Apollo Group, Inc. reports revenues and earnings for third quarter and nine months ended May 31, 1996.

PHOENIX, Ariz.--(BUSINESS WIRE)--June 24, 1996--Apollo Group, Inc. (Nasdaq:APOL) today reported financial results for the third quarter of fiscal 1996 ended May 31, 1996.

Total revenues for the third quarter of fiscal 1996 increased by 29.6% to $59.0 million, compared with $45.5 million in the third quarter of fiscal 1995. Net income for the three months increased by 52.5% to $7.7 million, or $.15 per share, as compared to $5.0 million, or $.10 per share, for the same period last year.

Total revenues for the nine months ended May 31, 1996 increased by 31.4% to $155.1 million, compared with $118.0 million for the same period last year. Net income for the nine months increased by 79.8% to $15.2 million, or $.30 per share, as compared to $8.4 million, or $.19 per share, for the same period last year.

Revenue growth in the third quarter resulted primarily from a 27.2% increase in average enrollments for the University of Phoenix (UOP) and a 7.6% increase in average enrollments for the Institute for Professional Development (IPD). Consolidated ending enrollments increased by 22.6% to 44,311 students at May 31, 1996 from 36,136 students at May 31, 1995. Over 80% of this growth was generated at campuses opened prior to fiscal 1995 and over 60% was generated at campuses opened for more than five years.

Dr. John G. Sperling, Chairman and Chief Executive Officer, said, We are very pleased with the Company s continued growth and success. In the past few months, the Company has entered into a new IPD contract with Cornerstone College in Michigan and has opened a new UOP learning center in Walnut Creek, CA. At May 31, 1996, student enrollments have increased from the prior year at every UOP campus and at most IPD client institutions.

In May, the Company authorized a 3-for-2 stock split of its Common Stock effected in the form of a stock dividend, which was distributed on May 31, 1996 to shareholders of record at the close of business on May 21, 1996.

Historically, the third quarter of each fiscal year is the highest in terms of operating profits and net income. The Company has experienced a seasonal increase in new enrollments in August of each year. Instructional costs, services and selling and promotional costs in the fourth quarter of each year have also increased as a percentage of net revenues due to increased costs in preparation for the August peak enrollments. The Company expects these seasonal trends to continue.

Apollo Group, Inc., through its subsidiaries the University of Phoenix, the Institute for Professional Development and Western International University, is one of the largest providers of higher education programs for working adults in the United States, with total enrollment exceeding 44,000 students. Educational programs and services are offered at over 80 campuses and learning centers in 27 states, Puerto Rico and London, England. -0-

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

                           Three Months Ended Nine Months Ended

                  May 31, 1996  May 31, 1995  May 31, 1996  May 31, 1995
                          (Unaudited)              (Unaudited)

Net revenues        $ 58,991      $ 45,502      $155,076      $117,996

Costs and expenses:
Instruction costs
 and services         33,978        26,188        93,231       73,830
Selling and
 promotional           7,431         5,518        20,399       15,610
General and
 administrative        4,461         4,856        15,941       13,665

Total costs and
 expenses             46,050        36,562       129,571      103,105

Income before income
 taxes                12,941         8,940        25,505       14,891
Less provision for
 income taxes          5,241         3,892        10,330        6,449

Net income            $7,700        $5,048       $15,175       $8,442

Net income per
 share(1)              $ .15         $ .10          $.30         $.19

Pro forma net income
 per share (1,2)       $ .15         $ .10          $.30         $.17

Weighted average
 shares(1)        51,457,000    50,457,000    51,054,000   44,601,000

Pro forma
 weighted
 average
 shares(1,2)     51,457,000     50,457,000    51,054,000   49,668,000
-0-

OPERATING DATA:               May 31,         May 31,
                               1996            1995

Ending enrollments            44,311          36,136

Number of locations               83              62

(1) Adjusted for stock splits, including 3-for-2 split effective May
31, 1996.

(2) Pro forma net income per share and pro forma weighted
average shares assume that the initial public offering occurred as of
the beginning of fiscal 1995.

CONTACT: James W. Hoggatt

VP-Finance/CFO

[phone] ext. 1729

email: [e-mail]

or

Donna N. Stein, APR

Morgen-Walke Associates, Inc.

[phone]

or

Miriam Adler

Morgen-Walke Associates, Inc.

[phone]