Apollo Group, Inc. Subsidiary, The University of Phoenix, Takes Home Award

Phoenix, Arizona, January 25, 1999 -- Apollo Group, Inc. (Nasdaq:APOL) today announced that its wholly-owned subsidiary, the University of Phoenix has won the Arizona Pioneer Award for Quality. The Phoenix campus will receive the award at the upcoming Arizona Excellence Conference, sponsored by the Governor’s Advisory Council on Quality. According to an article published recently in The Business Journal, the University of Phoenix is the first four-year educational institution to win the prize modeled after the prestigious Malcolm Baldrige National Quality Award.

The University of Phoenix competed with 10 organizations for the award based on how their quality systems led to concrete improvements. Arizona Gov. Jane Hull commented, "They (the winners) represent the best of Arizona’s public and private sectors. In today’s business environment, organizations must have the adaptability and flexibility that are the hallmarks of University of Phoenix and its commitment to lifelong learning."

Dr. John G. Sperling, Chairman and CEO, commented, "We are very pleased with this award because it recognizes Apollo’s commitment of maintaining high quality standards and excellent customer service."

Apollo Group, Inc., through its subsidiaries the University of Phoenix, Inc., the Institute for Professional Development, the College for Financial Planning Institutes Corporation and Western International University, Inc., is one of the largest providers of higher education programs for working adults in the United States, with total degree-seeking enrollment of approximately 74,500 students. Educational programs and services are currently offered at 119 campuses and learning centers in 34 states and Puerto Rico.

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.