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DEVRY INC. ANNOUNCES INTENTION TO FILE TWO-MILLION-SHARE SECONDARY OFFERING

 OAKBROOK TERRACE, Ill., Feb. 17 /PRNewswire/ -- The board of directors of DeVry Inc. (NASDAQ: DVRY), a system of career-oriented higher education institutes, today announced that the company intends to file a registration statement with the Securities and Exchange Commission for a proposed secondary public offering of approximately two million shares of common stock. The company will not sell any shares in this offering.
 Shareholders proposing to sell the largest blocs include funds managed by Frontenac Co. and Primus Venture Partners, private equity firms that were venture capital investors in the company's acquisition of the DeVry Institutes in 1987. The company's two senior executive officers, who together hold 1.75 million shares of common stock, are not intending to sell any shares in this proposed secondary offering.
 "We expect that the proposed secondary public offering will provide increased liquidity for the company's shares by raising the number of shares publicly held by non-affiliated shareholders from approximately 5.5 milion," DeVry Chairman Dennis J. Keller said.
 As a result of the closing of the proposed secondary public offering, "a change of ownership" under Section 382 of the Internal Revenue Code will occur. Accordingly, the amount of NOLs the company will be permitted to utilize in any taxable year could be limited depending upon the price of the company's stock, certain interest rates and the closing date of the secondary offering.
 The company's NOLs, totaling $29.1 million at Dec. 31, 1992, would not be reduced, but utilization of NOLs each year is expected to be limited to approximately $10 million. As a result, the company expects that federal and state cash income tax payments will increase for fiscal 1993 and 1994 and that its cash income tax payments will be reduced for fiscal 1995 and 1996 by corresponding aggregate amount. Changes in the timing of cash payment of the company's taxes will not have an impact on the company's earnings per share. In consideration of permitting the selling shareholders to sell their shares before the June 21, 1993, expiration of a two-year lock-up agreement, the selling shareholders have agreed to reimburse the company for costs of registration and certain expenses.
 A registration statement has not yet been filed or declared effective. The common stock subject to the proposed secondary offering may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This announcement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the common stock in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
 DeVry Inc. is one of the largest private degree-granting higher education systems in North America.
 -0- 2/17/93
 /CONTACT: Diane Salucci or Cathy Klepack of DeVry, 708-574-1938/
 (DVRY)


CO: DeVry Inc. ST: Illinois IN: SU: OFR

GK -- NY019 -- 7196 02/17/93 09:55 EST
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Publication:PR Newswire
Date:Feb 17, 1993
Words:497
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