-- Company Engages Leading Postsecondary Education Investment Banking Firm --

SCOTTSDALE, Ariz., Nov. 4 /PRNewswire-FirstCall/ -- Piccolo Educational Systems, Inc. (Other OTC: PEDU.PK), an online provider of postsecondary education services, today announced that it has completed the sale of its Piccolo International University (PIU) division, to FL-EX Holdings, Inc. Terms of the transaction were not disclosed.

Capstone Partners LLC, the investment banking firm that assisted Piccolo in the transaction, has also been retained by the company to secure growth capital and pursue strategic acquisition opportunities. Presently, Piccolo and Capstone are in advanced discussions with various investor groups related to a significant growth investment, a portion of which will help fund an acquisition currently under preliminary agreement.

"This transaction will allow us to focus our resources on larger scale growth initiatives. In turn, acquiring additional educational institutions, or operating as a management overlay to an existing organization, will expedite our core goal of operating an accredited institution of higher learning," said Laura Palmer Noone, president and chief executive officer of Piccolo Educational Systems. "We are seeing excellent opportunities in the postsecondary education sector and believe our planned business model, supported by our deep management expertise, will represent a compelling educational offering for students worldwide."

Noone said there can be no assurance that any transaction or financing will occur, nor can there be any certainty as to the terms or timing of any such potential transaction or financing. She also said the company does not expect to disclose developments with respect to the exploration of strategic transaction alternatives unless and until its board of directors has approved any such definitive transaction.

About Piccolo Educational Systems

Piccolo Educational Systems, Inc. is pursuing a strategy to be a premier online provider of postsecondary education offerings, providing academically rigorous, values-based, service oriented educational experiences through various modalities to students worldwide. The company's executive team brings over 180 years of collective experience in higher education. Most notably, the team has been involved in the leadership of several well-known online, for-profit postsecondary institutions including Apollo Group/University of Phoenix and Grand Canyon University.

About Capstone Partners LLC

Capstone Partners LLC is a leading national investment banking advisory firm dedicated to serving the transaction needs of middle market companies. The firm provides corporate sale & divestiture, merger & acquisition and private placement advisory services across four major industry groups. Having formed a dedicated postsecondary education practice in 2002, Capstone's PSE Group has become one of the most active practices in the industry and has completed transaction with leading schools, strategic acquirers and private equity investment groups. For more information, visit, www.capstonellc.com.

About FL-EX Holdings, Inc.

FL-EX Holdings, Inc., dba TeamEDU, is a leading educational services company focused on the higher education market. The acquisition allows for PIU's continued penetration in a niche market. The Phoenix-based company has six core competencies: lead generation & enrollment management, online self-paced general education courses, student authentication solutions, educational event technologies, consulting and brokering services, and developing online universities. For more information, visit http://www.TeamEDU.com.

Forward Looking Statements

This press release includes "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, including statements that are predictive or express expectations that depend on future events or conditions that involve risks and uncertainties. Such forward-looking statements include, but are not limited to, the company's ability to raise capital and consummate an acquisition. Actual results may differ materially from the preliminary expectations expressed or implied in these forward-looking statements due to various risks, uncertainties or other factors, including those set forth in our annual report on Form 10-K for the fiscal year ended March 31, 2009. Except as required by applicable law, we assume no responsibility to update any forward-looking statements as a result of new information, future events or otherwise.

SOURCE Piccolo Educational Systems, Inc.