Computer Learning Centers Announces Results of Special Financial Aid Compliance Review.

Business Editors/High Tech Writers

MANASSAS, Va.--(BUSINESS WIRE)--July 20, 2000

20 CLC Learning Centers Restored to Advance

Disbursement of Title IV Funds

Computer Learning Centers, Inc. (Nasdaq National Market: CLCX) ("CLC") today announced that it has been informed by officials of the U.S. Department of Education ("Department") that the Department has agreed to return twenty of its 23 U.S. Learning Centers that participate in the Federal Title IV student aid programs to the regular Advance Disbursement method for the receipt of Title IV student funds.

These 20 Learning Centers had been subjected to Level 1 of the Department of Education's "Heightened Cash Monitoring" procedure (HCM) since April, 1998.

Department officials said that decisions regarding the remaining three schools, in Alexandria and Laurel, both of which are presently on Level 2 of HCM, and Philadelphia, which is on Level 1 of HCM, will be made as soon as further document reviews are completed. Excluding the three Learning Centers remaining on HCM, along with the Las Vegas and Norcross Learning Centers, the 20 remaining U.S.-based Learning Centers returned to Advance Disbursement currently represent 86% of CLC's U.S. student population.

The Department's action came after CLC submitted the results of a review to evaluate the compliance of CLC's U.S. based Learning Centers with Federal refund and return of funds requirements. According to the report prepared by our external accountants, the review demonstrated an overall 98% compliance rate with the Federal requirements. The review examined the return of Title IV funds and the timeliness of refund obligations for the seven-month period ended January 31, 2000.

CLC has re-submitted applications to the Department to authorize its Las Vegas, NV and Norcross, GA Learning Centers to participate in the federal financial aid programs. These two Learning Centers represent 3.5% of the current U.S. student population. The Company had previously voluntarily withdrawn these applications in December 1999 to enable it and the Department to focus their attention on more pressing matters.

John Corse, President and Chief Executive Officer of CLC, said that the return of the 20 Learning Centers to the standard advance disbursement process for receipt of Title IV funds will substantially reduce the administrative burden on CLC. Mr. Corse also stated his belief that the action demonstrates the Department's renewed confidence in CLC. Mr. Corse noted that the special review was based on an examination of 1,842 applicable student files at the 23 Learning Centers that participate in the Title IV programs. He said that the accountants found that in nearly 98% of the cases there were no exceptions. Mr. Corse also noted that ten of the 23 Learning Centers did not have a single exception identified and another six of the Company's Learning Centers each had only one.

Noting that the special review demonstrated that the Alexandria and Laurel Learning Centers, the two Learning Centers placed on Level 2 of HCM by the Department in March, 2000, had exception rates of 2.4% and 0%, respectively, Mr. Corse said that he believes that when the Department completes its review of the remaining matters it also will restore those institutions, as well as the Philadelphia Learning Center, (which had no exceptions) to Advance Disbursement. "I am appreciative," Mr. Corse added, "of the efforts of the Department's personnel in working with us to bring us to this point."

Mr. Corse also provided an update on the status of the Department's Program Reviews at CLC's Alexandria, VA Learning Center and its Laurel, MD additional location. After completing procedural discussions with the Department, CLC has begun the file reviews necessitated under the Alexandria Program Review. Corse said that he believes that, once these file reviews are completed, the Department will have all of the information necessary to close the Alexandria Program Review. CLC has previously reserved an amount it believes to be sufficient to cover the anticipated liabilities from the Alexandria review. Corse said that CLC and the Department are currently in the process of reaching agreement respecting the procedures to be used for the file reviews to be conducted at the Laurel Learning Center. Once these discussions are completed, Corse said, file reviews at the Laurel campus will also commence. CLC believes that any liabilities resulting from this review will be insignificant.

Computer Learning Centers provides information and computer-related education and training at 28 Learning Centers in the United States and Canada. The Company designs programs and courses to meet current information technology education needs, offering instruction focused on client/server systems and applications programming, networking administration and management, help desk operations and computer technical support.

This press release contains forward-looking statements. The words "believe," "expect," "intend," "anticipate," and "project," and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.