Career Education Corporation Acquires Missouri College; Expands Curricular Offerings Into Healthcare.

Business Editors, Education Writers

HOFFMAN ESTATES, Ill.--(BUSINESS WIRE)--Sept. 3, 2002

Career Education Corporation (NASDAQ:CECO) today announced it has acquired Missouri College, located in St. Louis, for approximately $6.1 million in cash. The acquisition, which is expected to be accretive to earnings in 2003, expands CEC's core curricular programs into the allied health fields.

Founded in 1963, Missouri College has approximately 425 students and offers a variety of associate degree and diploma programs in the disciplines of healthcare, business and information technology.

"Missouri College is an ideal fit with CEC and provides a new plank for our strategic growth platform," said John M. Larson, chairman, president and chief executive officer of CEC. "Missouri College provides us with an opportunity to expand into the high-growth healthcare education field and further enhances our leadership position in IT and business studies.

"Healthcare is a $1.4 trillion industry in the United States, and the need for quality healthcare services continues to increase as people live longer and require more care. As a result, the demand for healthcare education is soaring. The acquisition of Missouri College marks CEC's entry into a vast and expanding educational arena."

Mr. Larson said CEC plans to transplant allied health programs pioneered at Missouri College to other schools throughout its system. CEC has an extensive network of 43 campuses located throughout the United States and in Canada, the United Kingdom and the United Arab Emirates. The company also has a history of successfully transplanting curricular programs from campus to campus, with 15 program transplants being completed in 2002.

"With its long operating history and outstanding reputation, Missouri College is an excellent addition to the CEC family," Mr. Larson said.

Career Education Corporation (www.careered.com) is one of the world's largest providers of private, for-profit postsecondary education in the career-oriented disciplines of visual communication and design technologies, information technology, business studies, culinary arts and healthcare. CEC operates 43 campuses throughout the United States, Canada, the United Kingdom and United Arab Emirates, and offers a full online program through AIU Online, its E-learning division. Total student population as of July 31, 2002 was approximately 41,000 students.

CEC colleges enjoy long operating histories and offer a wide variety of master's degree, bachelor's degree, associate degree and diploma programs. The CEC family includes American InterContinental University (six campuses), the International Academy of Design & Technology (eight campuses), the Katharine Gibbs Schools (nine campuses), Le Cordon Bleu Culinary Program North America (10 campuses) and other well-known educational institutions in the College Division (11 campuses).

The forward-looking statements contained in this release are based upon various assumptions, and certain risks and uncertainties could cause actual results to differ materially from those stated. Factors that could cause such differences include costs and difficulties associated with opening new campuses and in integrating acquisitions, costs associated with the E-learning Division, changes in the regulatory environment and those matters disclosed in Career Education Corporation's filings with the Securities and Exchange Commission (SEC). Career Education Corporation assumes no obligation to update its forward-looking statements.