Research Opinion: Apollo Group, Inc. (APOL)

Last Updated: June 31, 2008 – 6:00pm EST

NEW YORK—Ludlow Capital Group, Inc. initiates research coverage on Apollo Group, Inc. (NASD:APOL) with a B- rating, and price target of $75 per share.

Summary

As the economy continues to stagnate from high energy prices, and subprime housing meltdown, more people are expected to turn back to education to rebuild work skills during this economic slowdown. Historicly, people tend to turn back to school during recession and economic slowdowns, and APOL provides the key leadership within this sector online with the University of Pheonix.

Although APOL remains the leader within the online education sector, the stock has delivered a strong performance during July 2008, and we would recommend buying on any dips and not be an aggressive chaser at these levels. Ludlow Capital Group has issued a B- rating on APOL, with a near-term price target of $75 per share.

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Recent Earnings

For the three months ending May 31, 2008, the company reported revenues of $835 million as compared to $733 million for the same three month period in 2007. For the same three month period the company reported net income of $139 million, or $0.85 EPS, as compared to $131 million, or $0.75 for the same period in 2007.

For the nine months ending May 31, 2008, the company reported revenues of $2.3 billion as compared to $2 billion for the same nine month period in 2007. For the same nine month period the company reported net income of $247 million, or $1.49 EPS, as compared to $305 million, or $1.77 EPS for the same period in 2007.

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, Inc. and its subsidiaries, call (800) 990-APOL or visit the company’s website at www.apollogrp.edu.

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Contact:

Ludlow Capital Group, Inc.
Research Department
Phone: (212) 233-2864
Email: info@ludlowcapital.com