Three Months Ended September 30

Revenues for the three months ended September 30, 2009 increased 31% to $114.4 million, compared to $87.0 million for the same period in 2008, due to increased enrollment and a 5% tuition increase which commenced in January 2009.

Income from operations was $27.3 million compared to $18.3 million for the same period in 2008, an increase of 49%. Operating income margin was 23.8% compared to 21.0% for the same period in 2008.

Net income was $16.7 million compared to $11.8 million for the same period in 2008, an increase of 42%. Diluted earnings per share was $1.21 compared to $0.83 for the same period in 2008, an increase of 46%. Diluted weighted average shares outstanding decreased to 13,780,000 from 14,240,000 for the same period in 2008.

Nine Months Ended September 30

Revenues for the nine months ended September 30, 2009 increased 29% to $364.8 million, compared to $282.0 million for the same period in 2008, due to increased enrollment and a 5% tuition increase which commenced in January 2009.

Income from operations was $120.0 million compared to $87.4 million for the same period in 2008, an increase of 37%. Operating income margin was 32.9% compared to 31.0% for the same period in 2008.

Net income was $73.2 million compared to $56.6 million for the same period in 2008, an increase of 29%. Diluted earnings per share was $5.29 compared to $3.97 for the same period in 2008, an increase of 33%. Diluted weighted average shares outstanding decreased to 13,850,000 from 14,275,000 for the same period in 2008.

"We are pleased with our solid financial results for the third quarter and our strong student enrollment for the fall term," said Robert S. Silberman, Chairman and CEO of Strayer Education, Inc. "We look forward to opening 13 new campuses in 2010. For the 2010 winter term, we will add three new Strayer markets with new campuses in New Brunswick and Lawrenceville, New Jersey and Little Rock, Arkansas."

Balance Sheet and Cash Flow

At September 30, 2009, the Company had cash, cash equivalents and marketable securities of $93.4 million and no debt. The Company generated $89.8 million from operating activities in the first nine months of 2009 compared to $63.0 million during the same period in 2008. Capital expenditures were $22.1 million for the nine months ended September 30, 2009 compared to $15.3 million for the same period in 2008.

During the three months ended September 30, 2009, the Company invested $5.0 million to repurchase 24,528 shares of stock at an average price of $202.13 as part of a previously announced stock repurchase authorization. During the nine months ended September 30, 2009, the Company had invested $70.1 million for share repurchases. During the nine months ended September 30, 2009, the Company paid regular, quarterly dividends of $21.1 million ($0.50 per share for each quarterly dividend).

For the third quarter 2009, bad debt expense as a percentage of revenues was 4.5% compared to 3.7% for the same period in 2008. Days sales outstanding, adjusted to exclude tuition receivable related to future quarters, was 15 days at the end of the third quarter of 2009, compared to 13 days at the end of the third quarter of 2008.

Student Enrollment

Enrollment at Strayer University for the 2009 fall term increased 22% to 54,317 students compared to 44,564 students for the same term in 2008. Across the Strayer University campus and online system, continuing student enrollments increased 23%, while new student enrollments increased 20%. Global online students increased 43%. Students taking 100% of their classes online (including campus based students) increased 21%. The total number of students taking at least one class online increased 22% to 39,128.

                                                                                            
 Student Enrollment                                                                         
                                                         Fall 2008    Fall 2009    % Change 
 Campus Based Students:                                                                     
 New Campuses (28 in operation 3 years or less)                                             
 Classroom Students                                      1,487        3,714        150%     
 Online Students                                         2,809        4,676        66%      
 Total New Campus Based Students                         4,296        8,390        95%      
 Mature Campuses (43 in operation more than 3 years)                                        
 Classroom Students                                      15,795       17,622       12%      
 Online Students                                         20,435       22,549       10%      
 Total Mature Campus Based Students                      36,230       40,171       11%      
 Total Campus Based Students                             40,526       48,561       20%      
 Global Online Students                                  4,038        5,756        43%      
 Total University Enrollment                             44,564       54,317       22%      
                                                                                            
 Total Students Taking 100% of Courses Online            27,282       32,981       21%      
 Total Students Taking at Least 1 Course Online          32,204       39,128       22%      
                                                                                            


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New State Approvals

The Company announced today that Strayer University has received approval to operate in the states of Arkansas, Louisiana, Mississippi and Texas.

New Campus Openings

The Company announced today that Strayer University intends to open 13 new campuses in 2010. The first three campuses, which will be located in Lawrenceville and New Brunswick, New Jersey and in Little Rock, Arkansas, will open for the winter term 2010 start of classes.

2009 Business Outlook

Based on the strong enrollment growth announced for the 2009 fall term and the planned investments in opening new campuses, the Company estimates fourth quarter 2009 diluted earnings per share will be in the range of $2.28 to $2.30. Based on its fourth quarter 2009 estimates, the Company expects its full year 2009 diluted earnings per share will be in the range of $7.56 to $7.58.

2010 Business Model

The Company announced today that Strayer University is implementing a 5% tuition increase effective January 2010. The Company also announced today that Strayer University intends to open 13 new campuses in 2010. Taking into account this accelerated investment plan for 2010, and assuming a 20% increase in annual student enrollment at Strayer University in 2010, the Company would then expect a 24-25% increase in revenue, roughly stable operating margins, and diluted earnings per share in the $9.30 to $9.50 range for 2010. Included in this range is the Company's estimate of approximately $0.52 per share after tax stock-based compensation expense and an effective tax rate of 39.5%.

Quarterly Common Stock Cash Dividends

The Company also announced today that its Board of Directors is increasing the Company's annual dividend to $3.00 per share from $2.00 per share. This annual dividend will be paid quarterly in the amount of $0.75 per share. Accordingly, the Company's Board of Directors has declared that the Company will pay a dividend of $0.75 per share on December 10, 2009 to shareholders of record as of November 24, 2009.

Share Repurchase Plan

The Company announced today that the Company's Board of Directors amended the share repurchase program to authorize the repurchase of up to $100 million in value of the Company's common stock over the next 14 months. The Company intends to conduct such purchases, if any, in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. This share repurchase program may be modified, suspended or terminated at any time by the Company without notice.

Shares and Options Outstanding

At September 30, 2009, the Company had 14,008,796 common shares issued and outstanding, and 106,667 stock options outstanding with a weighted average exercise price of $104.81 and a remaining weighted average contractual life of 2.2 years.

Conference Call with Management

Strayer Education, Inc. will host a conference call to discuss its third quarter 2009 earnings at 10:00 a.m. (ET) today. To participate on the live call, investors should dial (888) 523-1227 10 minutes prior to the start time. In addition, the call will be available via live Webcast over the Internet.