Apollo Group, Inc. Subsidiary, The University of Phoenix, Partners with Sallie Mae to Offer Adult Education Loans

Phoenix, Arizona, February 01, 1999 -- Apollo Group, Inc. (Nasdaq:APOL) today announced that its wholly-owned subsidiary, the University of Phoenix, has partnered with Sallie Mae (NYSE:SLM) to create the University of Phoenix Premier Loan Program. Sallie Mae, through its subsidiary, SLM Financial Corporation, will be the preferred provider of private credit for University of Phoenix students across the country.

The University of Phoenix Premier Loan is a credit-based loan for students attending the school and the terms and conditions of the loan are unique to its students. Students choosing the Premier Loan will be eligible for Sallie Mae’s Direct Repay^SM Plan, which reduces the loan interest rate by one-fourth a percentage point when monthly payments are electronically deducted from their checking or savings accounts.

Tim Fitzpatrick, President, SLM Financial Corporation, commented, "Our partnership with the University of Phoenix is representative of the changing landscape of higher education. Today’s colleges and universities must meet the needs of the adult student, not only through the academic course work offered, but through programs that help them fund their education. This University is a leading example of how important lifelong learning and adult education programs are to the future of America."

Todd Nelson, President, Apollo Group, Inc., commented, "This alternative loan program will be a tremendous benefit to Apollo Group and our students. It will decrease the length of time it takes students to receive funding for their education and improve customer service at the same time. We have been very pleased with Sallie Mae’s efforts in working with us to put this plan together for our students."

Sallie Mae, founded 25 years ago, provides funds for education by purchasing loans, primarily federally guaranteed student loans originated under the Federal Family Education Loan Program, from banks and other lenders. The company currently owns or manages student loans for over 5.3 million borrowers. SLM Holding Corporation and its subsidiaries, other than the Student Loan Marketing Association, are not sponsored by or agencies of the United States.

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 regarding The University of Phoenix Premier Loan call 1-800-559-3220.

 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.