2014 Investor Presentation"

FORWARD-LOOKING STATEMENTS"This presentation may contain forward-looking statements including, without limitation, statements with respect management’s expectations regarding student demand, student persistence, the results of the Company's initiatives, emerging trends, productivity, Q3 2013 campaign, 2014 outlook, financial results, 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:""

•  the outcome of the Company's ongoing internal analysis of the impact of the correction of its methodology for evaluating collectability in connection with revenue recognition;"

•  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, 2013, filed with the SEC on March 17, 2014, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, to be filed with the SEC. 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, Certificates"•  Social & Behavioral Sciences "•  Colorado Springs Campus"•  Denver Instructional Site"•  HLC Accredited"

AU and UOR Student Demographics"

98% Online"72% Female"49% Minority"37 Years Old"

University of The Rockies"Ashford University"•  AA, BA, MA, MBA"•  17 NAIA Sports Teams"•  Online & Clinton, IA Campus"•  WASC Accredited -- 5 years*"•  Forbes Alliance"

RECOGNIZED BRANDS"

*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, which was obtained later in 2013. 

"

Forbes COBPS,

38%

Edu, 21%

Health, 24%

Lib. Arts, 16%

NDS, 1%

AU Programs

AA, 7%

BA, 78%

MA, 13%

Doc, 1%

NDS/ HS/

Cert, 1%

AU and UOR Students

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

iffer

ence"

$ pe

r Equ

ival

ent C

redi

t Hou

r*"

13%" 12%" 11%"

47%"Affordable"

* $ 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"

•  More Affordable"•  Proprietary Learning Platform"•  Rapid uptake"•  Patent Pending"

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"

ü  Biz School Applications Up 11% in Q1 2014"

ü  Biz School Web Page Visits Up 36% Q4 ‘13 to Q1 ‘14 "

ü  Forbes Brand Expands AU Corporate Relationships"

ü  Forbes Digital Presence Reaches Online Students"

ü  Unique Online Speaker Events; "

ü  More Than 1200 Forbes Contributors"

ü  Unique Learning Material Creates Value for Students"

•  More Affordable"•  Proprietary Learning Platform"•  Rapid uptake"•  Patent Pending"

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)"

"

"

FINANCIAL REVIEW"

FINANCIAL MODEL HIGHLIGHTS"

•  Highly Competitive Tuition Pricing"ü  One of the lowest in the sector"ü  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 "

CONSISTENT REGULATORY METRICS"

2013" 2012" 2011" 2010" 2009"

Ashford 2-Yr. CDR" NA" 10.1%" 10.2%" 15.3%"

Rockies 2-Yr. CDR" NA" 4.8%" 4.0%" 3.3%"

Ashford 3-Yr. CDR" ---" 15.4%*" 16.3%" 19.8%"

Rockies 3-Yr. CDR" ---" 7.4%*" 8.0%" 3.3%"

Ashford 90 /10 Ratio " 85.6%" 86.4%" 86.8%" 85.0%" 85.5%"

Rockies 90 /10 Ratio" 87.6%" 87.3%" 85.0%" 85.9%" 84.6%"

*draft data"

FOCUSED ON A TURNAROUND"

53,688"

77,892"86,642"

81,810 "

63,624 "61,117"

5,000"

25,000"

45,000"

65,000"

85,000"

105,000"

2009" 2010" 2011" 2012" 2013" Q2 '14"

Enrollments"

$445.5"

$699.9"

$915.2"$943.4"

$751.4"

$328.8"

$50.0"

$250.0"

$450.0"

$650.0"

$850.0"

$1,050.0"

2009" 2010" 2011" 2012" 2013" H1 '14"

Revenue ($ millions)"

OPERATING MARGIN"

17.8%"

30.6%" 29.6%"

20.3%"

9.1%"

4.4%"

0.0%"

10.0%"

20.0%"

30.0%"

2009" 2010" 2011" 2012" 2013" H1 '14"

CASH FLOW AND EPS"

$116.1"

$177.0"

$216.0"

$149.9"

$85.6"

-$3.8"-$5.0"

$45.0"

$95.0"

$145.0"

$195.0"

$245.0"

2009" 2010" 2011" 2012" 2013" H1 '14"

Net Cash Provided (Used) By Operating Activities"

($ millions) "

$0.72"

$2.11"

$2.99"

$2.17"

$0.83"

$0.19"

$0.00"

$0.50"

$1.00"

$1.50"

$2.00"

$2.50"

$3.00"

$3.50"

2009" 2010" 2011" 2012" 2013" H1 '14"

Fully-Diluted "Earnings Per Common

Share "

THANK YOU "