Apollo Group Inc. Announces Outsourcing Agreement for Financial Aid Program Processing.

PHOENIX--(BUSINESS WIRE)--Dec. 15, 1998--Apollo Group Inc. (Nasdaq:APOL) Tuesday announced a strategic outsourcing agreement with Arthur Andersen Process Solutions (AAPS) designed to simplify and strengthen the administration and processing of its student financial aid programs for two of its wholly-owned subsidiaries, the University of Phoenix Inc. (UOP) and Western International University Inc. (WIU).

Todd S. Nelson, president, Apollo Group Inc., said, "This outsourcing agreement with AAPS is a cost-effective and more efficient way of processing our financial aid service to our students. We are excited about the increased level of support, the focus on best practices in the industry, and the enhanced processing quality we will receive. We believe this is essential in serving our students with the highest level of financial aid service."

Through this relationship, AAPS will manage major portions of UOP's and WIU's student financial aid programs in full accordance with Federal regulations including the processing of student awards, the disbursement of awards, and the calculation of refunds.

Christine Kirk, AAPS partner, said, "UOP and WIU are already leaders in educating business professionals, and this is an opportunity for them to participate in the leading-edge business practice of outsourcing. The decision to entrust AAPS with UOP's and WIU's financial aid programs lets Apollo Group Inc. strengthen its core business and delegate a critical, but non-core, function to an appropriate partner.

"This agreement illustrates AAPS' central goal, which is to deliver experienced and efficient strategic process solutions. This is particularly important when companies, like Apollo Group Inc., are at key junctures in their development and growth."

AAPS is a practice of Arthur Andersen LLP. It creates and operates world class business process solutions which improve profitability and business performance of its clients.

Apollo Group Inc., through its subsidiaries the University of Phoenix Inc., the Institute for Professional Development, the College for Financial Planning Institutes Corp. and Western International University Inc., is one of the largest providers of higher education programs for working adults in the United States, with total degree-seeking enrollment of approximately 71,400 students.

Educational programs and services are currently offered at 114 campuses and learning centers in 34 states, Puerto Rico and London.

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.

Note to Editors: 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.