Perdoceo Education (PRDO) 8-K Career Education Corporation Reports

Exhibit 99.1

CAREER EDUCATION CORPORATION REPORTS

RESULTS FOR 2008 FOURTH QUARTER AND FULL YEAR

Hoffman Estates, Ill. (February 19, 2009) – Career Education Corporation (NASDAQ: CECO) today reported fourth quarter 2008 consolidated revenue from continuing operations of $431.8 million and consolidated income from continuing operations of $34.3 million, or $0.38 per diluted share. For the full year of 2008, consolidated revenue from continuing operations was $1.705 billion and consolidated income from continuing operations was $69.6 million, or $0.77 per diluted share.

“2008 was a year of progress for our organization and I am proud of our results,” said Gary E. McCullough, president and chief executive officer. “We exceeded our 2008 earnings and cash flow objectives while executing on our fundamental strategy of positioning the company to deliver our previously communicated 2010 milestones. We entered 2009 in a very strong financial position and will continue to invest in and improve our operating model with a heightened emphasis on generating greater revenue growth.”

RESULTS OF CONTINUING OPERATIONS

During the fourth quarter, we ceased operations for Brooks College – Long Beach, CA, International Academy of Design and Technology (IADT) – Pittsburgh, PA and Gibbs College – Piscataway, NJ. As a result, the results of operations for these three campuses are now included within discontinued operations. Except as otherwise noted, financial data and non-financial metrics reflected in this release exclude discontinued operations. Quarterly income statements for 2007 and 2008 reflecting this change have been provided in the exhibits section of this release.

Three Months Ended December 31, 2008

• Total revenue from continuing operations was $431.8 million during the fourth quarter of 2008, a 5.2 percent decrease from $455.3 million during the fourth quarter of 2007.

• Included in operating income for the three months ended December 31, 2008 and the three months ended December 31, 2007 are the following significant items:

CEC ANNOUNCES 4Q08 RESULTS …PG 2

	Pre-Tax Expense (In Millions)		Diluted Earnings per Share Impact Income (Loss)
Three Months Ended December 31, 2008
Severance	$	1.6	$	(0.01	)
Lease Exit Charges	$	1.9	$	(0.01	)
Legal Settlement	$	3.6	$	(0.03	)
TOTAL	$	7.1	$	(0.05	)
Three Months Ended December 31, 2007
Legal Settlements	$	6.5	$	(0.05	)
Impairment Charges	$	28.2	$	(0.19	)
TOTAL	$	34.7	$	(0.24	)

• Operating income was $43.5 million during the fourth quarter of 2008, an increase from $16.1 million of operating income during the fourth quarter of 2007. Operating margin percentage was 10.1 percent during the fourth quarter of 2008, a 6.6 percentage point increase relative to an operating profit margin percentage of 3.5 percent during the fourth quarter of 2007.

• Income from continuing operations was $34.3 million, or $0.38 per diluted share, during the fourth quarter of 2008, compared to income from continuing operations of $19.1 million, or $0.21 per diluted share, during the fourth quarter of 2007. The fourth quarter of 2008 results from continuing operations include a $3.0 million, or $0.02 per diluted share, foreign currency transaction gain.

Twelve Months Ended December 31, 2008

• Total revenue from continuing operations was $1.705 billion during the twelve months ended December 31, 2008, relative to $1.747 billion during the twelve months ended December 31, 2007.

• Included in operating income for the twelve months ended December 31, 2008 and the twelve months ended December 31, 2007 are the following significant items:

CEC ANNOUNCES 4Q08 RESULTS …PG 3

	Pre-Tax Expense (In Millions)		Diluted Earnings per Share Impact Income (Loss)
Twelve Months Ended December 31, 2008
Severance/Stay Bonuses	$	14.1	$	(0.10	)
Lease Exit Charges	$	12.8	$	(0.09	)
Impairment Charges	$	9.0	$	(0.06	)
Legal Settlements, net	$	6.3	$	(0.04	)
TOTAL	$	42.2	$	(0.29	)
Twelve Months Ended December 31, 2007
Severance	$	1.7	$	(0.01	)
Legal Settlements	$	15.4	$	(0.10	)
Impairment Charges	$	28.2	$	(0.19	)
TOTAL	$	45.3	$	(0.30	)

• Operating income declined to $77.7 million during the twelve months ended December 31, 2008, from $89.4 million during the twelve months ended December 31, 2007. Operating margin percentage decreased to 4.6 percent during the twelve months ended December 31, 2008, from 5.1 percent during the twelve months ended December 31, 2007.

