Career Education Corporation Reports Grant Under NASDAQ Marketplace Rule 4350

In accordance with Nasdaq Marketplace Rule 4350, Career Education Corporation (NASDAQ: CECO) announced that the company's Compensation Committee awarded Thomas Budlong, its new senior vice president of organization effectiveness and administration, certain stock options and restricted stock effective on August 31, 2007, his first date of employment. As part of his restricted stock award, Budlong received 7,000 shares of restricted stock granted as an inducement award outside of the Career Education Corporation 1998 Employee Incentive Compensation Plan, as amended (the "Plan") and without shareholder approval pursuant to Section 4350(i)(1)(A)(iv) of the NASDAQ Marketplace Rules. These 7,000 shares of restricted stock vest on the first anniversary of the date of grant, subject to Budlong's continued employment with the company. In addition, such shares will become fully vested if Budlong, during the first 12 months of his employment, terminates his employment for good reason (as defined in his employment letter), or if the company terminates Budlong's employment other than for cause (as defined in the Plan). About Career Education Corporation The colleges, schools, and universities that are part of the Career Education Corporation (CEC) family offer high quality education to a diverse population of approximately 90,000 students across the world in a variety of career-oriented disciplines. The more than 75 campuses that serve these students are located throughout the U.S. and in Canada, France, Italy, and the United Kingdom, and offer doctoral, master's, bachelor's, and associate degrees and diploma and certificate programs. Approximately forty percent of students attend the web-based virtual campuses of American InterContinental University Online and Colorado Technical University Online. CEC is an industry leader whose gold-standard brands are recognized globally. Those brands include Le Cordon Bleu Schools North America; Harrington College of Design; Brooks Institute of Photography; International Academy of Design & Technology; American InterContinental University; Colorado Technical University and Sanford-Brown Institutes and Colleges. Through its schools, CEC is committed to providing quality education, enabling students to graduate and pursue rewarding careers. For more information, see the company’s website at http://www.careered.com. The company's website includes a detailed listing of individual campus locations and web links to its more than 75 colleges, schools, and universities.