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

Phoenix, Arizona, December 16, 1999 -- Apollo Group, Inc. (Nasdaq:APOL) today reported financial results for the first quarter of fiscal 2000 ended November 30, 1999.

Total revenues for the three months ended November 30, 1999 rose 24% to $143.4 million, compared with $115.7 million in the first quarter of fiscal 1999. Net income for the three months increased 24% to $16.8 million, or $.22 per share, as compared to $13.5 million, or $.17 per share, reported for the same period last year.

Consolidated degree enrollments at November 30, 1999 increased by 20% to 87,255 students compared to 73,019 students at November 30, 1998. Degree enrollments at the University of Phoenix were 68,597 students at November 30, 1999 compared to 55,994 students at November 30, 1998 representing a 23% increase in degree enrollments. The University of Phoenix accounted for 91% of the $126.2 million in net tuition revenues from students enrolled in degree programs for the quarter ended November 30, 1999.

Dr. John G. Sperling, Chairman of the Board and CEO, said, "We are pleased with the Company’s record revenues and continued strong enrollment growth. The 23% increase in enrollment growth for the University of Phoenix reflects the strong demand for our quality product. During the first quarter of fiscal year 2000, the University of Phoenix opened a new campus in Philadelphia, Pennsylvania and re-designated its Colorado Springs, Colorado Learning Center to the Southern Colorado Campus. Additionally, the Institute for Professional Development entered into a new contract with Aquinas College in Nashville, Tennessee."

Dr. Sperling continued, "We continue to be pleased with our ability to expand operating margins in light of our geographic expansion. Operating margins increased to 18.6% for first quarter, as compared to 18.1% for the same period last year. The Company will continue to open additional University of Phoenix campuses and learning centers during fiscal 2000 and the Institute for Professional Development plans to enter into new contracts."

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 one of the largest providers of higher education programs for working adults in the United States, with total degree-seeking enrollment of 87,255 students. Educational programs and services are currently offered at 52 campuses and 85 learning centers in 35 states, Puerto Rico and Vancouver, Canada.

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 1,494 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.