Financial Highlightsand Strategy

Financial Highlightsand Strategy

Rick Gunst

Senior Vice President andChief Financial Officer

Rick Gunst

Senior Vice President andChief Financial Officer

$296$341

$406

$491

$568

$648$680

$785 $781

$843

$0

$300

$600

$900

FY1997

FY1998

FY1999

FY2000

FY2001

FY2002

FY2003

FY2004

FY2005

FY2006

RevenueFiscal Years 1997-2006RevenueFiscal Years 1997-2006

In Millions

$24

$31

$39

$48

$58

$67

$61$58

$18

$43

$0

$20

$40

$60

$80

FY1997

FY1998

FY1999

FY2000

FY2001

FY2002

FY2003

FY2004

FY2005

FY2006

Net IncomeFiscal Years 1997-2006Net IncomeFiscal Years 1997-2006

In Millions

$626.9$706.0

$0

$200

$400

$600

$800

FY 2006 FY 2007

RevenueFirst Nine MonthsRevenueFirst Nine Months

In Millions

+12.6%+12.6%

$0.44

$0.85

$0.00

$0.30

$0.60

$0.90

FY 2006 FY 2007

Net Income and EPSFirst Nine MonthsNet Income and EPSFirst Nine Months

$31.2

$60.2

$0

$20

$40

$60

$80

FY 2006 FY 2007

+92.8%+92.8%

Net Income Earnings Per Share

+93.2%+93.2%

*Includes $12.4 million after-tax gains from DeVry University facility sales and $0.7 million in severance charges.

$48.5

$11.7*

$0.68

$0.17*

$M

Segment Results DeVry UniversityFirst Nine Months

Segment Results DeVry UniversityFirst Nine Months

*Includes $20.9 million pre-tax gains from DeVry University facility sales and $1.1 million in severance charges.

+8.9%+8.9%

Revenue Operating Income

+63.5%+63.5%

$506.9$552.1

$0

$200

$400

$600

FY 2006 FY 2007

$15.2

$39.9*

$0

$10

$20

$30

$40

$50

FY 2006 FY 2007

$20.1

$19.8*

$M $M

Segment Results Medical and HealthcareFirst Nine Months

Segment Results Medical and HealthcareFirst Nine Months

+27.2%+27.2%

Revenue Operating Income

+28.3%+28.3%

$82.7

$105.1

$0

$20

$40

$60

$80

$100

$120

FY 2006 FY 2007

$30.6

$39.3

$0$5

$10$15$20$25$30$35$40$45

FY 2006 FY 2007

$30.6

$39.3

$0$5

$10$15$20$25$30$35$40$45

FY 2006 FY 2007

$M $M

Segment Results Professional and TrainingFirst Nine Months

Segment Results Professional and TrainingFirst Nine Months

+30.7%+30.7%

Revenue Operating Income

+39.3%+39.3%

$37.3

$48.7

$0

$20

$40

$60

FY 2006 FY 2007

$12.6

$17.6

$0

$5

$10

$15

$20

FY 2006 FY 2007

$12.6

$17.6

$0

$5

$10

$15

$20

FY 2006 FY 2007

$M $M

Opportunities for Margin ExpansionPre-Tax IncomeOpportunities for Margin ExpansionPre-Tax Income

16.9% 17.1%

12.7%

9.5%

2.8%

6.8% 6.7%

12.0%*

0.0%

3.0%

6.0%

9.0%

12.0%

15.0%

18.0%

FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 3Q YTDFY 2006

3Q YTDFY 2007

In Millions

3.8%

9.2%

*Includes $20.9 million pre-tax gains from DeVry University facility sales and $1.1 million in severance charges.

DeVry University 12.5% 3.7%*(8.8) pts

Medical & Healthcare - 37.4% +37.4 pts

Professional & Training 28.6% 36.1% +7.5 pts

Interest/Amort./Depr. (0.3)% (1.7)% (1.4) pts

Total DeVry Inc. 13.2% 9.2% (4.0) pts

DeVry University 12.5% 3.7%*(8.8) pts

Medical & Healthcare - 37.4% +37.4 pts

Professional & Training 28.6% 36.1% +7.5 pts

Interest/Amort./Depr. (0.3)% (1.7)% (1.4) pts

Total DeVry Inc. 13.2% 9.2% (4.0) pts

Pre-Tax Operating Margin (%)

YTD Q3FY’03

YTD Q3FY’07

B(W)

*FY’07 results exclude facility sale gains and severance charge.

Opportunities for Margin Expansion FY’03-FY’07 Opportunities for Margin Expansion FY’03-FY’07

Workforce ReductionsFY 2007Workforce ReductionsFY 2007

Voluntary Separation 70 $1.1 $2.6 $3.7

Involuntary Separation 145 - $2.6 $2.6

215 $1.1 $5.2 $6.3

Voluntary Separation 70 $1.1 $2.6 $3.7

Involuntary Separation 145 - $2.6 $2.6

215 $1.1 $5.2 $6.3

# ofEmployees

Cost Reductions of $10 Million Per Year in FY 2008 and Beyond

Severance ($M)Q3 Q4 Total

Real Estate StrategyOptimizing Large CampusesReal Estate StrategyOptimizing Large Campuses

We are committed to every market we serve.

Category 1 Category 2 Category 3

Enrollment growth Lower enrollments Lower enrollments

Desirable location Near term leases or high property values

Longer term leases or lower property values

Strategy:

Retain facility

Strategy:

Sell and relocate or leaseback space

Strategy:

Reconfigure/co-locate

Substantial Debt ReductionSubstantial Debt Reduction

$93

$290

$146

$250

$162

$225

$131$125

$169

$85

$171

$50

$136

$0

$0

$50

$100

$150

$200

$250

$300

FY 2003 FY 2004 FY 2005 FY 2006 Q1 FY2007

Q2 FY2007

Q3 FY2007

Cash Funded Debt

In Millions

Financial StrategyFinancial Strategy

Reduced debt levels Amended credit agreement Declared first dividend Initiated stock repurchase program

– Repurchased 194,000 shares for $5.3 million in Q3 FY 2007

Reduced debt levels Amended credit agreement Declared first dividend Initiated stock repurchase program

– Repurchased 194,000 shares for $5.3 million in Q3 FY 2007

Building Value for Our Shareholders

Financial HighlightsFinancial Highlights

Improving operating performance

Strengthening financial position

Enhancing shareholder returns

Improving operating performance

Strengthening financial position

Enhancing shareholder returns

Summary