Apollo Group, Inc. Gains Shareholder Approval on Proposal to Create New Class of Common Stock 

Phoenix, Arizona, August 30, 2000 -- Apollo Group, Inc. (Nasdaq:APOL) announced today that its shareholders approved an amendment and restatement of its articles of incorporation, creating a new class of common stock that is intended to track the economic performance of the online operations of University of Phoenix. The announcement was made at a special meeting of the shareholders, which was held yesterday in Phoenix. The shareholders also approved related proposals to adopt a new stock incentive plan and amend certain existing benefit plans.

A registration statement relating to the tracking stock has been filed with the Securities and Exchange Commission but has not yet become effective. The tracking stock 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. 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 approximately 94,300 students as of May 31, 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.