Apollo Group, Inc. Announces Plan to Repurchase Up To $40 Million of Company Shares

Phoenix, Arizona, September 29, 1998 -- Apollo Group, Inc. (Nasdaq:APOL) today announced that the Board of Directors has authorized a program allocating up to $40 million in Company funds to repurchase shares of its Class A Common Stock. The funds allocated for the share repurchase will not affect the Company’s ability to finance future growth and expansion. Apollo currently has approximately 79.3 million shares outstanding.

Dr. John G. Sperling, Chairman of the Board and CEO, said, "Apollo’s Board agreed that in view of the Company’s continued growth and success, buying back our shares represents an excellent long-term investment. Our confidence in the future of our business is reflected in the commitment we have made to repurchasing our shares."

Dr. Sperling continued, "We continue to feel comfortable with analyst’s estimates for the fourth quarter and for 1999. We strongly feel that our shares are currently undervalued given the advances Apollo has made in bringing higher education to the working adult marketplace. Our recently announced joint venture integrating Apollo educational content with the One Touch system and Hughes’ satellite capability is an example of how we are positioned to continue to grow through the millennium and beyond by creating unique education solutions. We are pleased to report that response to this new offering has been extremely favorable."

Apollo Group, Inc., through its subsidiaries the University of Phoenix, Inc., the Institute for Professional Development, the College for Financial Planning, Inc. 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 66,800 students. Educational programs and services are currently offered at 114 campuses and learning centers in 34 states, Puerto Rico and London, England.

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.