Twelfth Annual Baron Investment Conference October 3, 2003

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Twelfth Annual BaronInvestment
ConferenceOctober 3, 2003
Making Education Achievable for Working Adults
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Safe Harbor Language
This presentation contains statements that are
forward-looking and are made pursuant to the
"safe-harbor" provisions of the Private
Securities Litigation Reform Act of 1995 ("Reform
Act"). The statements are based on the Company's
current expectations and are subject to a number
of uncertainties and risks. In connection with
the Safe Harbor provisions of the Reform Act, the
Company has identified important factors that
could cause the Company's actual results to
differ materially. The uncertainties and risks
include the pace of growth of student enrollment,
our continued compliance with Title IV of the
Higher Education Act and the regulations
thereunder, as well as state and regional
regulatory requirements, competitive factors,
risks associated with the opening of new
campuses, risks associated with the offering of
new educational programs and adapting to other
changes, risks associated with the acquisition of
existing educational institutions, risks relating
to the timing of regulatory approvals, our
ability to implement our growth strategy, and
general economic and market conditions. Further
information about these and other relevant risks
and uncertainties may be found in the Company's
annual report on Form 10-K and its other filings
with the Securities and Exchange Commission, all
of which are incorporated herein by reference and
which are available from the Commission. We
undertake no obligation to update or revise
forward-looking statements.
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Strayer Education, Inc.

• Strong industry fundamentals
• Established brand
• High product quality
• Consistent operating history
• Owner-oriented management team
• Compelling financial model
• Double digit revenue and net income growth
• Sustainable high operating margins
• Strong free cash flow and return on capital
• Multiple channels for long-term growth

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Post-Secondary Education Market

• Among U.S. economys most promising growth
  sectors
• Over 250 billion spent in 2001 on higher
  education
• High value added for students
• Strong and growing demand for educated workforce
• Trend toward life-long, adult-centered learning
• Price umbrella from not-for-profit schools
• Non-cyclical and economically defensive

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Widening Earnings Gap
80,000
69,804
4 Years of College
70,000
60,000
58,249
95
50,000
43
40,593
40,000
30,000
High School Diploma
35,744
20,000
1970
1999
Source U.S. Census Bureau. Represents most
recent data available.
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Attractive Working Adult Market Segment
U.S. Workforce - Education Level (114 mm total
workforce)
College graduate 30
Less than high school diploma 10
High school graduate, no degree 60
Source U.S. Bureau of Labor Statistics.
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Strayer University

• 16,700 students
• Focus on working adults
• Middle States accredited programs
• Convenient program offerings / accomplished
  faculty
• 25 campuses in 6 states
• Robust online program offering
• 110-year history

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High Quality Academic Programs
Programs
Academic Majors
Business /Economics48
ComputerInformationSystems40
Diploma2
Undeclared3
Associates12
Masters21
Bachelors62
Accounting12
Summer Term 2003
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Student-Focused University

• Average age of student is 34
• Access nights and weekends
• Teaching faculty
• Learning outcomes

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Strayer Locations

• Strategically situated in attractive East Coast
  metro areas
• Philadelphia, PA (2)
• Baltimore, MD (3)
• Washington, D.C. (6)
• Northern Virginia (4)
• Richmond, VA (2)
• Norfolk, VA (2)
• Raleigh-Durham, NC (2)
• Charlotte, NC (2)
• Nashville, TN (1)
• Memphis, TN (1)

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A Leading Online Program Offering
Strayer University OnlineSpring Enrollment

• 516 courses offered as of Spring 2003
• Synchronous and asynchronous programs
• Ability to learn anytime, anywhere
• Students from all 50 states and 39 countries

8,033
Number of Students
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Multifaceted Marketing Program

• Daily tracking of results (lead flow,
  conversions, etc.) allows for on-going refinement
  and optimization of marketing strategy

Internet
Newspaper
Direct Mail
Marketing Strategy
T.V. / Radio
Outreach
Yellow Pages
Outdoors
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Our Strategic Vision
Maintain High Academic Quality
Ensure Stable Performancein Our Mature Markets
Accelerate New Campus Growth
Internal Growth
Continue Rapid Growth of Strayer University
Online
Develop Corporate / Institutional Alliances
External Growth
Consider Selective Acquisitions
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Financial Highlights

• Visibility of revenues and earnings
• High operating margins
• Investing for future growth
• Strong balance sheet (84 million cash/marketable
  securities, no debt)
• Significant cash generation

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Operating Performance Highlights
Enrollment (Fall Quarter)
Revenues( in Millions)
Operating Income( in Millions)
97 - 00 CAGR 8.7vs.00 - 02 CAGR 16.9
1997
2002
1997
1998
1999
2000
2001
2002
1998
1999
2000
2001
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New Campus Economics

• New campuses typically become profitable after
  five to six quarters

First Year Impact of Opening a New Campus
(Amounts in millions, except enrollment data)
Student Quarters Revenue Operating Costs
Operating Loss
125
0.1 1.0 (0.9)
Operating Income (000)
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Significant Cash Generation

• The vast majority of net income each year is
  distributable free cash flow

(Dollars in millions)
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Summary

• The post-secondary education market is a large,
  rapidly growing, and highly attractive industry
• Strayer is a high-quality education company with
  an excellent business model which generates
  strong free cash flow, and has no debt
• If successful in executing our strategy, Strayer
  should deliver substantial growth in shareholder
  value

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Twelfth Annual BaronInvestment
ConferenceOctober 3, 2003
Making Education Achievable for Working Adults