NLCI Annual Stockholders’

Meeting

FY 05 Year Ending July 2, 2005

November 10, 2005

Exhibit 99.1

L\CEO\Presentations\Strategic Plan\Annual

Meeting\Nov. 10, 2005

2

•

Welcome

Dr. Terry Crane, Chairman of the Board

•

Annual Meeting Business

Tom Frank, Chief Financial Officer

•

Chairman’s Comments

Dr. Terry Crane

•

FY 2005 Review

George Bernstein, President and Chief Executive Officer

Tom Frank, Chief Financial Officer

NLCI Annual Stockholders’

Meeting FY 2005

L\CEO\Presentations\Strategic Plan\Annual

Meeting\Nov. 10, 2005

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•

To elect two Class III directors

•

To ratify the issuance of the Series F Preferred Stock

for NASDAQ purposes

•

To consider and ratify the selection of the Company’s

independent public registered accounting firm for the

fiscal year ending July 1, 2006

Annual Meeting Business

NLCI Annual Stockholders’

Meeting FY 2005

L\CEO\Presentations\Strategic Plan\Annual

Meeting\Nov. 10, 2005

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Chairman’s Comments

•

Dr. Terry Crane

Non-executive Chairman of the Board

NLCI Annual Stockholders’

Meeting FY 2005

L\CEO\Presentations\Strategic

Plan\Annual Meeting\Nov. 10, 2005

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NLCI Annual Stockholders’

Meeting FY 2005

The following presentation contains

forward-looking

statements, within the meaning of

the Private Securities Litigation Reform Act of 1995,

about

such

things

as the

Company’s

business, projected revenues, expenditures and operating and capital

requirements.  Statements that are not historical facts

are

forward-looking

statements,

and are subject to certain risks, uncertainties and assumptions,

such as factors that

could cause actual results to vary materially.

Among the factors that could impact our

ability to achieve our stated goals are competitive conditions in the

pre-elementary

and

elementary school education and services industry, including advertising and tuition

price sensitivity; various factors affecting occupancy levels, including, but not limited

to, the reduction in or changes to the general labor force that would reduce the need or

demand for private schools; the establishment of governmentally mandated universal

pre-K programs that do not allow for participation

by

for-profit

operators; our inability

successfully to defend against or counter negative publicity associated with claims

involving alleged incidents at our schools; and the acceptance of our newly developed

schools and businesses and performance of recently acquired businesses.  Forward-

looking statements should not be relied upon except as statements of our present

intentions and expectations that may or may not occur.

©

L\CEO\Presentations\Strategic Plan\Annual

Meeting\Nov. 10, 2005

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•

FY 2005 Business Review

•

FY 2005 Financial Review

•

Questions and Answers

Company Review

NLCI Annual Stockholders’

Meeting FY 2005

L\CEO\Presentations\Strategic

Plan\Annual Meeting\Nov. 10, 2005

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NLCI has implemented significant changes

over the past two years

•

New Management Team, Board and Bank

L\CEO\Presentations\Strategic

Plan\Annual Meeting\Nov. 10, 2005

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NLCI has implemented significant

changes over the past two years

•

New Management Team, Board and Bank

•

Focus on our core business

L\CEO\Presentations\Strategic

Plan\Annual Meeting\Nov. 10, 2005

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Elementary

School

Elementary

Elementary

School

School

Cluster Strategy

NLCI’s focus is on our core business and

strengthening our school clusters

Pre-Elementary

Pre-Elementary

Pre-Elementary

Pre-Elementary

Middle

School

Paladin

Program

L\CEO\Presentations\Strategic

Plan\Annual Meeting\Nov. 10, 2005

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0.00

0.20

0.40

0.60

0.80

1.00

Non-Core Business and

Systems

Core Business Operating

Pre-K to 8 Schools

NLCI has refocused investment allocation on our

core business of operating private schools

Operating

Profit

FY 99 -

03

Controllable

Investments

FY 99 -

03

Controllable

Investments

FY 2005

L\CEO\Presentations\Strategic

Plan\Annual Meeting\Nov. 10, 2005

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NLCI has implemented significant

changes over the past two years

•

New Management Team, Board and Bank

•

Focus on our core business

•

Growth in comparable school tuition for first time in 3+

years

L\CEO\Presentations\Strategic

Plan\Annual Meeting\Nov. 10, 2005

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NLCI has achieved positive comparable school

revenue growth

FY 2002

FY 2003

FY 2004

FY 2005

5%

0%

(10%)

(2.3%)

+0.7%

(1.2%)

(6.3%)

Comparable School Revenue in Constant Tuition Dollars*

*Based on a 52 week fiscal year; Comparable schools open over the entire period FY02-FY05

L\CEO\Presentations\Strategic

Plan\Annual Meeting\Nov. 10, 2005

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NLCI has implemented significant

changes over the past two years

•

New Management Team, Board and Bank

•

Focus on our core business

•

Growth in comparable school tuition for first time in 3+

years

•

NLCI performance has improved significantly

L\CEO\Presentations\Strategic

Plan\Annual Meeting\Nov. 10, 2005

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Our performance has improved significantly across a

broad array of financial measurements

•

More transparent capital structure

•

Substantial balance sheet improvement

•

Operating margin improvement

•

Return to profitability

L\CEO\Presentations\Strategic

Plan\Annual Meeting\Nov. 10, 2005

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Company Direction –

Last Year’s Messages

NLCI Annual Stockholders’

Meeting FY 2005

•

Drive profitability and cash flow through improved occupancy.

