Statement

Statement on Motion to Dismiss False Claims Act Case
Phoenix, Arizona, August 20, 2007 -- University of Phoenix, subsidiary of Apollo Group, Inc. (Nasdaq:APOL), said today that a federal court in California denied its motion to dismiss a False Claims Act case brought by two former disgruntled employees, United States ex rel. Hendow v. University of Phoenix. Previously, the Court twice dismissed this case, ultimately with prejudice, before it was reinstated by the Ninth Circuit Court of Appeals in September 2006.

"While we are disappointed with the Court's decision, we look forward to trying this case on its merits," said Timothy J. Hatch of Gibson Dunn & Crutcher LLP, counsel to University of Phoenix. "We are confident the evidence will support the fact that University of Phoenix fully complied with the law. The plaintiffs are trying to twist a routine regulatory matter into a federal case of fraud and will not succeed."

The government regulations at issue in the lawsuit were adopted to prevent the enrollment of unqualified students. University of Phoenix's compliance with these regulations is demonstrated by its low student loan default and high graduation rates -- two widely-accepted measures of quality. For the period covered by this lawsuit, University of Phoenix's average student loan default rate was well below the national average for comparable schools, and its graduation rate was equal or better than that found among 4-year public colleges and universities.

"The plaintiffs' approach to this litigation will not hold up at trial," said Hatch. "They have disregarded the facts, used the wrong legal standard, and cannot demonstrate any harm caused to students or taxpayers. We are eager to turn this case on its head and expose the plaintiffs' false claims, vindicating University of Phoenix in the process."

A detailed overview of University of Phoenix's legal arguments in the case may be found in the Legal Information Center at www.apollogrp.edu.

About Apollo Group, Inc., parent company to University of Phoenix:
Apollo Group, Inc. has been an education provider for more than 30 years, operating the University of Phoenix, the Institute for Professional Development, The College for Financial Planning, Western International University and Insight Schools. The Company offers innovative and distinctive educational programs and services from high school through college level at 262 locations in 39 states, Puerto Rico, Washington DC, Alberta, British Columbia, Netherlands, and Mexico as well as online, throughout the world.

For more information about Apollo Group, Inc. and its subsidiaries, call (800) 990-APOL or visit Apollo on the company website at: www.apollogrp.edu.

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