Apollo Group, Inc. Announces the Completion of Department of Education Program Review

Phoenix, Arizona, July 30, 1999 -- Apollo Group, Inc. (Nasdaq:APOL) today announced that the Department of Education (ED) has issued the final program review determination letter related to the ED program review of Apollo’s wholly-owned subsidiary, the University of Phoenix (University of Phoenix). University of Phoenix satisfactorily responded to the findings in ED’s program review report with no additional action required. Interest and special allowances to be paid to ED and other lenders total approximately $650,000. The balance of the reserve established by the Company will be utilized for expenses related to the response to the program review.

Dr. John G. Sperling, Chairman and CEO, commented, "We are pleased with the outcome of the Department of Education program review. We feel we have created a better working relationship with the Department of Education during the last year and look forward to maintaining this relationship in the future. We are also pleased that University of Phoenix’s cohort default rate of 5.8% is one of the lowest in the country, and is expected to decline when the updated cohort rates are released by ED this fall."

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 one of the largest providers of higher education programs for working adults in the United States, with total degree-seeking enrollment of approximately 80,700 students. Educational programs and services are currently offered at 132 campuses and learning centers in 35 states, Puerto Rico and Vancouver, Canada.

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.