Computer Learning Centers Announces Third Quarter Results.

Business/Education & Technology Editors

MANASSAS, VA--(BUSINESS WIRE)--Dec. 15, 2000

Computer Learning Centers, Inc. (Nasdaq National Market: CLCX) ("CLC") today announced financial results for the three and nine months ended October 31, 2000 (see attached table). Results for the third quarter of fiscal 2001 were highlighted by increases in student enrollments and student population, as well as increased revenues from CLC's U.S. Learning Centers.

On August 31, 2000, CLC completed the sale of its Canadian operations, Delta College. These results, inclusive of a $721,000 gain on the disposition, are included in the attached financial statements. With the sale of Delta College, CLC now operates only in the U.S. In an effort to present an overview and comparison based upon CLC's current operations, the operating and financial results of Delta College have been excluded from the discussion below.

Revenues at CLC's 25 U.S. Learning Centers for the fiscal 2001 third quarter increased to $31,551,000 from $31,289,000 in the third quarter of fiscal 2000. This represented the first quarter with year over year U.S. revenue growth since the first quarter ended April 30, 1999. Increased revenues at the Company's U.S. Learning Centers were due primarily to higher enrollments and an average increase in U.S. student populations of 2.7% during the three months ended October 31, 2000 versus the same period one year ago. Revenues at the Company's U.S. Learning Centers for the nine months ended October 31, 2000 were $94,349,000 versus $96,362,000 for the comparable period one year ago.

Student enrollments at CLC's 25 U.S. Learning Centers for the fiscal 2001 third quarter increased 9.7% to 3,816 from 3,477 in the fiscal 2000 third quarter. These increases related to both improved performance in conversion rates and the continued increase in popularity of CLC's new and enhanced curriculum. The total number of enrollments is the highest in the last two years with management expecting this trend to continue as the Company positions itself for a return to profitability. When compared to the second quarter of fiscal 2001, U.S. student enrollments increased by 32.5%. This increase is related to the factors noted above, as well as the seasonality of the business.

U.S. student enrollments for the first nine months of fiscal 2001 increased 9.1% to 9,521 from 8,726 for the first nine months of fiscal 2000. U.S. student population at October 31, 2000 increased 3.3% to 9,499 from 9,198 for the same period last year; U.S. student populations grew by 7.7% when compared to the fiscal 2001 second quarter ended July 31, 2000.

CLC reduced its net loss for the third quarter of fiscal 2001 to $1,299,000, or $.07 per share, as compared to a net loss of $1,581,000, or $.09 per share, for the same period last year. The current quarter's results included the gain on the sale of Delta College, which accounted for $.04 per share. The net loss for the first nine months of fiscal 2001 was $6,005,000, or $.32 per share, versus a net loss of $4,345,000, or $.24 per share, for the same period one year ago. Adjusted for the gain arising from sale of Delta College, the net loss for the three and six month periods of fiscal 2001 would have been, respectively, $2,020,000, or $.11 per share, and $6,726,000, or $.36 per share.

John Corse, President and Chief Executive Officer of CLC, commented, "The success of our efforts to date is evident on numerous fronts. We have reported year over year enrollment growth at our U.S. Learning Centers for the last four quarters and we are encouraged by new enrollment activity for the fiscal 2001 fourth quarter. We are also building our continuing student populations, which is a key indicator of our future success. Our student loan agreement with Sallie Mae is expanding tuition options for our students and reducing our dependence on government funds. Cash generated from operations during the fiscal 2001 third quarter allowed CLC to fully pay down its bank debt during October 2000, as well as reduce trade accounts payable by approximately $1,500,000 from the second quarter of fiscal 2001. On the regulatory front, we have completed two of the five requested file reviews for the Alexandria and Laurel program reviews and are actively engaged in completing the final three file reviews. Overall, while there is still work to be done, we are excited about our progress to date and optimistic about CLC's future."

Mr. Corse concluded, "CLC also has no significant default rate issues at any of its Learning Centers. Based on the official rates recently issued by the U.S. Department of Education, we have determined that our weighted average cohort default rate ("CDR") for all of CLC's Learning Centers was 13.0% for fiscal 1998 versus average CDRs of 15.2% for fiscal 1997. Most important, we have continued to insure that none of CLC's Learning Centers had a CDR greater than 25%, representing the regulatory maximum permissible default rate."

Mark Nasser, Chief Financial Officer of CLC, commented on CLC's improving business metrics, "We are succeeding in refining our expense profile to more accurately reflect our student population and business model. This is clearly evident when comparing CLC's fiscal 2001 third quarter to the second quarter of fiscal 2001. Costs of instruction and services as a percentage of revenues declined to 74.0% during the fiscal 2001 third quarter from 76.9% in the second quarter of fiscal 2001. These expenses also declined when compared to the third quarter of fiscal 2000. Our cost reduction initiative, which has been accomplished while we have been expanding and upgrading our curriculum, combined with increasing student populations and tuition increases that reflect market demand, should continue to positively affect financial results going forward."

