X0202 4 2008-03-05 0000729156 PEOPLES EDUCATIONAL HOLDINGS PEDH 0001139906 STOFER GORDON C/O CHERRY TREE INVESTMENTS, INC. 301 CARLSON PARKWAY, SUITE 103 MINNETONKA MN 55305 0 0 1 0 0001301052 Adam Smith Companies, LLC C/O CHERRY TREE INVESTMENTS, INC. 301 CARLSON PARKWAY, SUITE 103 MINNETONKA MN 55305 0 0 1 0 0001205409 CHRISTIANSON TONY C/O CHERRY TREE INVESTMENTS, INC. 301 CARLSON PARKWAY, SUITE 103 MINNETONKA MN 55305 1 0 1 0 Common Stock 2008-02-15 4 P 0 49 2.88 A 1895069 I see Footnotes Common Stock 2008-03-03 4 P 0 4900 2.85 A 1899969 I see Footnotes Adam Smith Activist Fund f/k/a Cherry Tree Core Growth Fund, L.L.L.P. ("Activist Fund") acquired 4,949 shares as disclosed in Table 1. The shares beneficially owned by the reporting owners following these transactions include 86,606 shares owned directly by Activist Fund and 1,813,363 shares owned directly by School Power Limited Partnership ("School Power"). These securities are owned indirectly by Gordon Stofer and Adam Smith Companies, LLC, as general partners of each of Activist Fund and School Power, and by Tony J. Christianson as Manager of Adam Smith Companies, LLC. The general partners of Activist Fund and School Power disclaim beneficial ownership of these securities, and this report shall not be deemed an admission that the general partners are the beneficial owners of such securities for the purpose of Section 16 or any other purpose. Mr. Christianson is the Manager of Adam Smith Companies, LLC, a general partner of Activist Fund and School Power and this report shall not be deemed an admission that the reporting person is the beneficial owner of such securities for the purpose of Section 16 or any other purpose. /s/ Gordon Stofer 2008-03-05 Adam Smith Companies, LLC, By: /s/ Tony Christianson, Manager 2008-03-05 /s/ Tony Christianson 2008-03-05