News Releases

ITT Educational Services, Inc. Responds to Speculation Regarding Military Call-Ups

PRNewswire-FirstCall
INDIANAPOLIS
Apr 4, 2003

ITT Educational Services, Inc. (NYSE: ESI), a leading provider of technology-oriented postsecondary degree programs, today responded to speculation that the call up of military reservists to active duty would have a negative impact on the Company's first quarter and full year 2003 financial results.

Rene R. Champagne, chairman and CEO said, "The call-up of military reservists to active duty in connection with the war in Iraq will not have a material adverse effect on our financial condition, results of operations or cash flows for the first quarter of 2003. Based on the information currently available to us, we also do not believe that the call-up will have a material adverse effect on our financial condition, results of operations or cash flows for the full year of 2003. We are comfortable with current consensus analysts' earnings per share estimates of $0.18 for our first quarter of 2003, compared to actual EPS of $0.14 in the same period of 2002. We also reaffirm that our internal EPS goal for the full year of 2003 is in the range of $1.14 to $1.18, compared to actual EPS of $0.94 in 2002."

The Company intends to report its first quarter 2003 earnings on April 17, 2003. The Company also intends to conduct a conference call and a live Webcast open to the public on April 17, 2003, at 11:00 a.m. EST to discuss its first quarter 2003 earnings release. The Webcast may be accessed on the Company's web site, located at www.ittesi.com and will also be available for replay.

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are made based upon the current expectations and beliefs of the company's management concerning future developments and their potential effect on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by its management. These forward looking statements involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: business conditions and growth in the postsecondary education industry and in the general economy; changes in federal and state governmental regulations with respect to education and accreditation standards, or the interpretation or enforcement thereof, including, but not limited to, the level of government funding for, and the Company's eligibility to participate in, student financial aid programs utilized by the Company's students; the results of the investigation being conducted by the U.S. Department of Education which, if adversely determined, could cause the U.S. Department of Education to subject the Company to monetary fines or penalties or other sanctions (including a limitation, suspension or termination of the Company's ability to participate in federal student financial aid programs) that could adversely affect the Company's ability to enroll students, expand the number of its institutes and increase the number of the programs of study offered at the Company's institutes; the results of the qui tam action brought under the False Claims Act, 31 U.S.C. Section 3730, in which the Company is a defendant which, if adversely determined, could result in a demand for repayment of federal student financial aid funds, trebled under the False Claims Act, and penalties; the Company's ability to hire and retain qualified faculty; effects of any change in ownership of the Company resulting in a change in control of the Company, including, but not limited to, the consequences of such changes on the accreditation and federal and state regulation of the institutes; the Company's ability to implement its growth strategies; receptivity of students and employers to the Company's existing program offerings and new curricula; loss of lender access to the Company's students for student loans; and other risks and uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission. The company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future developments or otherwise.

SOURCE: ITT Educational Services, Inc.

CONTACT: Martin Grossman of ITT Educational Services, Inc.,
+1-317-594-4207

Web site: http://www.ittesi.com/