Press Release: March 29, 2000

WR Hambrecht + Co Initiates Coverage of Apollo Group (APOL) With a Strong Buy Rating and Target of $35

Company likely to benefit from macro trends in post-secondary education

San Francisco, CA, March 29, 2000—WR Hambrecht + Co today initiated research coverage on Apollo Group (APOL) with a strong buy rating and a price target of $35. WR Hambrecht + Co’s eLearning analyst Trace Urdan cited Apollo’s planned investments in eLearning and the dominance of Apollo’s core businesses as key reasons for the rating. WR Hambrecht + Co offers all its research reports free and real-time at www.wrhambrecht.com.

"We believe Apollo’s core ‘brick and mortar’ product is strong and continues to be capable of generating 20 — 25 percent earnings growth for the foreseeable future. Meanwhile, its potential to dominate the eLearning market is considerable as the company brings its full resources to bear over the next six to eight quarters," said Urdan.

Urdan projects Apollo’s total revenues will reach $618.1 million in FY2000 and $772.2 million in FY2001, up from the FY1999 total of $498.8 million.

Apollo Group, Inc. through its subsidiaries, the University of Phoenix, Inc., the Institute for Professional Development, the College for Financial Planning Institutes Corporation, Western International University, Inc. and Apollo Learning Group, Inc., is a provider of higher education programs for working adults.