DeVry Inc. Announces Fiscal 2009 First-Quarter Results

Increased revenues continue to drive strong earnings growth

Diluted EPS increases nearly 30 percent to $0.48
OAKBROOK TERRACE, Ill.--(Business Wire)--
DeVry Inc. (NYSE:DV), a global provider of education services,
reported today its fiscal 2009 first quarter financial results and
September 2008 graduate enrollment at DeVry University, including its
Keller Graduate School of Management, and Ross University.

Three Months Ended September 30

-- Revenues increased 21.3 percent to $303.7 million, compared
with $250.3 million a year ago.

-- Operating income increased 38.1 percent to $46.8 million,
compared with $33.9 million for the same period last year.

-- Net income increased 29.8 percent to $34.8 million from $26.8
million in the same period last year, while fully diluted
earnings per share in the quarter increased 29.7 percent to
$0.48, compared with $0.37 per diluted share last year.

Please note that fiscal 2008 first quarter net income included a
$2.3 million loss, net of tax, or $0.03 per share, from the
sale/leaseback transactions at Phoenix, Seattle, and Alpharetta, Ga.
Excluding this discrete item from last year, fiscal 2009 first quarter
operating income would have increased 24.4 percent; net income and
earnings per share would have increased approximately 20.0 percent.

"Our strong results in the first quarter of fiscal 2009
demonstrate that we are executing our strategic plan - increasing
enrollment through improved marketing and recruiting, as well as
further diversifying our offerings with the completion of the U.S.
Education acquisition," said Daniel Hamburger, DeVry's president and
chief executive officer. "We continue to show sustained growth and
believe that even in tough economic times, our diversified portfolio
positions us well to achieve our long term growth goals and to
maximize shareholder value."

Business Highlights

DeVry completed its acquisition of U.S. Education, the parent
organization of Apollo College and Western Career College on September
18, 2008. Apollo College and Western Career College operate 17 campus
locations in the western United States and prepare students for
careers in the high-growth allied healthcare sector through
certificate and associate degree programs. As previously disclosed,
DeVry expects the addition of Apollo College and Western Career
College to be marginally dilutive to earnings by about $0.01 per share
in fiscal 2009 primarily because of amortization expense, and
accretive to earnings in fiscal 2010 and beyond.

DeVry University

For the September 2008 session, total DeVry University graduate
coursetakers, including its Keller Graduate School of Management,
totaled 17,799, up 12.2 percent versus 15,857 for the same period in
2007. DeVry University's Fall 2008 undergraduate enrollment and
November session graduate enrollment will be reported on December 4,
2008.

Ross University

At Ross University, in the 2008 September term, total students
increased 8.8 percent to 4,219 compared to 3,876 students in the same
term last year. New students increased 6.3 percent to 608, compared to
572 students last year. Ross University continues to make investments
in faculty, classrooms, clinical affiliations, and student housing to
respond to capacity constraints and continued strong demand for
medical and veterinary medical education. Ross University is also
making investments in preparation for its new clinical center in
Freeport, Grand Bahama, scheduled to open January 2009.

Balance Sheet/Cash Flow

DeVry generated $96.8 million of operating cash flow during the
fiscal 2009 first quarter, driven primarily by strong operating
results. As of September 30, 2008, cash and short- and long-term
investment balances totaled $242.3 million. Outstanding borrowings of
$165.9 million were incurred to fund the acquisition of U.S.
Education.

Conclusion

"DeVry continues to provide access to high-quality education for
career-minded students, while responding to the overwhelming market
need for professionals in the healthcare, business, and technology
sectors," added Hamburger. "To that end, we are very pleased to add
the quality programs of U.S. Education to our offerings. The
integration of U.S. Education is on track and we look forward to
realizing the numerous opportunities that this combination provides."

"As we look to the future, I am pleased to work with Dr. Harold
Shapiro, president emeritus of Princeton University, who will take
over as board chair of DeVry Inc. at our annual stockholder's meeting
next month. Harold's experience, along with the continued support and
counsel of Dennis Keller as a director emeritus, will help to guide
our long-term strategies in the years to come," concluded Hamburger.

