Career Education Corporation Announces Favorable Decision for Brooks Institute of Photography; Judge Invalidates Actions of California Bureau

"We are gratified that the judge thoughtfully addressed thismatter and came to what we believe is the appropriate conclusion basedupon the evidence," said Dr. Greg Strick, President of BrooksInstitute. "But more importantly, we hope that this will expediteresolution of the matter. We have always cooperated with the Bureau,despite its actions against us, and our students, faculty andadministration will continue to do so. We have only wanted to beheard, to be treated fairly and to exercise our rights in the reviewprocess."

In a 16-page, considered opinion, Judge Julie Cabos-Owen of theOffice of Administrative Hearings found that the Bureau failed tofollow the California Education Code and its own regulations. "(T)heBureau violated the mandates of the statutes under which it wasproceeding," the judge held. "(T)he Bureau also ignored regulationswhich govern the duties of a visiting committee and an institution'sright to challenge the composition of the committee," the judge said,"further circumventing procedural safeguards built into thequalitative review process."

The Department of Consumer Affairs, which oversees the Bureau,notified Brooks Institute that it has not adopted Judge Cabos-Owen'sruling and has requested additional briefing before deciding whetherto adopt, reject, or change the administrative law decision.

"I am hopeful that in the interests of our school, our students,and the taxpayers of this state, the Department of Consumer Affairswill review the extensive record in this matter, along with thejudge's detailed and considered opinion setting forth the basis forher legal conclusions, and adopt the opinion in its entirety," saidDr. Strick. "We will continue to be governed by the Bureau, and wewelcome the opportunity to demonstrate to them the high quality of oureducational programs, the exceptional student experience at ourschool, and the contributions we make to our local communities as wellas to the fields of visual arts throughout the world."

The Brooks Institute of Photography has just celebrated its 60thyear educating students in the visual media. With a campus in SantaBarbara, California and a campus in Ventura with two sound stages forfilmmaking, the school has over 2200 students pursuing Masters,Bachelors, Associates and diploma programs in fields such asphotography, film and video production, visual communications andvisual journalism. Graduates have gone on to work for distinguishedorganizations, such as National Geographic, Smithsonian, the LosAngeles Times and other national media outlets, Hallmark Publishing,Cousteau Society, HBO, Kodak and literally scores of other leaders invisual media fields.

"Our students and alumni have always been outstanding," said Dr.Strick. "Many have garnered high acclaim and won national andinternational awards for their exceptional work; and many have shapedthe future of the photography industry through their use of newtechniques and technologies. Many have made a difference in otherways, as well--by giving to their communities through theirphotography, film or video abilities. We are proud of our legacy andlook forward to another 60 years of visionary education."

About Career Education Corporation

Career Education Corporation (www.careered.com), through itscolleges, schools and universities, offers quality higher education tomore than 100,000 students both on-campus and online in a variety ofcareer-oriented disciplines. CEC reports and discusses its operatingresults in two separate segments: the Colleges, Schools andUniversities segment, which represents the results of the campusesproviding education on-ground, and the Online Education Group, whichrepresents the results of its campuses providing education online.

The Colleges, Schools and Universities segment includes more than70,000 students attending one of 80-plus campuses owned by CEC. Theon-ground campuses are located throughout the U.S., Canada, France,the United Kingdom, and the United Arab Emirates and offer doctoraldegree, master's degree, bachelor's degree, associate degree, anddiploma programs in the career-oriented disciplines of businessstudies, visual communication and design technologies, healtheducation, information technology, and culinary arts.

The Online Education Group segment includes more than 30,000students attending the web-based virtual campuses of either AmericanInterContinental University Online or Colorado Technical UniversityOnline. The online campuses of these two universities collectivelyoffer a variety of degrees in information technology, computerscience, business, visual communication, health sciences, criminaljustice, and education.

Except for the historical and present factual informationcontained herein, the matters set forth in this release, includingstatements identified by words such as "anticipate," "believe,""plan," "expect," "intend," "project," "will," and similarexpressions, are forward-looking statements within the meaning of the"safe harbor" provisions of the Private Securities Litigation ReformAct of 1995. These statements are based on information currentlyavailable to us and are subject to various risks, uncertainties, andother factors, that could cause our actual growth, results ofoperations, performance and business prospects, and opportunities todiffer materially from those expressed in, or implied by, thesestatements. Except as expressly required by federal securities laws,we undertake no obligation to update such factors or to publiclyannounce the results of any of the forward-looking statementscontained herein to reflect future events, developments, or changedcircumstances, or for any other reason. These risks and uncertainties,the outcome of which could materially and adversely affect ourfinancial condition and operations, include, but are not limited to,the following: risks related to our ability to comply with, and theimpact of changes in, legislation and regulations that affect ourability to participate in student financial aid programs; costs, risksand effects of legal and administrative proceedings and investigationsand governmental regulations, including the pending Securities andExchange Commission and Justice Department investigations and, classaction, derivative, and other lawsuits; risks related to our abilityto comply with accrediting agency requirements or obtain accreditingagency approvals; costs and difficulties related to the integration ofacquired businesses; risks related to our ability to manage andcontinue growth; future financial and operational results; risksrelated to competition, general economic conditions, and other riskfactors relating to our industry and business, and the factorsdiscussed in our Annual Report on Form 10-K for the year endedDecember 31, 2004, and from time to time in our other reports filedwith the Securities and Exchange Commission.