Career Education Corporation Appoints New Leaders & Establishes New Roles on Executive Team

SCHAUMBURG, Ill.–(BUSINESS WIRE)–Career Education Corporation (CEC) (NASDAQ: CECO), a global provider of

postsecondary education programs and services, today announced a number

of executive moves to bolster the company’s management team, realign and

simplify the organization structure, and help CEC navigate its

regulatory, legal and political environment – consistent with strategies

outlined earlier in the year.

https://twitter.com/Celestalon/status/430925076007886849

As part of these changes, the company will organize its more than 90

campuses – serving approximately 95,000 students – into University,

Career, and International Education Groups. The previously announced

plan to establish three education segments, versus the current six, will

concentrate and enhance academic focus, consolidate and align similar

institutions and better position the company in a competitive

marketplace through fewer, stronger institutional brands.

University Education Group

Jason T. Friesen, who has held a number of leadership roles at CEC, has

been named Senior Vice President, Chief University Education Officer.

The new organization Friesen leads includes CEC’s two flagship higher

education institutions – Colorado Technical University (CTU) and

American InterContinental University (AIU).

Founded in 1965, CTU offers associate, bachelor’s, master’s and doctoral

degrees through a combination of online and ground-based campuses. AIU,

founded in 1970, provides a wide range of undergraduate and graduate

degrees that also can be achieved online and through traditional

coursework. Both institutions offer students award-winning Online

Virtual Campuses.

Friesen has led CEC’s health institutions since the beginning of the

year. He implemented significant improvements in academic quality,

program integrity and operational excellence of those career-focused

institutions. Friesen, who holds an M.B.A. degree from the University of

Chicago, has broad financial experience at CEC and other publicly-traded

companies. His recent role at the company included management and

operational responsibility for 43 career health institutions.

CTU will be led by Jack Koehn as Acting President. Koehn, who serves as

President of CTU Online and as the university’s Chief Operating Officer,

holds a bachelor’s degree in Accounting from Indiana University. He will

be supported by CTU’s veteran academic leadership team that includes Dr.

Constance Johnson, Provost and Chief Academic Officer, and Dr. David

Leasure, Chancellor. Koehn replaces Jeremy Wheaton who, after 17 years

of diverse experience at CEC as well as the past year leading CTU, has

resigned to pursue his own entrepreneurial interests. To help ensure a

smooth and orderly transition, Wheaton will remain on the CTU Board of

Trustees, and also serve through the end of the year as a consultant to

CEC.

AIU continues to be led by University President Dr. George Miller, who

has served that institution for eight years and played a pivotal role in

building and enhancing AIU’s academic programs and student services. He

holds a doctorate in Higher Education from the University of Virginia

and a master’s degree in Educational Psychology from the University of

Tennessee. A former professor, Miller earlier served as president of two

colleges.

Career Education Group

As previously announced, Daniel J. Hurdle recently joined CEC as Senior

Vice President, Chief Career Education Officer. Hurdle leads the new,

consolidated Career Education Group, encompassing more than 70 culinary,

health, and art, design and technology education institutions serving

more than 40,000 students across the United States. The Career Education

Group includes the renowned Le Cordon Bleu culinary education programs

in the U.S., Sanford-Brown allied health institutions and the

International Academy of Design & Technology.

Hurdle brings a successful operating and strategic background to the

task of consolidating the company’s career-focused campuses, as well as

considerable experience with complex business turnarounds. Hurdle will

lead efforts to gain synergies and greater competitive advantage from

fewer, more focused institutional brands.

During the course of the next few months, Friesen, who had been leading

CEC’s health campuses, will help support the transition of

responsibility for these institutions, which will be directly led by

Hurdle.

Hurdle joined CEC from Caribou Coffee Company, the second largest

premium coffeehouse in the United States, where he most recently served

as Senior Vice President, Retail. Hurdle led Caribou’s more than 580

coffeehouses, including all company-operated and franchise locations in

the U.S., as well as international franchise stores. Previously, Hurdle

held senior positions at Washington Mutual and Starbucks Coffeehouse

Company. He holds a master’s degree in Management Science from Cambridge

University, where he was a Marshall Scholar, and a B.S. degree in

Control Systems Engineering from the U.S. Naval Academy.

International Education Group

Michael J. Graham, CEC’s Executive Vice President and Chief Financial

Officer (CFO), will continue to lead the company’s International

Education Group, in addition to his role as CFO. Graham, who holds an

M.B.A. degree from the University of Chicago, has held key financial and

management positions at other publicly-traded companies as well as his

five-year tenure as an executive at CEC.

CEC’s international academic offerings include the Paris-based INSEEC

institutions, which offer high quality undergraduate and master’s

programs in business as well as executive education programs across

France. Catherine Lespine continues to lead these institutions as

Managing Director, INSEEC Group. A graduate of the ESCP Business School,

Lespine initially joined INSEEC as a member of its faculty, and

previously taught Management and Strategy at two other French

universities. The international group also offers campuses and programs

in London as well as the International University of Monaco, which

recently began offering an online Executive MBA program leveraging CEC’s

award-winning Virtual Campus technology. Graham and his leadership team

will seek to expand CEC’s international footprint, leveraging the

company’s base in Western Europe.

External Relations & Regulatory Affairs

Given CEC’s complex and multi-tiered regulatory environment – coupled

with the political and public scrutiny of all private postsecondary

institutions – the company also has taken measures to help better

address these influences. Tony Mitchell, a veteran public affairs and

public relations executive with nearly two decades of political and

government experience in Washington, D.C., was recently named the

company’s Senior Vice President, Chief Communications and Public Affairs

Officer. Mitchell leads CEC’s corporate and employee communications,

government relations, public affairs, and community relations functions.

Additionally, Diane Auer Jones, who served as Assistant Secretary for

Postsecondary Education with the U.S. Department of Education and as

senior staff at the White House and on Capitol Hill, has expanded her

responsibilities as the company’s Vice President for External and

Regulatory Affairs. Jones now oversees the corporate and campus

regulatory teams and will help drive CEC’s regulatory compliance as well

as its engagement with state education bodies, regional and national

accreditors and the U.S. Department of Education. The company also is

conducting a national search to add a Chief Compliance Officer to CEC’s

leadership team.

“I am confident this executive team of leaders will further enhance

academic excellence at our higher education institutions to support our

broad and diverse student population,” said Steven H. Lesnik, Chairman,

President and Chief Executive Officer of CEC. “Together, these

executives will put our students first, strengthen our stakeholder

relationships and regulatory compliance and drive greater synergies and

growth opportunities for CEC. I am excited to have this leadership team

in place to advance and execute the company’s business plans and

strategies.”

Lesnik added: “Further, I want to thank Jeremy Wheaton for his many

contributions to our organization and his stewardship at CTU for the

past year. Jeremy is an energetic leader who will be missed by the team

at CTU and his colleagues at CEC. I am pleased that he has decided to

continue his role on the CTU Board of Trustees and to consult with CEC,

which will greatly contribute to an orderly and effective transition. I

am confident that Jack Koehn and the strong academic leadership team in

place at CTU will continue to provide our students high quality

programs, state-of-the-art education technology and an outstanding

education experience.”

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 95,000 students across the world in

a variety of career-oriented disciplines through online, on-ground and

hybrid learning program offerings. The more than 90 campuses that serve

these students are located throughout the United States and in France,

the United Kingdom and Monaco, and offer doctoral, master’s, bachelor’s

and associate degrees and diploma and certificate programs.

CEC is an industry leader whose institutions are recognized globally.

Those institutions include, among others, American InterContinental

University (“AIU”); Brooks Institute; Colorado Technical University

(“CTU”); Harrington College of Design; INSEEC Group (“INSEEC”) Schools;

International University of Monaco (“IUM”); International Academy of

Design & Technology (“IADT”); Le Cordon Bleu North America (“LCB”); and

Sanford-Brown Institutes and Colleges. Through its schools, CEC is

committed to providing high-quality education, enabling students to

graduate and pursue rewarding career opportunities.

For more information, see CEC’s website at www.careered.com.

The website includes a detailed listing of individual campus locations

and web links to CEC’s colleges, schools, and universities.

Except for the historical and present factual information contained

herein, the matters set forth in this release, including statements

identified by words such as “will,” “anticipate,” “believe,” “plan,”

“expect,” “intend,” “should,” “potential” and similar expressions, are

forward-looking statements as defined in Section 21E of the Securities

Exchange Act of 1934, as amended. These statements are based on

information currently available to us and are subject to various

assumptions, risks, uncertainties and other factors that could cause our

results of operations, financial condition, cash flows, performance,

business prospects and opportunities to differ materially from those

expressed in, or implied by, these statements. Except as expressly

required by the federal securities laws, we undertake no obligation to

update or revise such factors or any of the forward-looking statements

contained herein to reflect future events, developments or changed

circumstances, or for any other reason. These risks and uncertainties,

the outcomes of which could materially and adversely affect our

financial condition and operations, include, but are not limited to, the

following: our continued compliance with and eligibility to

participate in Title IV Programs under the Higher Education Act of 1965,

as amended, and the regulations thereunder (including the “90-10 Rule”),

as well as regional and national accreditation standards and state

regulatory requirements; our ability to obtain accrediting agency

approvals for existing, changed or new programs and to successfully

defend litigation and other claims brought against us; rulemaking by the

U.S. Department of Education and increased focus by the U.S. Congress

and governmental agencies on for-profit education institutions; changes

in enrollment, student mix and average registered credits taken by

students; our ability to implement effective cost reduction strategies;

and changes in the overall U.S. or global economy. Further

information about these and other relevant risks and uncertainties may

be found in CEC’s Annual Report on Form 10-K for the fiscal year ended

December 31, 2011 and its subsequent filings with the Securities and

Exchange Commission.