Conference Call and Webcast Information

DeVry will host a conference call on October 23, 2008, at 3:30
p.m. Central Time (4:30 p.m. Eastern Time) to discuss the fiscal 2009
first quarter results. The conference call will be led by Daniel
Hamburger, president and chief executive officer and Rick Gunst, chief
financial officer.

For those wishing to participate by telephone, dial 800-561-2813
(domestic) or 617-614-3529 (International). DeVry will also broadcast
the conference call live via the Internet
http://www.investors.devry.com/phoenix.zhtml?c=93880&p=irol-EventDetai
ls&EventId=1745047.

(Due to its length, this URL may need to be copied/pasted into
your Internet browser's address field. Remove the extra space if one
exists.) Interested parties may access the Webcast through the link
noted above. Please access the Web site at least 15 minutes prior to
the start of the call to register, download and install any necessary
audio software.

DeVry will archive a telephone replay of the call until October
30,, 2008. To access the replay, dial 888-286-8010 (domestic) or
617-801-6888 (international), passcode 29338872. To access the Webcast
replay, please visit DeVry's Web site, or
http://www.investors.devry.com/phoenix.zhtml?c=93880&p=irol-EventDetai
ls&EventId=1745047.

(Due to its length, this URL may need to be copied/pasted into
your Internet browser's address field. Remove the extra space if one
exists.)

About DeVry Inc.

DeVry Inc. (NYSE: DV) is the parent organization of DeVry
University, Advanced Academics, Ross University, Chamberlain College
of Nursing, U.S. Education and Becker Professional Review. DeVry
University, which includes Keller Graduate School of Management,
offers associate, bachelor's and master's degree programs in
technology, healthcare technology, business and management. Advanced
Academics provides online secondary education to school districts
throughout the U.S. Ross University offers doctoral degree programs
through its schools of Medicine and Veterinary Medicine. Chamberlain
College of Nursing offers associate and bachelor's degree programs in
nursing. U.S. Education's programs, offered through Apollo College and
Western Career College, prepare students for careers in healthcare
through certificate and associate degree programs. Becker Professional
Review, which includes Becker CPA Review and Stalla Review for the CFA
Exams, provides professional education and exam review for accounting
and finance professionals. For more information, visit
http://www.devryinc.com.

Certain statements contained in this release concerning DeVry's
future performance, including those statements concerning DeVry's
expectations or plans, may constitute forward-looking statements
subject to the Safe Harbor Provision of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
generally can be identified by phrases such as DeVry Inc. or its
management "believes," "expects," "anticipates," "foresees,"
"forecasts," "estimates" or other words or phrases of similar import.
Actual results may differ materially from those projected or implied
by these forward-looking statements. Potential risks, uncertainties
and other factors that could cause results to differ are described
more fully in Item 1A, "Risk Factors," in the Company's most recent
Annual Report on Form 10-K for the year ending June 30, 2008 and filed
with the Securities and Exchange Commission on August 27, 2008.

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*T
Selected Operating Data (in thousands, except per share data)

First Quarter
FY 2009 FY 2008 Change
-----------------------------------
Revenues $303,717 $250,318 +21.3%
Net Income $34,830 $26,835 +29.8%
Earnings per Share (diluted) $0.48 $0.37 +29.7%
Number of common shares (diluted) 72,560 71,947 +0.9%
*T

Use of Non-GAAP Financial Information and Supplemental
Reconciliation Schedule

The following table illustrates the effects of the loss on the
sale of facilities on DeVry's earnings. The non-GAAP disclosure of net
income and earnings per share, excluding these items, is not
preferable to GAAP net income but is shown as a supplement to such
disclosure for comparability to the year-ago period. The following
table reconciles these items to the relevant GAAP information (in
thousands, except per share data):

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*T
For the Three Months
Ended September 30,
2008 2007
-----------------------
Net Income $34,830 $26,835
Earnings per Share (diluted) $0.48 $0.37
Loss on Sale of Assets (net of tax) -- $2,279
Effect on Earnings per Share (diluted) -- $0.03
Net Income Excluding the Loss on Sale of Assets
(net of tax) $34,830 $29,114
Adjusted Earnings per Share (diluted) $0.48 $0.40
*T

