----

----

----

|                                                    |              |
|---------------------------------------------------------|-------------------|
|                                                    | Page              |
|                                                    |              |
| Consolidated      Interim Financial Statements:         |              |
|                                                    |              |
| Consolidated      Interim Balance Sheets                | 3                 |
|                                                    |              |
| Consolidated      Interim Statements of Deficit         | 4                 |
|                                                    |              |
| Consolidated      Interim Statements of Operations      | 4                 |
|                                                    |              |
| Consolidated      Interim Statements of Cash Flows      | 5                 |
|                                                    |              |
| Notes      to Consolidated Interim Financial Statements | 6 to      11 |

----

|                                                               |   | March      31,2008 |       |   | December      31,2007 |   |
|--------------------------------------------------------------------|--------|--------------------|------------|--------|-----------------------|--------|
| Assets                                                             |   |               |       |   |                  |   |
| Current      assets:                                               |   |               |       |   |                  |   |
| Cash                                                               |   | $                  | 171,475    |   |                  | $      | 343,338 |   |
| Short      term investment                                         |   |               | 150,000    |   |                  |   | 150,000 |   |
| Accounts      and grants receivable (note 2)                       |   |               | 697,017    |   |                  |   | 996,469 |   |
| Inventory                                                          |   |               | 125,702    |   |                  |   | 121,323 |   |
| Prepaid      and sundry assets                                     |   |               | 123,548    |   |                  |   | 131,869 |   |
|                                                               |   |               | 1,267,742  |   |                  |   | 1,742,999 |   |
|                                                               |   |               |       |   |                  |   |   |   |
| Investment      and advances                                       |   |               | 182,520    |   |                  |   | 182,520 |   |
| Deferred      costs                                                |   |               | 157,419    |   |                  |   | 157,419 |   |
| Property      and equipment, net                                   |   |               | 87,784     |   |                  |   | 89,325 |   |
| Development      costs, net                                        |   |               | 244,931    |   |                  |   | 267,910 |   |
| Software      & web development costs, net (note 3)            |   |               | 4,600,286  |   |                  |   | 4,326,246 |   |
| Goodwill                                                           |   |               | 1,121,131  |   |                  |   | 1,121,131 |   |
|                                                               |   | $                  | 7,661,813  |   |                  | $      | 7,887,550 |   |
|                                                               |   |               |       |   |                  |   |   |   |
| Liabilities      and Shareholders' EquityCurrent      liabilities: |   |               |       |   |                  |   |   |   |
| Bank      loans (note 4)                                           |   | $                  | 190,000    |   |                  | $      | 230,000 |   |
| Accounts      payable                                              |   |               | 764,726    |   |                  |   | 822,818 |   |
| Accrued      liabilities                                           |   |               | 303,898    |   |                  |   | 227,206 |   |
| Current      portion of loans payable (note 5)                     |   |               | 226,696    |   |                  |   | 228,674 |   |
| Unearned      revenue                                              |   |               | 159,755    |   |                  |   | - |   |
|                                                               |   |               | 1,645,075  |   |                  |   | 1,508,698 |   |
|                                                               |   |               |       |   |                  |   |   |   |
| Loans      payable (note 5)                                        |   |               | 203,031    |   |                  |   | 203,031 |   |
| Future      income taxes                                           |   |               | 337,749    |   |                  |   | 290,145 |   |
|                                                               |   |               | 540,780    |   |                  |   | 493,176 |   |
|                                                               |   |               |       |   |                  |   |   |   |
| Shareholders'      equity:                                         |   |               |       |   |                  |   |   |   |
| Capital      stock (note 7 (a))                                    |   |               | 10,338,725 |   |                  |   | 10,335,707 |   |
| Contributed      surplus                                           |   |               | 493,227    |   |                  |   | 452,411 |   |
| Deficit                                                            |   |               | (5,355,994 | )      |                  |   | (4,902,442 | ) |
|                                                               |   |               | 5,475,958  |   |                  |   | 5,885,676 |   |
|                                                               |   | $                  | 7,661,813  |   |                  | $      | 7,887,550 |   |

