©

Career Education Corporation 2008

©

Career Education Corporation 2008

Career Education Corporation

Career Education Corporation

Bank of America Investment Conference

Bank of America Investment Conference

September 17, 2008

September 17, 2008

Exhibit 99.1

©

Career Education Corporation 2008

©

Career Education Corporation 2008

Gary E. McCullough

PRESIDENT AND CHIEF EXECUTIVE OFFICER

CAREER EDUCATION CORPORATION

Gary E. McCullough

PRESIDENT AND CHIEF EXECUTIVE OFFICER

CAREER EDUCATION CORPORATION

Except

for

the

historical

and

present

factual

information

contained

herein,

the

matters

set

forth

in

this

presentation,

including

statements

identified

by

words

such

as

"anticipate,"

"believe,"

"plan,"

"expect,"

"intend,"

"project,"

"will,"

and

similar

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:

risks

associated

with

unfavorable

changes

in

the

cost

or

availability

of

financing,

including

alternative

loans,

for

our

students;

potential

higher

bad

debt

expense

or

reduced

revenue

associated

with

requiring

students

to

pay

more

of

their

educational

expenses

while

in

school;

increased

competition;

the

effectiveness

of

our

regulatory

compliance

efforts;

future

financial

and

operational

results,

including

the

impact

of

the

impairment

of

goodwill

and

other

intangible

assets;

risks

related

to

our

ability

to

comply

with

accrediting

agency

requirements

or

obtain

accrediting

agency

approvals;

risks

related

to

our

ability

to

comply

with,

and

the

impact

of

changes

in,

legislation

and

regulations

that

affect

our

ability

to

participate

in

student

financial

aid

programs;

costs,

risks,

and

effects

of

legal

and

administrative

proceedings

and

investigations

and

governmental

regulations,

and

class

action

and

other

lawsuits;

costs,

risks

and

uncertainties

associated

with

our

company-wide

restructuring,

including

risks

and

uncertainties

associated

with

changes

in

management

and

reporting

responsibilities;

costs

and

difficulties

related

to

the

integration

of

acquired

businesses;

risks

related

to

our

ability

to

manage

and

continue

growth;

risks

related

to

the

sale

or

teach-out

of

any

campuses;

risks

related

to

general

economic

conditions

including

credit

market

conditions

and

other

risk

factors

relating

to

our

industry

and

business

and

the

factors

discussed

in

our

Annual

Report

on

Form

10-K

for

the

year

ended

December

31,

2007,

and

from

time

to

time

in

our

other

reports

filed

with

the

Securities

and

Exchange

Commission.

Safe Harbor

Safe Harbor

Non-GAAP Financial

Information

Non-GAAP Financial

Information

The Company has included some  non-GAAP financial measures in this presentation  to

discuss the Company's financial results.  As a general matter, the Company uses these

non-GAAP measures in addition to and in conjunction with results presented in accordance

with GAAP. Among other things, the Company may use such non-GAAP financial

measures in addition to and in conjunction with corresponding GAAP measures, to help

analyze the performance of its core business, in connection with

the preparation of annual

budgets, and in measuring performance for some forms of compensation. In addition, the

Company believes that non-GAAP financial information is used by analysts and others in

the investment community to analyze the Company's historical results and in providing

estimates of future performance and that failure to report these

non-GAAP measures could

result in confusion among analysts and others and a misplaced perception that the

Company's results have underperformed or exceeded expectations.

These non-GAAP financial measures reflect an additional way of viewing aspects of the

Company's operations that, when viewed with the GAAP results and

the reconciliations to

corresponding GAAP financial measures, provide a more complete understanding of the

Company's results of operations and the factors and trends affecting the Company's

business. However, these non-GAAP measures should be considered as a supplement to,

and not as a substitute for, or superior to, the corresponding measures calculated in

accordance with GAAP.

Career Education Overview

Career Education Overview

Our Mission:

A global educational company committed

to quality outcomes and career opportunities

for a diverse student population

Our Mission:

A global educational company committed

to quality outcomes and career opportunities

for a diverse student population

Career Education Overview

Career Education Overview

A Leading For-Profit Post Secondary Education Company

2007 Revenue:

$1.7 Billion

Over 90,000 students

A Leading For-Profit Post Secondary Education Company

2007 Revenue:

$1.7 Billion

Over 90,000 students

*Demographics as of June 30, 2008

An Inflection Point in Our History

An Inflection Point in Our History

Transform

Transform

Strengthen

Strengthen

Foundation

Foundation

Accelerate

Accelerate

Growth

Growth

Retrenchment

Retrenchment

Acquire/

Acquire/

Build

Build

High

High

Performance

Performance

New Management Team

Competitive Strengths

Competitive Strengths

Strong core institutions…

Strong core institutions…

delivering quality

delivering quality

outcomes

outcomes

Leading on-line platform

Leading on-line platform

Broad geographic presence

Broad geographic presence

Strong balance sheet

Strong balance sheet

Proven growth capability

Proven growth capability

Strong Core Institutions . . .

Strong Core Institutions . . .

Leading network of allied

health schools

Leading network of allied

health schools

National network of culinary

schools

National network of culinary

schools

Multi-national online and

on-ground schools

Multi-national online and

on-ground schools

Network of business schools in

France

Network of business schools in

France

Nationwide network of

fashion & design schools

Nationwide network of

fashion & design schools

TM

…

Delivering Quality Outcomes

…

Delivering Quality Outcomes

Surgical Technology Program at

Sanford-Brown Institute

Iselin, NJ

“PAE Elite Twenty Program”

Surgical Technology Program at

Sanford-Brown Institute

Iselin, NJ

“PAE Elite Twenty Program”

Council of College and Military Educators

2007 Institution Award

Wounded Warrior Scholarship Program

Council of College and Military Educators

2007 Institution Award

Wounded Warrior Scholarship Program

Exceeded all benchmarks in the 2007

Noel-Levitz Priorities Survey for

Online Learners

Exceeded all benchmarks in the 2007

Exceeded all benchmarks in the 2007

Noel-Levitz Priorities Survey for

Online Learners

Online Learners

Brian Williams –

Interim Leader of Culinary

Arts Business Unit, graduate of AIU

First to offer 100% Spanish speaking

culinary degree in United States

Brian Williams –

Interim Leader of Culinary

Arts Business Unit, graduate of AIU

First to offer 100% Spanish speaking

culinary degree in United States

172,000 total graduates

(2004-2007)

172,000 total graduates

172,000 total graduates

(2004-2007)

(2004-2007)

Student-Centric On-Line Platform

Student-Centric On-Line Platform

Virtual Campus and full student services

Proprietary learning management systems

Rich online collaboration tools

Access to the Virtual Campus using  mobile

devices

Virtual Campus and full student services

Proprietary learning management systems

Rich online collaboration tools

Access to the Virtual Campus using  mobile

devices

Source: Echo Research AIU Online Brand Research 2008

Broad Geographic Coverage

Broad Geographic Coverage

Art & Design

University

Culinary

Health

International

Campuses in key local markets

Online businesses attract from 65 different

countries

Ability to further domestic presence

Ability to meet student needs online and on-ground…

Ability to meet student needs online and on-ground…

Strong Balance Sheet

Strong Balance Sheet

Flexibility to absorb challenges along the way…

Flexibility to absorb challenges along the way…

/1 Free Cash Flow = Operating Cash Flow less Capital Expenditures

Proven Growth Capability

Proven Growth Capability

Transformation Underway…

Transformation Underway…

Unsustainable growth

Low margins

Sustainable growth

Margin expansion

. . . Unlocking sustainable growth potential

. . . Unlocking sustainable growth potential

Improve

Organizational

Effectiveness

Targeted

Growth

Strategies

Reputation Overhang

Reputation Overhang

Inefficient Brand

Inefficient Brand

Structure

Structure

Independent

Independent

Institutions/ Operations

Institutions/ Operations

Performance Variability

Performance Variability

2007 and Before

2010+

Optimize

Value

Proposition

Strong Reputation

Highly

Differentiated

Brands

Leverage Scale

Consistent High

Performance

Re-Build

Reputation

Reputation

Create Strategic

Create Strategic

Business Units

Business Units

New Leadership

New Leadership

Centralize Support

Centralize Support

Activities

Activities

Teach-Out

Unprofitable Schools

Unprofitable Schools

Brand

Brand

Development /

Development /

Rationalization

Rationalization

Improve

Improve

Marketing &

Marketing &

Admissions

Admissions

Efficiency

Efficiency

Re-Invest in

Student

Student

Experience

Experience

Build reputation and external relationships

Teach out unprofitable campuses

Centralize support activities

Create Strategic Business Units with New

Leadership

Improve Organizational Effectiveness

Improve Organizational Effectiveness

Action

Progress

Centralize Support Activities

Centralize Support Activities

Create shared service center

Create shared service center

to leverage scale

to leverage scale

Select admissions functions

Student financial aid

processing

Procurement

Human resource systems

•

Talent acquisition

•

Training

25% reduction in admissions reps since Q107

25% reduction in admissions reps since Q107

Teach Out Unprofitable Schools

Teach Out Unprofitable Schools

Eliminate significant losses

Eliminate significant losses

from underperforming, non-

from underperforming, non-

strategic assets

strategic assets

Acted decisively on 14

underperforming schools

Moved to transitional

segment until complete

Impact on P&L until 2010

(     )

Strategic Business Units

Strategic Business Units

International

International

Health

Education

Health

Education

Art &

Design

Art &

Design

University

University

Culinary

Arts

Culinary

Arts

TM

Core

Institutions

Total

Brands

3

4

5

2

2

Enrollment /1

43,500

15,200

12,800

10,200

7,000

% Online

78%

-

4%

-

-

Ground

Locations

11

24

14

16

11

TM

As of March 31, 2008

Optimize Value Proposition

Optimize Value Proposition

Health

Education

Health

Education

Art &

Design

Art &

Design

University

University

Culinary

Arts

Culinary

Arts

Brand

Strategy

Marketing

Focus

Student

Experience

Local

support

Technology

Retention

and

placement

Longer

Programs

Renewal

Consolidate

Align

Consolidate

Optimize

Strengthen

local

relationships

Leverage

quality and

diversity

Leverage

Brand

consolidation

Optimize

Value

Proposition

Growth Opportunities

Growth Opportunities

Health

Education

Health

Education

Art &

Design

Art &

Design

University

University

Culinary

Arts

Culinary

Arts

Brand

Strategy

Marketing

Focus

Student

Experience

Local

support

Technology

Longer

Programs

Online

New

Locations

Consolidate

Align

Consolidate

Optimize

Strengthen

local

relationships

Leverage

quality and

diversity

Leverage

Brand

consolidation

New

Programs

Retention

and

placement

Renewal

Optimize

Value

Proposition

Growth

Strategies

Mike Graham

EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER

CAREER EDUCATION CORPORATION

Mike Graham

EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER

CAREER EDUCATION CORPORATION

©

Career Education Corporation 2008

©

Career Education Corporation 2008

Financial Expectations

Financial Expectations

($ millions)

($ millions)

2007

Pro Forma

2010

Milestone

Revenue

Revenue

$1,635

$1,635

6% -

6% -

8%

8%

CAGR

CAGR

$1,950 -

$1,950 -

$2,050

$2,050

Operating Income

Operating Income

$151

$151

Low to Mid

Low to Mid

Teens

Teens

$225 -

$225 -

$270

$270

Transitional 

Transitional 

Schools

Schools

Operating

Operating

Income

Income

($86)

($86)

N/A

N/A

($10 -

($10 -

$20)

$20)

Total

Total

$65

$65

$210 -

$210 -

$255

$255

Est. Free Cash Flow

Est. Free Cash Flow

$166

$166

$195 -

$195 -

$235

$235

1

st

Half 2008 Results

1

st

Half 2008 Results

On plan through first six months

On plan through first six months

Effectively managing short-term challenges

Effectively managing short-term challenges

Solid progress on expense control

Solid progress on expense control

Teach-Out and Real estate initiatives ahead of plan

Teach-Out and Real estate initiatives ahead of plan

1

st

Half 2008 Results

1

st

Half 2008 Results

Segment

Performance

Versus Plan

Comment

University

=

Temporary PEER model transition issue…

resolved in Q3

Culinary

-

Transition to new student loan

environment…

new process in place

Art & Design

-

Health

+

Strong organic start growth

International

+

Transitional

Schools

+

Accelerated progress

CEC TOTAL

=

On Plan through 1

st

Half

Student Lending

Student Lending

Process working well

Process working well

Prudent front-end augmented by ongoing student

Prudent front-end augmented by ongoing student

support to ensure student success

support to ensure student success

$14.5 million in student financing outstanding balances

$14.5 million in student financing outstanding balances

at end of Q2

at end of Q2

Slower ramp than originally anticipated

Slower ramp than originally anticipated

Expect outstanding balances to be <$45 million at

Expect outstanding balances to be <$45 million at

end of 2008

end of 2008

Real Estate Efforts

Real Estate Efforts

Over 7 million square feet of space in global portfolio

Focused on exiting unfavorable leases and Transitional

segment Real estate

1H08

Released or back-filled approximately 90,000 square feet of real estate

2H08

4Q: $5.6M noncash charge Accelerated teach-out of Gibbs

Piscataway

Working to close several more deals to remove Transitional and

excess real estate in the second half of 2008

If successful, would result in additional charges in 2H08

Over 7 million square feet of space in global portfolio

Focused on exiting unfavorable leases and Transitional

segment Real estate

1H08

Released or back-filled approximately 90,000 square feet of real estate

2H08

4Q: $5.6M noncash charge Accelerated teach-out of Gibbs

Piscataway

Working to close several more deals to remove Transitional and

excess real estate in the second half of 2008

If successful, would result in additional charges in 2H08

Right long-term strategy for the business

Summary

Summary

Leverage-able competitive strengths

Leverage-able competitive strengths

Transformation well underway

Transformation well underway

Strategies in place to deliver sustainable earnings

Strategies in place to deliver sustainable earnings

growth

growth

Performance on track in 2008

Performance on track in 2008

GAAP to Non-GAAP Reconciliation

GAAP to Non-GAAP Reconciliation

($ millions)

2005

2006

2007

Net cash provided by operating activities

378

$           

216

$           

222

$           

Less: purchases of property and

equipment

(126)

(69)

(56)

Free Cash Flow

252

$           

147

$           

166

$