Rosetta Stone 2010 Annual Report Download - page 8

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Table of Contents
Our language learning solutions are built upon a flexible software platform that supports multiple languages and is deployable on personal computers, on
local networks and online. The platform incorporates a number of proprietary technologies that are key to enabling language learning, including:
speech recognition that is focused on the unique challenges of language learners;
Adaptive Recall algorithms that repeat content at scheduled intervals to promote long-term retention;
reporting features and curriculum options designed to enhance the effectiveness and administration of classroom, enterprise and home school
learning; and
an intuitive user interface that assists the learner's transition from listening comprehension to speaking.
Rosetta Stone offers a broad product suite, with courses currently available in 34 languages. Our courses are available in up to five levels of proficiency
per language, with each level providing approximately 40 hours of instruction and containing multiple units, lessons and activities.
In July 2009, we introduced Rosetta Stone TOTALe, an online language learning solution that integrates our online courses with coach-led practice
sessions, fun and engaging language games, interaction with native speakers and live support from customer service agents. Rosetta Stone V4 TOTALe, which
was released in September 2010, combines packaged software and dedicated conversational coaching. The content of our packaged software and subscription
offerings are the same. We simply offer our customers the ability to choose which format they prefer without differentiating the learning experience. We
began bundling time-based subscription licenses of our web-based TOTALe services with perpetual licenses of our Rosetta Stone Version 3 language learning
solutions in the U.S. consumer market as part of our Rosetta Stone Version 4 TOTALe launch. We launched Rosetta Stone Version 4 TOTALe in Japan in
February 2011 and we intend to launch this solution in our other foreign markets as well.
We also provide an online peer-to-peer practice environment called SharedTalk, at www.sharedtalk.com, where registered language learners meet for
language exchange to practice their foreign language skills. During 2010, we had more than 135,000 active SharedTalk users.
Our innovative solutions have received numerous awards and recognitions, including a finalist for the 2011 SXSW Interactive Awards in the Education
Resource category for Rosetta Stone Version 4 TOTALe, a 2010 Consumer Electronics Show (CES) Innovation Design and Engineering award in the online
retail category for Rosetta Stone TOTALe, an honorable mention for the Adobe MAX 2010 Awards for Rosetta Stone TOTALe, a 2010 United States Distance
Learning Association (USDLA) silver award in the Best Practices in Distance Learning Programming category for Rosetta Stone Classroom Version 3, a
2010 Best Educational Software Award (BESSIE) in the Best Multi-Level Foreign Language Website category for Rosetta Stone Classroom Version 3, a
2010 Chief Learning Officer Learning in Practice Award (bronze for excellence in e-learning) for Rosetta Stone Enterprise Version 3, the 2010 Top Training
and Simulation Companies list for companies that have made a significant impact on the military training industry by Military Training Technology, the 2009
National Parenting Publications Awards (NAPPA) Honors Award for Rosetta Stone Version 3 Personal Edition, four classroom specific awards in 2009 for
Classroom Version 3, two enterprise specific awards in 2009, the 2009 BESSIE in the Best Multi-Level Foreign Language Website category for Rosetta Stone
Classroom Version 3, iParenting Media Excellent Product of 2009 award in the software category for Rosetta Stone Personal Edition Version 3, the 2009
Children's Technology Review Editor's Choice Award for Rosetta Stone Personal Edition Version 3, the 2009 Parent Tested Parent Approved (PTPA) Media
Awards for Rosetta Stone Personal Edition Version 3, and the 2009 Creative Child Media of the Year Award in the educational media category for Rosetta
Stone Personal Edition Version 3.
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