•

Grow revenue by filling existing clusters.

•

Upgrade curriculum and broaden outcome measurements.

•

Upgrade our infrastructure and systems.

•

Simplify our capital structure.

•

Develop a corporate culture rooted in accountability, talent, and

winning attitudes.

L\CEO\Presentations\Strategic

Plan\Annual Meeting\Nov. 10, 2005

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•

Conference Video

L\CEO\Presentations\Strategic

Plan\Annual Meeting\Nov. 10, 2005

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FY 2005 Business Review

•

FY 2004:  Turnaround

•

FY 2005:  Stability

•

FY 2006:  Transition to Growth

–

Existing schools

–

New schools

L\CEO\Presentations\Strategic

Plan\Annual Meeting\Nov. 10, 2005

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•

Improve our communications with existing customers

•

Improve classroom utilization

•

More closely delivering against customer preferences

•

Focus on retaining key Principals

NLCI can improve occupancy, profitability, and create a

stronger annuity from existing schools

L\CEO\Presentations\Strategic

Plan\Annual Meeting\Nov. 10, 2005

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•

Continued development of pre-schools and elementary schools in

markets which support the requirements for a pre-school /

elementary cluster

•

Acquisition of elementary,  pre-school or child development

companies

NLCI is now in a position to drive strong revenue

growth through the addition of new schools

L\CEO\Presentations\Strategic

Plan\Annual Meeting\Nov. 10, 2005

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•

FY 2005 Business Review

•

FY 2005 Financial Review

•

Questions and Answers

Company Review

NLCI Annual Stockholders’

Meeting FY 2005

NLCI Annual Stockholders’

Meeting

FY 05 Year Ending July 2, 2005

Financial Results

November 10, 2005

L\CEO\Presentations\Strategic

Plan\Annual Meeting\Nov. 10, 2005

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•

Retired all $10,000,000 of 13.25% Senior Subordinated Notes

•

Increased size of our Senior Revolving Credit facility to $10,000,000

•

Improved interest rate matrix on our Senior Credit facility

•

Converted 100% of Preferred Series A and Preferred Series C to

common stock

NLCI simplified and strengthened our capital

structure during fiscal 2005

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Plan\Annual Meeting\Nov. 10, 2005

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Total Debt

$40.2

$35.5

$25.3

$15.5

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

2002

2003

2004

2005

Fiscal Year End

NLCI debt is down and free cash flow is up

Free Cash Flow

$1.9

$3.1

$5.3

$7.8

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

2002

2003

2004

2005

Fiscal Year Ended

Free Cash Flow = cash from operations less capital expenditures

Financial performance trends should be reviewed in conjunction with the Financial Statements and Notes

thereto filed on Form 10-K with the SEC for the year ended July 2, 2005.

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Plan\Annual Meeting\Nov. 10, 2005

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Gross Profit

(Based on 52 week fiscal year)

$18.7

$19.9

$21.8

$0.0

$10.0

$20.0

$30.0

FYE 03

FYE 04

FYE 05

NLCI gross profit and net income are improving

Net Income

-$11.5

-$6.1

$2.5

-$13.0

-$10.0

-$7.0

-$4.0

-$1.0

$2.0

$5.0

Fiscal Year Ended

Financial performance trends should be reviewed in conjunction with the Financial Statements and Notes

thereto filed on Form 10-K with the SEC for the year ended July 2, 2005.

FYE 03

FYE 04

FYE 05

12.5%

12.8%

13.2%

Gross Margin %

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Plan\Annual Meeting\Nov. 10, 2005

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($0.30)

($0.42)

($0.18)

($0.53)

$0.07

$0.10

$0.11

$0.10

$0.06

($1.11)

($0.76)

$0.20

($1.50)

($1.00)

($0.50)

$0.00

$0.50

Q1 July - Sept

Q2 Oct - Sept

Q3 Jan - Mar

Q4 Apr - June

NLCI EPS trend has improved steadily

2003

2005 ¹

2004

1

Third quarter Fiscal 2005 includes impact of TES reserve of $0.10

EPS

($1.83)

($1.01)

$0.26

L\CEO\Presentations\Strategic

Plan\Annual Meeting\Nov. 10, 2005

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NLCI stock price has reacted favorably to our

strategy and focus

Management and Board

Changes Initiated

Monthly Closing Price

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

$10.00

Week Ended

Questions and Answers

November 10, 2005