• Income from continuing operations during the twelve months ended December 31, 2008, was $69.6 million, or $0.77 per diluted share, relative to $77.5 million, or $0.82 per diluted share, during the twelve months ended December 31, 2007. The 2008 results from continuing operations include a $3.0 million, or $0.02 per diluted share, foreign currency transaction gain.

CONSOLIDATED CASH FLOWS AND FINANCIAL POSITION

Cash Flows

• Cash provided by operating activities was $186.7 million during 2008, compared to cash provided by operating activities of $222.1 million during 2007.

• Capital expenditures decreased to $53.9 million during 2008, from $57.6 million during 2007. Current year capital expenditures represented 3.2 percent of total consolidated revenue.

CEC ANNOUNCES 4Q08 RESULTS …PG 4

Financial Position

• As of December 31, 2008 and December 31, 2007, cash and cash equivalents and investments totaled $508.7 million and $388.6 million, respectively.

• Days sales outstanding (DSO) were 15 days as of December 31, 2008, relatively consistent with DSO of 14 days as of December 31, 2007.

POPULATION AND NEW STUDENT START DATA

Student Population

Total student population by reportable segment as of January 31, 2009 and 2008, were as follows:

	As of January 31,		% Change 2009 vs. 2008
	2009	2008
STUDENT POPULATION
Art & Design	13,500	14,200	(5	)%
Culinary Arts	9,600	10,900	(12	)%
Health Education	17,600	14,700	20	%
International	9,700	8,600	13	%
University	45,700	41,500	10	%
Subtotal	96,100	89,900	7	%
Transitional Schools	1,900	7,200	(74	)%
Total Student Population	98,000	97,100	1	%
ONLINE POPULATION
Art & Design	900	400	125	%
University	35,400	31,500	12	%
Total Online Population	36,300	31,900	14	%

New Student Starts

New student starts by reportable segment during the fourth quarter of 2008 and 2007, were as follows:

	For the three months ended December 31,		% Change 2008 vs. 2007
	2008	2007
NEW STUDENT STARTS
Art & Design	2,410	2,640	(9	)%
Culinary Arts (1)	1,050	2,430	(57	)%
Health Education	4,110	3,400	21	%
International	2,530	2,340	8	%
University	13,940	12,410	12	%
Subtotal	24,040	23,220	4	%
Transitional Schools	0	1,920	NM
Total New Student Starts	24,040	25,140	(4	)%

CEC ANNOUNCES 4Q08 RESULTS …PG 5

ONLINE STARTS
Art & Design	310	240	29	%
University	11,920	10,500	14	%
Total Online Starts	12,230	10,740	14	%

(1) In the fourth quarter 2008, Culinary had one less start period than the fourth quarter of 2007.

CONFERENCE CALL INFORMATION

Career Education Corporation will host a conference call on February 20, 2009 at 10:00 AM (Eastern Time). Interested parties can access the live webcast of the conference call at www.careered.com. Participants can also listen to the conference call by dialing 866-713-8563 (domestic) or 617-597-5311 (international) and citing code 11731813. Please log-in or dial-in at least 10 minutes prior to the start time to ensure a connection. An archived version of the webcast will be accessible for 90 days at www.careered.com. A replay of the call will also be available for seven days by calling 888-286-8010 (domestic) or 617-801-6888 (international) and citing code 11900406.

