Exhibit 99.1

	Apollo Group, Inc.
	News Release

APOLLO GROUP, INC. REPORTS FISCAL 2005

THIRD QUARTER RESULTS

     Phoenix, Arizona, June 28, 2005 — Apollo Group, Inc. (Nasdaq:APOL) today reported fiscal 2005 financial results for the third quarter ended May 31, 2005.

     Net income attributed to Apollo Education Group common stock for the three months ended May 31, 2005, was $141.8 million, or $.77 per diluted share, compared to $101.1 million, or $.56 per diluted share reported for the same period last year.

     Net income attributed to Apollo Education Group common stock for the nine months ended May 31, 2005, was $338.5 million, or $1.81 per diluted share, compared to $242.5 million, or $1.35 per diluted share reported for the same period last year.

     Todd S. Nelson, Chairman and CEO, said, “We are pleased to announce another strong quarter of results. We continue to see strong trends in enrollment both in our Online and on ground campuses. We are also pleased this quarter with our new campus expansion efforts. In addition to opening a new campus in Calgary, Alberta, we also received approval to operate in Connecticut, Nebraska, and Washington, D.C.”

     Total consolidated revenues for Apollo Group, Inc. for the three months ended May 31, 2005, rose 24.6% to $619.0 million, compared with $497.0 million in the third quarter of fiscal 2004. The University of Phoenix accounted for 88.7% of the $576.6 million in net tuition revenues from students enrolled in degree programs for the quarter ended May 31, 2005.

     Total consolidated revenues for Apollo Group, Inc. for the nine months ended May 31, 2005, rose 27.1% to $1.660 billion, compared with $1.306 billion in the same period last year. The University of Phoenix accounted for 91.1% of the $1.538 billion in net tuition revenues from students enrolled in degree programs for the nine months ended May 31, 2005.

     Consolidated net income for Apollo Group, Inc. for the three months ended May 31, 2005, increased 29.7% to $141.8 million, compared to $109.3 million for the same period last year.

     Consolidated net income for Apollo Group, Inc. for the nine months ended May 31, 2005, increased 29.1% to $338.5 million, compared to $262.1 million for the same period last year.

     Consolidated degree enrollments for all of the Apollo Group, Inc. institutions at May 31, 2005, increased by 23% to 295,500 students compared to 239,300 students at May 31, 2004. Online degree enrollments at May 31, 2005, increased by 41% to 154,500 students compared to 109,800 students at May 31, 2004. Enrollments at onground campuses at May 31, 2005, increased by 9% to 141,000 students compared to 129,500 students at May 31, 2004.

~continued~

Business Outlook

     Apollo Group, Inc.

• We expect revenue for the quarter ending August 31, 2005, to be between $605 million and $620 million.

• Operating margin is expected to be between 32.5% and 33.0% for the quarter ending August 31, 2005.

Excluding non-cash stock-based compensation charges related to the conversion in 2004 of University of Phoenix Online stock options into Apollo Education Group Class A stock options anticipated to occur when the options vest in the fourth quarter of fiscal 2005, diluted earnings per share are expected to be $.67 for the quarter ending August 31, 2005, and $2.48 for fiscal 2005.

        The company will hold a conference call to discuss these earnings results at 11:00 AM Eastern time, 8:00 AM Phoenix time, on Tuesday, June 28, 2005. The call may be accessed by dialing (877) 292-6888 (domestic) or (706) 634-1393 (internationally). The conference ID number is 6290194. A live webcast of this event may be accessed by visiting the company website at: www.apollogrp.edu. A replay of the call will be available on our website or at (706) 645-9291 (conf. ID #6290194) until July 8, 2005.

        Apollo Group, Inc. has been providing higher education programs to working adults for over 25 years. Apollo Group, Inc., operates through its subsidiaries: The University of Phoenix, Inc., Institute for Professional Development, The College for Financial Planning Institutes Corporation, and Western International University, Inc. The consolidated enrollment in its educational programs makes it the largest private institution of higher education in the United States. It offers educational programs and services at 90 campuses and 150 learning centers in 39 states, Puerto Rico, Calgary, and Vancouver.

        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.

~continued~

     This press release includes statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). Apollo Group, Inc. claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act. These forward-looking statements are often characterized by the terms “may,” “believes,” “projects,” “expects,” or “anticipates,” and do not reflect historical facts. Specific forward-looking statements contained in this press release relate, among other matters, to the business outlook of Apollo Group, Inc.

     Forward-looking statements involve risks, uncertainties, and other factors which may cause actual results, performance, or achievements of Apollo Group, Inc. to be materially different from those expressed or implied by such forward-looking statements. Factors that could affect Apollo Group, Inc.’s results and cause them to materially differ from those contained in the forward-looking statements include, without limitation:

• the failure to maintain or renew required regulatory approvals, accreditation, or state authorizations;

• the failure to obtain authorizations from states in which University of Phoenix does not currently provide degree programs;

• the failure to obtain the Higher Learning Commission’s approval for University of Phoenix to operate in new states;

• our ability to continue to attract and retain students;

• our ability to successfully manage economic conditions, including stock market volatility;

• risk factors and cautionary statements made in Apollo Group, Inc.’s Annual Report on Form 10-K for the period ended August 31, 2004; and

• other factors that Apollo Group, Inc. is currently unable to identify or quantify, but may arise or become known in the future.

     These forward-looking statements are based on estimates, projections, beliefs, and assumptions of Apollo Group, Inc. and its management and speak only as of the date made and are not guarantees of future performance. Apollo Group, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, or any facts, events, or circumstances after the date hereof that may bear upon forward-looking statements. You are advised, however, to consult any further disclosures Apollo Group, Inc. makes in its reports filed with the Securities and Exchange Commission.

-Table to Follow-

APOLLO GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	For the Three Months Ended				For the Nine Months Ended
	May 31,				May 31,
	2005		2004		2005		2004
(In thousands, except per share amounts)
Revenues:
Tuition and other, net	$	619,011	$	496,999	$	1,659,630	$	1,305,670
Costs and expenses:
Instructional costs and services		243,232		196,026		682,284		552,017
Selling and promotional		118,153		103,287		359,754		272,316
General and administrative		29,323		22,849		74,010		63,544
		390,708		322,162		1,116,048		887,877
Income from operations		228,303		174,837		543,582		417,793
Interest income and other, net		3,984		4,886		12,401		13,617
Income before income taxes		232,287		179,723		555,983		431,410
Provision for income taxes		90,449		70,387		217,500		169,300
Net income	$	141,838	$	109,336	$	338,483	$	262,110
Income attributed to:
Apollo Education Group common stock	$	141,838	$	101,103	$	338,483	$	242,502
University of Phoenix Online common stock			$	8,233			$	19,608
Earnings per share attributed to:
Apollo Education Group common stock:
Diluted income per share	$	0.77	$	0.56	$	1.81	$	1.35
Diluted weighted average shares outstanding		184,322		179,360		187,053		179,004
University of Phoenix Online common stock:
Diluted income per share			$	0.48			$	1.14
Diluted weighted average shares outstanding				17,226				17,187

