Career Education Corporation

ThinkEquity Partners

Growth Conference

September 16, 2003

www.careered.com Nasdaq: CECO

“We’re

only limited

by the size

of our goals.”

Jack LarsonChairman, President & CEO

Safe Harbor Statement

Except for the historical and present factual information contained herein, the matters set forth in this presentation, including statements identified by words such as "anticipates," "expects," "projects," "plans," "will," and similar expressions, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on information currently available to us and involve risks and uncertainties that could cause our actual growth, results, performance and business prospects and opportunities to differ materially from those expressed in, or implied by these statements. These risks and uncertainties include, but are not limited to, costs and difficulties related to the integration of acquired businesses, risks and effects of legal and administrative proceedings and governmental regulations, future financial and operational results, competition, general economic conditions, ability to manage and continue growth, and other risk factors relating to our industry and business as detailed in our Annual Report on Form 10-K for the year ended December 31, 2002, as amended and from time to time in our reports filed with the SEC. We disclaim any responsibility to update these forward-looking statements.

• Formed in 1994 to create a premium education system

• Initial Public Offering in 1998• 75 worldwide campuses• #1 on-campus provider in for-profit sector• #2 online provider in for-profit sector• 22 consecutive quarters of record revenue &

earnings

A brief look at CEC…

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2,150% shareholder return since IPO

IPO - Jan. ’98

$2 per share

Sept. ’03

$45 per share

Fall Student Population

15,90022,700

29,000

42,00050,400

62,000

010,00020,00030,00040,00050,000

60,00070,000

1998 1999 2000 2001 2002 2003* As of July 31

*

Strategic Growth GoalStart-ups/Satellites

Acquisitions

ProgramTransplants

Largest Global Quality Provider of Postsecondary Education

AdvancedDegrees

OnlineEducation

RegionalAccreditation

InternationalExpansion

AdditionalCurricula

Two Operating Groups

• Colleges, Schools & Universities Group– Le Cordon Bleu – International Academy of Design & Technology – Katharine Gibbs– College– American InterContinental University– International – Health Education

• Online Education Group– American InterContinental University – Online– Colorado Technical University - Online

• $270 billion North America postsecondary market• Online market growing 40% annually• For-profit & non-profit sectors are highly

fragmented• Strong long-term demographic trends• High barriers to entry• Acyclical demand• Attractive financial characteristics

– Tuition pricing is inelastic– Predictability of future revenue and earnings– Economies of scale

Favorable Industry Dynamics

Top 20 U.S. Universities by PopulationFall 1995 Fall 2001

University Population University Population1 Community College of the Air Force 89,611 1 Apollo Group 139,3002 University of Minnesota–Twin Cities 51,445 2 Community College of the Air Force 89,6113 Ohio State University–Main Campus 48,676 3 DeVry University 58,7364 The University of Texas at Austin 47,905 4 University of Minnesota-Twin Cities 51,3885 Miami-Dade Community College 47,060 5 Miami-Dade Community College 49,8366 Arizona State University-Main Campus 42,040 6 Ohio State University-Main Campus 48,3627 Texas A&M University-Main Campus 41,790 7 The University of Texas at Austin 48,0088 Michigan State University 40,647 8 Arizona State University-Main Campus 42,4839 Pennsylvania State University-Main Campus 39,646 9 Texas A&M University-Main Campus 41,89210 Houston Community College System 39,641 10 Michigan State University 41,545

11 University of Florida 39,412 11 Career Education 40,80012 University of Wisconsin-Madison 39,005 12 University of Florida 39,88313 University of Illinois-Urbana-Champaign 38,420 13 Pennsylvania State Univ-Main Campus 39,85514 Northern Virginia Community College 37,144 14 University of Wisconsin-Madison 39,28915 University of Michigan-Ann Arbor 36,687 15 University of Illinois-Urbana-Champaign 38,84116 Purdue University-Main Campus 36,427 16 Houston Community College System 38,49317 University of South Florida 36,142 17 Education Management 37,65818 New York University 35,835 18 University of Phoenix Online 37,60019 Indiana University-Bloomington 35,083 19 Purdue University-Main Campus 36,89320 University of Arizona 34,777 20 University of Michigan-Ann Arbor 36,625

Source: Chronicle of Higher Education

Competitive Advantages• Career-oriented curriculum• Diversification creates stable market demand

– Curriculum in multiple high-growth demand areas– Demographics in age & gender– Various degree offerings– Geography

• Strong marketing expertise• Online Education’s cutting-edge technology• Excellent placement success• Quality name brand institutions

Visual Communication& Design Technologies

Business Studies

Information Technology

Culinary Arts

Health Education

% of Students

62,000 students

Full-time degree seeking students

Current Core Curricula

34%

25%

17%

12%

12%

Diversified Student Demographics

Under 21 yr.30%

21 – 30 yr.53%

Over 30 yr.17%

50%/50%

Male/Female

Student Population by age group

Diversified Student Demographics

Bachelor’s/Master’s/Doctoral

30% Associate48%

Certificate22%

Student Population by degree objective

CEC generated 1.7 million leads in 2002

60% over 2001

High Impact Marketing

Convert Leads to Enrollments

• Specialized Admissions EffortsApprox. 1,000 Professionals

1. Local Area 2. High school 3. Out-of-area 4. International5. Internet

Automated Enrollment Center- Branded Enrollment Centers

- Virtual Campus Tours/Catalog

- Multi-currency & multi-lingual

- Enrollment Agreement

- Candidate for Acceptance

Superior Education Product• Curricula matched to long-term demographic

and employment trends• Employers help create, refine programs• Advisory boards create lasting relationships• Online Education’s multimedia courseware• High quality faculty and staff

• Approximately 4,000 faculty; industry professionals

• 62% part-time, adjunct faculty• First class equipment, facilities

• Ongoing investments• “Hands-on” education

Placement is our Moral Report Card

A+

Recent placement rate

94.1%

Up from 92% in 2001

98.2%Online

On-Campus

California School of California School of Culinary ArtsCulinary Arts

KatharineKatharineGibbs Gibbs

Date of AcquisitionMarch 1998

PopulationAt acquisition: 762002: 1,000

RevenueAt acquisition: $1.02002: $32.0

Programs addedLe Cordon Bleu

Date of AcquisitionJanuary 2001

PopulationAt acquisition: 4,5002002: 9,600

RevenueAt acquisition: $56.02002: $126.0

Programs addedN/a

Date of AcquisitionMay 1997

PopulationAt acquisition: 3,0192002: 10,400

RevenueAt acquisition: $28.02002: $141.0

Programs addedITVisCom

American American InterContinental InterContinental UniversityUniversity

A Sample of Successful Acquisitions

Nick FlugePresident of the Online Education

Group

• Online market is 350,000 unique students and $1.75 billion in revenue

• Regionally accredited• 100% accelerated online degrees• Participant in Dept. of Ed Demonstration Program• Experienced online faculty with terminal degrees• Student-centered virtual campus• Automated processes

Online Education Group

• 14 programs• Associate, Bachelor’s and Master’s• Business, Info. Technology, Fine Arts, Education• New programs (Aug. ’03): Marketing, Health, H.R. • Revenue is expected to be approx. $120M in ‘03• Revenue is expected to be $300 - $400M in ‘05

American InterContinental University Online

Median Age: 32

94% Working Full Time

Average Income: $44 K

50 States & 27 Countries

55%/45% Male/Female

OnlineStudent Profile

American InterContinental University Online

7,000 students at July 31, 2003

Pat PeschExecutive VP and CFO

Potential for Market Leadership

Excellent Educational Franchise

All activities support business strategies

26 Acquisitions Completed since 1994

Broad StudentMarketability

Excellent Regulatory Compliance

Manageable Near-term EPS impact

Attractive 5-year ROIC

Attractive Long-TermFinancial Profile

Acquisitions

Campus Start-ups –Organic Growth

• Means of geographic market entry • Leverage brand equity of existing CEC

brands• Excellent returns on invested capital• Dedicated divisional team • 4 budgeted start-up campuses for 2003

Numerous additional market opportunities

• Transport proven winners from initial school to other schools

• Leverages development, education, marketing costs

• Provides fast, positive results • Planned acceleration in 2003 to 50 transplants

Year # of Transplants2003 est. 50 2002 152001 122000 10

Program Transplants

Population Revenue EBITDA

59%

57%35%’01 vs. ‘00

’00 vs. ’9921%

24% 35%

’02 vs. ‘01

22% 35% 42%

Strong Internal Growth Record

Annual 2003 Business Outlook *• Revenue to be approx. $1.139 to $1.145 bil (includes

Online of approx. $120 mil & INSEEC Group of approx. $20 mil)

• Operating profit margin to increase approx. 50 basis points

• EPS to be approx. $1.05 to $1.06

• Capital expenditures to be approx. $80 to $85 mil

* Includes Whitman Education Group, Inc.

Revenue (in millions)

$149.2$223.5

$334.5

$547.1

$780.1

$1,145.0

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$1,000

$1,200

1998 1999 2000 2001 2002 2003 ** Mid-range of guidance

Net Income (in millions)

$2.1 $10.9$22.2

$38.4

$67.5

$105.0

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1998 1999 2000 2001 2002 2003 *

* Mid-range of guidance

Earnings per Share

$0.04$0.17

$0.28$0.42

$0.71

$1.06

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

1998 1999 2000 2001 2002 2003 *

* Mid-range of guidance

Start-up Campus Guidance• 4 start-ups expected in 2003

– Las Vegas – Le Cordon Bleu (Summer ‘03)– Atlanta – Le Cordon Bleu (Fall ‘03)– Detroit – IADT (Fall ‘03)– Houston – AIU –University (Fall ’03)

• 6 to 9 months pre-opening – $0.8 mil to $1.2 mil operating loss

• 9 to 12 months until break-even – $0.8 mil to $1.2 mil operating loss

• Capital Expenditures– Culinary school is $4.0 to $5.0 mil– All other schools are $1.0 to $2.0 mil

Capital Expenditures

Maintenance Expansion/Start-ups

$80 to $85 million expected in 2003

$45 mil $37 mil

$11,500

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On-campus Online Culinary

Peer * CEC

Avg. Annual Revenue Per Student

* Apollo, Corinthian, EDMC, ITT, DeVry and Strayer

3.0%2.8%

3.7%3.3% 3.3%

0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%

1998 1999 2000 2001 2002

Annual Bad Debt Expense

Oct. 7, 2000

Change in Title IV Return of Funds Policy

31 33 3336 34

33

4038 36

33

05

10152025303540

1st Q 2nd Q 3rd Q 4th Q

2001 2002 2003

Days Sales Outstanding

3 to 5 yr. Business Outlook

• 20 %+ Internal Revenue Growth– 15 % population growth– 5 – 7 % pricing & mix change

• 50 to 100 basis point operating margin improvement

• 25 %+ earnings per share growth

The Future is Bright…

• Favorable industry dynamics• Sustainable growth opportunity• Competitive position in both on-campus

and online• Multi-faceted growth platform• Proven track record as a public company• Positioned for strong EPS growth