September 2008 Enrollment Results

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*T
September September
2008 2007 Change
DeVry University
Graduate coursetakers (1,2) 17,799 15,857 +12.2%

Ross University
New students 608 572 +6.3%
Total students 4,219 3,876 +8.8%
*T

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*T
Percent Average
Graduate Employment Statistics Period Employed(3) Salary
-------------------------------
DeVry University Jun '07-Oct
(Undergraduate) '07-Feb '08 92.1% $44,422
*T

(1) The term "coursetaker" refers to the number of courses taken
by a student. Thus one student taking two courses is counted as two
coursetakers.

(2) Includes Keller Graduate School of Management and other
Master's degree programs offered at DeVry University

(3) System-wide, graduates in the active job market who held
positions in their fields within 6 months of graduation. Includes
graduates of associate and bachelor's degree programs.

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*T
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
----------------------------------------------------------------------
(Dollars in Thousands)
(Unaudited)
PRELIMINARY

September 30, June 30, September 30,
2008 2008 2007
------------- ------------- -------------

ASSETS
----------------------------

Current Assets
--------------------------

Cash and Cash
Equivalents $183,059 $217,199 $150,011
Marketable Securities 2,136 2,308 72,745
Restricted Cash 8,564 4,113 21,218
Accounts Receivable, Net 154,654 55,214 75,790
Deferred Income Taxes,
Net 15,635 14,975 15,491
Prepaid Expenses and
Other 28,279 31,779 18,474
------------- ------------- -------------

Total Current Assets 392,327 325,588 353,729
------------- ------------- -------------

Land, Buildings and
Equipment
--------------------------

Land 51,193 50,726 51,707
Buildings 231,812 216,048 201,884
Equipment 288,731 282,273 266,677
Construction In Progress 5,536 4,874 5,038
------------- ------------- -------------

577,272 553,921 525,306

Accumulated Depreciation
and Amortization (316,624) (314,606) (292,442)
------------- ------------- -------------

Land, Buildings and
Equipment, Net 260,648 239,315 232,864
------------- ------------- -------------

Other Assets
--------------------------

Intangible Assets, Net 140,632 62,847 55,874
Goodwill 523,395 308,024 291,113
Perkins Program Fund,
Net 13,450 13,450 13,450
Marketable Securities 57,128 57,171 -
Other Assets 11,176 11,961 5,510
------------- ------------- -------------

Total Other Assets 745,781 453,453 365,947
------------- ------------- -------------

TOTAL ASSETS $1,398,756 $1,018,356 $952,540
============= ============= =============
*T

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DEVRY INC.
CONSOLIDATED BALANCE SHEETS
----------------------------------------------------------------------
(Dollars in Thousands)
(Unaudited)
PRELIMINARY

September 30, June 30, September 30,
2008 2008 2007
------------- ------------- -------------

LIABILITIES
----------------------------

Current Liabilities
--------------------------

Current Portion of Debt $145,876 $- $-
Accounts Payable 81,153 70,368 32,799
Accrued Salaries, Wages
and Benefits 43,786 51,300 35,392
Accrued Expenses 42,966 31,175 41,491
Advance Tuition Payments 19,964 16,972 14,828
Deferred Tuition Revenue 173,953 40,877 122,415
------------- ------------- -------------

Total Current
Liabilities 507,698 210,692 246,925
------------- ------------- -------------

Non-Current Liabilities
--------------------------

Revolving Loan 20,000 - -
Deferred Income Taxes,
Net 43,963 22,163 8,689
Deferred Rent and Other 29,342 29,512 30,950
------------- ------------- -------------

Total Non-current
Liabilities 93,305 51,675 39,639
------------- ------------- -------------

