Rosetta Stone 2010 Annual Report Download - page 14

Table of Contents
created a customized version of our Arabic learning solution for the U.S. Army, which includes military-specific content, such as vocabulary, images and
curriculum sequencing. In the future, we may develop customized versions for other industries, such as healthcare, business, real estate and retail.
In addition to visual learning experiences, our Version 3 and Version 4 solutions incorporate an integrated speech program utilizing our voice recognition
application, which works in languages that are traditionally not supported by general-purpose speech recognition software. As an integral component of the
program, this voice recognition feature works with our learners to promote the appropriate pronunciation of the words and concepts included in the lesson.
Throughout the curriculum sequence, our program combines the introduction of new concepts, practice of recent material and production of key phrases.
As learners progress along our curriculum, they transition from seeing and recognizing to speaking as our program prompts them to pronounce the words they
are being taught. Our solution covers all aspects necessary for fluency within a completely immersive environment without requiring translation or
explanation, including alphabet, vocabulary, intuitive grammar, reading, writing, listening, pronunciation and conversation. While rigorous and complete, the
curriculum is designed to remain flexible, allowing learners to alter their individual pace and focus of instruction to meet their particular goals and abilities.
The language content for our respective courses is organized into up to five levels of proficiency, with each level providing approximately 40 hours of
instruction and containing multiple units, lessons and activities.
Customers
Our customers include individuals, home school parents, educational institutions, armed forces, government agencies, corporations and not-for-profit
institutions. We sell to our customers through a direct-to-consumer and institutional marketing and distribution strategy.
Channel Customer Type Representative Customers
Consumer Individual Based on our internal studies, 57% annually earn more than $75,000 and 40% earn more than $100,000
Retailers Amazon.com, Apple, Barnes & Noble, Borders, Best Buy, Staples, Costco and Office Depot
Institutional Educational
Institutions Primary and Secondary Schools: New York City Department of Education (NY), DeKalb County Schools (GA), Clark County School District (NV), School District of Hillsborough County (FL), District School Board of Collier County
(FL), Palatine Community Consolidated School District (IL), Region 7 Education Service Center (TX), Sarasota County
School District (FL)
Universities: University of Wisconsin, Virginia Commonwealth University, Community College of the District of
Columbia
Government, Armed
Forces and Not-for-
Profit Organizations
U.S. Department of Homeland Security, U.S. Immigration and Customs Enforcement, Foreign Service Institute, the
Federal Bureau of Investigation, U.S. Air Force, U.S. Army, U.S. Marines, the Australian Department of Defence,
Foreign and Commonwealth Office (UK), Servicio Nacional de Aprendizaje (Columbia), Fulbright Commission, Council
for Adult and Experiential Learning, Pacific Training Institute Clinic, Seattle Goodwill
Corporations Best Buy Co., Inc., General Motors Corp., Andarko Petroleum Corp., Alfa Corporativo, S.A. de C.V., Neoris de
Mexico S.A. de C.V., Pitney Bowes Inc., Molex Inc., Marriott International, Inc.
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