UPDATE: Bridgepoint Education Highlights Accreditation Approval by WASC, Offers Q2 Outlook

Bridgepoint Education, Inc. BPI, announced today that its academic institution, Ashford University, has been granted initial accreditation for five years by the Accrediting Commission for Senior Colleges and Universities of the Western Association of Schools and Colleges (WASC). The WASC Commission Action Letter stated "The Commission found that the University has responded to Commission concerns and judges that it is now in substantial compliance with Commission standards." WASC's accreditation review process, which included rigorous reporting and multiple site visits by representatives of the accrediting body, proved to be a beneficial endeavor that elevated Ashford University as an educator and institution. The WASC visiting team noted within their final report that "the team found an institution that has been fundamentally transformed and whose culture has been changed in significant ways, including a shift from a market driven approach to an institution committed to student retention and success, a transformation that is enthusiastically supported by the Board of Trustees, the new President, administration, faculty and staff."  "From our students and alumni, to our faculty and staff, to our trustees and shareholders, today's announcement reaffirms Ashford University's and Bridgepoint Education's collective commitment to student success," said Bridgepoint Education chief executive officer Andrew Clark. "Throughout this organization and its academic institutions, there is a passion for education and the transformative difference it can make. We appreciate WASC's recognition of Ashford University's efforts and know that those same efforts will benefit our students through both the ongoing and new initiatives Ashford has implemented throughout this process."  A copy of the visiting team report and WASC action letter from the review of Ashford University will be available on the WASC website at www.wascsenior.org. WASC's main office is located at 533 Airport Boulevard, Suite 200, Burlingame, CA 94010-2009 (telephone 650.696.1060). Second Quarter Outlook During the second quarter of 2013, the Company made operating cost reductions consisting of both labor and other expense savings across both Bridgepoint and its institutions to better align with reduced total enrollment. "We have determined that we can make meaningful cost adjustments in areas that will not sacrifice the commitments and investments we made to improve student learning, success and outcomes," said Clark. "When fully implemented we anticipate that the annualized labor and operational cost savings from these changes will be approximately $85 million dollars." For the second quarter of 2013, the Company expects total ending enrollments for the quarter of between 71,000 and 72,000. Revenue for the quarter is expected to be between $195.5 million and $199.5 million dollars, and second quarter earnings per diluted share is expected to be between $0.16 and $0.20. The earnings for the second quarter include a charge of $6.2 million related to severance from the recent reduction in force. All of these estimates are preliminary and subject to final review. Bridgepoint Education will report its final second quarter 2013 results on August 6, 2013. Conference Call and Webcast The Company will host a conference call at 8:30 a.m. ET (5:30 a.m. PT) tomorrow, July 11, to discuss Ashford University's accreditation approval and to discuss Bridgepoint's 2013 second quarter outlook. The dial-in number for callers in the United States and Canada is 888.337.8169 and, for all other international callers, is 719.325.2491. The access code for all callers is 9382393. A live webcast will also be available on the Company's website at http://bridgepointeducation.com/investor_relations.htm.