TOTAL LIABILITIES 601,003 262,367 286,564
------------- ------------- -------------

SHAREHOLDERS' EQUITY
----------------------------

Common Stock, $0.01 par
value, 200,000,000 Shares
Authorized;
71,484,000, 71,377,000
and 71,098,000 Shares
issued
and outstanding at
September 30, 2008, June
30, 2008
and September 30, 2007,
respectively. 725 724 717
Additional Paid-in Capital 174,236 168,405 147,511
Retained Earnings 661,894 627,064 536,933
Accumulated Other
Comprehensive Loss (2,557) (2,963) (1,550)
Treasury Stock, at Cost
(969,360, 989,579 and
589,393 Shares,
Respectively) (36,545) (37,241) (17,635)
------------- ------------- -------------

TOTAL SHAREHOLDERS' EQUITY 797,753 755,989 665,976
------------- ------------- -------------

TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $1,398,756 $1,018,356 $952,540
============= ============= =============
*T

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DEVRY INC.
CONSOLIDATED STATEMENTS OF INCOME
----------------------------------------------------------------------
(Dollars in Thousands Except for Per Share Amounts)

PRELIMINARY

For The Quarter
Ended September 30,
---------------------------

2008 2007
------------- -------------

REVENUES:
Tuition $279,127 $230,221
Other Educational 24,590 20,097
------------- -------------

Total Revenues 303,717 250,318
------------- -------------

OPERATING COSTS AND EXPENSES:
Cost of Educational Services 139,613 121,028
Loss (Gain) on Sale of Assets - 3,743
Student Services and Administrative
Expense 117,292 91,645
------------- -------------

Total Operating Costs and Expenses 256,905 216,416
------------- -------------

Operating Income 46,812 33,902

INTEREST:
Interest Income 2,142 2,407
Interest Expense (353) (221)
------------- -------------

Net Interest Income (Expense) 1,789 2,186
------------- -------------

Income Before Income Taxes 48,601 36,088

Income Tax Provision 13,771 9,253
------------- -------------

NET INCOME $34,830 $26,835
============= =============

EARNINGS PER COMMON SHARE:
Basic $0.49 $0.38
============= =============
Diluted $0.48 $0.37
============= =============
*T

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*T
DEVRY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
----------------------------------------------------------------------
PRELIMINARY

For The Quarter
Ended September 30,
---------------------------
2008 2007
------------- -------------

CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $34,830 $26,835
Adjustments to Reconcile Net Income to
Net Cash Provided by Operating
Activities:

Stock-Based Compensation Charge 3,110 1,514
Depreciation 8,825 8,405
Amortization 952 1,081
Provision for Refunds and
Uncollectible Accounts 15,985 14,725
Deferred Income Taxes (923) (6,785)
Loss (Gain) on Disposals of Land,
Buildings and Equipment 24 3,735
Changes in Assets and Liabilities,
Net of Effects from Acquisitions of
Businesses:
Restricted Cash (4,313) (6,729)
Accounts Receivable (86,442) (47,401)
Prepaid Expenses And Other 5,835 741
Accounts Payable 9,091 (1,509)
Accrued Salaries, Wages, Benefits
and Expenses 2,706 (60)
Advance Tuition Payments (1,826) 390
Deferred Tuition Revenue 108,964 85,067
------------- -------------

NET CASH PROVIDED BY OPERATING
ACTIVITIES 96,818 80,009
------------- -------------

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (10,638) (18,140)
Net Proceeds from Sales of Land and
Building - 38,528
Payment for Purchase of Business, Net of
Cash Acquired (286,254) -
Marketable Securities Purchased (13) (82,738)
Marketable Securities-Maturities and
Sales - 10,000
------------- -------------

NET CASH USED IN INVESTING ACTIVITIES (296,905) (52,350)
------------- -------------

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Exercise of Stock Options 2,078 2,394
Reissuance of Treasury Stock 1,340 182
Repurchase of Common Stock for Treasury - (5,402)
Cash Dividend Paid (4,282) (3,557)
Excess Tax Benefit from Stock-Based
Payments 420 167
Borrowings Under Collateralized Line of
Credit 45,876 -
Borrowings Under Revolving Credit
Facility 120,000 25,000
Repayments Under Revolving Credit
Facility - (25,000)
------------- -------------

