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                                                                    EXHIBIT 99.1

Schedule II - Valuation and Qualifying Accounts

<Table>
<Caption>
                                                            ADDITIONS        DEDUCTIONS
                                           BEGINNING        CHARGED TO       CHARGED TO         ENDING
                                            BALANCE           INCOME          RESERVE           BALANCE
                                          ------------     ------------     ------------     ------------
<S>                                       <C>              <C>              <C>              <C>
Accounts receivable allowances - 2003     $  1,654,000     $  2,907,000     $  2,932,000     $  1,629,000
Accounts receivable allowances - 2002        1,723,000        2,395,000        2,464,000        1,654,000
Accounts receivable allowances - 2001          985,000        2,838,000        2,100,000        1,723,000
</Table>

<PAGE>

                          INDEPENDENT AUDITORS' REPORT

TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF
RENAISSANCE LEARNING, INC. AND SUBSIDIARIES:

We have audited the consolidated financial statements of Renaissance Learning,
Inc. and subsidiaries as of December 31, 2003 and 2002, and for the years then
ended and have issued our report thereon dated January 16, 2004, except for Note
17, as to which the date is January 28, 2004 (which report expresses an
unqualified opinion and includes an explanatory paragraph relating to the
adoption of Statement of Financial Accounting Standards No. 142, "Goodwill and
Other Intangible Assets") which is included elsewhere in this Form 10-K. Our
audit also included the 2003 and 2002 consolidated financial statement schedule
of Renaissance Learning, Inc. This consolidated financial statement schedule is
the responsibility of the Company's management. Our responsibility is to express
an opinion based on our audits. In our opinion, the 2003 and 2002 consolidated
financial statement schedule, when considered in relation to the 2003 and 2002
basic consolidated financial statements taken as a whole, presents fairly, in
all material respects, the information set forth therein. The consolidated
financial statement schedule for the year ended December 31, 2001, was audited
by other auditors who have ceased operations. Those auditors expressed an
opinion, in their report dated January 18, 2002, that such 2001 consolidated
financial statement schedule, when considered in relation to the 2001 basic
consolidated financial statements taken as a whole, presented fairly, in all
material respects, the information set forth therein.

DELOITTE & TOUCHE LLP

Milwaukee, Wisconsin
January 16, 2004

<PAGE>

THE REPORT SET FORTH BELOW IS A COPY OF A PREVIOUSLY ISSUED AUDIT REPORT BY
ARTHUR ANDERSEN LLP. THIS REPORT HAS NOT BEEN REISSUED BY ARTHUR ANDERSEN LLP IN
CONNECTION WITH ITS INCLUSION IS THIS FORM 10-K.

WE WILL NOT BE ABLE TO OBTAIN THE WRITTEN CONSENT OF ARTHUR ANDERSEN LLP AS
REQUIRED BY SECTION 7 OF THE SERCURITIES ACT OF 1933 FOR OUR REGISTRATION
STATEMENTS ON FORM S-8. ACCORDINGLY, INVESTORS WILL NOT BE ABLE TO SUE ARTHUR
ANDERSEN LLP PURSUANT TO SECTION 11(a)(4) OF THE SECURITIES ACT WITH RESPECT TO
ANY SUCH REGISTRATION STATEMENTS AND, THEREFORE, ULTIMATE RECOVERY ON A
SUCCESSFUL CLAIM MAY BE LIMITED. THE ABILITY OF INVESTORS TO RECOVER FROM ARTHUR
ANDERSEN LLP MAY ALSO BE LIMITED AS A RESULT OF ARTHUR ANDERSEN LLP'S FINANCIAL
CONDITION OR OTHER MATTERS RESULTING FROM THE VARIOUS CIVIL AND CRIMINAL
LAWSUITS AGAINST THAT FIRM.


                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

We have audited in accordance with generally accepted auditing standards in the
United States the financial statements included in Renaissance Learning, Inc.'s
annual report to shareholders included in this Form 10-K, and have issued our
report thereon dated January 18, 2002. Our audit was made for the purpose of
forming an opinion on those statements taken as a whole. The schedule listed in
the index above as Exhibit 99.1 is the responsibility of the company's
management and is presented for purposes of complying with the Securities and
Exchange Commissions rules and is not part of the basic financial statements.
This schedule has been subjected to the auditing procedures applied in the audit
of the basic financial statements and, in our opinion, fairly states in all
material respects the financial data required to be set forth therein in
relation to the basic financial statements taken as a whole.

                                              /s/ Arthur Andersen LLP

                                              ARTHUR ANDERSEN LLP


Milwaukee, Wisconsin
January 18, 2002