Press Release: March 28, 2001

WR Hambrecht + Co Initiates Coverage of University of Phoenix Online (UOPX) with a Buy Rating and a Price Target of $39

Leading provider of online degrees well positioned to reap rewards of rapidly growing market

San Francisco, CA, March 28, 2001—WR Hambrecht + Co today initiated research coverage of University of Phoenix Online(UOPX) with a buy rating and a price target of $39. WR Hambrecht + Co’s eLearning analyst Trace Urdan cited the Company’s attractive business model, profitable operations, strong brand identity and leadership in a sector with substantial barriers to entry as the primary basis for the rating. WR Hambrecht + Co offers all its research reports free and real-time at www.wrhambrecht.com.

“With more than 50 percent of the workforce currently involved in some form of continuing education, and another 56 percent of the workforce without an advanced degree, the market opportunity for online degree providers is substantial,” Urdan said.

Urdan projects total revenues will reach $171 million in F2001, and $256 million in F2002, up from $103 million in F2000. The Company’s fiscal year ends August 31.

University of Phoenix Online is an online provider of accredited post-secondary degree programs for working adults.