NET CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES 165,432 (6,216)
------------- -------------

Effects of Exchange Rate Differences 515 (587)
------------- -------------

NET INCREASE IN CASH AND CASH EQUIVALENTS (34,140) 20,856

Cash and Cash Equivalents at Beginning of
Period 217,199 129,155
------------- -------------

Cash and Cash Equivalents at End of Period $183,059 $150,011
============= =============

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION
Cash Paid (Refunded) During the Period
for:
Interest $51 $177
Income Taxes, Net (6,868) 6,392
*T

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DEVRY INC.
SEGMENT INFORMATION
----------------------------------------------------------------------
(Dollars in Thousands)

PRELIMINARY

For The Quarter
Ended September 30,
-----------------------------------------
Increase
2008 2007 (Decrease)
------------- ------------- -------------

REVENUES:
DeVry University $230,680 $194,765 18.4%
Medical and Healthcare 53,278 37,240 43.1%
Professional and Training 19,759 18,313 7.9%
------------- -------------

Total Consolidated
Revenues 303,717 250,318 21.3%
------------- -------------

OPERATING INCOME:
DeVry University 25,288 15,561 62.5%
Medical and Healthcare 15,351 11,601 32.3%
Professional and Training 7,723 8,358 -7.6%
Reconciling Items:
Amortization Expense (916) (1,046) -12.4%
Depreciation and Other (634) (572) 10.8%
------------- -------------

Total Consolidated
Operating Income 46,812 33,902 38.1%

INTEREST:
Interest Income 2,142 2,407 -11.0%
Interest Expense (353) (221) 59.7%
------------- -------------

Net Interest Income 1,789 2,186 ($397)
------------- -------------

Total Consolidated
Income before Income
Taxes $48,601 $36,088 34.7%
------------- -------------

The following table displays the discrete income statement items
related to the losses on the sales of operating facilities as a
separate component of operating income and income before income
taxes. This non-GAAP disclosure of operating results is not
preferable to GAAP disclosure but is shown as a supplement to such
disclosure to aid comparability between the quarters.

For The Quarter
Ended September 30,
-----------------------------------------
Increase
2008 2007 (Decrease)
------------- ------------- -------------

DeVry University Operating
Income $25,288 $15,561 62.5%
Loss on Sale of Assets - 3,743 NM
------------- -------------
DeVry University Operating
Income
Excluding Loss on Sale of
Assets $25,288 $19,304 31.0%
------------- -------------

The following table displays the pro forma results of operations for
the Medical and Healthcare segment as if U.S. Education Corp. was a
part of the Company's business for the entire quarterly periods ended
September 30, 2008 and 2007. This non-GAAP disclosure of operating
results is not preferable to GAAP disclosure but is shown as a
supplement to such disclosure to aid comparability between the
quarters.

For The Quarter
Ended September 30,
-----------------------------------------
Increase
2008 2007 (Decrease)
------------- ------------- -------------

Medical and Healthcare
Revenue as Reported $53,278 $37,240 43.1%
U.S. Education Revenue 41,483 33,889 22.4%
Adjustments (1) (5,576) - NM
------------- -------------
Pro forma Medical &
Healthcare Revenue $89,185 $71,129 25.4%
------------- -------------

Medical and Healthcare
Operating Income as
Reported $15,351 $11,601 32.3%
U.S. Education Operating
Income as Adjusted (2) 6,481 3,786 71.2%
Adjustments (1) (1,131) - NM
------------- -------------
Pro forma Medical &
Healthcare Operating Income $20,701 $15,387 34.5%
------------- -------------

(1) Adjustment for 12 days of results that are included in the Medical
and Healthcare operations as Reported.

(2) Adjusted for non-recurring acquisition related charges in the
quarter ended September 30, 2008, along with an allocation of
corporate charges in the quarters ended September 30, 2008 and 2007.
*T

DeVry Inc.
Investor Contact:
Joan Bates
jbates@devry.com
(630) 574-1949
or
Media Contact:
Michelle Yokoyama
myokoyama@sardverb.com
(312) 895-4701

Copyright Business Wire 2008