AIU Online and CTU Online Host Virtual Campus Demonstrations on Capitol Hill; Interest from policymakers fueled by the Higher Education Act reauthorization and rapid increases in enrollment for distance learning programs.

WASHINGTON -- Last week, leaders of Career Education Corporation's Online Education Group, comprised of American InterContinental University (AIU) Online and Colorado Technical University (CTU) Online, gave Capitol Hill education policymakers a virtual tour of their online campuses. The virtual tour highlighted the schools' proprietary, cutting-edge technology, robust student services and dynamic classrooms. It included an overview of the rapidly expanding online postsecondary education industry, and the many benefits long distance learning provides to students and employers.

Career Education's Online Education Group offers full-time associate, bachelor's and master's degree programs to more than 25,000 students in the United States and abroad. Many of these students are enrolled through the schools Corporate Education Partner program, a partnership program between Career Education's online schools and the students' employers. Approximately 25 percent of the online students are either actively serving in, or are retired from, the United States military.

"Online education is a compelling option uniquely designed to meet the needs of today's students and employers," said Stephen C. Fireng, President of Career Education's Online Education Group. "Education today is about quality, accessibility and opportunity. The resource rich environment and innovative learning tools offered by Career Education's Online Education Group provide students with a high-quality education that is flexible, accessible and affordable."

"We're extremely proud of the hands-on approach we take to education," Fireng added. "There is no question that we are changing lives everyday in ways unimaginable just a decade ago. Many of our students work full time and would have no other way to enhance their skills without access to the kinds of programs and curricula we offer. Others live in rural locations far from a brick and mortar campus; and traveling long distances to attend a traditional campus is simply out of the question for them. Still others have dependent care issues that demand flexibility; taking courses at night and on weekends is the only way for these people to achieve their educational dreams. Regardless of the circumstances, Career Education's online services are being used daily by scores of individuals who are motivated to further their education."

According to Career Education, more than 80 percent of its online students are over the age of 25 and have an average household income of approximately $42,000. Fifty six percent of Career Education's online learners are female and 44 percent are male. AIU Online and CTU Online have students from all 50 states, as well as 66 foreign countries.

"Since our inception in 2001, our online student population has grown to more than 25,000 full-time degree seeking students with a diverse range of backgrounds and educational needs," Fireng said. "This kind of growth speaks to the demand that exists for access to education services, as well as a wider acceptance of the online learning model and growing credibility of online education degrees. As Congress delves into the details of the Higher Education Act reauthorization, we hope the resulting legislation reflects this acceptance and further enhances access to quality online education."

Career Education Corporation (Nasdaq:CECO) (www.careered.com) is one of the largest providers of private, for-profit postsecondary education and has a presence in both on-campus and online education. Career Education's Colleges, Schools and Universities Group operates over 80 campuses in the U.S., Canada, France, the United Kingdom and the United Arab Emirates and offers doctoral degree, master's degree, bachelor's degree, associate degree and diploma programs in the career-oriented disciplines of business studies, visual communication and design technologies, health education, information technology, and culinary arts. The Online Education Group operates American InterContinental University Online (www.aiuonline.edu) and Colorado Technical University Online (www.ctuonline.edu) and offers a variety of degrees in information technology, business, visual communication and education. Career Education's total student population on April 30, 2005 was approximately 96,700 students.

Except for the historical and present factual information contained herein, the matters set forth in this release identified by words such as "anticipates," "expects," "projects," "plans," "will," and similar expressions, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on information currently available to us and involve risks and uncertainties that could cause our actual growth, results, performance and business prospects and opportunities to differ materially from those expressed in, or implied by these statements. These risks and uncertainties, the outcome of which could materially and adversely affect our financial condition and operations, include, but are not limited to: risks related to our ability to comply with, and the impact of changes in, legislation and regulations that affect our ability to participate in student financial aid programs; costs, risks and effects of legal and administrative proceedings and investigations and governmental regulations, including the pending Securities and Exchange Commission and Justice Department investigations and, class action, derivative, Qui Tam, and other lawsuits; cost and potential impact of findings by the special committee of our Board of Directors that is investigating allegations of securities laws violations against us; risks related to our ability to comply with accrediting agency requirements or obtain accrediting agency approvals; costs and difficulties related to the integration of acquired businesses; future financial and operational results; competition; general economic conditions; ability to manage and continue growth; and other risk factors relating to our industry and business, as detailed in our Annual Report on Form 10-K for the year ended December 31, 2004, and from time to time in our other reports filed with the SEC. We disclaim any responsibility to update these forward-looking statements.