Apollo Group, Inc. Reports Revenues And Earnings For First Quarter Fiscal 1998.

PHOENIX--(BUSINESS WIRE)--Dec. 18, 1997--Apollo Group, Inc. (Nasdaq:APOL) today reported financial results for the first quarter of fiscal 1998 ended November 30, 1997.

Total revenues for the three months ended November 30, 1997 increased by 33.2% to $89.2 million, compared with $67.0 million in the first quarter of fiscal 1997. Net income for the three months increased 45.5% to $10.6 million from $7.3 million for the same period last year, or to $.20 per share from $.14 per share.

Revenue growth in the first quarter resulted primarily from a 21.8% increase in consolidated average enrollments in degree-programs and tuition price increases averaging 4% to 5%. Average enrollments in degree-programs for the University of Phoenix (UOP), the Institute for Professional Development (IPD), and Western International University (WIU) increased over the prior year by 23.4%, 11.3%, and 11.8%, respectively. The Company had approximately 60,000 students enrolled in degree programs at November 30, 1997, compared to 48,000 students at November 30, 1996.

During the first quarter of fiscal 1998, the Company opened nine campuses and learning centers and completed the acquisition of the College for Financial Planning (the College). The College's revenues and results of operations for the period ended November 30, 1997 were not material compared to the financial results of the Company, although the Company expects that the results of operations of the College will be minimally accretive to Apollo's 1998 results. Also, during the first quarter, the University of Phoenix' CPE Internet Campus introduced over 30 web-based Information Technology (IT) training programs and over 30 web-based Continuing Professional Education courses designed for Certified Public Accountants, securities and other professionals. In October 1997, the CPE Internet Campus became an approved sponsor on the National Registry of CPE Sponsors (the Registry). The Registry is a program developed by the National Association of State Boards of Accountancy to recognize sponsors for their ability to meet nationally accepted standards for continuing professional education.

Dr. John G. Sperling, Chairman of the Board and President, said "We are pleased with the Company's continued growth and expansion. The Company plans to open several additional campuses and learning centers in 1998 and plans to expand its product offerings to address increased market demands."

Although the Company enrolls students throughout the year, student enrollments have fluctuated throughout each year with a "seasonal effect" occurring primarily during the second quarter. Second quarter (December to February) revenues and profits are typically lower than other quarters within the year due to student breaks during the Christmas and New Year holidays. The Company expects this second quarter seasonal trend to continue in the future.

Apollo Group, Inc., through its subsidiaries the University of Phoenix, the Institute for Professional Development, the College for Financial Planning and Western International University, is one of the largest providers of higher education programs for working adults in the United States. Educational programs and services are offered at more than 100 campuses and learning centers in 31 states, Puerto Rico and London, England and world-wide through UOP's and the College's distance education delivery systems.

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 . -0-

                 APOLLO GROUP, INC. AND SUBSIDIARIES
                SELECTED FINANCIAL AND OPERATING DATA
           (Dollars in thousands, except per share amounts)

                                                   Three Months Ended
                                                      November 30,
                                                    1997        1996
                                                       (Unaudited)
Revenues:
Tuition and other, net                            $87,875     $66,093
Interest income                                     1,325         890

Total net revenues                                 89,200      66,983

Costs and expenses:
Instruction costs and services                     51,863      39,608
Selling and promotional                            10,566       8,479
General and administrative                          9,206       6,748


Total costs and expenses                           71,635      54,835

Income before income taxes                         17,565      12,148
Less provision for income taxes                     6,956       4,859

Net income                                        $10,609      $7,289
Net income per share                                $ .20       $ .14


Weighted average shares outstanding            52,459,000  51,607,000


                                                     At November 30,
OPERATING DATA:                                     1997        1996

Students enrolled in degree programs               60,000      48,000

Number of locations                                   105          88
-0-

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. Factors which could cause or contribute to such differences include, but are not limited to, factors detailed on the Company's Securities and Exchange Commission filings.

CONTACT: Apollo Group Inc., Phoenix

James W. Hoggatt, 800/990-APOL

email: [e-mail]

Janess Pasinski, 800/990-APOL (Investors)

email: [e-mail]

or

Morgen-Walke Associates Inc.

Donna N. Stein, 212/850-5600

Carol Lehrman, 415/296-7383 (Media)