Apollo Group, Inc. Reports Revenues and Earnings for Third Quarter and Nine Months ended May 31, 1998

Phoenix, Arizona, June 22, 1998 -- Apollo Group, Inc. (Nasdaq:APOL) today reported financial results for the third quarter of fiscal 1998.

Total revenues for the third quarter of fiscal 1998 increased by 37.2% to $106.8 million, compared with $77.8 million in the third quarter of fiscal 1997. Net income for the three months increased by 34.3% to $15.5 million, or $.20 per share, as compared to $11.6 million, or $.15 per share, for the same period last year.

Total revenues for the nine months ended May 31, 1998 increased by 36.8% to $282.4 million, compared with $206.5 million for the same period last year. Net income for the nine months increased by 41.5% to $33.9 million, or $.43 per share, as compared to $23.9 million, or $.31 per share, for the same period last year.

Revenue growth in the third quarter resulted primarily from increases in average degree enrollments for the University of Phoenix (University of Phoenix) of 31.0%, the Institute for Professional Development (IPD) of 15.4%, and Western International University (WIU) of 15.1% and net revenue from the newly acquired College for Financial Planning. Consolidated ending degree enrollments increased by 29.2% to 66,800 students at May 31, 1998 from 51,700 students at May 31, 1997.

Dr. John G. Sperling, Chairman and Chief Executive Officer, said, "We continue to be pleased with the Company’s growth and success. During the third quarter of 1998, the Company opened a new University of Phoenix campus in Jacksonville, Florida and received NCA approval to open new locations in British Columbia and Oklahoma. University of Phoenix also received approval for three new degree programs that will be offered as early as this summer. IPD opened a new learning center in Merrillville, Indiana and extended its contracts with William Penn College and Albertus Magnus

College. Student enrollments were up compared to last year at every University of Phoenix campus, at WIU and at most IPD campuses. University of Phoenix’s Online Campus enrollment increased 60.0% to 4,360 students."

Historically, the third quarter of each fiscal year is the highest in terms of operating profits and net income. The Company has experienced a seasonal increase in new enrollments in August of each year. Instructional costs and services and selling and promotional costs in the fourth quarter of each year have also increased as a percentage of net revenues due to increased costs in preparation for the August peak enrollments. The Company expects these seasonal trends to continue.

Apollo Group, Inc., through its subsidiaries the University of Phoenix, Inc., the Institute for Professional Development, the College for Financial Planning and Western International University, Inc., is one of the largest providers of higher education programs for working adults in the United States, with total degree-seeking enrollment of approximately 66,800 students. Educational programs and services are currently offered at 112 campuses and learning centers in 32 states, Puerto Rico and London, England.

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

The address and phone number for the accrediting body referred to above is as follows:

North Central Association of Colleges and Schools
Commission on Institutions of Higher Education
30 North LaSalle Street, Suite 2400
Chicago, Illinois 60602-2504
(312) 263-0456

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

(Dollars in thousands, except per share amounts)

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.