Apollo Group, Inc. Reports Revenues and Earnings for Second Quarter Fiscal 2000

Phoenix, Arizona, March 28, 2000 -- Apollo Group, Inc. (Nasdaq:APOL) today reported financial results for the second quarter of fiscal 2000 ended February 29, 2000.

Tuition and other net revenues for the second quarter of fiscal 2000 rose 23% to $134.0 million, compared with $109.4 million in the second quarter of fiscal 1999. Net income for the three months increased 17% to $11.9 million from $10.2 million for the same period last year, or to $.16 per share from $.13 per share.

Tuition and other net revenues for the six months ended February 29, 2000 rose 23% to $277.4 million, compared with $225.1 million for the same period last year. Net income for the six months increased 21% to $28.7 million, or $.37 per share, as compared to $23.7 million, or $.30 per share, reported for the same period last year.

Consolidated degree enrollments at February 29, 2000 increased by 19% to 94,046 students compared to 79,333 students at February 28, 1999. Degree enrollments at the University of Phoenix were 74,421 students at February 29, 2000 compared to 61,775 students at February 28, 1999 representing a 21% increase in degree enrollments. The University of Phoenix’s Online campus grew 38.4% to 12,212 degree enrolled students at February 29, 2000 compared to 8,826 degree enrolled students at February 28, 1999. The University of Phoenix accounted for 91% of the $246.7 million in net tuition revenues from students enrolled in degree programs for the quarter ended February 29, 2000.

The Board of Directors has authorized an additional $50 million in Company funds to repurchase shares of its Class A Common Stock. The increase brings the total amount authorized for the repurchase of Company stock to $150 million. To date, the Company has completed the repurchase of 4,073,450 shares representing approximately $95 million. The funds allocated for the share repurchase will not affect the Company’s ability to finance future growth and expansion.

Dr. John G. Sperling, Chairman of the Board and CEO, said, "During the second quarter of fiscal year 2000, the University of Phoenix received state licensure in Massachusetts. We plan to open a campus in the Boston metropolitan area by the end of calendar 2000. We look forward to the opportunity to offer quality, affordable higher education to the adult market in Massachusetts. Also during the second quarter, the Institute for Professional Development renewed their partnership with Olivet Nazarene University in Illinois."

Dr. Sperling continued, "We are pleased with our revenue growth of 23% during the second quarter. Additionally, we are extremely pleased with our operating margin of 14.2% for the quarter in light of the geographic expansion of the University of Phoenix."

Although the Company enrolls students throughout the year, student enrollments have fluctuated throughout each year with a "seasonal effect" occurring primarily during the second quarter. Second quarter (December to February) revenues and profits are typically lower than other quarters within the year due to student breaks during the Christmas and New Year holidays. The Company expects this second quarter seasonal trend to continue in the future.

Apollo Group, Inc., through its subsidiaries the University of Phoenix, Inc., the Institute for Professional Development, the College for Financial Planning Institutes Corporation, Western International University, Inc. and Apollo Learning Group, Inc., is a leading provider of higher education programs for working adults based on the number of working adults enrolled in its programs. The consolidated enrollment in our educational programs would make us the largest private institution of higher education in the United States. We currently offer our educational programs and services at 52 campuses and 89 learning centers in 35 states, Puerto Rico and Vancouver, British Columbia. Our combined degree enrollment was 94,046 students at February 29, 2000.

For more information about Apollo Group, Inc. and its subsidiaries, call 1-800-990-APOL.

Apollo Group, Inc. and Subsidiaries Selected Financial and Operating Data

(Dollars in thousands, except per share amounts)

* Excludes 1,682 degree enrollments at LeTourneau University.

APOLLO GROUP, INC. AND SUBSIDIARIES DEGREE AND NON-DEGREE ENROLLMENTS

* Excludes 1,682 degree enrollments at LeTourneau University. This press release includes statements which may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. This information may involve risk and uncertainties that could cause actual results to differ materially from the forward-looking statements.