Every indexed document

which includes refurbishment of its existing centers and equipment and supplies

KLC spent $34.4 million and $36.6 million

KinderCare contemplated an offering of income deposit securities. Costs here reflect the costs

non-recurring costs of integrating the AER and KinderCare acquisitions in 2004 and

revenue increased 4.4% from 2004 to 2005.

2005 compared to the same period of 2004. On a same center basis

during the third quarter of 2005 Utilization levels increased versus the same period

offset by the impact of center closures and a slight decline in

which represents an increase of $35.6 million over 2004.

management anticipates that premium and claims costs will continue to reflect

KLC experienced a reduction in projected claims costs for its self-insurance

training programs and other management processes.

insurance and food. KLC's management believes its large

entered into a six-month $150 million term loan facility with an affiliate of Credit Suisse

President and Chief Executive Officer of KUE

an initiative designed to encourage additional

as noted by the Ministry of Education in Saudi Arabia have led to

additional capacity will be needed to meet

200 kindergarten schools in Saudi Arabia (42% private and 58% public) to support the

education is now required for all 4-year-olds. New labor laws also necessitate that