~continued~

APOLLO GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

	May 31,			August 31,
	2005			2004
(Dollars in thousands)
Assets:
Current assets
Cash and cash equivalents	$	68,775		$	156,669
Restricted cash		240,483			78,413
Auction-rate securities—restricted					106,050
Marketable securities		248,881			336,193
Receivables, net		180,916			146,497
Deferred tax assets, net		12,541			10,020
Other current assets		21,783			20,842
Total current assets		773,379			854,684
Property and equipment, net		257,740			212,205
Marketable securities		137,113			316,743
Cost in excess of fair value of assets purchased, net		37,096			37,096
Deferred tax assets, net		27,900			47,520
Other assets		28,169			26,853
Total assets	$	1,261,397		$	1,495,101
Liabilities and Shareholders’ Equity:
Current liabilities
Current portion of long-term liabilities	$	16,101		$	14,218
Accounts payable		41,893			50,895
Accrued liabilities		51,254			69,481
Income taxes payable		41,802			11,856
Student deposits and current portion of deferred revenue		364,233			323,332
Total current liabilities		515,283			469,782
Deferred tuition revenue, less current portion		460			528
Long-term liabilities, less current portion		77,709			67,650
Total liabilities		593,452			537,960
Commitments and contingencies
Shareholders’ equity
Preferred stock, no par value, 1,000,000 shares authorized; none issued
Apollo Education Group Class A nonvoting common stock, no par value, 400,000,000 shares authorized; 188,002,000 and 187,567,000 issued at May 31, 2005 and August 31, 2004, respectively, and 180,071,000 and 187,567,000 outstanding at May 31, 2005 and August 31, 2004, respectively		103			103
Apollo Education Group Class B voting common stock, no par value, 3,000,000 shares authorized; 477,000 issued and outstanding at May 31, 2005 and August 31, 2004		1			1
Additional paid-in capital					28,787
Apollo Education Group Class A treasury stock, at cost, 7,931,000 shares at May 31, 2005		(580,058	)
Retained earnings		1,248,728			928,815
Accumulated other comprehensive loss		(829	)		(565	)
Total shareholders’ equity		667,945			957,141
Total liabilities and shareholders’ equity	$	1,261,397		$	1,495,101

~continued~

APOLLO GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	For the Nine Months Ended
	May 31,
	2005			2004
(In thousands)
Cash flows provided by (used for) operating activities:
Net income	$	338,483		$	262,110
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		39,157			32,511
Amortization of investment premiums		3,023			4,640
Provision for uncollectible accounts		30,180			19,490
Deferred income taxes		17,099			(5,286	)
Tax benefits of stock options exercised		28,266			36,337
Cash received for tenant improvements		1,263			1,433
Non-cash early occupancy expense		2,877
Changes in assets and liabilities
Restricted cash		(162,070	)		(5,862	)
Receivables		(64,599	)		(32,020	)
Other assets		(3,181	)		(5,032	)
Accounts payable and accrued liabilities		(26,023	)		24,159
Income taxes		29,946			27,362
Student deposits and deferred revenue		42,247			50,239
Other liabilities		3,879			2,744
Net cash provided by operating activities		280,547			412,825
Cash flows provided by (used for) investing activities:
Net additions to property and equipment		(80,755	)		(53,088	)
Purchase of land and buildings related to future Online expansion					(32,080	)
Purchase of marketable securities		(39,211	)		(807,535	)
Maturities of marketable securities		303,130			499,013
Purchase of auction-rate securities—restricted		(46,000	)		(55,715	)
Maturities of auction-rate securities—restricted		152,050			30,660
Purchase of other assets		(1,710	)		(1,847	)
Net cash provided by (used for) investing activities		287,504			(420,592	)
Cash flows provided by (used for) financing activities:
Purchase of Apollo Education Group Class A common stock		(698,851	)		(43,036	)
Issuance of Apollo Education Group Class A common stock		43,170			32,655
Purchase of University of Phoenix Online common stock					(32,682	)
Issuance of University of Phoenix Online common stock					13,249
Net cash used for financing activities		(655,681	)		(29,814	)
Currency translation loss		(264	)		(69	)
Net decrease in cash and cash equivalents		(87,894	)		(37,650	)
Cash and cash equivalents at beginning of period		156,669			52,383
Cash and cash equivalents at end of period	$	68,775		$	14,733
Supplemental disclosure of non-cash investing activities
Tenant improvement allowances	$	12,576		$	14,627

This press release includes statements which may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. This information may involve risk and uncertainties that could cause actual results to differ materially from the forward-looking statements.

Company Contact: Kenda B. Gonzales, CFO ~ (800) 990-APOL ~ kenda.gonzales@apollogrp.edu
Investor Relations Contact: Janess Pasinski ~ Apollo Group, Inc. ~ (800) 990-APOL, option 6 ~ janess@apollogrp.edu
Press Contact: Ayla Dickey ~ Apollo Group, Inc. ~ (480) 557-2952 ~ ayla.dickey@apollogrp.edu