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EduTrek International Announces Fall Enrollment Results.

ATLANTA--(BUSINESS WIRE)--Nov. 5, 1998--EduTrek International, Inc. ("EduTrek") (Nasdaq: EDUT) , the operator of the American InterContinental University ("AIU"), announced today that AIU's fall consolidated enrollments as of the end of October increased 16.7% to 3,552, as compared to 3,045 students in the prior year. Enrollment for AIU's new Power Campuses in Dunwoody, Los Angeles and Washington, D.C. as of the end of October was 581 students. As previously reported, enrollment in AIU's traditional campuses in Atlanta, Los Angeles, London and Dubai was slightly above expectations. This growth resulted in a year-over-year increase in net tuition revenues for the September-October period of 30%, to $6.3 million from $4.8 million in the prior year. Despite this increase, the enrollments in the Power Campuses were below the expected enrollment of 795 students. This shortfall of 5.7% from planned consolidated enrollment will result in lower revenues and earnings for the fiscal year ending May 31, 1999.

The Power Campus enrollment shortfall is attributed to two causes. First, the Bachelor of Information Technology ("BIT") program, planned for fall introduction, was delayed for Los Angeles and Washington, D.C. until January due to supplier's late delivery of curriculum. Second, while the Dunwoody campus met plan, the Company was insufficiently staffed to complete enrollments in the October 26th new campus openings in Washington, D.C. and Los Angeles.

Steve Bostic, Chairman and CEO of EduTrek commented, "We were successful in generating substantial qualified leads and in opening our two new locations on time and within our expense budgets. However, our new enrollment conversion rate was below plan by 214 students due to shortages in our recruiting and admissions staff."

"We have taken measures to address these problems. We are increasing staff at the new campuses, and the BIT program will be launched at all the Power Campuses in the first quarter of calendar 1999. We continue to be confident in our Power Campus growth strategy based upon the strong market demand and student acceptance for our programs," Steve Bostic added.

EduTrek, through the American InterContinental University, is a leading provider of career-oriented, international focused and fully accredited higher education programs. The Company operates campuses in Atlanta (Buckhead and Dunwoody), London, Los Angeles, Washington, D.C., and Dubai, United Arab Emirates, with curricula focusing on information technology, international business, multimedia communications, art and design.

Safe Harbor Statement

Certain statements contained in this press release are ``forward- looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future business development activities, and are thus prospective. Such forward- looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions, competition and other uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings.
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Publication:Business Wire
Geographic Code:1U5DC
Date:Nov 5, 1998
Words:497
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