About Career Education Corporation

The colleges, schools, and universities that are part of the Career Education Corporation (CEC) family offer high quality education to a diverse population of approximately 90,000 students across the world in a variety of career-oriented disciplines. The more than 75 campuses that serve these students are located throughout the U.S. and in France, Italy, and the United Kingdom, and offer doctoral, master’s, bachelor’s, and associate degrees and diploma and certificate programs. Approximately one-third of its students attend the web-based virtual campuses of American InterContinental University Online and Colorado Technical University Online.

CEC is an industry leader whose gold-standard brands are recognized globally. Those brands include, among others, the Le Cordon Bleu Schools North America; Harrington College of Design; Brooks Institute; International Academy of Design & Technology; American InterContinental University; Colorado Technical University and Sanford-Brown Institutes and Colleges. Through its schools, CEC is committed to providing quality education, enabling students to graduate and pursue rewarding careers.

For more information, see the company’s website at www.careered.com. The company’s website includes a detailed listing of individual campus locations and web links to its more than 75 colleges, schools, and universities.

Except for the historical and present factual information contained herein, the matters set forth in this release, including statements identified by words such as “anticipate,” “believe,” “plan,” “expect,” “intend,” “project,” “will,” and similar

CEC ANNOUNCES 4Q08 RESULTS …PG 6

expressions, are forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on information currently available to us and are subject to various risks, uncertainties and other factors that could cause our actual growth, results of operations, performance and business prospects, and opportunities to differ materially from those expressed in, or implied by, these statements. Except as expressly required by the federal securities laws, we undertake no obligation to update such factors or to publicly announce the results of any of the forward-looking statements contained herein to reflect future events, developments, or changed circumstances or for any other reason. These risks and uncertainties, the outcome of which could materially and adversely affect our financial condition and operations, include, but are not limited to, the following: the adverse impact and potential impacts on the availability of Title IV and private student loans for our students of (1) the willingness or ability of private lenders to make private student loans in the current U.S. credit markets, (2) new student lending related reporting and disclosure obligations on institutions that participate in Title IV federal student financial aid programs under The Higher Education Opportunity Act (“HEOA”), signed into law on August 14, 2008, in the first full reauthorization of the Higher Education Act of 1965, as amended, and (3) pending regulations under HEOA and Congress’ willingness or ability to maintain or increase funding for Title IV programs; potential higher bad debt expense or reduced revenue associated with requiring students to pay more of their educational expenses while in school or with directly making student loans to our students; increased competition; the effectiveness of our regulatory compliance efforts; impairment of goodwill and other intangible assets as we continue to redefine the company and manage our brands and marketing to improve effectiveness and reduce costs; charges and expenses associated with exiting excess facility space, centralizing various functional areas, such as human resources and financial aid, and continuing to align the SBUs and corporate staff to remove layers, overlaps and redundancies; the impact on our revenues and profitability of our transitional segment; our ability to comply with accrediting agency requirements or obtain accrediting agency approvals; our dependence on information technology system; our ownership or use of intellectual property ; costs and impacts of legal and administrative proceedings and investigations, governmental regulations, and class action and other lawsuits; costs and difficulties related to the integration of acquired businesses; our ability to manage and continue growth; and other factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2007 and December 31, 2008, and from time to time in our quarterly and current reports filed with the Securities and Exchange Commission.

###

Investors:	John Springer
	847/585-3899
	www.careered.com
Media:	Jeff Leshay
	847/585-2005

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATED BALANCE SHEETS

(In thousands)

