Apollo Group, Inc. Announces Adoption of the Microsoft Reader^®

Phoenix, Arizona, September 13, 2000 – Apollo Group, Inc. (Nasdaq:APOL), announced today its decision to adopt the Microsoft Reader^® as its exclusive eBook platform.

Adoption of the Microsoft Reader^® is the first step in a major strategic initiative to move all course materials, including textbooks, to electronic delivery for Apollo’s subsidiaries the University of Phoenix, Inc. (University of Phoenix), the College for Financial Planning (CFP), and Western International University (WIU).

“We view eBooks and electronic publishing as the natural next step in the evolution of higher education,” said Dr. John Sperling, Apollo Group Chairman and CEO. “Moving to the Microsoft Reader^® will enhance our flexibility and make us more nimble in our curriculum development processes. This is a natural progression from web-based coursepacks and electronic libraries, all of which have been operational at Apollo for some time.”

Beginning in January 2001, the University of Phoenix will digitize content for its suite of technology programs. The MBA program will follow suit in the fall.

Microsoft Vice President for Technology Development Dick Brass said that Apollo Group’s adoption of the Reader is significant, “This is a major milestone in the development of electronic reading, demonstrating the kind of benefits that both students and educational institutions will enjoy. We are proud to be associated with Apollo Group, a true innovator in educational delivery and student services.”

Apollo’s decision to make textbooks available on the Microsoft Reader^® was welcomed by some of the major players in the college textbook publishing industry.

Speaking for Pearson Custom Publication and Distributed Learning, president Don Kilburn said, “Apollo’s adoption of the Microsoft Reader^® is another step forward in bringing digital content to the educational community. The Apollo Group is a highly valued customer of Pearson Education, and we look forward to working with them to provide our educational programs in eBook format.”

McGraw-Hill Higher Education also weighed in with its support. “McGraw-Hill Higher Education embraces the new developments in the eBook marketplace,” said president Edward Stanford. “We are pleased to see the expansion of formats, including the Microsoft Reader^®, and are continually exploring new opportunities to meet our customers’ needs in this area. We’re excited about Apollo’s new initiative and its potential benefits to students and educators.”

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.