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Aspen Group, Inc. Delivers 1,363 New Student Enrollments in Q3 FY’19, a 40% Increase Year-Over-Year

February 6, 2019

NEW YORK, Feb. 06, 2019 (GLOBE NEWSWIRE) -- Aspen Group, Inc. (“AGI”) (Nasdaq: ASPU), an education technology holding company, today announced 1,363 new student enrollments for the fiscal 2019 third quarter, a 40% increase year-over-year.

Aspen University accounted for 1,112 new student enrollments (includes 120 Doctoral enrollments and 97 Pre-licensure BSN AZ campus enrollments), while United States University (“USU”) accounted for 251 new student enrollments (primarily Family Nurse Practitioner (“FNP”) enrollments). Below is a table reflecting unconditional acceptance new student enrollments for the past five quarters:

New Student EAs Enrolls/Month/EA Enrollments Q3’18 Q4’18 Q1’19 Q2’19 Q3’19 Aspen (Nursing + Other) 9721 980 882 1,104 895 49 6.1 Aspen (Doctoral) 116 118 133 120 6 6.7 Aspen (Pre-Licensure BSN, AZ Campus) 93 57 97 4 8.1 USU (FNP + Other) 177 221 271 251 11 7.6 Total 972 1,273 1,314 1,565 1,363 70 1Included doctoral enrollments

Enrollments for Aspen University’s Pre-Licensure BSN program increased sequentially with the launch of our night/weekend program. Marketing spending for Aspen’s (Nursing + Other) unit for the quarter remained in a similar range as the previous two quarters of fiscal year 2019, and on a year-over-year basis increased modestly by approximately 12%. In terms of enrollment center staffing, on a year-over-year basis the Aspen (Nursing + Other) unit remained flat at 49 Enrollment Advisors (EAs), as the year-over-year increase of 21 EAs are all allocated to the three new business units; Aspen Doctoral (6), Aspen Pre-Licensure BSN (4) and USU (11).

The current Marketing Efficiency Ratio (MER = revenue-per-enrollment or LTV/cost-per-enrollment or CAC) for our three degree units2 is reflected in the below table:

Enrol Cost-of- lment Enrollme LTV MER s nt3 ---- ------- --------- ------ Aspen (Nursing + Other) 895 $ 1,300 $ 7,350 5.7X Aspen (Doctoral) 120 $ 2,334 $ 12,600 5.4X USU (FNP + Other) 251 $ 1,620 $ 17,8204 11.0X

2LTV projections are not yet available for the new BSN pre-licensure campus unit3Based on 6-month rolling average4LTV for USU’s MSN-FNP Program

AGI’s overall active student body (includes both Aspen University and USU) grew 28% year-over-year from 6,512 to 8,354. Aspen University’s total active degree-seeking student body grew 22% year-over-year from 6,066 to 7,393. Aspen’s School of Nursing grew 30% year-over-year, from 4,401 to 5,718 active students, which includes 210 active students in the BSN Pre-Licensure program in Phoenix, AZ.

Aspen University students paying tuition and fees through a monthly payment method grew by 25% year-over-year, from 4,194 to 5,259. Those 5,259 students paying through a monthly payment method represent 71% of Aspen University’s total active student body.

USU’s total active degree-seeking student body grew sequentially from 843 to 961 students or a sequential increase of 14%. USU students paying tuition and fees through a monthly payment method grew from 514 to 602 students sequentially. Those 602 students paying through a monthly payment method represent 63% of USU’s total active student body.

Operational Update – Aspen University Pre-Licensure BSN Program:

Aspen University spent ~$42,000 marketing its new Pre-Licensure BSN program in the Phoenix metro in the months preceeding its July, 2018 launch. Since that initial marketing spend, Aspen has delivered 247 enrollments and begun three semesters (July & November – Day program, January – Night/Weekend program) without having spent any additional marketing dollars over the past 6 months. Consequently, the cost of enrollment to date for the pre-licensure BSN program to date has been approximately $170.

As of January 2019, Aspen will be starting a semester every other month on a go forward basis. Therefore, Aspen has begun marketing again this month to maintain steady prospective student lead flow and to prepare for the launch of its second campus on the north side of Phoenix in partnership with HonorHealth (the initial semester is currently targeted to begin in September 2019).

Operational Update – USU FNP Program:

USU has successfully enrolled to its target of at least 150 FNP students every other month over the past two enrollment cycles (November 2018 and January 2019 starts), which represents a 100% increase from the previous target of enrolling 75 FNP students every other month. As a result, USU ended the quarter with 803 FNP students, representing 84% of USU’s active student body.

“Given that USU’s FNP and Aspen’s Pre-Licensure BSN program delivers the highest LTV’s in AGI’s degree portfolio, we will continue to focus the majority of our growth and personnel on these promising businesses. In fact, we estimate that by April 2020 (the end of next fiscal year), USU’s FNP student body will grow by approximately 75% to 1,400 students and Aspen’s Pre-Licensure BSN student body will grow nearly fivefold to approximately 1,000 students,” said Chairman & CEO, Michael Mathews.

About Aspen Group, Inc.:

Aspen Group, Inc. is an education technology holding company that leverages its infrastructure and expertise to allow its two universities, Aspen University and United States University, to deliver on the vision of making college affordable again. For more information, visit www.aspu.com.

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including the continued growth of our Pre-Licensure BSN program. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include possible delays in the construction of the HonorHealth nursing campus, the effectiveness of our marketing aimed at pre-licensure candidates, unexpected regulatory issues and unanticipated delays in the enrollment process. Further information on our risk factors is included in our filings with the SEC including our Form S-3 filed April 11, 2018, our Prospectus Supplement filed April 19, 2018 and our Form 10-K for the year ended April 30, 2018 filed July 13, 2018. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Company Contact:

Aspen Group, Inc.Michael Mathews, CEO914-906-9159

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/798a4c74-79a4-455a-91cb-8a2dcab2351e

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