	As of December 31,
	2008			2007 (1)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	244,743		$	221,970
Investments		263,953			166,618
Total cash and cash equivalents and investments		508,696			388,588
Receivables:
Students, net of allowance for doubtful accounts of $35,226 and $35,151 as of December 31, 2008, and December 31, 2007, respectively		59,119			59,072
Other, net		9,191			8,942
Prepaid expenses		46,416			49,732
Inventories		12,352			15,309
Deferred income tax assets		17,472			17,419
Other current assets		9,223			14,456
Assets of discontinued operations		5,003			31,170
Total current assets		667,472			584,688
NON-CURRENT ASSETS:
Property and equipment, net		304,970			335,949
Goodwill		376,072			379,363
Intangible assets, net		39,904			44,395
Deferred income tax assets		11,440			12,832
Other assets, net		17,465			20,555
TOTAL ASSETS	$	1,417,323		$	1,377,782
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt and capital lease obligations	$	354		$	11,843
Accounts payable		28,450			27,601
Accrued expenses:
Payroll and related benefits		63,757			33,119
Advertising and production costs		21,504			21,738
Income taxes		29,224			31,497
Other		49,526			75,788
Deferred tuition revenue		153,727			158,845
Liabilities of discontinued operations		8,753			15,472
Total current liabilities		355,295			375,903
NON-CURRENT LIABILITIES:
Long-term debt and capital lease obligations, net of current maturities		1,889			2,179
Deferred rent obligations		97,644			97,504
Other liabilities		13,983			4,473
Total non-current liabilities		113,516			104,156
SHARE-BASED AWARDS SUBJECT TO REDEMPTION		860			11,615
STOCKHOLDERS’ EQUITY:
Preferred stock		—			—
Common stock		933			930
Additional paid-in capital		222,523			207,294
Accumulated other comprehensive income		5,774			16,304
Retained earnings		807,500			736,603
Cost of shares in treasury		(89,078	)		(75,023	)
Total stockholders’ equity		947,652			886,108
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,417,323		$	1,377,782

(1) Prior period financial results have been reclassified to account for the teach-out of our schools previously reported as held for sale, the change in our reportable business segments during the first quarter of 2008 and to present Brooks College - Sunnyvale and Long Beach, CA, IADT - Pittsburgh, PA, IADT - Toronto, Canada and Gibbs College - Piscataway, NJ as discontinued operations.

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts and percentages)

	For the Three Months Ended December 31,
	2008			% of Revenue		2007(1)			% of Revenue
REVENUE:
Tuition and registration fees	$	416,904		96.6	%	$	435,263		95.6	%
Other		14,863		3.4	%		20,021		4.4	%
Total revenue		431,767					455,284
OPERATING EXPENSES:
Educational services and facilities		158,673		36.7	%		166,525		36.6	%
General and administrative		212,145		49.1	%		226,021		49.6	%
Depreciation and amortization		17,483		4.0	%		18,405		4.0	%
Goodwill and asset impairment		—		0.0	%		28,226		6.2	%
Total operating expenses		388,301		89.9	%		439,177		96.5	%
Operating income		43,466		10.1	%		16,107		3.5	%
OTHER INCOME (EXPENSE):
Interest income		4,448		1.0	%		5,702		1.3	%
Interest expense		(167	)	0.0	%		(285	)	-0.1	%
Share of affiliate earnings		—		0.0	%		1,865		0.4	%
Miscellaneous income (expense)		2,404		0.6	%		(35	)	0.0	%
Total other income		6,685		1.5	%		7,247		1.6	%
Pretax income		50,151		11.6	%		23,354		5.1	%
Provision for income taxes		15,820		3.7	%		4,238		0.9	%
Income from continuing operations		34,331		8.0	%		19,116		4.2	%
Loss from discontinued operations, net of tax		(3,117	)			$	(10,287	)
NET INCOME	$	31,214				$	8,829
NET INCOME (LOSS) PER SHARE - DILUTED
Income from continuing operations	$	0.38				$	0.21
Loss from discontinued operations		(0.03	)				(0.11	)
Net income	$	0.35				$	0.10
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING		89,918					92,412

(1) Prior period financial results have been reclassified to account for the teach-out of our schools previously reported as held for sale, the change in our reportable business segments during the first quarter of 2008 and to present Brooks College - Sunnyvale and Long Beach, CA, IADT - Pittsburgh, PA, IADT - Toronto, Canada and Gibbs College - Piscataway, NJ as discontinued operations.