----

|                              |   |               |       |   |               |   |
|-----------------------------------|--------|--------------------|------------|--------|--------------------|--------|
|                              |   | March      31,2008 |       |   | March      31,2007 |   |
| Deficit,      beginning of period |   | $                  | (4,902,442 | )      |               | $      | (3,228,477 | ) |
| Net      loss for the period      |   |               | (453,552   | )      |               |   | (309,640 | ) |
| Deficit,      end of period       |   |               | (5,355,994 | )      |               |   | (3,538,117 | ) |

|                                          |   | March      31,2008 |      |   | March      31,2007 |   |
|-----------------------------------------------|--------|--------------------|-----------|--------|--------------------|--------|
| Revenue                                       |   | $                  | 671,793   |   |               | $      | 667,533 |   |
| Direct      costs                             |   |               | 134,737   |   |               |   | 139,277 |   |
| Margin                                        |   |               | 537,056   |   |               |   | 528,256 |   |
| Expenses:                                     |   |               |      |   |               |   |   |   |
| General      and administrative               |   |               | 882,537   |   |               |   | 770,319 |   |
| Amortization      of property and equipment   |   |               | 33,359    |   |               |   | 20,718 |   |
| Interest      and other financial expenses    |   |               | 30,880    |   |               |   | 29,442 |   |
| Stock-based      compensation                 |   |               | 43,833    |   |               |   | 17,154 |   |
|                                          |   |               |      |   |               |   |   |   |
|                                          |   |               | 990,608   |   |               |   | 837,633 |   |
|                                          |   |               |      |   |               |   |   |   |
| Loss      before income taxes and other taxes |   |               | (453,552  | )      |               |   | (309,377 | ) |
|                                          |   |               |      |   |               |   |   |   |
| Income      taxes and other taxes             |   |               | -         |   |               |   | - |   |
|                                          |   |               |      |   |               |   |   |   |
| Net      loss for the period                  |   | $                  | (453,552  | )      |               |   | (309,377 | ) |
|                                          |   |               |      |   |               |   |   |   |
| Loss      per share                           |   | $                  | (0.05     | )      |               | $      | (0.07 | ) |
|                                          |   |               |      |   |               |   |   |   |
| Weighted      average number of               |   |               |      |   |               |   |   |   |
| common      shares outstanding                |   |               | 9,583,637 |   |               |   | 4,227,277 |   |

----

|                                                      |   | March      31,2008 |     |   | March      31,2007 |   |
|-----------------------------------------------------------|--------|--------------------|----------|--------|--------------------|--------|
| Cash      flows provided by (used in):                    |   |               |     |   |               |   |
| Operations:                                               |   |               |     |   |               |   |
| Net      loss for the period                              |   | $                  | (453,55  | )      |               | $      | (309,674 | ) |
| Items      not affecting cash:                            |   |               |     |   |               |   |   |   |
| Amortization      of property and equipment               |   |               | 9,427    |   |               |   | 4,120 |   |
| Amortization      of development costs                    |   |               | 23,932   |   |               |   | 16,598 |   |
| Stock-based      compensation                             |   |               | 43,833   |   |               |   | 17,154 |   |
| Foreign      exchange gain/(loss)                         |   |               | 34,207   |   |               |   | - |   |
| Change      in non-cash balances related to operations:   |   |               |     |   |               |   |   |   |
| Accounts      and grants receivable                       |   |               | 299,452  |   |               |   | 53,119 |   |
| Inventory                                                 |   |               | (4,379   | )      |               |   | (18,355 | ) |
| Prepaid      and sundry assets                            |   |               | 8,321    |   |               |   | (55,208 | ) |
| Accounts      payable                                     |   |               | (58,092  | )      |               |   | 52,944 |   |
| Accrued      liabilities                                  |   |               | 76,692   |   |               |   | (57,249 | ) |
| Unearned      revenue                                     |   |               | 159,755  |   |               |   | 177,778 |   |
| Cash      provided by (used in) operating activities      |   |               | 139,597  |   |               |   | (118,773 | ) |
| Financing:                                                |   |               |     |   |               |   |   |   |
| Increase      in bank loans                               |   |               | (40,000  | )      |               |   | - |   |
| Advances      of loans payable                            |   |               | -        |   |               |   | 47,230 |   |
| Current      portion of long term loan                    |   |               | (1,978   | )      |               |   | - |   |
| Issuance      of capital stock                            |   |               | 3,017    |   |               |   | 5,000 |   |
| Cash      provided by financing activities                |   |               | (38,961  | )      |               |   | 52,230 |   |
| Investing:                                                |   |               |     |   |               |   |   |   |
| Expenditures      on software & web development costs |   |               | (274,039 | )      |               |   | - |   |
| Purchase      of property and equipment                   |   |               | 1,540    |   |               |   | - |   |
| Development      costs                                    |   |               | -        |   |               |   | (23,327 | ) |
| Cash      used in investing activities                    |   |               | (272,499 | )      |               |   | (23,327 | ) |
|                                                      |   |               |     |   |               |   |   |   |
| Increase      / (decrease) in cash                        |   |               | (171,863 | )      |               |   | (89,870 | ) |
| Cash,      beginning of period                            |   |               | 343,338  |   |               |   | 73,169 |   |
| Cash,      end of period                                  |   | $                  | 171,475  |   |               | $      | (16,701 | ) |

