--------|----------------|
|                                       |   | 2011                        |   |   | 2010                       |   |           |   |   |   |   |   |   |   |
| (In thousands, except percentages)         |   |                        |   |   |                       |   |           |   |   |   |   |   |   |   |   |   |
| Revenue:                                   |   |                        |   |   |                       |   |           |   |   |   |   |   |   |   |   |   |
| United States                              |   | $                           | 58,897 |   |                       | $      | 57,090         |   |   | $ | 1,807 |   |   |   | 3 | % |
| International                              |   |                        | 22,813 |   |                       |   | 19,828         |   |   |   | 2,985 |   |   |   | 15 | % |
| Fair value adjustments to deferred revenue |   |                        | (5,315 | )      |                       |   |           |   |   |   | (5,315 | ) |   |   | * |   |
| Total                                      |   | $                           | 76,395 |   |                       | $      | 76,918         |   |   | $ | (523 | ) |   |   | (1 | )% |

|                                                      |   | THREE MONTHS ENDEDAPRIL 30, |   |   | Dollar Increase/(Decrease) |   | Percent Change |
|-----------------------------------------------------------|--------|-----------------------------|--------|--------|----------------------------|--------|----------------|
|                                                      |   | 2011                        |   |   | 2010                       |   |           |   |   |   |   |   |   |   |
| (In thousands, except percentages)                        |   |                        |   |   |                       |   |           |   |   |   |   |   |   |   |   |   |
| Cost of revenue                                           |   | $                           | 7,285  |   |                       | $      | 7,083          |   |   | $ | 202 |   |   |   | 3 | % |
| As a percentage of revenue                                |   |                        | 10     | %      |                       |   | 9              | % |   |   |   |   |   |   |   |   |
| Cost of revenue – amortization of intangible assets |   |                        | 15,986 |   |                       |   | 32             |   |   |   | 15,954 |   |   |   | * | % |
| As a percentage of revenue                                |   |                        | 21     | %      |                       |   | 0              | % |   |   |   |   |   |   |   |   |

|                               |   | THREE MONTHS ENDEDAPRIL 30, |   |   | Dollar Increase/(Decrease) |   | Percent Change |
|------------------------------------|--------|-----------------------------|--------|--------|----------------------------|--------|----------------|
|                               |   | 2011                        |   |   | 2010                       |   |           |   |   |   |   |   |   |   |
| (In thousands, except percentages) |   |                        |   |   |                       |   |           |   |   |   |   |   |   |   |   |   |
| Research and development           |   | $                           | 12,954 |   |                       | $      | 9,669          |   |   | $ | 3,285 |   |   |   | 34 | % |
| As a percentage of revenue         |   |                        | 17     | %      |                       |   | 13             | % |   |   |   |   |   |   |   |   |

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|                               |   | THREE MONTHS ENDEDAPRIL 30, |   |   | Dollar Increase/(Decrease) |   | Percent Change |
|------------------------------------|--------|-----------------------------|--------|--------|----------------------------|--------|----------------|
|                               |   | 2011                        |   |   | 2010                       |   |           |   |   |   |   |   |   |   |
| (In thousands, except percentages) |   |                        |   |   |                       |   |           |   |   |   |   |   |   |   |   |   |
| Selling and marketing              |   | $                           | 27,132 |   |                       | $      | 24,804         |   |   | $ | 2,328 |   |   |   | 9 | % |
| As a percentage of revenue         |   |                        | 36     | %      |                       |   | 32             | % |   |   |   |   |   |   |   |   |

|                               |   | THREE MONTHS ENDEDAPRIL 30, |   |   | Dollar Increase/(Decrease) |   | Percent Change |
|------------------------------------|--------|-----------------------------|--------|--------|----------------------------|--------|----------------|
|                               |   | 2011                        |   |   | 2010                       |   |           |   |   |   |   |   |   |   |
| (In thousands, except percentages) |   |                        |   |   |                       |   |           |   |   |   |   |   |   |   |   |   |
| General and administrative         |   | $                           | 8,068  |   |                       | $      | 8,493          |   |   | $ | (425 | ) |   |   | (5 | )% |
| As a percentage of revenue         |   |                        | 11     | %      |                       |   | 11             | % |   |   |   |   |   |   |   |   |

|                               |   | THREE MONTHS ENDEDAPRIL 30, |   |   | Dollar Increase/(Decrease) |   | Percent Change |
|------------------------------------|--------|-----------------------------|--------|--------|----------------------------|--------|----------------|
|                               |   | 2011                        |   |   | 2010                       |   |           |   |   |   |   |   |   |   |
| (In thousands, except percentages) |   |                        |   |   |                       |   |           |   |   |   |   |   |   |   |   |   |
| Amortization of intangible assets  |   | $                           | 15,669 |   |                       | $      | 896            |   |   | $ | 14,773 |   |   |   | 1,649 | % |
| As a percentage of revenue         |   |                        | 21     | %      |                       |   | 1              | % |   |   |   |   |   |   |   |   |
| Acquisition related expenses       |   |                        | 308    |   |                       |   | 5,322          |   |   |   | (5,014 | ) |   |   | (94 | )%  |
| As a percentage of revenue         |   |                        | 0      | %      |                       |   | 7              | % |   |   |   |   |   |   |   |   |

