-- Revenue increases approximately 14% year-over-year

-- Total Degreed Enrollment increases 11% year-over-year

-- Bad Debt, as a percentage of net revenue, declines versus a year ago

-- Board of Directors authorizes share repurchases of up to $500 million

Apollo Group, Inc. (Nasdaq: APOL) (“Apollo Group,” “Apollo” or “the Company”) reported unaudited financial results for the three and nine months ended May 31, 2008.

Unaudited Third Quarter of Fiscal 2008 Results of Operations

Consolidated revenues for the three months ended May 31, 2008, totaled $835.2 million, which represents a 13.9% increase over the third quarter of fiscal 2007. Total Degreed Enrollment grew by 11.0% year-over-year to 345,300. The Company reported net income for the three months ended May 31, 2008, of $139.1 million, or $0.85 per share (163.8 million weighted average diluted shares outstanding), compared to net income of $131.4 million, or $0.75 per share (174.6 million weighted average diluted shares outstanding) for the three months ended May 31, 2007. During the third quarter of fiscal 2008, the Company repurchased approximately 9.8 million shares of its common stock at a weighted average purchase price of approximately $46 for a total expenditure of $454 million. On June 27, 2008, the Board of Directors authorized an increase of the share repurchase program to an aggregate of $500 million.

Before giving effect to a special item of $1.6 million due to the securities class action verdict in the third quarter of fiscal 2008, and to special items related to the stock option investigation and restatement costs of $7.6 million in the third quarter of fiscal 2007, net income was $140.1 million, or $0.85 per share in the third quarter of fiscal 2008, as compared to net income of $136.0 million, or $0.78 per share in the third quarter of fiscal 2007.

Excluding share-based compensation expense of $14.4 million and the special item related to the securities class action verdict of $1.6 million in the third quarter of fiscal 2008, and share-based compensation expense of $8.9 million and stock option investigation and restatement costs of $7.6 million in the third quarter of fiscal 2007, net income would have been $148.8 million, or $0.91 per share in the third quarter of fiscal 2008, as compared to net income of $141.4 million, or $0.81 per share in the third quarter of fiscal 2007.

“We reported another quarter of solid revenue and enrollment growth, and importantly, we experienced improvement in the growth rate of New Degreed Enrollments as compared to last quarter,” said Joe D’Amico, President, Chief Financial Officer and Treasurer of Apollo Group. “While the overall cost to acquire a student has increased versus a year ago, we still believe that we are on the right track by bringing our marketing intelligence in-house with Aptimus and that the investments we’re making today will lower our student acquisition costs over time and help us to better communicate our brands.”

Greg Cappelli, Executive Vice President, Global Strategy and Assistant to the Executive Chairman added, “We continue to invest in new and existing areas including retention, new programs, resource centers and marketing, where we can leverage Apollo’s infrastructure and experience. We are also pleased to announce that Insight Schools will start the 2008 school year with 11 schools in 10 states. The virtual high school market is strong and we are excited about their prospects. We recently announced the formation of Meritus University, a new Canadian degree-granting institution which will begin enrolling students this Fall. Lastly, during the quarter we closed Apollo Global’s first transaction, the acquisition of Chilean-based UNIACC. Apollo Global has many solid opportunities to pursue abroad and their talented team is working diligently on these efforts.”

Instructional costs and services increased by $26.6 million, or 8.3% to $347.6 million for the three months ended May 31, 2008, from $321.0 million in the three months ended May 31, 2007. As a percentage of net revenue, instructional costs and services declined to 41.6% versus 43.8% in the prior year quarter, primarily as a result of decreases as a percentage of net revenue, in bad debt expense and classroom lease expenses and depreciation. These decreases were partially offset by an increase, as a percentage of net revenue, in employee compensation and related expenses which is due, in part, to investments in Insight Schools and increases to the Company’s compensation rates for academic and financial counselors.

As previously reported, during the first quarter of fiscal 2008, the Company reviewed the components of bad debt expense and identified certain items that should have been classified as discounts or refunds (reduction of tuition revenue) rather than bad debt expense. No reclassification was made for prior periods as the amounts were not material to prior period financial statements and had no effect on reported net income. Had the Company reclassified these items in the third quarter of fiscal 2007, the amounts reported for net revenue and bad debt expense would have been $5.0 million lower. On a comparable basis, bad debt expense, as a percentage of net revenue, decreased approximately 160 basis points from 4.0% in the third quarter of fiscal 2007 to 2.4% in the third quarter of fiscal 2008. This decrease is primarily due to the continued focus on front-end collections as well as improvements in student retention rates. Retention and bad debt expense can vary seasonally, and as a result, bad debt expense as a percentage of net revenue may fluctuate from quarter-to-quarter.

Selling and promotional expenses increased by $40.7 million, or 25.0%, to $203.6 million for the three months ended May 31, 2008, from $162.9 million in the three months ended May 31, 2007. As a percentage of net revenue, selling and promotional expenses increased to 24.4%, from 22.2% in the prior year’s third quarter. This was a result of an increase, as a percentage of net revenue, in enrollment counselors’ compensation and related expenses, advertising and other selling and promotional expenses. Included in other selling and promotional costs are expenses related to Aptimus which the Company acquired in the first quarter of 2008. The increase represents investments made to drive and support future growth of New Degreed Enrollments. Selling and promotional expenses per New Degreed Enrollment increased versus a year ago, and this trend may continue into the near future; however, the Company believes its efforts and investments will help it reduce these costs over the long-term.

General and administrative (“G&A”) expenses for the three months ended May 31, 2008, increased by $14.8 million, or 32.1%, to $60.9 million, from $46.1 million in the three months ended May 31, 2007. As reported, G&A, as a percentage of net revenue, increased to 7.3% in the third quarter of 2008, versus 6.3% in the comparable period a year ago. Excluding special items in the third quarter of fiscal 2007, primarily related to the stock option investigation and restatement costs of $7.6 million, G&A expenses were $38.5 million, or 5.2% of net revenue, for the three months ended May 31, 2007. The increase to 7.3%, as a percentage of net revenue, in the third quarter of 2008, is mainly attributable to increases, as a percentage of net revenue, in salary and related payroll costs due to higher employee headcount, increased share-based compensation expense and higher legal fees.

About Apollo Group, Inc.

Apollo Group, Inc. has been an education provider for more than 30 years, providing academic access and opportunity to students through its subsidiaries, University of Phoenix, Institute for Professional Development, College for Financial Planning, Western International University, Meritus University, Insight Schools and Apollo Global. It also owns Aptimus, a provider of innovative digital media solutions. The Company's distinctive educational programs and services are provided at the high school, college and graduate levels in 40 states (as of May 31, 2008) and the District of Columbia; Puerto Rico; Alberta and British Columbia, Canada; Mexico; Chile; and the Netherlands, as well as online, throughout the world.

For more information about Apollo Group,visit the Company’s website at www.apollogrp.edu.