APOLLO GROUP               APOLLO GROUP                
                             Income Statement for the Years Ended August 31, 2000 -2006    
    $, million $, million $, million $, million $, million $, million $, million
    (except EPS) (except EPS) (except EPS) (except EPS) (except EPS) (except EPS) (except EPS)
          2000 2001 2002 2003 2004 2005 2006
Revenues:                
Tuition and other, net         609,997 769,474 $1,009,455 1,339,517 1,798,423 2,251,472 2,477,533
Costs and Expenses:                      
Instructional costs and services (Cost of Revenue)         352,874 410,084 484,454 612,940 765,495 935,743 1,112,660
Gross Profits         257123 359390 525001 726577 1032928 1315729 1364873
Selling and Promotional 96491 150,311 198,889 272,348 383,078 484,770 544,706
General and administrative  46555 48,076 58,260 66,970 88,090 98,286 149,928
Stock-based compensation 0 0 0 0 123,535 19,824 0
Depreciation 0 0 0 0 0 0 0
Goodwill impairment 0 0 0 0 0 0 20,205
Total Operating Expenses         143046 198387 257149 339318 594703 602880 714839
Income from Operations          114077 161003 253852 387259 438225 712849 650034
Interest income, net  6,228 14,106 12,072 14,545 18,263 16,993 18,054
Earnings before Interest and Taxes (EBIT)         120305 175109 265924 401804 456488 729842 668088
Interest Expense         0 0 0 0 0 0 0
Pretax Earnings (Earnings before Taxes, EBT)         120305 175109 265924 401804 456488 729842 668088
Provision for income taxes  49,114 67,292 104,774 154,794 178,714 285,111 253,255
Net Income (Earnings After Taxes, EAT)         71191 107817 161150 247010 277774 427933 414833
Preferred Stock Dividends         0 0 0 0 0 0 0
Net Earnings Available for Common Stockholders         71191 107817 161150 247010 277774 427933 414833
Retained Earnings   0 0 0 0 0 0 0
Dividends Paid to Common Stock Holders         0 0 0 0 0 0 0
Net Income Attributed To:                      
Apollo Education group common stock         71,191 104,513 153,161 231,702 137,800 444,731  
University of Phoenix Online common stock           3,304 7,989 15,308 139,974    
Earnings per share Attributed to:                      
Apollo Education Common Stock:                
Basic net income per share        $0.63 $0.63 $0.91 $0.89 $1.32 $0.78 $2.43  
Basic weighted average shares outstanding  113,674 114,275 172,859 174,985 176,175 182,928  
University of Phoenix Online Common Stock:                      
Basic net income per share    $0.38 $0.60 $1.01 $8.85    
Basic weighted average shares outstanding            8,796 13,243 15,154 15,825