----

|                   |   | March      31,2008 |    |   | December      31, 2007 |   |
|------------------------|--------|--------------------|---------|--------|------------------------|--------|
| Trade      receivables |   | $                  | 669,461 |   |                   | $      | 740,332 |   |
| Cash      advance      |   |               | -       |   |                   |   | 241,059 |   |
| Grants      receivable |   |               | 27,556  |   |                   |   | 15,078 |   |
|                   |   | $                  | 697,017 |   |                   | $      | 996,469 |   |

|   |   | March      31,2008 |      |   | December      31, 2007 |   |
|--------|--------|--------------------|-----------|--------|------------------------|--------|
| Cost   |   | $                  | 4,600,286 |   |                   | $      | 4,326,246 |   |

----

|                                                                                                                                                                                                                                                                   |   | March      31,2008 |    |   | December      31, 2007 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|------------------------|--------|
| Revolving      line of credit of $500,000 bearing interest at prime plus 4.0% per annum      and secured by a $150,000 GIC, bearing interest at 3.5% maturing on      December 10, 2008, and a charge on all assets including inventory and      accounts receivables. |   |               | 190,000 |   |                   |   | 230,000 |   |
|                                                                                                                                                                                                                                                                   |   | $                  | 190,000 |   |                   | $      | 230,000 |   |

|                                                                                                                                                                                         |   | March      31,2008 |    |   | December      31,2007 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|-----------------------|--------|
| Loan      payable, due to a non-related party, interestbearing      at 12% per annum payable monthly, unsecured and due on    demand.                                                        |   | $                  | 226,696 |   |                  | $      | 228,674 |   |
| Loan      payable, due to a non-related party, interestbearing      at 12% per annum with monthly interest payments, secured by a general      security agreement and due on April 30, 2009. |   |               | 203,031 |   |                  |   | 203,031 |   |
|                                                                                                                                                                                         |   |               | 429,727 |   |                  |   | 431,705 |   |
| Less:      Current portion                                                                                                                                                                   |   |               | 226,696 |   |                  |   | 228,674 |   |
|                                                                                                                                                                                         |   | $                  | 203,031 |   |                  | $      | 203,031 |   |

