Exhibit 99.1

Renaissance Learning, Inc. Announces Third Quarter, 2006 Results

WISCONSIN RAPIDS, WI, — October 18, 2006 — Renaissance Learning^®, Inc., (Nasdaq: RLRN), a leading provider of computerized assessment and progress monitoring tools for pre-K-12 schools and districts, today announced financial results for the three- and nine- month periods ended September 30, 2006.  Revenues for the third quarter of 2006 were $25.2 million, a decrease of 19.8% from third quarter 2005 revenues of $31.4 million. Net income was $2.1 million compared to net income of $4.9 million for the third quarter of 2005, a decrease of 57.7%.  Earnings per share for the quarter were $0.07, compared to $0.16 per share earned in the prior year.

Revenues for the nine-month period ended September 30, 2006 were $85.6 million, down 1.9% from 2005 revenues of $87.3 million.  Excluding revenue from the AlphaSmart laptop product line which was acquired in late June, 2005, the Company’s year-to-date revenues declined by 13% from the prior year.  Net income was $10.2 million for the nine-month period, down 45.3% from the prior year net income of $18.7 million.  Earnings per share for the nine months of 2006 were $0.34 compared to $0.60 in the first nine months of 2005.

“Third quarter results continued to be weak, due to a combination of factors including very slow laptop sales, re-organization of our inside and outside software sales force and revenue deferrals for our subscription based software products,” commented Terrance D. Paul, Chief Executive Officer of Renaissance Learning. “AlphaSmart laptop revenues declined nearly 38% from the third quarter of 2005.  Orders excluding laptops were actually up 2% compared to the prior year, the first quarterly increase we have achieved in over three years.”  

“We are still experiencing the impact of dismantling the laptop sales force upon acquiring AlphaSmart, but we now have the laptop sales team back in place and an aggressive marketing campaign is underway.  Also, we believe the disruption caused by our software sales re-organization is mostly behind us.  As indicated by the increase in deferred revenue of a record $5.2 million in the quarter, customer interest in our new Enterprise subscription offerings is high and inbound calls and quote activity are also encouraging,” continued Mr. Paul.  “While it will likely take the balance of this year for the changes we have made since February to improve revenue and earnings, we expect to achieve better results in 2007.”

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RLI Q3 Earnings

Renaissance Learning added about 600 new customer schools in the U.S. and Canada during the quarter, bringing total North American schools that are actively using the Company products to more than 70,000.  Of these, more than 58,000 are using the Company’s reading products and more than 25,000 are using the company’s math products.

The Company will hold a conference call at 4:00 p.m. CDST today to discuss its financial results, quarterly highlights and business outlook.  The teleconference may be accessed in listen-only mode by dialing 888-373-2605, ID number 7930397 at 4:00 p.m. CDST.  Please call a few minutes before the scheduled start time to ensure a proper connection.

A digital recording of the conference call will be made available on October 18, 2006 at 8:00 p.m. through October 25, 2006 at 11:59 p.m. CDST. The replay dial-in is 877-519-4471.  The conference ID number to access the replay is 7930397.

Renaissance Learning, Inc.

Renaissance Learning, Inc. is a leading provider of computerized assessment and progress monitoring tools for pre-K-12 schools and districts.  Renaissance Learning products give students and teachers continuous feedback to inform instruction and help teachers and administrators motivate students, dramatically accelerate learning and improve test scores. Renaissance Learning has seven U.S. locations and subsidiaries in Canada, India and the United Kingdom.

This press release contains forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements regarding growth initiatives and management’s revenue expectations and growth prospects for future periods.  Any such forward-looking statements may involve risk and uncertainties that could cause actual results to differ materially from any future results encompassed within the forward-looking statements.  Factors that could cause or contribute to such differences include risks associated with the implementation of the Company’s strategic growth plan and other risks affecting the Company’s business as described in the Company’s filings with the Securities and Exchange Commission, including the Company’s 2005 Annual Report on Form 10-K and later filed quarterly reports on Form 10-Q and Current Reports on Form 8-K, which factors are incorporated herein by reference.  The Company expressly disclaims a duty to provide updates to forward-looking statements, whether as a result of new information, future events or other occurrences.

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RLI Q3 Earnings

RENAISSANCE LEARNING^®, INC.

CONSOLIDATED STATEMENTS OF INCOME

(dollar amounts in thousands, except per share amounts)

(unaudited)

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RLI Q3 Earnings

RENAISSANCE LEARNING^®, INC.

CONSOLIDATED BALANCE SHEETS

(dollar amounts in thousands)

(unaudited)