Exhibit 99.1


To:    Directors and Executive Officers

From:  Charles B. Deull

Re:    Special Trading Restrictions related to the Scholastic Corporation 401(k)
       Savings and Retirement Plan Blackout Period

Date:  December 10, 2004
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              This  notice  is to  inform  you  about  certain  special  trading
restrictions applicable to you as directors and executive officers of Scholastic
Corporation  during the "Blackout  Period" that will be in effect as a result of
the  transition  of  the  recordkeeping  and  administrative  services  for  the
Scholastic  Corporation  401(K)  Savings  and  Retirement  Plan  from  Putnam to
Fidelity.  During  this  period, which  begins at 3:00 p.m.,  New York time,  on
December 28, 2004 and is expected to be completed  during the week of January 9,
2005,  participants  in the  401(K)  Plan will be unable to direct or  diversify
investments in their individual Plan accounts, change elections regarding future
contributions,  obtain a loan  from  the  Plan or  obtain  any  distribution  or
withdrawal from the Plan (the "401(K) Blackout Period").


              Under SEC  Regulation  BTR,  during  the 401(K)  Blackout  Period,
Scholastic's  directors and executive  officers are prohibited  from directly or
indirectly  purchasing,  selling,  or otherwise  acquiring or  transferring  ANY
shares of  Scholastic  Common stock or other equity or derivative  securities of
Scholastic, including the exercise (cashless or otherwise) of options to acquire
Scholastic stock (the "Special Trading  Restrictions").  IT IS IMPORTANT TO NOTE
THAT THE SPECIAL TRADING  RESTRICTIONS BAR DIRECTORS AND EXECUTIVE OFFICERS FROM
ENGAGING IN THESE ACTIVITIES BOTH WITHIN AND OUTSIDE THE 401(K) PLAN.


              Although the Special Trading  Restrictions  are subject to certain
exceptions,  given the  complexity  of these  rules and the  short  time  period
involved you should avoid any change in your beneficial  ownership of Scholastic
stock during the 401(K) Blackout Period.  THEREFORE,  AS A RESULT OF THE SPECIAL
TRADING  RESTRICTIONS,   YOU  MAY  NOT  ENGAGE  IN  ANY  TRANSACTIONS  INVOLVING
SCHOLASTIC  STOCK OR  EXERCISE  ANY OPTION TO BUY  SCHOLASTIC  STOCK  DURING THE
401(k) BLACKOUT PERIOD WITHOUT PRIOR APPROVAL.

              It  is  also   important  to  note  that  these  Special   Trading
Restrictions  will be in place  during  what would  normally  be an open  window
period, which begins on Monday,  December 20 (the third day after the release of
our  second  quarter  earnings,  which will  occur  after the  market  closes on
Wednesday,  December  15).  Therefore,  as  a  result  of  the  Special  Trading
Restrictions,  our normal open window period will be curtailed for directors and
executive  officers and will only be open (1) from  Monday,  December 20 through
3:00 p.m. on Tuesday,  December 28 (the beginning of the 401(K) Blackout Period)
and (2) from the date that the 401(K) Blackout Period ends, which is expected to
be during the week beginning January 9, until the close of the market on January
19.




              We will notify you when the 401(K) Blackout Period ends,  or if it
is extended past the week of January 9, 2005.  In the meantime,  if you have any
questions concerning this notice, or the status of the 401(K) Blackout Period or
the transactions prohibited by the Special Trading Restrictions,  please contact
me, Paul Marcotrigiano or Teresa Connelly at 212-343-6968.