Xueda Education Group (NYSE:XUE) (“Xueda” or the “Company”), the leading national provider of tutoring services for primary and secondary school students in China with a focus on offering personalized tutoring services, today announced that it is currently considering and evaluating a proposed offering by certain of its pre-IPO shareholders of its ordinary shares in the form of American depositary shares (“ADSs”). Xueda intends to file a registration statement with the United States Securities and Exchange Commission (the “SEC”) on or about May 25, 2011 (U.S. Eastern Time) relating to this proposed offering. The size and timing of the proposed offering are subject to market conditions and other factors.

The offering will only consist of secondary shares to be sold by certain of Xueda’s pre-IPO shareholders. The purpose of the offering is to provide greater liquidity of the ADSs in the market by increasing the public float as well as providing an opportunity for certain pre-IPO shareholders to obtain liquidity on part of their holdings in Xueda in an organized manner. Xueda will not receive any proceeds from the proposed sale of the ADSs by the selling shareholders. The number of ADSs to be sold by the selling shareholders will be determined at an appropriate later date and will be reflected in an amendment to the registration statement to be filed with the SEC. Each ADS represents two of Xueda’s ordinary shares.

A registration statement relating to these securities has not been filed with the SEC and, if filed, will not immediately become effective. The ADSs may not be sold, nor may offers to buy be accepted, prior to the time the registration statement relating to the proposed offering becomes effective.

This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, the securities described herein, nor shall there be any offer, solicitation or sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current expectations, market and operating conditions, estimates and projections about our industry, management’s beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “will,” “should,” “would,” “could,” “potential,” “continue,” “ongoing,” “targets” and similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks and uncertainties beyond our control, which could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement. Further information regarding these and other risks, uncertainties or factors is included in our filings with the U.S. Securities and Exchange Commission. We do not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

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