Apollo Group, Inc. Reports Business Outlook for Fiscal 2004.

Business Editors/Education Writers

PHOENIX--(BUSINESS WIRE)--Aug. 28, 2003

Apollo Group, Inc. (Nasdaq:APOL) (Nasdaq:UOPX) today provided its business outlook for the first quarter of fiscal 2004 ending November 30, 2003, and the fiscal year ending August 31, 2004.

We are pleased to report that we expect degree enrollments at The University of Phoenix (excluding University of Phoenix Online) to continue to grow between 12% and 14% over the prior year at the end of the first quarter of fiscal 2004. In addition, based on lead flow, we expect University of Phoenix Online degree enrollments to continue to grow 50% over the prior year at the end of the first quarter of fiscal 2004.

Apollo Group, Inc.

-- We expect revenue for the quarter ending November 30, 2003, to

be between $392 million and $395 million and to be between

$1.731 billion and $1.734 billion for fiscal 2004.

-- Operating margin is expected to be between 30.0% and 30.5% for

the quarter ending November 30, 2003, and to be between 29.5%

and 30.0% for fiscal 2004.

University of Phoenix Online

-- We expect revenue for the quarter ending November 30, 2003, to

be between $165 million and $166 million and to be between

$793 million and $794 million for fiscal 2004.

-- Operating margin is expected to be between 32.5% and 33.0% for

the quarter ending November 30, 2003, and to be between 34.0%

and 34.5% for fiscal 2004.

Diluted earnings per share attributed to Apollo Education Group are expected to be $.39 for the quarter ending November 30, 2003, and to be $1.64 for fiscal 2004. Diluted earnings per share attributed to University of Phoenix Online are expected to be $.27 for the quarter ending November 30, 2003, and to be $1.30 for fiscal 2004.

The company will hold a conference call to discuss this business outlook at 11:00 AM Eastern time, 8:00 AM Phoenix time, on Thursday, August 28, 2003. The call may be accessed by dialing 877-292-6888 (domestic) or 706-634-1393 (international). The conference ID number is 2121689. A live webcast of this event may be accessed by visiting the Company News section on our website at www.apollogrp.edu. A replay of the call will be available on our website or at 706-645-9291 (conf. ID #2121689) until September 12, 2003.

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., Institute for Professional Development, The College for Financial Planning Institutes Corporation, 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 67 campuses and 118 learning centers in 37 states, Puerto Rico and Vancouver, British Columbia. Combined degree enrollment was 187,500 students as of May 31, 2003.

For more information about Apollo Group, Inc. and its subsidiaries, call 800-990-APOL or visit Apollo on the World Wide Web at http://www.apollogrp.edu.

This press release includes statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Apollo Group, Inc. claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act. These forward-looking statements are often characterized by the terms "may," "believes," "projects," "expects," or "anticipates," and do not reflect historical facts. Specific forward-looking statements contained in this press release relate, among other matters, to the business outlook of Apollo Group, Inc. and University of Phoenix Online.

Forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of Apollo Group, Inc. and University of Phoenix Online to be materially different from those expressed or implied by such forward-looking statements. Factors that could affect Apollo Group, Inc.'s or University of Phoenix Online's results and cause them to materially differ from those contained in the forward-looking statements include:

-- the failure to maintain or renew required regulatory

approvals, accreditation or state authorizations;

-- the failure to obtain authorizations from states in which

University of Phoenix does not currently provide degree

programs;

-- the failure to obtain the Higher Learning Commission's

approval for University of Phoenix to operate in new states;

-- any adverse changes in student enrollment;

-- risk factors and cautionary statements made in Apollo Group,

Inc.'s Annual Report on Form 10-K for the period ended August

31, 2002; and

-- other factors that Apollo Group is currently unable to

identify or quantify, but may arise or become known in the

future.

These forward-looking statements are based on estimates, projections, beliefs, and assumptions of us and our management and speak only as of the date made and are not guarantees of future performance. We undertake no obligation to publicly update or revise any forward-looking statements, or any facts, events or circumstances after the date hereof that may bear upon forward-looking statements. You are advised, however, to consult any further disclosures we make in our reports filed with the Securities and Exchange Commission.