J.P. Morgan2013 Ultimate Services Conference

November 13, 2013

FORWARD-LOOKING STATEMENTS

This presentation may contain forward-looking statements including, without limitation, statements with respect

management’s expectations regarding student persistence, institutional accreditation, the results of the Company's

initiatives, emerging trends, Q3 2013 campaign, 2013 outlook, financial results and and related commentary. These

statements involve risks and uncertainties, and the Company's actual performance may differ materially from those

expressed in or suggested by such statements. Risks and uncertainties include, without limitation:

• failure to comply with the extensive regulatory framework applicable to the Company and its institutions,

including Title IV of the Higher Education Act and its regulations, state laws and regulatory requirements, and

accrediting agency requirements;

• adverse regulatory or legislative changes affecting the Company's institutions;

• the imposition of fines or other corrective measures against the Company's institutions;

• competition in the postsecondary education market and its potential impact on the Company's market share and

recruiting costs; and

• reputational and other risks related to potential compliance audits, regulatory actions, negative publicity or

service disruptions.

More information on potential factors that could affect the Company's performance is included from time to time in

the “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations”

sections of the Company's periodic reports filed with the SEC, including the Company's Annual Report on Form 10-

K for the year ended December 31, 2012, filed with the SEC on March 12, 2013 and amended on May 17, 2013, and

Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, filed with the SEC on May 15, 2013, and the

quarterly report on Form 10Q for the quarter ended June 30, 2013, filed with the SEC on August 6, 2013. Forward-

looking statements are made on the basis of management's views and assumptions regarding future events and

business performance as of the time the statements are made, and the Company assumes no obligation to update

any forward-looking statements or information, which speak as of their respective dates, except as required by law.

• MA, PsyD, PhD

• Social & Behavioral Sciences

• Colorado Springs Campus

• Denver Instructional Site

• HLC Accredited

99% Online

71% Female

48% Minority

37 Years Old

University of The RockiesAshford University

• AA, BA, MA, MBA

• 17 NAIA Sports Teams

• Online & Clinton, IA Campus

• WASC approved -- 5 years*

• Forbes Alliance

RECOGNIZED BRANDS

Bus

33%

Lib

Arts

23%

Edu

21%

Hcare

23%

Non-D

1%

AU Programs

AA

9%

BA

77%

MA

13%

Doc

1%

AU and UOR Students

*On July 10, 2013, the WASC granted Initial Accreditation to Ashford University for five years, subject to, among

other things, approval of U.S. Department of Education.

DIFFERENTIATION…TU

ITIO

N

OTHERS

AU

Affordable Innovative

Quality

VALUE

“Ashford strategically and thoughtfully reallocated significant

resources across the entire student life cycle in order to

positively impact student success.”

AFFORDABILITY

35%25%

15%

-23%

-39% -39%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

$-

$100

$200

$300

$400

$500

$600

% D

iffe

ren

ce

$ p

er

Eq

uiv

ale

nt

Cre

dit

Ho

ur*

13% 12% 11%

47%

* $ per credit hour before applicable fees, discounts or scholarships

INNOVATION

Apple™/ Android™

MOBILE ACCESS

• Constellation

• Students

• Classroom

• Admin

• Faculty

• Grade Book

&

“… these systems hold tremendous promise for ensuring educational quality …“*Ralph Wolff, WASC

