Capella Education Company Files Registration Statement for Initial Public Offering of Common Stock

April 18, 2005

MINNEAPOLIS, April 18, 2005Capella Education Company, parent corporation of Capella University, an accredited online university headquartered in Minneapolis, announced today that it has filed a registration statement with the Securities and Exchange Commission for a proposed initial public offering of its common stock. The underwriters for this offering will be Credit Suisse First Boston, acting as lead manager and sole book-runner, with Banc of America Securities LLC and Piper Jaffray & Co., acting as co-managers.

About Capella Education Company
Headquartered in Minneapolis, Capella Education Company is an exclusively online post-secondary education services company. Through its wholly owned subsidiary, Capella University, the company offers a variety of doctoral, master's and bachelor's programs in the following disciplines: business, organization and management; information technology; education; psychology; and human services. Capella's academic offerings combine a rigorous curricula with the convenience and flexibility of an online learning experience.

When available, a copy of the prospectus relating to the offering may be obtained from:

Credit Suisse First Boston
Prospectus Department
Eleven Madison Avenue
New York, NY 10010
Telephone: (212) 325-2000
Banc of America Securities LLC
Prospectus Department
100 West 33rd Street
New York, NY 10001
Telephone: (646) 733-4166
Piper Jaffray & Co.
Attn: Equity Capital Markets
800 Nicollet Mall
Minneapolis, MN 55402
Telephone: (612) 303-6220

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

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