AIU Online Launches Online Bachelor's Degree Program and Groundbreaking "Virtual Campus"

Business Wire, July 16, 2001

Business Editors/Education Writers

HOFFMAN ESTATES, Ill.--(BUSINESS WIRE)--July 16, 2001

Career Education Corporation (Nasdaq:CECO) today announced the launch of its 100 percent online bachelor of information technology degree through AIU Online, the company's E-learning division. CEC also unveiled details of AIU Online's new "virtual campus," a total online learning environment contained within one integrated Web site.

"At many institutions, E-learning means a few online courses and possibly the opportunity to begin the enrollment or financial aid application process online," said John M. Larson, chairman, president and chief executive officer of Career Education Corporation. "Our breakthrough virtual campus brings the complete campus experience online--from the moment a student first expresses interest in our programs until after graduation when they are placed in a job in their chosen career field."

Unlike a bricks and mortar campus, AIU Online is open to students 24 hours a day, seven days a week--including 100 percent online enrollment and financial aid processes.

The total campus experience includes a personalized Internet portal, through which each student can monitor credit hours, the status of their student account, course schedules, grades and assignments. Student home pages include daily postings of the top five news stories from their field of study and general campus-wide announcements.

AIU Online's Cybrary (the online library) offers 1,900 full-text journals online (15 years of archived materials), a reference room, access to major daily newspapers, and three librarians who are on call to assist with research questions. Students have the option at any time to access a history of all the online library sites they've visited.

"We have used the latest multi-media and interactive technology to develop AIU Online's virtual campus," said Nick Fluge, executive vice president and chief operating officer of CEC's E-learning division. "We have created a collaborative learning community where students can work in teams on projects that simulate the kind of situations they will face on the job. We teach practical skills and real world competencies."

According to Fluge, a new online master's of information technology degree program is slated for launch in January 2002, with additional programs to follow. CEC estimates annual revenues for AIU Online will reach $100 million by 2006.

In June, AIU Online was named one of 10 new participants in the U.S. Department of Education's prestigious Distance Learning Demonstration Project. The project frees participating institutions from certain current federal restrictions for distance education studies.

Career Education Corporation (www.careered.com) is one of the world's largest providers of private, for-profit postsecondary education in the career-oriented disciplines of visual communication and design technologies, information technology, business studies and culinary arts. CEC operates 38 campuses throughout the United States, Canada, the United Kingdom and the United Arab Emirates, with more than 32,000 students enrolled as of April 30, 2001. CEC colleges enjoy long operating histories and offer a wide variety of master's degree, bachelor's degree, associate degree and diploma programs. The CEC family includes American InterContinental University (six campuses), the International Academy of Design & Technology (eight campuses), the Katharine Gibbs Schools (nine campuses), Le Cordon Bleu Culinary Program North America (seven campuses) and other well-known educational institutions.

The forward-looking statements contained in this release are based upon various assumptions, and certain risks and uncertainties could cause actual results to differ materially from those stated. Factors that could cause such differences include costs and difficulties associated with opening new campuses and in integrating acquisitions, costs associated with E-learning operations, changes in the regulatory environment and those matters disclosed in Career Education Corporation's filings with the Securities and Exchange Commission (SEC). Career Education Corporation assumes no obligation to update those forward-looking statements.