Apollo Group Inc. Announces Agreement Reached with Department of Labor

Business Wire, July 23, 2004

PHOENIX -- Apollo Group Inc. (Nasdaq: APOL) (Nasdaq: UOPX) is pleased to announce that it has reached an agreement with the Department of Labor regarding the exemption status of University of Phoenix on-ground enrollment advisors. Apollo and the department have worked together for the past few months on this resolution, which includes a payment of approximately $3 million by Apollo Group. Apollo had previously reserved for this payment as they expected to reach resolution during the current fiscal year.

Todd S. Nelson, CEO and chairman, said, "We truly appreciate the professionalism demonstrated by Department of Labor officials in resolving this complex issue for our employees. We recently reached an agreement for our University of Phoenix Online enrollment advisors and we are now pleased to provide a similar agreement for our University of Phoenix on-ground enrollment advisors."

Apollo Group Inc. has been providing higher education programs to working adults for more than 25 years. Apollo Group Inc. operates through its subsidiaries The University of Phoenix Inc., Institute for Professional Development, The College for Financial Planning Institutes Corp., and Western International University Inc. The consolidated enrollment in its educational programs makes it the largest private institution of higher education in the United States. It offers educational programs and services at 78 campuses and 133 learning centers in 38 states, Puerto Rico and Vancouver, British Columbia. Combined degree enrollment was 239,300 students as of May 31, 2004.

For more information about Apollo Group Inc. and its subsidiaries, call 800-990-APOL or visit Apollo on the company Web site at www.apollogrp.edu.