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts and percentages)

	For the Twelve Months Ended December 31,
	2008			% of Revenue		2007 (1)			% of Revenue
REVENUE:
Tuition and registration fees	$	1,636,750		96.0	%	$	1,666,828		95.4	%
Other		68,601		4.0	%		80,602		4.6	%
Total revenue		1,705,351					1,747,430
OPERATING EXPENSES:
Educational services and facilities		654,288		38.4	%		636,469		36.4	%
General and administrative		889,250		52.1	%		919,786		52.6	%
Depreciation and amortization		75,132		4.4	%		73,595		4.2	%
Goodwill and asset impairment		9,013		0.5	%		28,226		1.6	%
Total operating expenses		1,627,683		95.4	%		1,658,076		94.9	%
Operating income		77,668		4.6	%		89,354		5.1	%
OTHER INCOME (EXPENSE):
Interest income		13,774		0.8	%		18,489		1.1	%
Interest expense		(870	)	-0.1	%		(1,163	)	-0.1	%
Share of affiliate earnings		4,665		0.3	%		4,735		0.3	%
Miscellaneous income		1,909		0.1	%		750		0.0	%
Total other income		19,478		1.1	%		22,811		1.3	%
Pretax income		97,146		5.7	%		112,165		6.4	%
Provision for income taxes		27,570		1.6	%		34,681		2.0	%
Income from continuing operations		69,576		4.1	%		77,484		4.4	%
Loss from discontinued operations, net of tax		(9,434	)				(17,931	)
NET INCOME	$	60,142				$	59,553
NET INCOME (LOSS) PER SHARE - DILUTED
Income from continuing operations	$	0.77				$	0.82
Loss from discontinued operations		(0.10	)				(0.19	)
Net income	$	0.67				$	0.63
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING		90,089					94,407

(1) Prior period financial results have been reclassified to account for the teach-out of our schools previously reported as held for sale, the change in our reportable business segments during the first quarter of 2008 and to present Brooks College - Sunnyvale and Long Beach, CA, IADT - Pittsburgh, PA, IADT - Toronto, Canada and Gibbs College - Piscataway, NJ as discontinued operations.

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	For the Twelve Months Ended December 31,
	2008			2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	60,142		$	59,553
Adjustments to reconcile net income to net cash provided by operating activities:
Goodwill and asset impairment		13,600			36,765
Depreciation and amortization expense		77,688			78,183
Bad debt expense		44,278			46,619
Compensation expense related to share-based awards		11,522			15,504
Gain on sale of business		(1,555	)		—
Loss (gain) on disposition of property and equipment		573			(124	)
Share of affiliate earnings, net of cash received		939			(2,791	)
Deferred income taxes		(749	)		(14,981	)
Other		—			301
Changes in operating assets and liabilities		(19,718	)		3,046
Net cash provided by operating activities		186,720			222,075
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale investments		(580,970	)		(644,977	)
Sales of available-for-sale investments		483,635			740,108
Purchases of property and equipment		(53,854	)		(57,586	)
Business acquisitions, net of acquired cash		—			(32,308	)
Other		402			(424	)
Net cash (used in) provided by investing activities		(150,787	)		4,813
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of treasury stock		(14,055	)		(224,264	)
Issuance of common stock		3,239			34,486
Tax benefit associated with stock option exercises		471			5,945
Payments on revolving loans		(10,113	)		(1,297	)
Payments of capital lease obligations and other long-term debt		(590	)		(588	)
Net cash used in financing activities		(21,048	)		(185,718	)
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS:		(7,732	)		6,717
NET INCREASE IN CASH AND CASH EQUIVALENTS		7,153			47,887
Add: Cash balance of discontinued operations, beginning of the year		15,735			14,216
Less: Cash balance of discontinued operations, end of the year		115			15,735
CASH AND CASH EQUIVALENTS, beginning of the year		221,970			175,602
CASH AND CASH EQUIVALENTS, end of the year	$	244,743		$	221,970

CAREER EDUCATION CORPORATION

SELECTED SEGMENT INFORMATION

(Dollars in thousands)

