Career Education Corporation Reviews Recent Accreditation Actions.

HOFFMAN ESTATES, Ill. -- Career Education Corporation (Nasdaq:CECO) today released background information on recent accreditation actions at certain of its schools. The company said it was providing the update to foster a clearer understanding of these actions.

The company was recently notified of the following accrediting agency actions:

--American InterContinental University (AIU): The Commission on Colleges of the Southern Association of Colleges and Schools (SACS) has placed AIU on Warning status. In December 2002, AIU's accreditation was reaffirmed for the normal 10-year period, through 2012. In the course of the accreditation process, SACS requested that AIU provide additional information on several compliance matters, with the expectation that those matters be addressed satisfactorily within a two-year timeframe. In placing AIU on Warning status, SACS has advised AIU that while it has addressed satisfactorily a majority of those matters, AIU must satisfy the remaining compliance matters by December 2004, the end of the two-year period. CEC said it expects AIU to fully resolve the remaining matters within the prescribed timeframe and maintain its current status as an accredited institution.

--Brooks College: The Accrediting Commission for Community and Junior Colleges of the Western Association of Schools and Colleges (ACCJC) has advised Brooks College that, following its recent re-accreditation review, Brooks has been placed on Probation and it has required Brooks College to provide it with a progress report to address certain matters by October 15, 2004. CEC said it regards the issues raised by ACCJC as serious and is working closely with Brooks College to ensure that the ACCJC concerns are fully resolved by the prescribed date. CEC noted that Brooks College is an entirely separate and distinct institution from Brooks Institute of Photography. Although both schools are owned by CEC, they are separate entities with separate management and curricula, and are separately licensed and accredited.

--Western School of Health and Business Careers: The Accrediting Commission of Career Schools and Colleges of Technology (ACCSCT) has granted Western's request for accreditation of certain academic programs. As previously reported by CEC, on March 4, 2004 Western received notice from ACCSCT that letters relied upon by CEC in its August 2003 acquisition of Western to document ACCSCT approval of certain of Western's programs were not authentic. ACCSCT's finding was a result of a routine accreditation visit in January 2004 following CEC's acquisition of Western.

In a lawsuit filed March 12, 2004 against the school's former owners, CEC alleged material misrepresentations of fact and the breach of certain representations and warranties regarding the accreditation of several programs of study offered by the school, including those programs that were the subject of the inauthentic letters. As a result of these discrepancies ACCSCT issued a Show Cause order directing Western to explain the inauthentic letters, indicating that Western would need to secure approval of the affected diploma and degree programs. Western subsequently applied for approval of all programs referenced in the suit, and ACCSCT in early June issued approval for the diploma programs. ACCSCT currently is reviewing the degree program applications and a decision is expected in the near future.

In addition, CEC said that in the course of the past few months, 16 of its schools have received renewal or initial approval of institutional or programmatic accreditation. CEC also said two of its International Academy of Design and Technology schools--Detroit and Toronto--have been granted authority to confer bachelor's degrees.

Career Education Corporation (www.careered.com) is the world's largest on-campus provider of private, for-profit postsecondary education and has a rapidly-growing presence in online education.

Except for the historical and present factual information contained herein, the matters set forth in this release, including statements identified by words such as "expects," "will," and similar expressions, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on information currently available to us and involve risks and uncertainties that could cause our actual growth, results, performance and business prospects and opportunities to differ materially from those expressed in, or implied by these statements. These risks and uncertainties include, but are not limited to, risks related to our ability to address the accrediting agency issues described herein, risks related to our ability to comply with, and the impact of changes in, legislation and regulations that affect our ability to participate in student financial aid programs, costs, risks and effects of legal and administrative proceedings and governmental regulations, future financial and operational results, competition, general economic conditions, ability to manage and continue growth, and other risk factors relating to our industry and business as detailed in our Annual Report on Form 10-K for the year ended December 31, 2003, and from time to time in our other reports filed with the SEC. We disclaim any responsibility to update these forward-looking statements.