Apollo Group, Inc. Files Registration Statement  for Initial Public Offering of University of Phoenix Online Tracking Stock

Phoenix, Arizona, March 28, 2000 -- Apollo Group, Inc. (Nasdaq:APOL) today announced that it filed a registration statement with the Securities and Exchange Commission relating to the initial public offering of University of Phoenix Online common stock, which is intended to track the performance of the Online operations of University of Phoenix.

University of Phoenix Online is a leading provider of accessible, high quality education programs for working adults delivered via the Internet. As of January 31, 2000, University of Phoenix Online had approximately 12,000 degree students and approximately 1,100 faculty members. Apollo Group will allocate net proceeds of the offering to University of Phoenix Online in a manner analogous to a primary offering of common stock by University of Phoenix Online. The net proceeds will be used for general corporate purposes, including marketing and sales activities.

The issuance of a tracking stock will allow University of Phoenix Online to retain its position as the leading online provider of education for working adults. In addition, University of Phoenix Online intends to leverage Apollo Group’s expertise in developing, hosting, and marketing online education and training programs by offering these services to corporations and other complementary education and training companies.

Credit Suisse First Boston, Bank of America Securities and Chase Securities, Inc. will act as underwriters for the offering.

The issuance of University of Phoenix Online tracking stock is subject to approval from Apollo Group’s Class A and Class B shareholders. Apollo Group has also filed a preliminary proxy statement with the Securities and Exchange Commission.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This announcement shall not constitute an offer to sell, or the solicitation of an offer to buy nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.

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.

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.