	For the Three Months Ended December 31,
	2008			2007(1)
REVENUE:
University	$	176,982		$	172,893
Culinary Arts		77,287			94,046
Health Education		64,426			54,331
Art & Design		67,501			73,064
International		35,686			32,585
Subtotal	$	421,882		$	426,919
Transitional Schools		9,884			28,357
Corporate and other		1			8
Total revenue	$	431,767		$	455,284
SEGMENT OPERATING INCOME (LOSS):
University	$	42,949		$	26,468
Culinary Arts		(588	)		15,012
Health Education		10,368			(2,637	)
Art & Design		9,052			13,942
International		8,106			9,447
Subtotal	$	69,887		$	62,232
Transitional Schools		(7,485	)		(33,114	)
Corporate and other		(18,936	)		(13,011	)
Total operating income	$	43,466		$	16,107
SEGMENT OPERATING INCOME (LOSS) PERCENTAGE:
University		24.3	%		15.3	%
Culinary Arts		-0.8	%		16.0	%
Health Education		16.1	%		-4.9	%
Art & Design		13.4	%		19.1	%
International		22.7	%		29.0	%
Transitional Schools		-75.7	%		-116.8	%

(1) Prior period financial results have been reclassified to account for the teach-out of our schools previously reported as held for sale, the change in our reportable business segments during the first quarter of 2008 and to present Brooks College - Sunnyvale and Long Beach, CA, IADT - Pittsburgh, PA, IADT - Toronto, Canada and Gibbs College - Piscataway, NJ as discontinued operations.

CAREER EDUCATION CORPORATION

SELECTED SEGMENT INFORMATION

(Dollars in thousands)

	For the Twelve Months Ended December 31,
	2008			2007(1)
REVENUE:
University	$	702,347		$	703,639
Culinary Arts		328,313			365,789
Health Education		235,546			206,700
Art & Design		263,715			275,392
International		107,558			81,907
Subtotal	$	1,637,479		$	1,633,427
Transitional Schools		67,863			113,856
Corporate and other		9			147
Total revenue	$	1,705,351		$	1,747,430
SEGMENT OPERATING INCOME (LOSS):
University	$	122,757		$	102,371
Culinary Arts(2)		(5,908	)		49,133
Health Education		22,559			6,425
Art & Design		28,057			32,499
International		18,860			13,024
Subtotal	$	186,325		$	203,452
Transitional Schools		(38,837	)		(61,646	)
Corporate and other		(69,820	)		(52,452	)
Total operating income	$	77,668		$	89,354
SEGMENT OPERATING INCOME (LOSS) PERCENTAGE:
University		17.5	%		14.5	%
Culinary Arts(2)		-1.8	%		13.4	%
Health Education		9.6	%		3.1	%
Art & Design		10.6	%		11.8	%
International		17.5	%		15.9	%
Transitional Schools		-57.2	%		-54.1	%

(1) Prior period financial results have been reclassified to account for the teach-out of our schools previously reported as held for sale, the change in our reportable business segments during the first quarter of 2008 and to present Brooks College - Sunnyvale and Long Beach, CA, IADT - Pittsburgh, PA, IADT - Toronto, Canada and Gibbs College - Piscataway, NJ as discontinued operations.

(2) Culinary Arts 2008 operating loss includes pretax charges of $22.8 million. Pretax charges related to the following: $15.2 million in lease exit charges and related asset impairment charges associated with the exit of a dormitory and other facility and a $7.6 million charge associated with the settlement of a legal matter.

