Kids Online America, which has put the development of KOLA on hold due to a current lack of funding, had not yet made the service available through its partnership with Bright Horizons, and there will be no impact on Bright Horizons’ clients or families. Bright Horizons remains committed to helping parents and clients secure access to the Internet in ways that are appropriate, safe, and educational for young children, and will continue to look for partnerships to bring services of this kind to the families it serves.
In July 2000, Kids Online America launched KOLA, a secure family-friendly Internet service with content tailored for education, entertainment and the evolution of sustainable on-line communities. Although Kids Online America continues to explore its funding options, the current investing climate is very challenging for similar early-stage ventures; as a result, Bright Horizons’ financial investment in Kids Online America may not be recoverable. In connection with these events, Bright Horizons expects to take an asset impairment charge to its fourth quarter 2000 earnings amounting to approximately $400,000 post tax.
