Capella Education Company Announces Increase in Quarterly Cash Dividend; Increase to Share Repurchase Program

Capella Education Company (NASDAQ: CPLA), a provider of online post-secondary education, primarily through its wholly owned subsidiary Capella University, announced today that its board of directors has approved a 2 cent increase in its quarterly cash dividend to $0.39 per outstanding share of common stock. The board of directors also approved a $50 million increase to its share repurchase program. This increase is in addition to the $6.2 million that currently remains under the share repurchase program.

The cash dividend is payable on Jan. 15, 2016 to shareholders of record as of the close of business on Dec. 23, 2015.

The share repurchases will be made in the open market at prevailing market prices or in privately negotiated transactions using existing resources and cash generated from operations. The Company may also repurchase shares pursuant to a 10b5-1 plan which allows the Company to purchase shares during corporate black-out periods. While the company expects to take advantage of market conditions, the timing and extent of any repurchases, the trading price of the Company’s shares and other factors are subject to restrictions relating to volume, price and timing under applicable law. The repurchase program may be modified, suspended or terminated at any time by the Company without notice.

About Capella Education Company

Founded in 1991, Capella Education Company (http://www.capellaeducation.com) is a leader in online education, primarily through our wholly owned subsidiary Capella University (http://www.capella.edu), a regionally accredited* online university with almost 37,000 learners as of Sept. 30, 2015. In addition, Capella Education Company offers online education through Arden University, formerly called Resource Development International Ltd. (RDI) (http://www.rdi.co.uk), an independent provider of United Kingdom (UK) university distance learning qualifications. Capella Education Company also owns Sophia (http://www.sophia.org), an innovative learning platform leveraging technology to support self-paced learning.

*Capella University is accredited by The Higher Learning Commission.

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Capella Education CompanyInvestor Contact:Heide Erickson, [e-mail]