By the Midpoint Theorem (or its converse), if a line segment joins the midpoint of one side of a triangle and is parallel to the second side, then it bisects the third side. Since D is the midpoint of AB and DE || BC, E must be the midpoint of AC. Also, Δ ADE is similar to Δ ABC. This is because ∠DAE = ∠BAC (common angle) and ∠ADE = ∠ABC (corresponding angles, since DE || BC).