"Over time, I expect the publishing division to play a more important role," he said.

She had been a top executive in the company's legal publishing division before it was sold last year.

At the publishing division, profits rose about 11 percent, to $88 million.

Cash flow at the publishing division rose more than 11 percent, to $175 million.

At the publishing division, cash flow rose 15 percent, to $99 million.

Walden also has a publishing division and a Web site, www.walden.com, with learning programs for children.

The publishing division, however, posted a 14 percent rise in revenue.

Other possibilities under discussion are an exercise video and a book deal through Disney's publishing division.

Income in the publishing division fell to $165.6 million from $177.2 million.

The publishing division will still be marginallyprofitable in the quarter, the company said.