Hackbright Academy Joins Capella Education Company to Further Goal of Closing the Gender Gap in Software Engineering

Acquisition of Non-degree Provider is an Extension of Capella Education
Company’s Strategy to Provide Most Direct Path Between Learning and
Employment

MINNEAPOLIS–(BUSINESS WIRE)–Capella
Education Company (NASDAQ: CPLA) today announced that Hackbright
Academy, the leading non-degree software engineering school for women,
has become a wholly-owned, subsidiary of the Capella Education Company.
The transaction was closed on April 22, 2016 for a purchase price of $18
million paid in cash at closing. Hackbright’s mission to increase female
representation in the tech workforce through education, mentorship and
community is a strategic fit with Capella’s focus on providing the most
direct path between learning and employment, and Capella’s historic base
of largely female students. Hackbright Academy will operate as a wholly
owned subsidiary of Capella and maintain its current headquarters and
management team based in San Francisco.

“The future of learning and employment will be shaped by institutions
that can upskill under-represented populations in high-demand skill
areas. This is what makes the combination of Capella and Hackbright
Academy so exciting,” Kevin Gilligan, Capella Education Company chairman
and chief executive officer said. “Capella has a heritage as an
innovator for those poorly served by traditional education; Hackbright
Academy is on the leading edge of innovation and support for women
pursuing career advancement in software engineering. Hackbright’s
mission alignment, strategic fit, and growth potential make this
partnership an important element of Capella’s future.”

“From my first meeting with Capella, it was clear that they share our
values and want to ensure Hackbright has what it needs to succeed and
grow,” said Sharon Wienbar, Hackbright Academy’s chief executive
officer. “There will be over 1 million unfilled software engineering
jobs in the U.S. by 2020, and Hackbright is committed to its mission to
changing the ratio of women software engineers in these positions.
Combining with Capella will give us the resources to grow to serve our
students and partners. I’m thrilled to bring our whole team along on
this mission, and to be able to grow our influence in the technology
community.”

“We founded Hackbright after seeing how few women had the opportunity to
advance their careers in the first code schools, which were heavily
male,” said David Phillips, co-founder and chairman of Hackbright. “We
are excited that with Capella, we can now accelerate the fulfillment of
our mission to #changetheratio.”

Key Facts about Hackbright Academy

• Founded in 2012 by David Phillips and colleagues
• Hackbright Academy offers immersive, in-person programs headquartered
  in San Francisco
• Hackbright teaches women computer science fundamentals, professional
  software development skills, and helps its graduates secure desirable
  software engineering jobs

For graduates of the Fellowship program, an immersive in-person 12-week
software engineering program, seeking employment between June 2012 and
April 2014:

• 90% of Hackbright’s graduates of the Fellowship program seeking
  employment get tech jobs
• 84% of Hackbright alumnae who receive job offers get their first job
  offer within 3 months of completing the engineering Fellowship
• The average starting salary for graduates with full-time roles was
  $89,000
• In addition to graduating software engineers, Hackbright Academy
  alumnae have started new careers as:
  Support Engineers
  Software
  Engineers in Test / Quality Engineers
  Security Engineers
  Systems
  Engineers
  Data Scientists
  Product Managers
  Solutions
  Architects

Key Facts About Capella

• Capella
  University, the flagship of Capella Education Company, offers
  competency-based degree programs for working adults, primarily in
  post-graduate fields
  • Over 75% of Capella University’s learner population is female
  • About half of its learner population is learners of color

  Forward-Looking Statements

  Certain information in this news release does not relate to historical
  financial information, including statements relating to future prospects
  and expectations regarding our growth, revenues, enrollment, and
  operating performance, and should be considered forward-looking
  statements within the meaning of the Private Securities Litigation
  Reform Act of 1995. The company cautions investors not to place undue
  reliance on any such forward-looking statements, which are based on
  information available at the time those statements are made or
  management’s good faith belief as of that time with regard to future
  events, and should not be read as a guarantee of future performance or
  results. Such statements are subject to risks and uncertainties which
  could cause the company’s actual results to differ materially from
  historical results and from results presently anticipated or projected.
  The company undertakes no obligation to update its forward-looking
  statements.

  Among these risks and uncertainties are successfully integrating
  Hackbright’s personnel, systems and business; keeping up with advances
  and trends in software engineering desired by employers; any failure to
  materially comply with the extensive regulatory framework applicable to
  us; any governmental review of our business, marketing, or financial aid
  practices, including by any state attorneys general, the federal
  Consumer Financial Protection Bureau, or other state regulatory bodies;
  effectively managing data security risks; and managing risks associated
  with the overall competitive environment and general economic conditions.

  Other factors that could cause our results to differ materially from
  those contained in its forward-looking statements include those
  described in the “Risk Factors” section of our most recent Annual Report
  on Form 10-K on file with the Securities and Exchange Commission (SEC),
  and any updates or developments described in our Quarterly Reports on
  Form 10-Q and other documents the company files with the SEC.

  About Capella Education Company

  Founded in 1991, Capella Education Company (http://www.capellaeducation.com)
  is a leading education provider, primarily through our wholly owned
  subsidiary Capella University (http://www.capella.edu),
  a regionally accredited* online university with approximately 37,000
  learners as of Dec. 31, 2015. Capella Education Company also owns Sophia
  (http://www.sophia.org),
  an innovative learning platform leveraging technology to support
  self-paced learning and Capella Learning Solutions (CLS) which provides
  online non-degree, high-demand, job-ready skills, training solutions and
  services to individuals and corporate partners.

  *Capella University is accredited by The Higher Learning Commission.

  About Hackbright

  Hackbright is the leading software engineering school for women with a
  mission to increase female representation in tech through education,
  mentorship and community. Its flagship fellowship is a 12-week
  accelerated software development program where women learn the skills to
  become full-time software engineers. Alumnae are represented in
  companies such as Facebook, Intuit, Slack, Eventbrite and New Relic.

  Contacts

  Capella Education Company
  Investor Contact:
  Heide
  Erickson, 612-977-5172
  Heide.Erickson@capella.edu
  or
  Media
  Contact:
  Mike Buttry, 612-977-5499
  Mike.Buttry@capella.edu
  or
  Media
  Contact for Hackbright Academy:
  Laura Cruz, 917-406-7517
  Laura@tenorcom.com