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

Phoenix, Arizona, June 27, 2000 -- Apollo Group, Inc. (Nasdaq:APOL) today reported financial results for the third quarter of fiscal 2000 ended May 31, 2000.

Tuition and other net revenues for the third quarter of fiscal 2000 rose 21% to $167.6 million, compared with $138.1 million in the third quarter of fiscal 1999. Net income for the three months increased 12% to $21.1 million from $19.0 million for the same period last year, or to $.28 per share from $.24 per share. During the quarter we recorded a non-recurring charge of $6.0 million ($3.5 million net of income taxes) related to an agreement reached with the Department of Education Office of Student Financial Assistance Programs. Excluding this charge, net income would have increased 30% to $24.6 million, or to $.32 per share.

Tuition and other net revenues for the nine months ended May 31, 2000 rose 23% to $445.0 million, compared with $363.2 million for the same period last year. Net income for the nine months increased 17% to $49.9 million, or $.65 per share, as compared to $42.7 million, or $.54 per share, reported for the same period last year. Excluding the charge described above, net income would have increased 25% to $53.4 million, or to $.70 per share.

Dr. John G. Sperling, Chairman of the Board and CEO, said, "During the third quarter of fiscal year 2000, the University of Phoenix opened new learning centers in California, Florida, and Washington."

Dr. Sperling continued, "We are pleased with our revenue growth of 21% during the third quarter. Additionally, we are extremely pleased with our operating margin of 24% (excluding the non-recurring charge) for the quarter in light of the geographic expansion of the University of Phoenix."

Apollo Group, Inc. has been providing higher education programs to working adults for over 25 years. Apollo Group, Inc., operates 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. The consolidated enrollment in its educational programs makes it the largest private institution of higher education in the United States. It offers educational programs and services at 52 campuses and 92 learning centers in 35 states, Puerto Rico and Vancouver, British Columbia. Combined degree enrollment was 94,255 students as of May 31, 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)

	Three Months Ended May 31,		Nine Months Ended May 31,
	2000	1999	2000	1999
	(Unaudited)		(Unaudited)
Revenues:
Tuition and other, net	$167,591	$138,017	$444,989	$363,161
Costs and expenses:
Instruction costs and services	97,441	78,873	263,092	212,160
Selling and promotional	23,009	18,783	66,417	55,232
General and administrative	12,572	10,063	35,272	28,695
	133,022	107,719	364,781	296,087
Income from operations	34,569	30,388	80,208	67,074
Interest income, net	1,590	1,352	4,186	3,939

Income before income taxes	36,159	31,740	84,394	71,013
Less provision for income taxes	15,016	12,780	34,511	28,360
Net income	21,143	18,960	49,883	42,653

Diluted net income per share	$.28	$.24	$.65	$.54
Diluted weighted average shares outstanding	76,126	78,914	76,700	79,089

OPERATING DATA:	May 31, 2000	May 31, 1999
Students enrolled in degree programs	94,255	79,097*
Number of locations:
Campuses	52	48
Learning Centers	92	84
	144	132

* Excludes 1,632 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.