Apollo Group, Inc. was founded in 1973 in response to a gradual shift in higher education demographics from a student population dominated by youth to one in which approximately half the students are adults and over 80 percent of whom work full-time. Apollo's founder, John Sperling, believed -- and events proved him right -- that lifelong employment with a single employer would be replaced by lifelong learning and employment with a variety of employers. Lifelong learning requires an institution dedicated solely to the education of working adults.

Today, Apollo Group, Inc., through its subsidiaries, the University of Phoenix (including University of Phoenix Online), the Institute for Professional Development, the College for Financial Planning, and Western International University, has established itself as a leading provider of higher education programs for working adults by focusing on servicing the needs of the working adult.


Apollo Group has enjoyed continual growth in student enrollments as well as building a strong financial record by having more than doubled its total enrollments and revenues between 2001 and 2005. Apollo Group, looking to continue the growth, completed its initial public offering on December 6, 1994 with a price of $0.72 per share (adjusted for stock splits).

The mission of University of Phoenix is to educate working adults to develop the knowledge and skills that will enable them to achieve their
professional goals, improve the productivity of their organizations, and provide leadership and service to their communities.

PURPOSES

• To facilitate cognitive and affective student learning—knowledge, skills, and values—and to promote use of that knowledge in the
  student’s work place.
  
• To develop competence in communication, critical thinking, collaboration, and information utilization, together with a commitment to lifelong learning for enhancement of students’ opportunities for career success.
  
• To provide instruction that bridges the gap between theory and practice through faculty members who bring to their classrooms not only advanced academic preparation, but also the skills that come
  from the current practice of their professions.
  
• To use technology to create effective modes and means of instruction that expand access to learning resources and that enhance collaboration and communication for improved student learning.
  
• To assess student learning and use assessment data to improve the teaching/learning system, curriculum, instruction, learning, resources, counseling and student services.
  
• To be organized as a for-profit institution in order to foster a spirit of innovation that focuses on providing academic quality, service excellence, and convenience to the working adult.
  
• To generate the financial resources necessary to support the University’s mission.

Who Are University of Phoenix Faculty?

University of Phoenix faculty members exist at the intersection of the academic and professional worlds. While a strong cadre of Core Faculty oversees curriculum and instruction, the majority of our instructors hold advanced academic degrees and are actively employed in the fields in which they teach -- being an educator is a matter of personal and professional interest, not solely a career.

This structure reflects our long-standing commitment to relating learning materials to the workplace, making connections between the theoretical and the practical, and bringing immediate relevance to class content. University of Phoenix currently has more than 19,000 faculty members, including more than 9,600 in the Online Campus. Approximately 1,500 are Core Faculty members who provide instructional leadership and oversee academic quality.

In addition to participating in training and development activities, University of Phoenix faculty are evaluated regularly by peers, students and academic officers. It is a testimony to the quality of the educational experience that our instructors tend to teach with the University for extended periods of time.

The average University of Phoenix faculty member...

• Holds a master's or doctoral degree
  
• Has 16 years of experience in his or her field
  
• Teaches six courses per year
  
• Publishes and presents academic papers on a regular basis
  
• Hold offices in professional and academic organization

In the field of higher education for working adults, Apollo Group, Inc. is a recognized leader and innovator. Apollo Group, Inc. operates through its subsidiaries, The University of Phoenix, Inc., Institute for Professional Development, The College for Financial Planning Institutes Corporation, and Western International University, Inc. We are the largest private institution of higher education in the United States with the largest consolidated enrollment in our educational programs. We have more than 25 years of experience in the industry. Apollo Group has over 6000 regular, full-time employees and offers educational programs and services at more than 200 campuses and learning centers throughout the United States, Puerto Rico, and Canada. Our dominance in the industry has not been by accident. Our corporate culture is based on a foundation of innovation and inspiration. We recognize the value of the unique attributes each employee brings to the Company and are committed to the investment we make in our people. Part of this investment includes highly valued benefit programs designed to offer a range of options to cover our employees and their family’s well-being and support and preserve their financial security.

Benefit Programs Overview
A P O L L O G R O U P , I N C.
…a variety of medical plan options — that vary by location. Employees are eligible for health insurance on the first day of the month following 60 days of continuous employment. Employees may select single coverage and may opt to cover eligible dependents. Apollo Group shares the cost of this medical coverage with employees; an employee’s contributions toward medical coverage is generally paid on a pre-tax basis. This benefit is available to regular, full-time employees.

…a prescription drug program — and a home-delivery pharmacy program are included in the healthcare program. This program is ideal for maintenance medications, prescriptions taken on a regular basis to manage conditions such as arthritis, high blood pressure, asthma, diabetes, etc. Employees may take advantage of the mail order drug program to reduce costs and additional visits to the pharmacy.

…a choice of dental plan options — that vary by location. Employees are eligible on the first day of the month following 60 days of continuous employment. They may select single coverage or opt to cover eligible dependents.

…a Preferred Provider Organization (PPO) Vision Plan. Member doctors provide professional vision care for persons covered under the plan, assuring quality professional care and materials. Employees may receive services for eye exams, lenses, (including contact lenses) and frames for a pre-determined copay. Employees may also elect to use a non-member provider and still receive a benefit. Employees are eligible on the first day of the month following 60 days of continuous employment. This benefit is limited to full-time, regular employees.

…two flexible spending accounts — a Health Care Reimbursement Account and a Dependent Care Reimbursement Account. These accounts are available to employees to pay for many types of health care expenses not fully covered by the medical, dental or vision plans. These accounts are also a tax effective way to pay for child care or other dependent care services. Contributions are made through payroll deductions on a pretax basis. Employees are eligible to participate in this benefit on the first day of the month following 60 days of continuous employment. Participation in either or both programs is optional.

