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Rosetta Stone 2Q13 Earnings Presentation (Deleted 8abf258be142bf0fedb1f0ef1a68b149)

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Certain information contained in this presentation and certain comments today constitute forward-looking statements forpurposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. These forward-looking

statements reflect the Company's current views with respect to future events and are subject to certain risks, uncertainties, andassumptions. A number of important factors could cause actual results or events to differ materially from those indicated bysuch forward-looking statements, including demand for our language learning solutions; the advantages of our products,services, technology, brand and business model as compared to others; our strategic focus; our ability to maintain effectiveinternal controls or to remediate material weaknesses; our cash needs and expectations regarding cash flow from operations;our product development plans; the appeal and efficacy of our products and services; our expectations regarding capturinglifetime value and a broader range of market segments through such offerings; our plans regarding expansion of our marketinginitiatives and sales force; our international operations and growth plans; our plans regarding our kiosks and retail relationships;our plans regarding our Enterprise and Education business; the impact of any revisions to our pricing strategy; our ability tomanage and grow our business and execute our business strategy; our financial performance; our actions to realign our coststructure and revitalizing our go-to-market strategy; our plans to transition our distribution to more online in the consumerbusiness; our mergers and acquisitions plans; our plans with respect to Lexia and Livemocha; our ability to successfullyintegrate Lexia and Livemocha into our business; adverse trends in general economic conditions and the other factorsincluding the “Risk Factors” more fully described in the Company's filings with the U.S. Securities and Exchange Commission(SEC), including the Company’s annual report on Form 10-K for the year period ended December 31, 2012, which is on filewith the SEC. We encourage you to review those factors before making any investment decision. You should not place unduereliance on forward-looking statements because they involve factors that are, in some cases, beyond our control and that couldmaterially affect actual results, levels of activity, performance, or achievements.

Today’s presentation and discussion also contains references to non-GAAP financial measures. The full definition andreconciliation of those measures is available in our Form 8-K filed with the SEC on August 7, 2013. Management uses thesenon-GAAP measures to compare the Company's performance to that of prior periods for trend analyses, for purposes ofdetermining executive incentive compensation, and for budgeting and planning purposes. Management believes that the useof these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating resultsand trends. Our definitions of non-GAAP measures may not be comparable to the definitions used by other companies, andwe encourage you to review and understand all our financial reporting before making any investment decision.

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1. Core bookings are North American Consumer bookings excluding Kiosk bookings. Please see appendix for definition of bookings.2. Enterprise & Education previously referred to as Institutional3. Core bookings are E&E bookings excluding network. Please see appendix for definition of bookings.

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2. Core Bookings and Revenue excludes N.A. Kiosk and E&E network sales

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1. Adjusted EBITDA is GAAP net income or loss plus interest income and expense, income tax benefit and expense, depreciation, amortization and stock- based compensation expenses. Adjusted EBITDA excludes any items related to the litigation with Google Inc., restructuring costs and transaction andother costs associated with mergers and acquisitions.

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1. Adjusted EBITDA is GAAP net income or loss plus interest income and expense, income tax benefit and expense, depreciation, amortization and stock- based compensation expenses. Adjusted EBITDA excludes any items related to the litigation with Google Inc., restructuring costs and transaction andother costs associated with mergers and acquisitions.

2. Free cash flow is cash flow from operations less cash used in purchases of property and equipment.

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Rosetta Stone Inc. © 2013

1. ARPU is defined as average revenue per unit.

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• Product Units increased 15% year-over-year, driven by Digital Downloads• Online Learners grew at 75% Year-over-year with stable ARPU

143 130 146

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Product Units

Product Units (000's) Product Unit ARPU

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1Q12 2Q12 3Q12 4Q12 1Q13 2Q13

Paid Online Learners

Online Learners (000's) Monthly ARPU

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1. Please see the Appendix for definitions of non-GAAP metrics;2. Going forward, Rosetta Stone expects to show guidance and pro forma results excluding purchasing accounting for comparability3. For adjusted net income/(loss) purposes, we use a 39% effective tax rate which represents the projected, long term effective tax rate. Our adjusted tax rate assumes full use of

loss and credit carry-forwards without reduction for valuation allowances.

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• Adjusted EBITDA is GAAP net income or loss plus interest income and expense, income taxbenefit and expense, depreciation, amortization and stock-based compensation expenses.Adjusted EBITDA excludes any items related to the litigation with Google Inc., restructuring costsand transaction and other costs associated with mergers and acquisitions.

• Adjusted net income/(loss) and adjusted net income/(loss) per share exclude the impact ofitems related to its litigation with Google Inc., restructuring costs and transaction and other costsassociated with mergers and acquisitions as well as all adjustments related to recording the non- cash tax valuation allowance for deferred tax assets.

• Free cash flow is cash flow from operations less cash used in purchases of property andequipment.

• Bookings represent executed sales contracts received by the Company that are either recordedimmediately as revenue or as deferred revenue.

• Pro Forma Revenue is GAAP revenue plus the purchase accounting impact on acquired deferredrevenue

• Pro Forma Adjusted EBITDA is Adjusted EBITDA (as defined above) plus the purchaseaccounting impact on acquired deferred revenue less the purchase accounting impact on acquireddeferred commissions

• Pro Forma Adjusted Net Income/(Loss) and Pro Forma Adjusted EPS are Adjusted NetIncome/(Loss) and Adjusted Net Income/(Loss) per Share (as defined above) plus the purchaseaccounting impact on acquired deferred revenue less the purchase accounting impact on acquireddeferred commissions

/6