|                               |   | THREE MONTHS ENDEDAPRIL 30, |    |   | Dollar Increase/(Decrease) |   | Percent Change |
|------------------------------------|--------|-----------------------------|---------|--------|----------------------------|--------|----------------|
|                               |   | 2011                        |    |   | 2010                       |   |           |   |   |   |   |   |   |   |
| (In thousands, except percentages) |   |                        |    |   |                       |   |           |   |   |   |   |   |   |   |   |   |
| Other (expense) income, net        |   | $                           | (1,335  | )      |                       | $      | 111            |   |   | $ | (1,446 | ) |   |   | * |   |
| As a percentage of revenue         |   |                        | (2      | )%     |                       |   | 0              | % |   |   |   |   |   |   |   |   |
| Interest income                    |   | $                           | 30      |   |                       | $      | 82             |   |   | $ | (52 | ) |   |   | (63 | )% |
| As a percentage of revenue         |   |                        | 0       | %      |                       |   | 0              | % |   |   |   |   |   |   |   |   |
| Interest expense                   |   | $                           | (14,914 | )      |                       | $      | (2,370         | ) |   | $ | (12,544 | ) |   |   | 529 | % |
| As a percentage of revenue         |   |                        | (20     | )%     |                       |   | (3             | )% |   |   |   |   |   |   |   |   |

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|                                 |   | THREE MONTHS ENDEDAPRIL 30, |   |   | Dollar Increase/(Decrease) |   | Percent Change |
|--------------------------------------|--------|-----------------------------|--------|--------|----------------------------|--------|----------------|
|                                 |   | 2011                        |   |   | 2010                       |   |           |   |   |   |   |   |   |   |
| (In thousands, except percentages)   |   |                        |   |   |                       |   |           |   |   |   |   |   |   |   |   |   |
| (Benefit) provision for income taxes |   | $                           | (4,795 | )      |                       | $      | 5,839          |   |   | $ | (10,634 | ) |   |   | * |   |
| As a percentage of revenue           |   |                        | (6     | )%     |                       |   | 8              | % |   |   |   |   |   |   |   |   |

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|                        |   | Payments Due by Period |
|-----------------------------|--------|------------------------|
| Contractual Obligation      |   | Total                  |   |   | Less Than1 Year |   |   | 1 – 3Years |   |   | 3 – 5Years |   |   | More Than5 Years |   |
| Operating Lease Obligations |   | $                      | 8,192 |   |   | $ | 3,896 |   |   | $ | 3,934 |   |   | $ | 362 |   |   | $ | - |   |
| Debt Obligations            |   |                   | 628,771 |   |   |   | 9,334 |   |   |   | 6,500 |   |   |   | 6,500 |   |   |   | 606,437 |   |
| Total Obligations           |   | $                      | 636,963 |   |   | $ | 13,230 |   |   | $ | 10,434 |   |   | $ | 6,862 |   |   | $ | 606,437 |   |

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ITEM 3. — QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 4. — CONTROLS AND PROCEDURES

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PART II

ITEM 1. — LEGAL PROCEEDINGS

ITEM 1A. – RISK FACTORS

ITEM 2. — UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

ITEM 3. — DEFAULTS UPON SENIOR SECURITIES

ITEM 4. — (Removed and Reserved)

ITEM 5. — OTHER INFORMATION

ITEM 6. — EXHIBITS

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SIGNATURE

|                | SSI INVESTMENTS II LIMITED |                              |
|---------------------|----------------------------|-----------------------------------|
|                |                       |                              |   |
| Date: June 13, 2011 | By:                        | /s/ Thomas J. McDonald  |   |
|                |                       | Thomas J. McDonald                |   |
|                |                       | Chief Financial Officer           |   |
|                |                       |                              |   |

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|   | EXHIBIT INDEX |
|--------|---------------|

| 10.1       |  Amendment No. 2, dated June 10, 2011, to the Employment Agreement dated as of June 2002 by and between Charles Moran, SkillSoft Corporation and SkillSoft Limited.                                                               |
|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.2  |  Amendment No. 2, dated June 10, 2011, to the Employment Agreement dated as of June 2002 by and between Jerry Nine, SkillSoft Corporation and SkillSoft Limited.                                                                  |
| 10.3  |  Amendment No. 2, dated June 10, 2011, to the Employment Agreement dated as of September 2002 by and between Colm Darcy, SkillSoft Corporation and SkillSoft Limited.                                                             |
| 31.1       | Certification of SSI Investments II Limited’s Chief Executive Officer pursuant to Rule 13a-14(a)/Rule 15(d)-14(a) under the Securities Exchange Act of 1934.                                                                     |
| 31.2       | Certification of SSI Investments II Limited’s Chief Financial Officer pursuant to Rule 13a-14(a)/Rule 15(d)-14(a) under the Securities Exchange Act of 1934.                                                                     |
| 32.1       | Certification of SSI Investments II Limited’s Chief Executive Officer pursuant to Rule 13a-14(b)/Rule 15d-14(b) under the Securities Exchange Act of 1934, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| 32.2       | Certification of SSI Investments II Limited’s Chief Financial Officer pursuant to Rule 13a-14(b)/Rule 15d-14(b) under the Securities Exchange Act of 1934, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |