8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 19, 2006

LAUREATE EDUCATION, INC.

(Exact name of registrant as specified in its charter)

Maryland	0-22844	52-1492296
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

1001 Fleet Street, Baltimore, Maryland 21202

(Address of principal executive offices)         (ZIP Code)

Registrant’s telephone number, including area code: (410) 843-6100

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2 - Financial Information

Item 2.02 Results of Operations and Financial Condition

On October 19, 2006 the Company issued a press release announcing its financial results for the third quarter and year ended September 30, 2006.  A copy of the release is furnished as Exhibit 99.01 to this Current Report on Form 8-K. The Registrant has posted this Current Report on Form 8-K on its internet website at www.laureate-inc.com.

Section 9 - Financial Statements and Exhibits

Item 9.01Financial Statements and Exhibits

(c) Exhibits

99.01 Press Release issued October 19, 2006.

99.02 Webcast slides for October 19, 2006 presentation.

The information in this Form 8-K and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Exchange Act of 1933, except as shall be expressly set forth by specific reference in such filing.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

LAUREATE EDUCATION, INC.
By:	/s/ Rosemarie Mecca
	Name:Rosemarie Mecca
	Title:  Executive Vice President and Chief Financial Officer

Date: October 19, 2006

Exhibit Index

Exhibit	Description
99.01	Press Release issued October 19, 2006.
99.02	Webcast slides for October 19, 2006.

EX-99.01

Exhibit 99.01

 

FINAL

Laureate Education Contacts:
Rosemarie Mecca	Chris Symanoskie
Chief Financial Officer	Director, Investor Relations
(410) 843-8070	(410) 843-6394

LAUREATE EDUCATION, INC. REPORTS RECORD STUDENT

ENROLLMENT AND THIRD QUARTER 2006 RESULTS

Total Student Enrollment Increases 27% over Prior Year to 240,000 Students

BALTIMORE (October 19, 2006) -- Laureate Education, Inc. (NASDAQ: LAUR), the world’s leading international provider of higher education, announced record financial results for the quarter ended September 30, 2006.

·   Third quarter 2006 revenues increased 35% to $260.9 million, compared to $193.8 million in the third quarter of 2005.

·   Income from continuing operations in the third quarter of 2006 was $9.9 million or $0.19 per diluted share. Excluding the ($0.03) impact of stock option expense, income from continuing operations would have been $0.22 per diluted share, an increase of 29% over the third quarter of 2005. The third quarter 2006 net impact of the previously announced Chilean buy-out, which includes changes in minority interest as well as severance and other non-operating items, was ($0.02) per diluted share. (For details see Reg G Reconciliation in the investor relations section of www.laureate-inc.com).

·   The Company’s campus-based institutions reported third quarter total student enrollment increased 28% to 209,480 students. The primary enrollment season for Laureate’s Northern Hemisphere institutions occurs during the third quarter of the year.

·   Laureate Online Education reported a 10% increase in new student enrollment and a 20% increase in total student enrollment to 31,136 students.

·   Laureate Education closed previously announced transactions to acquire the remaining 20% interest in its Chilean businesses and negotiated all remaining earnout obligations to its former business partner in Chile in exchange for a total settlement of $163 million before any additional deal or related costs.

·   The Company believes that it will achieve earnings of between $1.09 and $1.14 per diluted share for the quarter ending December 31, 2006, excluding ($0.03) to ($0.04) per diluted share impact of SFAS123R. Fourth Quarter 2006 Earnings Outlook including SFAS123R expense is between $1.05 and $1.11 per diluted share.

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·   Laureate Education updates its full-year 2006 earnings outlook of between $2.11 and $2.16 per diluted share, an increase of 28% or more over full-year 2005. This excludes estimated SFAS123R impact of ($0.10) to ($0.12) per diluted share. Full-year 2006 Earnings Outlook including SFAS123R expense is $1.99 to $2.06 per diluted share. The full-year 2006 Outlook includes the one time $0.04 net gain related to the continued liquidation of Sylvan Ventures, as reported in the second quarter of 2006.

·   The Company reiterates its full-year 2007 earnings outlook of between $2.59 and $2.67 per diluted share, an increase of 20% or more over full-year 2006. This excludes estimated stock option expense of ($0.12) to ($0.14) per diluted share. Full-year 2007 Earnings Outlook including SFAS123R expense is $2.45 to $2.55 per diluted share.

Douglas Becker, Chairman and Chief Executive Officer of Laureate Education stated, “The third quarter marks the end of the primary enrollment season for Laureate’s Northern Hemisphere institutions and is our largest intake season of the year. Our strong enrollment growth in this period, coupled with substantial margin improvement in our Laureate Online division, positions us well to achieve our goals for 2006. I am proud of the investments that we continue to make in new campuses, new programs, and especially in the management team. These investments make it possible for us to achieve our ambitious objectives for 2007 and beyond.”

Financial and Other Results

As previously announced, all financial information for the prior year 2005 has been restated to reflect a preferential change in accounting for tuition revenue.

Total revenues for the third quarter of 2006 were $260.9 million, an increase of 35% compared to total revenues of $193.8 million in the third quarter of 2005. Total operating income for the third quarter of 2006 decreased to $13.5 million, versus operating income of $15.4 million in the third quarter of 2005. Income from continuing operations in the third quarter of 2006 was $9.9 million or $0.19 per diluted share.

Excluding the ($0.03) impact of stock option expense, income from continuing operations would have been $0.22 per diluted share, an increase of 29% over the third quarter of 2005. The third quarter 2006 net impact of the previously announced Chilean buy-out, which includes changes in minority interest as well as severance and other non-operating items, was ($0.02) per diluted share. (For details see Reg G Reconciliation in the investor relations section of www.laureate-inc.com).

For the nine-month period ended September 30, 2006, total revenues were $799.1 million, an increase of 33% compared to total revenues of $599.4 million in the same period of 2005. Total operating income for the nine-month period increased to $70.5 million, versus operating income of $61.8 million in the same period of 2005. Income from continuing operations for the nine-month period ended September 30, 2006 was $49.8 million or $0.94 per diluted share, an increase of 19% over the same period of 2005.

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Total cash and marketable securities at September 30, 2006 were $173.6 million, while total company debt was $463.9 million.

Laureate Education closed previously announced transactions to acquire the remaining 20% interest in its Chilean businesses and negotiated all remaining earnout obligations to its former business partner in Chile in exchange for a total settlement of $163 million before any additional deal or related costs.

In the South America region, total student enrollment in the third quarter 2005, previously reported as 69,997 students, has been revised to 66,668 students to reflect student attrition and graduations at 3 campuses which had been incorrectly reported.

Laureate Education operates 25 institutions of higher education in 15 countries, offering academic programs to 240,616 students through 58 campuses and online.

Management Appointments

As part of Laureate’s continuing efforts to develop and recruit exceptional executive talent for its rapidly growing network of universities, the Company announced several appointments:

•   Jorge Brake has been hired as President and CEO of Laureate Education’s Mexico and Central America Region. Mr. Brake brings extensive management, marketing and product development experience to Laureate, having served as President and CEO of Procter & Gamble in Mexico and Central America.

•   Gary Wojtaszek has been hired Senior Vice President - Treasurer for Laureate Education. Mr. Wojtaszek was previously Vice President of Finance and Principal Accounting Officer of Agere Systems, a global semi-conductor manufacturer with operations throughout North America, Europe and Asia.

•   Cristina O’Naghten, CPA, has been hired as Vice President of Internal Audit for Laureate Education. Mrs. O’Naghten brings over 20 years of financial and audit experience to Laureate, having recently served as General Motors Corporation’s Audit Services Director for Latin America, Africa, and Middle East Region.

•   Anthony Viola, CPA, has been hired as Senior Vice President of Tax for Laureate Education. Mr. Viola most recently served as the Vice President of Taxes for Sodexho, a $6.5 billion management services subsidiary of Sodexho Alliance.

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Revenue Growth - Organic and Acquisition

For three months ended September 30^th

					% Growth
	Revenue				Amount			Constant
(In Thousands)	2006		2005		in USD			Currency
Mexico/Central America(1)	$	74,809	$	59,997		25	%		27	%
South America(2)		75,423		65,422		15	%		13	%
Europe		30,181		22,572		34	%		31	%
Online		59,843		45,809		31	%		31	%
Subtotal		240,256		193,800		24	%
Acquisitions(3)		20,650		-
Total	$	260,906	$	193,800		35	%

⁽¹⁾ Mexico/Central America includes Mexico, Costa Rica, Honduras and Panama.

⁽²⁾ South America includes Chile, Ecuador and Peru.

⁽³⁾ Acquisitions include: Cyprus College and Anhembi Morumbi (Brazil).

Revenue Growth - Organic and Acquisition

For nine months ended September 30^th

					% Growth
	Revenue				Amount			Constant
(In Thousands)	2006		2005		in USD			Currency
Mexico/Central America(1)	$	215,957	$	175,550		23	%		22	%
South America(2)		197,921		163,992		21	%		14	%
Europe		138,557		129,056		7	%		10	%
Online		167,566		130,848		28	%		28	%
Subtotal		720,001		599,446		20	%
Acquisitions(3)		79,134		-
Total	$	799,135	$	599,446		33	%

⁽¹⁾ Mexico/Central America includes Mexico, Costa Rica, Honduras (Q3 2005 and Q3 2006), and Panama.

⁽²⁾ South America includes Chile, Ecuador and Peru.

⁽³⁾ Acquisitions include: Honduras (Q1and Q2 2006), Cyprus College and Anhembi Morumbi (Brazil).

Student Enrollment

As of October 18, 2006

New Student Enrollment(1)	2006		2005			% Change
Mexico/Central America		44,436		35,674			25	%
South America		29,984		28,863			4	%
Europe		6,431		5,818			11	%
Total Campus Based		80,851		70,355			15	%
Total New Student Enrollment
at Acquired Schools(3)		8,972		--
Subtotal		89,823		70,355			28	%
Online		18,735		16,994			10	%
Total New Student Enrollment
with Acquisitions		108,558		87,349			24	%
Total Student Enrollment(2)		2006		2005
Mexico/Central America		94,246		82,305			15	%
South America		74,601		66,668	(4)		12	%
Europe		15,932		14,732			8	%
Total Campus Based		184,779		163,705			13	%
Total Student Enrollment
at Acquired Schools(3)		24,701		--
Subtotal		209,480		163,705			28	%
Online		31,136		26,023			20	%
Total Student Enrollment
with Acquisitions		240,616		189,728			27	%

⁽¹⁾ New Student Enrollment is YTD, reported as of 10/18/2006 and 10/19/2005, respectively.

⁽²⁾ Total Student Enrollment is census, reported as of 10/18/2006 and 10/19/2005, respectively.

⁽³⁾ Acquisitions (less than 1 year) include the following: Cyprus College and Anhembi Morumbi (Brazil).

⁽⁴⁾ Student enrollment in 2005 is revised to reflect attrition and graduations at 3 campuses which had been incorrectly reported.

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Financial Outlook

The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially.

Fourth Quarter 2006:

·   For its campus-based and online businesses, Laureate Education anticipates total revenue of $315 to $340 million for the fourth quarter 2006.

·   The Company anticipates Campus-Based revenue of $250 to $270 million for the fourth quarter 2006, with operating margins between 28% and 29%. Latin America revenue is expected to be between $185 and $200 million with operating margins of 31% to 32%. Europe revenue is expected to be between $65 and $70 million with operating margins of 28% to 29%. General and administrative expenses for the Campus-Based division are expected to be approximately $5 million.

· The Company anticipates Online revenue of $65 to $70 million for the fourth quarter 2006, with operating margins between 28% and 29%.

·   Corporate general and administrative expenses are expected to be approximately $15 million in the fourth quarter 2006.

·   The Company currently believes that it will achieve earnings of between $1.09 and $1.14 per diluted share for the fourth quarter 2006, excluding estimated stock option expense of ($0.03) to ($0.04) per diluted share. Fourth Quarter 2006 Earnings Outlook including SFAS123R expense is between $1.05 and $1.11 per diluted share.

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·   Fully-diluted weighted average shares outstanding is expected to be approximately 53.3 million for the quarter ending December 31, 2006.

Full-Year 2006:

·   Laureate Education updates its full-year 2006 earnings outlook of between $2.11 and $2.16 per diluted share, an increase of 28% or more over full-year 2005. This excludes estimated SFAS123R impact of ($0.10) to ($0.12) per diluted share. Full-year 2006 Earnings Outlook including SFAS123R expense is $1.99 to $2.06 per diluted share. The full-year 2006 Outlook includes the one time $0.04 net gain related to the continued liquidation of Sylvan Ventures, as reported in the second quarter of 2006.

Full-Year 2007:

·   The Company reiterates its full-year 2007 earnings outlook of between $2.59 and $2.67 per diluted share, an increase of 20% or more over full-year 2006. This excludes estimated stock option expense of ($0.12) to ($0.14) per diluted share. Full-year 2007 Earnings Outlook including SFAS123R expense is $2.45 to $2.55 per diluted share.

Presentation materials for today’s conference call with the financial community will be available to listeners through the investor relations section of the Company's website, www.laureate-inc.com. The live webcast of Laureate’s third quarter conference call will be broadcast at 5:00 p.m. eastern time today.

About Laureate Education, Inc.

Laureate Education, Inc. (NASDAQ: LAUR) is focused on providing a superior university experience to over 240,000 students through the leading global network of accredited campus-based and online universities. Addressing the rapidly growing global demand for higher education, Laureate offers a broad range of career-oriented undergraduate and graduate programs through campus-based universities located in Latin America, Europe, and Asia. Through online universities, Laureate offers the growing population of non-traditional, working-adult students the convenience and flexibility of distance learning to pursue undergraduate, master's and doctorate degree programs in major career fields including engineering, education, business, and healthcare. For more information, please visit our website, www.laureate-inc.com.

Forward-Looking Statements

This release includes information that could constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements may involve risk and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, the Company’s actual results could differ materially from those described in the forward-looking statements.

The following factors might cause such a difference:

·   The Company’s operations can be materially affected by competition in its target markets and by overall market conditions, among other factors.

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·   The Company’s foreign operations, in particular, are subject to political, economic, legal, regulatory and currency-related risks.

Additional information regarding these risk factors and uncertainties is detailed from time to time in the Company’s filings with the Securities and Exchange Commission, including but not limited to our most recent Forms 10-K/A and 10-Q, available for viewing on our website. (To access this information on our website, www.laureate-inc.com, please click on “Investor Relations”, “SEC Filings”).

###

7

Laureate Education, Inc. & Subsidiaries
Consolidated Statements of Operations
(Amounts in thousands, except per share data)
	Three Months Ended September 30,
	2006			2005			$ Variance			% Variance
Revenues				(restated)
Mexico/Central America (a)	$	74,809		$	59,997		$	14,812			25	%
South America (b)		94,419			65,422			28,997			44	%
Campus Based - Latin America		169,228			125,419			43,809			35	%
Mediterranean Region (c)		7,548			3,086			4,462			145	%
Hospitality		17,393			14,178			3,215			23	%
France		6,894			5,308			1,586			30	%
Campus Based - Europe		31,835			22,572			9,263			41	%
Campus Based Total		201,063			147,991			53,072			36	%
Laureate Online Education		59,843			45,809			14,034			31	%
Total revenues		260,906			193,800			67,106			35	%
Core operating expenses		236,250			170,214			66,036			39	%
General and administrative expenses		11,154			8,145			3,009			37	%
Total operating expenses		247,404			178,359			69,045			39	%
Operating income		13,502			15,441			(1,939	)		-13	%
Non-operating items
Interest and other income		4,527			2,876			1,651			57	%
Interest expense		(4,886	)		(2,611	)		(2,275	)		-87	%
Foreign exchange gain (loss)		854			(90	)		944			N/A
Total non-operating items		495			175			320			183	%
Income from continuing operations before
minority interest, equity in net income (loss)
of affiliates, and income taxes		13,997			15,616			(1,619	)		-10	%
Minority interest in income of consolidated subsidiaries,
net of income tax		(3,359	)		(4,634	)		1,275			28	%
Equity in net loss of affiliates, net of income tax		(163	)		(166	)		3			2	%
Income tax expense		(591	)		(1,749	)		1,158			66	%
Income from continuing operations		9,884			9,067			817			9	%
Loss from discontinued operations, net of income tax (d)		(113	)		(229	)		116			51	%
Gain on disposal of discontinued operations, net of income tax		2,217			-			2,217			N/A
Net income	$	11,988		$	8,838		$	3,150			36	%
Weighted average shares (basic)		51,522			49,801
Weighted average shares (diluted)		53,124			52,073
EPS-Net income (basic)	$	0.23		$	0.18
EPS-Net income (diluted)	$	0.23		$	0.17
EPS- Income from continuing operations (basic)	$	0.19		$	0.18
EPS- Income from continuing operations (diluted)	$	0.19		$	0.17
Segment operating profit (loss):
Campus Based - Latin America	$	30,348		$	29,416		$	932			3	%
Campus Based - Europe		(12,013	)		(6,981	)		(5,032	)		-72	%
Campus Based - Overhead		(5,998	)		(5,861	)		(137	)		-2	%
Campus Based - Total	$	12,337		$	16,574		$	(4,237	)		-26	%
Laureate Online	$	12,319		$	7,012		$	5,307			76	%

a)	Mexico/Central America includes Mexico, Costa Rica, Panama and Honduras.
b)	South America includes Chile, Brazil, Ecuador and Peru.
c)	The Mediterranean Region includes Spain and Cyprus.
d)	The 2006 and 2005 operating results present the WSI and India business units as well as a nonstrategic European business as discontinued operations.
GT = Greater Than, LT = Less Than

	Nine Months Ended September 30,
	2006			2005			$ Variance			% Variance
Revenues				(restated)
Mexico/Central America (a)	$	221,766		$	175,550		$	46,216			26	%
South America (b)		260,768			163,992			96,776			59	%
Campus Based - Latin America		482,534			339,542			142,992			42	%
Mediterranean Region (c)		73,357			60,150			13,207			22	%
Hospitality		45,076			39,549			5,527			14	%
France		30,602			29,357			1,245			4	%
Campus Based - Europe		149,035			129,056			19,979			15	%
Campus Based Total		631,569			468,598			162,971			35	%
Laureate Online Education		167,566			130,848			36,718			28	%
Total revenues		799,135			599,446			199,689			33	%
Core operating expenses		696,200			517,020			179,180			35	%
General and administrative expenses		32,425			20,641			11,784			57	%
Total operating expenses		728,625			537,661			190,964			36	%
Operating income		70,510			61,785			8,725			14	%
Non-operating items
Gain on sale of Chancery Software, Ltd.		9,322			-			9,322			N/A
Interest and other income		12,531			8,565			3,966			46	%
Interest expense		(11,634	)		(7,687	)		(3,947	)		-51	%
Foreign exchange income (loss)		540			(777	)		1,317			N/A
Total non-operating items		10,759			101			10,658			GT 200	%
Income from continuing operations before
minority interest, equity in net income (loss)
of affiliates, and income taxes		81,269			61,886			19,383			31	%
Minority interest in income of consolidated subsidiaries,
net of income tax		(18,161	)		(12,880	)		(5,281	)		-41	%
Equity in net loss of affiliates, net of income tax		(374	)		(370	)		(4	)		-1	%
Income tax expense		(12,958	)		(6,931	)		(6,027	)		-87	%
Income from continuing operations		49,776			41,705			8,071			19	%
(Loss) Income from discontinued operations, net of income tax (d)		(1,786	)		386			(2,172	)		N/A
Income (Loss) on disposal of discontinued operations, net of income tax		1,296			(9,751	)		11,047			N/A
Net income	$	49,286		$	32,340		$	16,946			52	%
Weighted average shares (basic)		51,134			49,539
Weighted average shares (diluted)		52,963			51,948
EPS-Net income (basic)	$	0.96		$	0.65
EPS-Net income (diluted)	$	0.93		$	0.62
EPS- Income from continuing operations (basic)	$	0.97		$	0.84
EPS- Income from continuing operations (diluted)	$	0.94		$	0.80
Segment operating profit (loss):
Campus Based - Latin America	$	87,101		$	70,691		$	16,410			23	%
Campus Based - Europe		7,622			10,073			(2,451	)		-24	%
Campus Based - Overhead		(16,573	)		(11,859	)		(4,714	)		-40	%
Campus Based - Total	$	78,150		$	68,905		$	9,245			13	%
Laureate Online	$	24,785		$	13,521		$	11,264			83	%

a)	Mexico/Central America includes Mexico, Costa Rica, Panama and Honduras.
b)	South America includes Chile, Brazil, Ecuador and Peru.
c)	The Mediterranean Region includes Spain and Cyprus.
d)	The 2006 and 2005 operating results present the WSI and India business units as well as a nonstrategic European business as discontinued operations.
GT = Greater Than, LT = Less Than

EX-99.02

Exhibit 99.02

Laureate Education, Imc. Earnings Conference Call and Webcast Third Quarter 2006 October 19, 2006

Safe Harbor Statement This presentation includes information that could constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements may involve risk and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, the Company’s actual results could differ materially from those described in the forward-looking statements: The following factors might cause such a difference: • The Company’s operations can be materially affected by competition in its target markets and by overall market conditions, among other factors. • The Company’s foreign operations, in particular, are subject to political, economic, legal, regulatory and currency-related risks. Additional information regarding these risk factors and uncertainties is detailed from time to time in the Company’s filings with the Securities and Exchange Commission, including but not limited to our most recent Forms 10-K/A and 10-Q, available for viewing on our website. (To access this information on our website, please click on “Investor Relations,” “SEC Filings”).

Robust Growth Driven by Strong Student Enrollment New Student Enrollment is YTD, reported as of 10/18/2006 and 10/19/2005, respectively. Total Student Enrollment is census, reported as of 10/18/2006 and 10/19/2005, respectively. Acquisitions (less than 1 year) include the following: Cyprus College and Anhembi Morumbi (Brazil). • Total revenue increased 35% to $260.9 million • Laureate reported EPS of $0.19 in the third quarter 2006 - Excluding stock option expense, EPS would have been $0.22, an increase of 29% over the same period of 2005. • Over 240,000 Students Enrolled Worldwide - New Enrollment Growth: 24% (14% excluding acquisitions) - Total Enrollment Growth: 27% (14% excluding acquisitions) • Campus-Based Growth: - New Enrollment: 28% (15% excluding acquisitions) - Total Enrollment: 28% (13% excluding acquisitions) • Latin America Expansion Continues - Mexico/Central America as growth leader with 25% new student enrollment growth • Increased New Enrollment Growth in Europe - Improvement led by Les Roches & Glion in Switzerland, as well as UEM in Spain

Third Quarter Highlights Support Long-Term Plan • Online Growth: - New Enrollment: 10% - Total Enrollment: 20% • Online Growth, Conversion Rate and Student Retention Show Continued Strength - Diversification of online marketing channels continues as expected - Strong third quarter online margin improvement supports expected full year margin improvement of approximately 300 bps - International Online expansion continues • Concluded Purchase of Remaining 20% Interest in Chilean Businesses - Pursuing additional opportunities for growth and improved returns - Transition plan in place

Recent Management Additions • Jorge Brake has been hired as President and CEO of Laureate Education’s Mexico and Central America Region. Mr. Brake brings extensive management, marketing and product development experience to Laureate, having served as President and CEO of Procter & Gamble in Mexico and Central America. • Gary Wojtaszek has been hired Senior Vice President - Treasurer for Laureate Education. Mr. Wojtaszek was previously Vice President of Finance and Principal Accounting Officer of Agere Systems, a global semi-conductor manufacturer with operations throughout North America, Europe and Asia with responsibilities for the treasury, controllership and tax functions. • Cristina O’Naghten, CPA, has been hired as Vice President of Internal Audit for Laureate Education. Mrs. O’Naghten brings over 20 years of financial and audit experience to Laureate, having recently served as Audit Services Director for Latin America, Africa, and Middle East Region of General Motors Corporation. • Anthony Viola, CPA, has been hired as Senior Vice President of Tax for Laureate Education. Mr. Viola most recently served as the Vice President of Taxes for Sodexho, a $6.5 billion management services subsidiary of Sodexho Alliance.

Fundamentals of 2006 EPS Guidance 14%-16% Campus-Based total enrollment growth (excluding acquisitions) 20%+ Online total enrollment growth 4%-5% Price improvement Campus maturation (58 Campuses Worldwide) Campus Life-Cycle: • Performing: 25 • Developing: 25 • New: 8 Online margin improvement Fundamentals of 2006 EPS Guidance Company Updates Full-Year 2006 Outlook; Reiterates 2007 Earnings Outlook

Strategy and Objectives in 2006 & 2007 • Expand Utilization and Capacity at Existing Campuses • Add 3-4 New Campuses in Existing Countries (includes build v. buy) • Further Acquisitions in Brazil • China Entry Strategy • 1-2 New Countries • Online Initiatives - New programs - Continued margin expansion - International online

Laureate Education, Inc. Latin America Update

Consistent Execution of Strategy in Latin America • 2006 New enrollments total 82,000, an increase of 28% over 2005 • Total enrollment now at 190,000 students in Latin America • Mexico/Central America: - New Enrollment: 25% - Total Enrollment: 15% • South America: - New Enrollment: 32% (4% excluding acquisitions) - Total Enrollment: 43% (12% excluding acquisitions) • Traditional Universities in South America (excluding AIEP technical institute) have added nearly 25,000 new students (8%) to a total of 63,000 (13%) • In S. America, total student enrollment in the third quarter 2005 has been revised to reflect student attrition and graduations at 3 campuses which had been incorrectly reported. (Previously reported as 69,997 students, revised to 66,668 students) • Mexico/Central America increases new student enrollment by 25% - Opened 5 new campuses in 2006; over 20 potential new cities remain

Consistent Execution of Strategy in Latin America • Continued Progress with Working Adult Segment - Working adult students (students age 25+) experience high growth rates • Preparations at Anhembi Morumbi, in Brazil - Enrollment campaign underway for February intake

Laureate Education, Inc. Financial Overview

Strong Third Quarter 2006 Financial Results • Third quarter 2006 diluted earnings per share: • Total Revenue increased 35% to $260.9 million - Campus Based revenue increased 36% (Latin America 35%, Europe 41%) - Online revenue increased 31% • Operating income decreased $1.9 million - Chilean severance - Cyprus impact on seasonality - Stock option expense (“123R”) Adjusted for the above, operating income would have increased 37% y-o-y • Consistent with 2006 Full Year EPS Outlook $0.19 Income from Continuing Operations (as reported) $0.03 Stock Options Expense (SFAS123R) $0.02 Net Chilean Buyout Impact Strong Third Quarter 2006 Financial Results $0.24 Adjusted EPS, an increase of 41% compared to restated $0.17 third quarter 2005

Margin Analysis 3Q '06 Chile Brazil Cyprus 3Q '06 Reported FAS 123R Severance Impact Impact Underlying LATIN AMERICA 17.9% 0.1% 2.2% 2.1% 22.3% EUROPE -37.7% 0.4% 5.5% -31.8%

Strong Third Quarter 2006 Financial Position • Total cash and marketable securities $173.6 million • Total company debt $463.9 million - Company intends to expand current revolving credit facility to $350 million • Cash flow from operations was $134 million (YTD) • Depreciation and amortization expense was $46 million (YTD) • Capital expenditures were $143 million (YTD)

2006 Financial Outlook 4Q2006 Updated FY2006 FY2006 (issued Feb ‘06) Revenue Campus-Based Revenue: $250 - $270 $880 - $900 $845 - $900 Online Revenue: $65 - $70 $230 - $235 $235 - $250 Total Revenue: $315 - $340 $1,110 - $1,135 $1,080 - $1,150 Operating Margin Campus-Based: 28% - 29% 17% - 18% 19% - 20% Online: 28% - 29 % 18% - 19% 17% - 18% Total: 23% - 24% 13% - 14% 15% -16% Corporate G&A Expense: ~$15 ~$46 $38 - $42 Excludes stock option expense Minority Interest (% of campus EBIT) 13%-15% 17%-18% 20%-23% Diluted Earnings Per Share(2): $1.09 - $1.14 $2.11 - $2.16(1) $2.05 - $2.15 Excludes Effect of SFAS123(R): ($0.03)-($0.04) ($0.10)-($0.12) ($0.10)-($0.12) Diluted EPS, incl. SFAS123R: $1.05 - $1.11 $1.99 - $2.06 $1.93 - $2.05 2006 Financial Outlook (1) The full-year 2006 Outlook includes the one time $0.04 net gain related to the continued liquidation of Sylvan Ventures, as reported in the second quarter of 2006. (2) Earnings Per Share Outlook excludes stock options expense. Fully-diluted weighted average shares outstanding are expected to be 53.3 million for the fourth quarter 2006.

Laureate Reiterates 2007 Financial Outlook 2007 Growth Leaders: • Online Higher Education • Mexico/Central America • Brazil (1) Margin improvement (operating income) includes Corporate G&A. Revenue: $1.275 - $1.375 Billion • 13%-15% Total Enrollment Growth Margin Improvement(1) : 50 - 100 bps • Campus-based operational leverage • Excludes stock option expense 2007 Earnings Per Share: $2.59 - $2.67 • An increase of 20% or more over 2006 Outlook • SFAS123R stock options expense of ($0.12) to ($0.14) • GAAP Outlook: $2.45 to $2.55

Laureate Education, Inc. Questions & Answers