…access to an informational online fitness program — a source for news on
health, diet, fitness and self-care.

To promote physical and mental well-being, Apollo Group offers... HEALTHCARE & INSURED BENEFITS

…a 401(k) Savings and Investment Plan Employees may contribute up to 50% of their earnings on a pre-tax basis to a maximum of $14,000. Employees are eligible to begin contributing to the 401(k) Savings and Investment Plan (the Plan) on the quarterly plan entry dates following 60 days of active, continuous employment. These contributions do not include a match. Once an employee has completed one year of full-time service with the Company, they are eligible to participate and receive the employer match; at this time, they are fully vested. This plan offers investment funds with varying levels of risk, from
high to low. The company match is subject to change at the Company’s discretion. Rollover contributions from other qualified plans are accepted upon the employee completing the waiting period.

…an Employee Stock Purchase Plan (ESPP). This plan is available to all active employees who have completed one year of employment. Employees
may elect to deduct any percentage that results in no more than 10% of their base salary or $3,000 for the year during the offering period. Through this
program, employees can acquire stock ownership in the Company by purchasing Apollo Education Group (APOL) common stock at a 15% discount of the fair market value. Participation in the program is voluntary.

…a 529 College Savings Plan — that gives our employees and their families important tax benefits and other significant advantages when they save for
college. Employees may take advantage of this program through payroll deductions to help plan for future college expenses in a convenient, easy
manner.

To support our employees in meeting their personal financial goals Apollo Group offers...

Life Insurance — coverage equal to two times the employee’s annual salary or targeted income, up to a maximum of $50,000. This coverage also includes Accidental Death and Dismemberment (AD&D) insurance that provides benefits for loss of life, limbs or sight due to an accident. Apollo Group pays for the full cost of this coverage.

…Employee Life Supplemental Insurance. Employees may elect to increase their employer provided life insurance coverage and choose from options of one, two or three times their annual salary, up to a specified maximum. This coverage
is optional and employees pay the premium through pre-tax payroll deductions.

...Family Life Insurance. Employees may elect to purchase this coverage for eligible dependents including a spouse and/or children. This coverage is optional and employees pay the premiums through after-tax payroll deductions.

…Business Travel Accident Insurance — coverage in the amount of $50,000. Employees are eligible for this coverage the date they are hired. Apollo Group pays for the full cost of this coverage.
To help protect our employees and their family’s financial situation in the event of a death or accident, Apollo Group offers...
Sick Leave. After completing 60 days of continuous full-time employment, regular employees begin accruing sick leave at a rate of 3.34 hours per pay period up to a maximum of 80 hours sick leave per year. Sick leave accruals may be carried from year to year and are capped at 520 hours.

…Short-Term Disability (STD) Coverage to help replace lost income for up to 13 weeks should the employee become ill or injured or unable to work due to a nonwork related circumstance. Employees are eligible for coverage on the first day of the month following 60 days of continuous employment. (Pre-existing condition limitations may apply.) Participation is optional and premiums are paid on an after-tax basis through payroll deductions.

…Long-Term Disability (LTD Coverage that helps replace a portion of an employee’s income if he or she is unable to work due to a non-work related disabling condition that lasts longer than 90 days. (Pre-existing condition limitations may apply.) This program provides coverage for 60% of the employee’s monthly earnings up to a maximum monthly benefit of $7,500 at no cost to the employee.
In addition, an employee may elect to increase this coverage to 70% of their monthly earnings to a maximum monthly benefit of $10,000. In the case that the employee elects to increase the coverage, the additional premiums are paid by the employee through pre-tax payroll deductions. This program provides that in the event an employee becomes totally disabled, they will receive income from all sources that is at least equal to the selected percentage of pay based on the employee’s salary at the time of disability.

…Long Term Care Insurance. This coverage offers affordable protection for the care of someone in need of assistance with daily living due to an accident, an illness, or advancing age, either at home or in a facility. Coverage is available for employees and their spouses or parents of the employee and/or their spouse.
(Pre-existing condition limitations may apply.) Employee participation in this program is voluntary. It is renewable (as long as premiums are paid) and is portable. To ensure our employees have an opportunity to relax, revitalize and spend time with family and friends, Apollo Group offers…

PHOENIX--(BUSINESS WIRE)--March 23, 2006--Apollo Group, Inc. (Nasdaq:APOL) today reported fiscal 2006 financial results for the second quarter ended February 28, 2006.

Net income attributed to Apollo Education Group common stock for the three months ended February 28, 2006, was $80.6 million, or $.46 per diluted share, compared to $87.1 million, or $.47 per diluted share reported for the same period last year. The expense related to the amounts paid to our former CEO under the terms of the Separation Agreement reduced diluted earnings per share by $.09. $6.2 million related to the Separation Agreement was recorded directly through shareholders' equity.

Net income attributed to Apollo Education Group common stock for the six months ended February 28, 2006, was $211.4 million, or $1.19 per diluted share, compared to $196.6 million, or $1.04 per diluted share reported for the same period last year.

Total consolidated revenues for Apollo Group, Inc. for the three months ended February 28, 2006, rose 12.6% to $569.6 million, compared with $505.7 million in the second quarter of fiscal 2005. The University of Phoenix accounted for 81.7% of the $526.7 million in net tuition revenues from students enrolled in degree programs for the quarter ended February 28, 2006.

Total consolidated revenues for Apollo Group, Inc. for the six months ended February 28, 2006, rose 15.2% to $1.198 billion, compared with $1.041 billion in the same period last year. The University of Phoenix accounted for 83.3% of the $1.109 billion in net tuition revenues from students enrolled in degree programs for the six months ended February 28, 2006.