CAREER EDUCATION CORPORATION

SELECTED SEGMENT START-UP INFORMATION

(In thousands)

	For the Three Months Ended December 31,						For the Twelve Months Ended December 31,
	2008			2007			2008			2007
REVENUE:
Culinary Arts(1)	$	2,294		$	—		$	4,400		$	—
Health Education(2)		—			—			—			—
	$	2,294		$	—		$	4,400		$	—
SEGMENT OPERATING LOSS:
Culinary Arts(1)	$	(2,335	)	$	(1,317	)	$	(9,001	)	$	(3,845	)
Health Education(2)		(211	)		—			(806	)		—
	$	(2,546	)	$	(1,317	)	$	(9,807	)	$	(3,845	)

(1) For the three and twelve months ended December 31, 2008 and 2007, Culinary Arts start-up campuses include LCB-Boston, MA, St. Louis, MO and Kitchen Academy-Seattle, WA.

(2) For the three and twelve months ended December 31, 2008, Health Education start-up campuses include SBI-San Antonio, TX.

CAREER EDUCATION CORPORATION

SELECTED UNIVERSITY SEGMENT INFORMATION

(Dollars in thousands)

	For the Three Months Ended December 31,						For the Twelve Months Ended December 31,
	2008			2007(1)			2008			2007(1)
UNIVERSITY REVENUE:
AIU
Online	$	68,936		$	65,715		$	298,279		$	311,321
Onground		18,500			21,931			76,418			88,398
CTU
Online		65,068			59,572			240,652			216,432
Onground		14,509			13,448			53,758			50,533
Briarcliffe		9,969			12,227			33,240			36,955
University	$	176,982		$	172,893		$	702,347		$	703,639
UNIVERSITY SEGMENT OPERATING INCOME (LOSS):
AIU
Online	$	20,999		$	9,752		$	73,041		$	74,361
Onground		(2,470	)		(3,133	)		(14,124	)		(16,262	)
CTU
Online		22,378			17,269			63,419			44,006
Onground		593			1,087			(365	)		161
Briarcliffe		1,449			1,493			786			105
University	$	42,949		$	26,468		$	122,757		$	102,371
UNIVERSITY SEGMENT OPERATING INCOME (LOSS) PERCENTAGE:
AIU
Online		30.5	%		14.8	%		24.5	%		23.9	%
Onground		-13.4	%		-14.3	%		-18.5	%		-18.4	%
CTU
Online		34.4	%		29.0	%		26.4	%		20.3	%
Onground		4.1	%		8.1	%		-0.7	%		0.3	%
Briarcliffe		14.5	%		12.2	%		2.4	%		0.3	%
University		24.3	%		15.3	%		17.5	%		14.5	%
	Student Population as of January 31,
	2009			2008
AIU
Online		16,800			15,500
Onground		3,800			3,800
CTU
Online		18,600			16,000
Onground		4,900			4,300
Briarcliffe		1,600			1,900
University		45,700			41,500
	Student Starts for the year ended December 31,
	2008			2007
AIU
Online		23,400			22,500
Onground		3,100			3,300
CTU
Online		24,100			21,800
Onground		3,700			3,300
Briarcliffe		1,200			1,300
University		55,500			52,200

(1) Prior period financial results have been reclassified to account for the teach-out of our schools previously reported as held for sale and the change in our reportable business segments during the first quarter of 2008.

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS FOR 2008

(In thousands, except per share amounts)

