Every indexed document

KLC OpCo collects tuition for its own account

the Company collects tuition on behalf of the employer sponsor. Under a

and are located at or near the premises or campus of the

on a monthly basis. The company typically sets tuition for half-day programs at a 20% to

depending upon the center location and the

812 community centers are located in diverse demographic locations. Newly built centers tend to

often with separate areas designed for infants and toddlers

934 centers in 39 states and Washington D.C.

a collection of special purpose subsidiaries owning substantially all of

KLC spent $9.8 million in 2004 on corporate infrastructure improvements

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