Apollo Group, Inc. Closes University of Phoenix Offering

Phoenix, Arizona, October 03, 2000 -- Apollo Group, Inc. (Nasdaq:APOL)today announced the closing of the sale of 5,750,000 shares (including 750,000 shares to cover underwriters over-allotments) of University of Phoenix Online tracking stock, raising $80.5 million. University of Phoenix Online, which had an initial public offering price of $14.00 under the ticker symbol University of PhoenixX, closed yesterday at $21.625.

John Sperling, Chairman and Chief Executive Officer, commented, “Investors have recognized the growth potential of University of Phoenix Online. We were very pleased with the success of this offering.”

Net proceeds from the offering were $73.8 million, after deducting underwriting discounts and commissions and offering expenses of $6.7 million. All of the net proceeds will be allocated to University of Phoenix Online to provide working capital to increase marketing and sales activities over the next 18 to 24 months to accelerate the growth of University of Phoenix Online’s business.

Apollo Group, Inc. has been providing higher education programs to working adults for over 25 years. Apollo Group, Inc., operates 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. 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 52 campuses and 92 learning centers in 35 states, Puerto Rico and Vancouver, British Columbia. Combined degree enrollment was approximately 94,300 students as of May 31, 2000.

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.