Investor Presentation Q2 2006

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Investor PresentationQ2 2006
Making Education Achievable for Working Adults
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Safe Harbor Language
This presentation contains statements that are
forward-looking and are made pursuant to the
"safe-harbor" provisions of the Private
Securities Litigation Reform Act of 1995 (the
"Reform Act"). The statements are based on the
Company's current expectations and are subject to
a number of uncertainties and risks. In
connection with the safe harbor provisions of the
Reform Act, the Company has identified important
factors that could cause the Company's actual
results to differ materially. The uncertainties
and risks include the pace of growth of student
enrollment, our continued compliance with Title
IV of the Higher Education Act and the
regulations thereunder, as well as regional
accreditation standards and state and regional
regulatory requirements, competitive factors,
risks associated with the opening of new
campuses, risks associated with the offering of
new educational programs and adapting to other
changes, risks associated with the acquisition of
existing educational institutions, risks relating
to the timing of regulatory approvals, our
ability to implement our growth strategy, and
general economic and market conditions. Further
information about these and other relevant risks
and uncertainties may be found in the Company's
annual report on Form 10-K and its other filings
with the Securities and Exchange Commission, all
of which are incorporated herein by reference and
which are available from the Commission. We
undertake no obligation to update or revise
forward-looking statements.
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Strayer Education, Inc.

• Strong supply/demand fundamentals
• Established brand
• High product quality
• Consistent operating history
• Owner-oriented management team
• Compelling financial model
• Double digit revenue and net income growth
• Sustainable high operating margins
• Strong free cash flow and return on capital
• Multiple channels for long-term growth

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Attractive Working Adult Market Segment
Education Level of U.S. Population Over 25 Years
of Age (187 million people)
Less than high school diploma 15
High school graduate, no degree 49
College graduate 36
Associate degree and above
Source U.S. Bureau of Labor Statistics.
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Widening Earnings Gap
59,097
Bachelors Degree and Above
65,000
50,201
55,000
45,000
112
80
35,000
25,000
27,961
High School Diploma
27,915
15,000
2003
1975
Source U.S. Census Bureau. Represents most
recent data available.
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Strayer University

• 27,000 students
• 114-year history
• Focus on working adults
• Middle States accredited programs
• Convenient program offerings / high quality
  faculty
• 41 campuses in 9 states and Washington, D.C.
• Robust online program offering

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High Quality Academic Programs
Spring Term 2006
Academic Majors
Programs
ComputerInformationSystems23
Masters27
Business /Economics55
Bachelors57
Associates11
Accounting14
Undeclared3
Diploma/Certificate2
Other 8
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Strayer Campuses

• 41 strategically situated in attractive East
  Coast metro areas

• Pittsburgh, PA (2)
• Philadelphia, PA (4)
• Wilmington, DE (1)
• Baltimore, MD (3)
• Washington, D.C. (6)
• Northern Virginia (4)
• Richmond, VA (2)
• Norfolk, VA (3)

• Raleigh-Durham, NC (2)
• Greensboro, NC (1)
• Charlotte, NC (2)
• Nashville, TN (1)
• Memphis, TN (2)
• Greenville, SC (1)
• Columbia, SC (1)
• Atlanta, GA (4)
• Tampa, FL (2)

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A Leading Online Program Offering
Strayer University OnlineEnrollment (Spring Term)

• Synchronous and asynchronous programs
• Ability to learn anytime, anywhere
• Students from all 50 states and multiple countries

15,523
Students taking 100 classes Online
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Our Strategic Vision
Maintain High Academic Quality
Ensure Stable Performancein Our Mature Markets
Open New Campuses
Internal Growth
Expand Strayer University Online
Develop Corporate / Institutional Alliances
External Growth
Careful Deployment of Excess Cash
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Enrollment Growth
Enrollment (Spring Term)
17.8 CAGR
9.6 CAGR
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Financial Performance
Revenues( in Millions)
Earnings Per Share (, diluted)
Operating Income( in Millions)
Excluding 2003 asset sales
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Significant Cash Generation

• The majority of net income each year is
  distributable cash flow

(Dollars in millions)
Excluding 2003 asset sales
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Q1 2006 Results/Q2 2006 Outlook
Q1 2006 Results
Q2 2006 Outlook

• Spring Term Enrollment up 15
• New Students up 22
• Online Enrollment up 25
• Q2 EPS
• 0.93 0.95, or 1.02 1.04
  excluding the impact of FAS 123(R)
• FAS 123(R) impact 0.09

• Total Revenues up 19
• EPS of 1.10, up 17
• Excluding stock-based compensation of 0.05 per
  share, EPS was 1.15, up 22

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2006 Business Model

• New Campuses 8
• Enrollment 15 - 18 growth
• Tuition 5 increase
• Revenue 18 - 21 growth
• Operating Margin 32.5 - 33.0
• Diluted EPS before FAS 123(R) 3.75 - 3.90
• FAS 123(R) impact 0.36 - 0.38

See risk factors noted on page 1.
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Summary

• Post-secondary education of working adults is a
  large, underserved, and highly attractive market
• Strayer is a high-quality education company
• Excellent business model which generates strong
  free cash flow
• Pristine balance sheet with no debt
• If successful in executing our strategy, Strayer
  should deliver substantial growth in shareholder
  value

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Investor PresentationQ2 2006
Making Education Achievable for Working Adults