Apollo Group, Inc.'s University of Phoenix Student Loan Default Rate 4.1%

Phoenix, Arizona, October 03, 2000 -- Apollo Group, Inc. (Nasdaq:APOL) today announced that the U.S. Department of Education has issued the 1998 – the most current data available – student loan default rate for the University of Phoenix. The 1998 rate was 4.1% as compared to 5.6% for 1997. The national student loan default rate for 1998 was 6.9%.

 The cohort default rate is calculated based on the percentage of borrowers who enter repayment in a certain year and default before the end of the following year. The U.S. Department of Education uses the rate to identify schools with students who default at high rates.

Bob Barker, University of Phoenix Executive Vice President, commented, “We continue to be pleased with our student loan default rate relative to our previous year’s performance and to the national average. We feel that our low default rate reflects our student population of mature, motivated students who desire to improve their place in our knowledge-based economy. Furthermore, we believe that our below national average cohort default rate illustrates our students’ responsible stewardship of federal funds.”

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.