PHOENIX & WASHINGTON--(BUSINESS WIRE)--Oct. 22, 2007--Apollo
Group, Inc. (Nasdaq:APOL) ("Apollo Group" or the "Company"), and
private equity firm The Carlyle Group ("Carlyle"), today announced
that they have formed a $1 billion joint venture, Apollo Global, Inc.
("Apollo Global"). Apollo Global intends to make a range of
investments in the international education services sector. Apollo
Global will target investments and partnerships primarily in countries
outside the U.S. with attractive demographic and economic growth
characteristics. Apollo Group has committed up to $801 million and
will own 80.1% of the joint venture. Carlyle has committed up to $199
million and will own 19.9% of Apollo Global. Investments and funding
will be subject to approval by the respective investment committees of
both Apollo Group and Carlyle. Apollo Global will be a consolidated
subsidiary of Apollo Group and Greg Cappelli, Apollo Group's Executive
Vice President and Director will be Chairman of the subsidiary.
Commenting on the new venture, Greg Cappelli said, "We are very
excited about this new joint venture and our partner, The Carlyle
Group. Our core competencies in the education space, combined with
Carlyle's industry relationships and strategic assets across the
global education sector, will allow us to successfully capitalize on
the tremendous global opportunity that exists in the marketplace."
Brian Mueller added, "We will continue to invest capital in our
high return core domestic business, and through Apollo Global, we will
also explore strategic and value creating global acquisition
opportunities. Importantly, we reiterate that any investment must meet
our disciplined investment criteria as we remain committed to creating
long-term value for our shareholders."
Brooke B. Coburn, Managing Director and Co-head of Carlyle Venture
Partners III, L.P., said, "Global demand for higher education is
strong. Apollo Group's operational expertise coupled with Carlyle's
global network make this a powerful partnership."
The remaining six directors who comprise Apollo Global's board
include Brian Mueller, President and Director of Apollo Group, Peter
V. Sperling, Senior Vice President, Secretary and Director of Apollo
Group, Roy A. Herberger, Jr., an Apollo Group Director, Jeff
Langenbach, Vice President Corporate Development of Apollo Group and
Apollo Global's interim President, Brooke B. Coburn, Managing Director
and Co-head of Carlyle Venture Partners III, L.P. and Charles C.
Moore, Managing Director on Carlyle's U.S. Venture and Growth team.
About Apollo Group, Inc.
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 at high
school, college and graduate levels at 259 locations in 40 states and
the District of Columbia; Puerto Rico; Alberta and British Columbia,
Canada; Mexico 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 Apollo on the company
website at: www.apollogrp.edu.
About The Carlyle Group
The Carlyle Group is a global private equity firm with $75.6
billion under management committed to 55 funds. Carlyle invests in
buyouts, venture & growth capital, real estate and leveraged finance
in Africa, Asia, Australia, Europe, North America and South America
focusing on aerospace & defense, automotive & transportation, consumer
& retail, energy & power, financial services, healthcare, industrial,
infrastructure, technology & business services and telecommunications
& media. Since 1987, the firm has invested $32.3 billion of equity in
686 transactions for a total purchase price of $157.7 billion. The
Carlyle Group employs more than 900 people in 21 countries. In the
aggregate, Carlyle portfolio companies have more than $87 billion in
revenue and employ more than 286,000 people around the world.
www.carlyle.com.
Forward-Looking Safe Harbor
Statements in this press release regarding Apollo Group's business
outlook, future financial and operating results, Degreed Enrollments
and New Degreed Enrollments, and overall future prospects are
forward-looking statements, and are subject to the Safe Harbor
provisions created by the Private Securities Litigation Reform Act of
1995. These forward-looking statements are based on current
information and expectations and involve a number of risks and
uncertainties. Actual results may differ materially from those
projected in such statements due to various factors. For a discussion
of the various factors that may cause actual results to differ
materially from those projected, please refer to the risk factors and
other disclosures contained in Apollo Group's most recently filed Form
10-K, Forms 10-Q, and other filings with the Securities and Exchange
Commission.
CONTACT: Apollo Group, Inc.
Investor Relations Contact:
ICR, Inc.
Allyson Pooley, 310-954-1100
apooley@icrinc.com
or
Company Contact:
Apollo Group, Inc.
Janess Pasinski, 480-557-1719
janess.pasinski@apollogrp.edu
or
Press Contact:
CKPR
Christie Lowey, 602-417-0672
clowey@ckpr.biz
or
The Carlyle Group:
Christopher W. Ullman, 202-729-5399
chris.ullman@carlyle.com
SOURCE: Apollo Group, Inc.
