Press Release

Contact: Russell E. Palmer, Chairman & CEO 215/243-2590

The Palmer Group To Sell American Education Centers, Inc.

Philadelphia, June 24, 2003 – The Palmer Group today announced that it has signed a definitive agreement to sell American Education Centers and its affiliated schools to Education Management Corporation (Nasdaq:EDMC) for approximately $112.5 million in cash and assumption of $3.5 million in debt. American Education Centers (AEC) and its affiliates make up the career education segment of The Palmer Group’s investment portfolio.

American Education Centers is comprised of eighteen regionally and nationally accredited career college campuses in eight states with approximately 5,800 students. The Palmer Group began acquiring the schools and integrating them into one unified school group in 1993. Three of these colleges were founded in the 19th century and a fourth was established in the 1920s. Each of the colleges offers a broad platform of associate degree and diploma programs in health sciences, information technology and business education.

The Palmer Group is a private investment firm based in Philadelphia that invests in businesses to help them achieve leadership in their markets and develop a reputation for excellence in their industries. They generally own 100% of the stock of companies they invest in.

Russell E. Palmer, the majority shareholder of AEC is Chairman and CEO of The Palmer Group. Before founding the firm in 1990, he served for ten years as the Managing Partner and CEO of Touche Ross & Co. (now Deloitte and Touche) and for seven years as the Dean of the Wharton School of the University of Pennsylvania.

EDMC is among the largest providers of private post-secondary education in North America. Approximately 44,000 students are enrolled at 42 campuses in 26 major cities. The acquisition of AEC and its affiliates will enhance EDMC’s existing position in the health sciences field, as well as strengthen its program offerings in the information technology and business fields.

Contact Information
Telephone: 215.243.2590
Fax: 215.243.2593

Postal address
3600 Market Street
Suite 530
Philadelphia, PA 19104

Electronic mail
General Information: gfrancois@palmer-group.com

Send mail to gfrancois@palmer-group.com with questions or comments about
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