On December 14, 2000, the Company obtained an amendment to its credit facility from its bank which extended the term of the line of credit through February 2002. The facility also included a revision of the then existing financial covenants to reflect the performance of the Company through October 31, 2000 as well as future projections. The revolving credit facility has a reduction in the maximum borrowing capacity from $2,500,000 to $2,000,000 through March 31, 2001. Effective April 1, 2001 through the February 28, 2002, the maximum borrowing capacity will be $1,500,000. The facility for standby letters of credit was reduced to the Company's current level of letters outstanding, or $2,140,000. The Company has the option to extend the letters of credit through September 5, 2002. Both facilities require cash deposits to a restricted cash account, as defined in the amendment, through such time that the balances are equal to 110% of the borrowing capacity and amount of letters of credit outstanding. As of December 14, 2000, the total amount of restricted cash deposited for this purpose was approximately $1,260,000 (as of October 31, 2000, this amount was $754,000). The cash deposited for the line of credit may be borrowed against to the extent of the maximum borrowing capacity.

Computer Learning Centers provides information and computer-related education and training at 25 Learning Centers in the United States. 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.

                    COMPUTER LEARNING CENTERS, INC.
                 CONSOLIDATED STATEMENTS OF OPERATIONS
               (In thousands, except per share amounts)
                              (unaudited)

                 For the three-month period  For the nine-month period
                      ended October 31,          ended October 31,
                     -----------------           -----------------
                      2000        1999           2000          1999
                      ----        ----           ----          ----
                              (Restated)                    (Restated)

Revenues             $  32,010    $32,817       $ 98,064     $ 102,193
Costs and Expenses:
 Costs of instruction
  and services          23,683     24,534         74,252        73,758
 Selling and
   promotional           5,120      5,251         15,292        16,008
 General and
 administrative          3,725      4,042         12,684        12,643
  Provision for
   doubtful accounts     2,458      1,536          6,240         6,704
 Amortization of
  intangible assets        141        141            421           422
                        -----------------        --------------------
                        35,127     35,504        108,889       109,535
                        -----------------        --------------------
Loss from operations    (3,117)    (2,687)       (10,825)       (7,342)

Interest expense, net      (43)       (74)          (391)         (149)
 Gain on sale of
  Delta College            721         --            721           --
Loss before income
  taxes                 (2,439)    (2,761)       (10,495)       (7,491)

Benefit from
 income taxes           (1,140)    (1,180)        (4,490)      (3,146)
                       -------------------        --------------------

 Net loss            $  (1,299)  $ (1,581)   $    (6,005)    $ (4,345)
                        =================         ====================
    Loss per share
  of common stock:
  Basic and diluted  $   (0.07)  $ (0.09)    $     (0.32)    $  (0.24)
                        ==================        ====================

    Weighted Average of
   common stock outstanding:
  Basic and diluted     18,618    18,512          18,618      17,910
                        ===================       ====================

                    COMPUTER LEARNING CENTERS, INC.
                      CONSOLIDATED BALANCE SHEETS
                     (dollar amounts in thousands)

                                  October 31, 2000     January 31, 2000
                                      (unaudited)
Current assets:
  Cash and cash equivalents         $        2,373     $        7,819
  Restricted cash                              754                 -
  Accounts receivable, net                  44,281             51,074
  Income taxes receivable                       84              6,083
  Deferred tax assets                        5,411              5,541
  Prepaid expenses and other
   current assets                            3,055              3,440
                                      --------------     --------------
Total current assets                        55,958             73,957
                                      --------------     --------------
Fixed assets, net                           29,001             34,558
Long-term accounts receivable, net           8,836             10,439
Long-term deferred tax assets                8,450              2,021
Other long-term assets                       3,327              3,333
                                       --------------    --------------
  Total assets                             105,572            124,308
                                       ==============    ==============
Liabilities and stockholders' equity:
Current liabilities:
  Trade accounts payable                     4,487              3,520
  Accrued employee expenses                  3,045              3,091
  Accrued other expenses                     5,963              6,498
  Current portion of long-term debt             --              8,455
  Deferred revenues                         47,685             50,833
                                             ------     --------------

  Total current liabilities                 61,180             72,397
                                                        --------------
Long-term deferred revenues                  1,360              1,191
Long-term debt, net of the current portion     --               2,500
Other long-term liabilities                  3,819              3,061
                                        --------------  --------------
  Total liabilities                         66,359             79,149
                                        --------------  --------------
Stockholders' equity
  Common stock                                186                186
  Additional paid-in capital               41,120             41,120
  Accumulated other comprehensive loss         --                (59)
  (Accumulated deficit) retained earnings  (2,093)             3,912
                                        --------------- --------------

  Total stockholders' equity               39,213             45,159
                                       --------------   --------------

  Total liabilities and stockholders'
   equity                          $      105,572     $      124,308
                                     ==============     ==============