NATIONAL AMERICAN UNIVERSITY HL (OTC:NAUH)

Fourth Quarter 2011 Results

• The Companys total revenues for the three months ended May 31, 2011 increased 10.1% to $28.1 million from $25.5 million for the same period last year.
• Net income attributable to the Company for the fiscal year 2011 fourth quarter was $2.3 million, or $0.09 per diluted share based on 26.7 million shares outstanding, compared to $2.1 million, or a loss of $0.26 per diluted share of common stock, in the prior-year period. The Companys earnings per share in the fiscal year 2010 fourth quarter were impacted by a one-time special cash dividend paid after the completion of its follow-on public offering on June 1, 2010, to its Class A common stockholders and common stockholders of record on May 20, 2010. The aggregate amount of the special dividend paid was approximately $11.1 million.

Ronald L. Shape, Ed.D., Chief Executive Officer of the Company, commented, We reported a solid fourth quarter and a very strong year. We achieved year-over-year enrollment growth of 14% to a record 10,000 students in the fourth quarter, marking another milestone in our Companys history. While the enrollment percentage has declined from the tremendous growth over the course of 2010, it continues to exceed our historical growth rate. During the year, there were a number of industry headwinds from outside influences that we believe are finally beginning to abate, and throughout it all, we have remained committed to our core values. These include our focus on serving our students, our highly adaptable hybrid learning centers, our academically respected nursing and allied health programs, our growing educational affiliations that provide opportunity for revenue diversification, and our ongoing commitment to high demand, career-oriented programs and flexible options for a growing and changing student base.

Outlook for 2011

Dr. Shape concluded, We continue to gain traction in our newly opened hybrid learning centers, and expect to move forward on our campus and programmatic expansion initiatives. We believe our on-site programs not only offer students, faculty and staff an opportunity to participate in a more traditional college experience, but also provide online students, faculty and staff with a sense of connection to the university. Additionally, on-site facilities play an important role in integrating online faculty into the academic programs and ensuring the overall consistency and quality of the student learning experience. We believe the mix of a growing online program, anchored by on-site programs with a 70-year history, differentiates the university from most other for-profit post-secondary education institutions. During FY 2011 we generated $25.7 million in free cash flow, which included $15.8 million in cash from operations. We plan to leverage the Companys strong financial position and academic standards with continued investment in NAUs existing programs and locations, in addition to expanding to new markets and growing its affiliate relationships.

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