March 18, 2014

A Letter to the Board of Directors of Corinthian Colleges Inc.

Corinthian Colleges Inc.
6 Hutton Centre Drive, Suite 400
Santa Ana, California 92707

To Distinguished Members of the Board:

Shah Capital has been invested in Corinthian Colleges for over 3 years and
is now the second largest shareholder, owning 5.7% of the companys outstanding
shares.  We have continued to increase our stake in Corinthian because we
trust the quality of the education programs provided to its students and
believe the excessive negativity surrounding the company is truly overdone.
In our opinion, Corinthian fills a major void in higher education by providing
countless students with an extra chance at earning a college education and
improving their lives after having fallen through the cracks in high school
and/or community college.  We have had the opportunity to visit multiple
campuses and have learned first-hand the higher level of attention and care
the Corinthian student receives from their professors.  With a lower average
student debt than the industry average, the company offers a compelling value
for students looking to improve their lives both personally and professionally.

We appreciate the constructive dialogue in the past few months with
management in regards to key fundamental issues impacting the company.
Based on our analysis and experience we would like to suggest the
following solutions:

1. Employer Partnerships: In the current economic environment,
the value of higher education is directly correlated with the opportunity
for an individual to start a career in their respective field post-completion
of their degree/diploma.  Corinthians ability to secure stronger and
more specialized employer partnerships will lead to improved enrollments,
higher job placement rates, lower student debt levels, and more satisfied
regulators.  We strongly urge the company to locate more companies that
will benefit from its graduates and advise the company to form closer
partnerships where it exclusively fills their partner companys employment
needs for a given field of study/profession.

2. Admissions (Online & Ground schools): Prospective students and
Corinthian would benefit from an inventive refining of the admissions
and recruiting process to one that more accurately identifies the
appropriate course path (online or ground school) for each individual
student, which could significantly improve student retention and
completion rates.

3. Investor/Regulator Education: Corinthian should properly educate
investors, analysts, and regulators on topics that have proven to be more
difficult to grasp such as third party lending relationship (ASFG).
In our view, these issues are creating unnecessary uncertainty and concern
among regulators, investors, and within the analyst community, while
further bolstering the thesis of short sellers.  Additionally, we highly
recommend quarterly issuance of detailed balance sheet and cash flow
statements as this added layer of transparency would further reduce
uncertainty.

4. Board of Directors: Corinthians current Board and management
structure is largely unchanged from times when the company had a
multi-billion dollar market value. We believe a smaller, more nimble
structure reflecting the current status of the company would be more
appropriate to accomplish its strategic goals.

5. Open Market Purchase: We strongly urge all members of the Board
and top management to meaningfully purchase Corinthian stock in the
open market as it continues to trade at steep discount to its intrinsic
value.

The enhanced regulatory scrutiny is the new normal for the for-profit
education industry, and the success and failure of companies within
this industry will depend on their ability to adapt to a stricter
operating environment.  We urge management and the Board to consider
and act on our above suggestions which could significantly benefit
Corinthians students, improve its reputation among regulators and
restore value to all stakeholders.

Very Sincerely,
Sd

Himanshu H. Shah