R.E.A.L. Dashboard&

*A copy of the WASC action letter and visiting team report from the review of Ashford University is available

on the WASC website at www.wascsenior.org

QUALITY

Quality Initiatives

Learning

• Smaller Class Sizes

• Continued Technology Investment

• InsideTrack

• 120 Constellation titles

• Waypoint in more than 200 AU courses

University Advisors

• Extend relationship to 26 wks

• Problem-solving Focus

Student Support

• 2 Advisors thru 4th Course

• Measure Student Engagement

• Predictive Modeling

• Better Persistence

Quality Matters

• > 85% of AU Courses Certified

• Clear Industry Leader

Faculty• More Full-Time Faculty

• Faculty Forums: Course, Program Development

• Faculty Training, Mentoring

• Measure Faculty Effectiveness

Forbes School of Business

Grad & Undergrad

Forbes Brand Expands AU Corporate Relationships

Growing Digital Presence Reaches Online Students

Unique Speaker Events for Online Students

More than 1200 Forbes Contributors

Unique Learning Material Creates Value for Students

BRAND STRATEGY

ASHFORD

UNIVERSITY

BRAND STRATEGY

• Branding Reinforces the Value Proposition

• Combines Traditional & Interactive Media:- Attract learners most likely to persist / graduate

• Media Mix Optimization:- Advanced analytics targets effective media channels

- Increases organic student inquiries

• Brand Strength:- Build on and maintain positive momentum, perception and sentiment

• Overall Goal: “Organic” Inquiries

BRAND CAMPAIGN TECHNOLOGY CHANGES EVERYTHING.

Q3 2013 Campaign -- Early Results

Organic channels show continued strength --

Since campaign launch:

35% increase in Organic inquiries

41% increase in new enrollments from Organic channels

11% increase in conversion of Organic applications

Even greater increase in Total Conversion (inc. non-Organic)

2013FINANCIAL

REVIEW

FINANCIAL MODEL HIGHLIGHTS

• Highly Competitive Tuition Pricing

One of the lowest in the sector

Below Title IV Loan Limits

• Increasing Investment in Student Success

• Emerging Trends:

- Continued Student Demand

- Increasing Advisor Productivity

- Branding: Increasing Organic Interest

- Improving Persistence

- No Accreditation Headwind

• Strong Cash Position, No Debt

REGULATORY UPDATE

• WASC Approval Announced July 10, 2013

“What have resulted are self-reflection and evaluation,

significant change, and excitement for that which is now

occurring. Indeed, the changes that have occurred in such a

short time border on being revolutionary. They include what

the team considers to be a number of “best practices” and

what can become a model for online higher education for a

non-traditional student population.”

WASC Visit Team Final Report, May 2013

• DoE Approved WASC accreditation Nov. 8, 2013

-- PPA document in process

CONSISTENT REGULATORY METRICS

2012 2011 2010 2009

Ashford 2-Yr. CDR --- 10.1%* 10.2% 15.3%

Rockies 2-Yr. CDR --- 4.9%* 4.0% 3.3%

Ashford 3-Yr. CDR --- --- 16.3%* 19.8%

Rockies 3-Yr. CDR --- --- 8.0%* 3.3%

Ashford 90 /10 Ratio 86.4% 86.8% 85.0% 85.5%

Rockies 90 /10 Ratio 87.3% 85.0% 85.9% 84.6%

*draft data

CONSISTENT PERFORMANCE HISTORY

31,558

53,688

77,892

86,64281,810

68,566

5,000

25,000

45,000

65,000

85,000

105,000

2008 2009 2010 2011 2012 Q32013

Enrollments

$218.3

$454.3

$713.2

$933.3$968.2

$605.6

$50.0

$250.0

$450.0

$650.0

$850.0

$1,050.0

2008 2009 2010 2011 2012 YTD2013

Revenue

OPERATING MARGIN

15.3%

18.0%

30.3%29.3%

20.2%

12.0%

0.0%

10.0%

20.0%

30.0%

40.0%

2008 2009 2010 2011 2012 YTD Q3'13

CASH FLOW AND EPS

$70.7

$131.7

$189.9

$220.8

$143.2

$54.3

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

2008 2009 2010 2011 2012 YTDQ3'13

Net Cash Provided By Operating Activities

$0.16

$0.74

$2.14

$3.02

$2.21

$0.85

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

2008 2009 2010 2011 2012 YTDQ3'13

Fully-Diluted Earnings Per Common Share

THANK YOU