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The Children's Internet Announces Significant Cash Investment and Change in Controlling Interest

Posted on: Wednesday, 27 June 2007, 12:00 CDT

The Children's Internet, Inc. (OTCBB: CITC), marketers of the multiple award-winning service as ranked by PC Magazine as Editors' Choice and voted #1 in the category of "Kids' Browsers and Services," today announced that it has signed a definitive interim stock purchase agreement to sell newly issued shares to an investor group led by Richard J. Lewis III that will purchase controlling interest in the company. The deal includes a cash infusion of $7.5 million into the Company of which $1.5 million would be required to pay down the Company's indebtedness and $6 million will be used in the future operation of the Company.. The investor group is not affiliated with current management. Details of the agreement can be found in the Company's 8-K filed on June 21, 2007, which is available on the SEC's website at: www.sec.gov.

Ms. Sholeh Hamedani, Chief Executive Officer of The Children's Internet, Inc., stated, "I am pleased to announce the execution of this agreement. Our family has spent the better part of the past ten years and invested millions of dollars to develop The Children's Internet(R). Our world class online service is fully functional and market ready. It has been very frustrating that the Company has not had the adequate funds required to nationally launch the service. We have always believed that The Children's Internet(R) is by far the best product in the market place for protecting children against the dangers on the Internet, as well as giving children a safe, fun and dynamic community created specifically for them. The significant cash infusion to the Company that will result from consummation of this agreement I believe will enable the Company to implement a national marketing campaign and product release and realize our decade long dream of providing the most comprehensive solution to protect and educate children online. We believe this agreement will also provide the opportunity for our shareholders to benefit from their faith in the Company and in our vision. Even though I will no longer be an officer or Director of the Company after the new ownership takes control, I will do everything in my power to assist them in making The Children's Internet a success."

Mr. Richard J. Lewis III stated, "I am extremely excited by this unique opportunity to spearhead an effort aimed at bringing both security and family content to our children's internet experience."

The transaction is subject to a number of conditions, including completion of a due diligence review of the Company, negotiation and execution of a definitive stock purchase agreement, amendment of the Company's articles of incorporation to increase the number of its authorized shares, resolution of the pending Securities and Exchange Commission case against the Company to the satisfaction of the investor group and the transfer to Company of "The Children's Internet"(R) product and "Safe Zone Technology"(R) components related to The Children's Internet service currently licensed to the Company.

About The Children's Internet, Inc.

The Children's Internet, Inc. (http://www.ChildrensInternet.com) is the exclusive marketer and distributor of The Children's Internet(R) membership-based service created just for kids. The Children's Internet is the most comprehensive, secure Internet service and "educational super portal" for children, pre-school to junior high, providing them with SAFE, real-time access to millions of the best pre-selected, pre-approved educational and entertaining web pages accessed through a kid-friendly search engine.

The Children's Internet provides kids with a rich array of easy-to-use applications, including secure e-mail, search engine, homework help, games, news, learning activities and virtually limitless educational resources all within its safe, protected online community that gives kids a sense of freedom and parents total peace of mind!

Awards won by The Children's Internet(R):

The Children's Internet(R) was declared winner of Outstanding Products of 2006 by iParenting Media Awards in the software category.

The Children's Internet(R) received the coveted National Parenting Center's Seal of Approval.

The Children's Internet(R) was ranked by PC Magazine as Editors' Choice in the category of "Kids' Browsers and Services" and declared the winner, rated #1 over AOL, MSN and EarthLink.

About Richard J. Lewis III:

Richard J. Lewis III has been a practicing attorney for over twenty years in the state of California in the municipal and corporate finance fields. During that time he worked for such prestigious law firms as Mudge Rose Guthrie Alexander & Ferdon and Whitman Breed Abbott & Morgan. Mr. Lewis stopped practicing law full time in 1996 and became CEO of a waste-to-energy company, where he oversaw the funding, construction and installation of the first commercial municipal wastewater treatment gasification plant in Philadelphia, Pennsylvania.

Forward-Looking Statements

This press release may be deemed to contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements are made as of today's date and we do not undertake any obligation to update forward-looking statements. You can identify such statements by our use of such words as "should", "expect,""will,""intends," and similar words and phrases which denote future events and which may depend on the future performance of the Company. Specifically, these include statements as to the anticipated product launch and potential stockholder benefit, and whether or not the transaction will be consummated. Our assumptions underlying these statements are also "forward-looking" statements. Forward-looking statements are based on information and assumptions that are dynamic in nature and subject to rapid and sometimes abrupt changes. Our forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those stated or implied by the statements. Our forward-looking statements are also subject to important risks and uncertainties detailed in our latest reports filed with the SEC and available on its website at www.sec.gov.

 CONTACT:  Investor Relations: ir@tcimail.net Phone: (925) 737-0144 Fax: (925) 737-0224  

SOURCE: Children's Internet, Inc.

Source: MARKET WIRE

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