----

|                                                           |   | Common      Shares |       |
|----------------------------------------------------------------|--------|--------------------|------------|
|                                                           |   | Number             |       |   | Amount |   |
| Balance,      January 1, 2007                                  |   |               | 32,578,170 |   |   | $ | 5,028,656 |   |
| Issued:                                                        |   |               |       |   |   |   |   |   |
| Options      exercised                                         |   |               | 282,600    |   |   |   | 59,450 |   |
|                                                           |   |               | 32,860,770 |   |   | $ | 5,088,106 |   |
| Share      Consolidation (1 new for 7 old)                     |   |               | 4,694,396  |   |   |   | 5,088,106 |   |
| Issued:                                                        |   |               |       |   |   |   |   |   |
| Private      Placement (iv)                                    |   |               | 387,500    |   |   |   | 775,000 |   |
| Common      shares issued for the acquisition of Speak2Me Inc. |   |               | 4,500,366  |   |   |   | 9,000,732 |   |
| Less:      Share issue costs                                   |   |               | -          |   |   |   | (63,750 | ) |
| Balance,      December 31, 2007                                |   |               | 9,582,262  |   |   | $ | 10,335,707 |   |
| Issued:                                                        |   |               |       |   |   |   |   |   |
| Options      exercised                                         |   |               | 4,762      |   |   |   | 3,017 |   |
| Balance,      March 31, 2008                                   |   |               | 9,587,024  |   |   | $ | 10,338,725 |   |

|                                        |   | 2008           |    |   | 2007                         |   |
|---------------------------------------------|--------|----------------|---------|--------|------------------------------|--------|
|                                        |   | Numberofshares |    |   | Weightedaverageexerciseprice |   |   | Numberofshares |   |   | Weightedaverageexerciseprice |   |
|                                        |   |           |    |   |                         |   |   |   |   |   |   |   |
| Options      outstanding, beginning of year |   |           | 516,738 |   |                         | $      | 0.98 |   |   |   | 275,634 |   |   | $ | 1.33 |   |
| Options      granted                        |   |           | 375,000 |   |                         |   | 1.24 |   |   |   | 300,000 |   |   |   | 0.68 |   |
| Options      exercised                      |   |           | (4,762  | )      |                         |   | 0.70 |   |   |   | 40,372 |   |   |   | 0.84 |   |
| Options      expired/canceled               |   |           | (595    | )      |                         |   | 0.70 |   |   |   | (68,524 | ) |   |   | - |   |
|                                        |   |           |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding,      March 31, 2008            |   |           | 886,381 |   |                         |   | 0.98 |   |   |   | 516,738 |   |   |   | 0.98 |   |
| Options      exercisable, March 31, 2008    |   |           | 886,381 |   |                         | $      | 0.98 |   |   |   | 338,509 |   |   | $ | 1.10 |   |

----

|   |                   |   |   |    |              |   |   |   | Options      outstanding  |   |   |   | Options      exercisable  |   |
|--------|------------------------|--------|--------|---------|-------------------|--------|--------|--------|--------------------------------|--------|--------|--------|--------------------------------|--------|
|   |                   |   |   |    |              |   |   |   | Weighted             |   |   |   | Weighted                  |   |   |   |   |   |   |   | Weighted  |   |
|   | Range             |   |   |    |              |   |   |   | average                   |   |   |   | average                   |   |   |   |   |   |   |   | average  |   |
|   | of      exercise  |   |   |    | Number       |   |   |   | remaining            |   |   |   | exercise                  |   |   |   | Number  |   |   |   | exercise  |   |
|   | prices            |   |   |    | outstanding  |   |   |   | contractual      life     |   |   |   | price                     |   |   |   | outstanding  |   |   |   | price  |   |
|   |                   |   |   |    |              |   |   |   |                           |   |   |   |                           |   |   |   |   |   |   |   |   |   |
| $      | 0.70      - $1.00      |   |   |    | 397,011           |   |   |   | 4.40                           |   |   | $      | 0.74                           |   |   |   | 138,545 |   |   | $ | 0.74 |   |
| $      | 1.01      - $1.33      |   |   |    | 138,656           |   |   |   | 1.98                           |   |   |   | 1.30                           |   |   |   | 138,656 |   |   |   | 1.30 |   |
| $      | 1.34      - $2.00      |   |   |    | 350,713           |   |   |   | 3.98                           |   |   |   | 1.17                           |   |   |   | 60,713 |   |   |   | 1.46 |   |
| Total  |                   |   |   | 886,380 |              |   |   | 3.86   |                           |   |   | 1.00   |                           |   |   | 337,914 |   |   |   | 1.11 |   |