	For the Three Months Ended (1)												Total 2008
	March 31			June 30			September 30			December 31
REVENUE:
Tuition and registration fees	$	432,051		$	402,905		$	384,890		$	416,904		$	1,636,750
Other		19,833			14,144			19,761			14,863			68,601
Total revenue		451,884			417,049			404,651			431,767			1,705,351
OPERATING EXPENSES:
Educational services and facilities		166,648			160,420			168,547			158,673			654,288
General and administrative		238,625			220,982			217,498			212,145			889,250
Depreciation and amortization		20,215			18,727			18,707			17,483			75,132
Goodwill and asset impairment		2,170			—			6,843			—			9,013
Total operating expenses		427,658			400,129			411,595			388,301			1,627,683
Operating income (loss)		24,226			16,920			(6,944	)		43,466			77,668
OTHER INCOME (EXPENSE):
Interest income		3,433			3,018			2,875			4,448			13,774
Interest expense		(227	)		(265	)		(211	)		(167	)		(870	)
Share of affiliate earnings		4,665			—			—			—			4,665
Miscellaneous (expense) income		(191	)		(84	)		(220	)		2,404			1,909
Total other income, net		7,680			2,669			2,444			6,685			19,478
Pretax income (loss)		31,906			19,589			(4,500	)		50,151			97,146
Provision (benefit) for income taxes		10,535			6,752			(5,537	)		15,820			27,570
Income from continuing operations		21,371			12,837			1,037			34,331			69,576
Loss from discontinued operations, net of tax		(4,987	)	$	(146	)		(1,184	)		(3,117	)		(9,434	)
NET INCOME (LOSS)	$	16,384		$	12,691		$	(147	)	$	31,214		$	60,142
NET INCOME (LOSS) PER SHARE - DILUTED
Income from continuing operations	$	0.24		$	0.14		$	0.01		$	0.38		$	0.77
Loss from discontinued operations		(0.06	)		(0.00	)		(0.01	)	$	(0.03	)	$	(0.10	)
Net income	$	0.18		$	0.14		$	—		$	0.35		$	0.67
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING		90,289			89,905			89,675			89,918			90,089

(1) Financial results have been reclassified to account for the teach-out of our schools previously reported as held for sale, the change in our reportable business segments during the first quarter of 2008 and to present Brooks College - Sunnyvale and Long Beach, CA, IADT - Pittsburgh, PA, IADT - Toronto, Canada and Gibbs College - Piscataway, NJ as discontinued operations.

CAREER EDUCATION CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS FOR 2007

(In thousands, except per share amounts)

	For the Three Months Ended (1)													Total 2007
	March 31			June 30			September 30				December 31
REVENUE:
Tuition and registration fees	$	426,883		$	406,576		$	398,106			$	435,263		$	1,666,828
Other		19,874			16,190			24,517				20,021			80,602
Total revenue		446,757			422,766			422,623				455,284			1,747,430
OPERATING EXPENSES:
Educational services and facilities		155,487			154,747			159,710				166,525			636,469
General and administrative		230,248			238,720			224,797				226,021			919,786
Depreciation and amortization		18,180			18,837			18,173				18,405			73,595
Goodwill and asset impairment		—			—			—				28,226			28,226
Total operating expenses		403,915			412,304			402,680				439,177			1,658,076
Operating income		42,842			10,462			19,943				16,107			89,354
OTHER INCOME (EXPENSE):
Interest income		4,616			4,019			4,152				5,702			18,489
Interest expense		(358	)		(178	)		(342	)			(285	)		(1,163	)
Share of affiliate earnings		1,712			949			209				1,865			4,735
Miscellaneous income (expense)		236			484			65				(35	)		750
Total other income, net		6,206			5,274			4,084				7,247			22,811
Pretax income		49,048			15,736			24,027				23,354			112,165
Provision for income taxes		17,808			5,674			6,961				4,238			34,681
Income from continuing operations		31,240			10,062			17,066				19,116			77,484
Loss from discontinued operations, net of tax		(1,202	)	$	(4,937	)		(1,505	)			(10,287	)		(17,931	)
NET INCOME	$	30,038		$	5,125		$	15,561		��	$	8,829		$	59,553
NET INCOME (LOSS) PER SHARE - DILUTED
Income from continuing operations	$	0.32		$	0.11		$	0.18			$	0.21		$	0.82
Loss from discontinued operations	$	(0.01	)	$	(0.06	)	$	(0.01	)		$	(0.11	)	$	(0.19	)
Net income	$	0.31		$	0.05		$	0.17			$	0.10		$	0.63
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING		96,798			94,659			93,455				92,412			94,407

(1) Financial results have been reclassified to account for the teach-out of our schools previously reported as held for sale, the change in our reportable business segments during the first quarter of 2008 and to present Brooks College - Sunnyvale and Long Beach, CA, IADT - Pittsburgh, PA, IADT - Toronto, Canada and Gibbs College - Piscataway, NJ as discontinued operations.