<PAGE>
                                                                               .
                                                                               .
                                                                               .
                                                                    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 - 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
Accounts receivable allowances - 2000    1,200,000    2,365,000    2,580,000       985,000
</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, 2002, and for the year then ended and
have issued our report thereon dated January 17, 2003 (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 was conducted for the purpose of forming an opinion on the basic 2002
consolidated financial statements taken as a whole. The consolidated financial
statement schedule of Renaissance Learning, Inc. for the year ended December 31,
2002, listed in the index as Exhibit 99.1 is presented for the purpose of
meeting the reporting requirements of the Securities and Exchange Commission.
This consolidated financial statement schedule is the responsibility of the
Company's management. Such consolidated financial statement schedule has been
subjected to the auditing procedures applied in our audit of the basic 2002
consolidated financial statements and in our opinion is fairly stated in all
material respects when considered in relation to the basic 2002 consolidated
financial statements taken as a whole. The 2001 and 2000 consolidated financial
statement schedules were subjected to auditing procedures by other auditors who
have ceased operations and whose report dated January 18, 2002 stated that such
information is fairly stated in all material respects when considered in
relation to the basic 2001 and 2000 financial statements taken as a whole.

DELOITTE & TOUCHE LLP

Milwaukee, Wisconsin
January 17, 2003
<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 SECURITIES 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