|                                |   | USDenominated  |    |   | ChineseDenominated  |   |
|-------------------------------------|--------|---------------------|---------|--------|--------------------------|--------|
|                                |   | CAD                 |    |   | USD                      |   |   | CAD |   |   | RMB |   |
| Cash                                |   |                | 57,432  |   |                     |   | 55,949 |   |   |   | 87,236 |   |   |   | 627,413 |   |
| Accounts      and grants receivable |   |                | 477,890 |   |                     |   | 465,553 |   |   |   | 201,841 |   |   |   | 1,451,237 |   |
| Accounts      payable               |   |                | 39,575  |   |                     |   | 38,553 |   |   |   | 87,332 |   |   |   | 627,917 |   |

----

| March      31, 2008 |   | English      Language Learning |   |   | Early      Childhood Development |   |    | Total  |   |
|---------------------|--------|--------------------------------|--------|--------|----------------------------------|--------|---------|--------|--------|
| Revenue             |   |                           | -      |   |                             | $      | 671,793 |   |   | $ | 671,793 |   |
| Cost      of sales  |   |                           | -      |   |                             |   | 134,737 |   |   |   | 134,737 |   |
| Margin              |   |                           | -      |   |                             | $      | 537,056 |   |   | $ | 537,056 |   |

| March      31, 2007 |   | English      Language Learning |   |   | Early      Childhood Development |   |    | Total  |   |
|---------------------|--------|--------------------------------|--------|--------|----------------------------------|--------|---------|--------|--------|
| Revenue             |   | $                              | 587    |   |                             | $      | 666,946 |   |   | $ | 667,533 |   |
| Cost      of sales  |   |                           | 235    |   |                             |   | 139,338 |   |   |   | 139,573 |   |
| Margin              |   | $                              | 352    |   |                             | $      | 537,608 |   |   | $ | 527,960 |   |

|   |   | March      31,2008 |    |   | March      31,2007 |   |
|--------|--------|--------------------|---------|--------|--------------------|--------|
|   |   |               |    |   |               |   |   |   |
| Canada |   | $                  | 671,793 |   |               | $      | 667,533 |   |
| China  |   |               | -       |   |               |   | - |   |
|   |   | $                  | 671,793 |   |               | $      | 667,533 |   |

----

|   |   | March      31,2008 |      |   | March      31,2007 |   |
|--------|--------|--------------------|-----------|--------|--------------------|--------|
|   |   |               |      |   |               |   |   |   |
| Canada |   | $                  | 2,879,007 |   |               | $      | 2,634,984 |   |
| China  |   |               | 4,782,806 |   |               |   | 182,520 |   |
|   |   | $                  | 7,661,813 |   |               | $      | 2,817,504 |   |

|                                               |   | March      31,2008 |     |   | March      31,2007 |   |
|----------------------------------------------------|--------|--------------------|----------|--------|--------------------|--------|
| Loss      for the period - Canadian GAAP           |   | $                  | (481,108 | )      |               | $      | (309,674 | ) |
| Impact      of United States GAAP and adjustments: |   |               |     |   |               |   |   |   |
| Amortization      of development costs             |   |               | 23,932   |   |               |   | 16,598 |   |
| Software      and web development costs            |   |               | (274,039 | )      |               |   | - |   |
| Loss      for the period - United States GAAP      |   | $                  | (731,216 | )      |               | $      | (293,076 | ) |

|                                           |   | March      31,2008 |      |   | March      31, 2007 |   |
|------------------------------------------------|--------|--------------------|-----------|--------|---------------------|--------|
| Shareholders'      equity - Canadian GAAP      |   | $                  | 5,488,402 |   |                | $      | 1,089,028 |   |
| Development      costs                         |   |               | (121,005  | )      |                |   | (121,005 | ) |
| Compensation      expense                      |   |               | (287,083  | )      |                |   | (243,250 | ) |
| Deferred      costs                            |   |               | (157,419  | )      |                |   | (157,419 | ) |
| Software      & web development costs      |   |               | (726,748  | )      |                |   | - |   |
| Shareholders'      equity - United States GAAP |   | $                  | 4,156,147 |   |                | $      | 567,354 |   |