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Press Release

Capella Receives $7.5 Million Investment from Maveron LLC
Venture capital firm to advise online university

Minneapolis, January 23, 2002 — Capella Education Co., the parent of Capella University, formed a strategic alliance today with Maveron LLC, a venture capital firm which invests in consumer companies and businesses that empower consumer companies.

"Maveron was attracted to Capella's passion and vision for higher education," said Howard Schultz, Chairman of Starbucks Coffee Company and co-founder of Maveron. "Capella wants to transform education for working adults by making the online experience as compelling and rewarding as possible.

"Seattle-based Maveron's investment portfolio includes vanguard Internet and consumer brands such as eBay, Potbelly Sandwich Works, SmartBargains and Ontain. By combining Capella's well-established credentials in online education with Maveron's expertise in consumer companies, Capella will further the development and marketing of its worldwide brand name.

"Maveron brings to Capella tremendous resources in branding and in building companies," said Stephen Shank, founder and CEO of Capella Education Co. "They understand what we're trying to do in higher education. At Capella, we believe that education should be about more than just getting a degree. Higher education should be about personal transformation through learning and online education can be the preferred form of education for working adults. That's the kind of experience we are creating and why this alliance with Maveron is a good fit.

" In exchange for its $7.5 million investment, Maveron will own a minority stake in Capella and will serve as a resource for its management team. In addition to Schultz and other Maveron executives, who will advise Capella's management team, Maveron venture partner Jody Miller also will serve as an observer to the company's board of directors. Prior to joining Maveron, Miller acted as president and COO of Americast, the digital interactive television joint venture of Ameritech, Bell South, GTE, SBC, SNET and the Walt Disney Company. Miller also served as legal counsel to former U.S. Secretary of Education Richard Riley when he was governor of South Carolina.

Founded in 1993, Capella has grown rapidly to become a leading provider of high-quality online education. With $50 million in 2002 revenue, enrollment at Capella has increased more than 85% annually since 1998. The university is accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools (NCA), the same organization that accredits Big Ten schools. Capella Education has been named to Inc. magazine's list of 500 fastest growing private companies for the past four years.

Maveron's financial and strategic support follows equity investments in Capella from other firms such as Forstmann Little & Co., Putnam Investments, NCS Pearson and Minnetonka, Minn.-based Cherry Tree Investments.

About Capella University
Capella University is an on-line academic institution accredited by the North Central Association of Colleges that serves adult learners and employers. Founded in 1993, Capella University offers degree programs and certificates in business, technology, education, human services and psychology. The university serves 6,000 adult learners in 50 states and in 40 countries. Capella University is affiliated with the for-profit Capella Education Co., headquartered in Minneapolis, Minn. For more information, visit Capella University at www.capella.edu or call 1.888.CAPELLA.

About Maveron LLC:
Maveron is a venture capital firm focused on consumer companies and businesses that empower consumer companies. Founded in 1998 by Howard Schultz and Dan Levitan, Maveron's mission is to be a premier financial and strategic partner to businesses that are dedicated to improving and transforming the consumer experience. The venture capital firm has more than $400 million under management. Portfolio companies include eBay, drugstore.com, Potbelly Sandwich Works, Ontain, SmartBargains, eStyle, Lucy, Knowledge Networks and Quellos. Maveron is headquartered in Seattle, Washington. For more information, visit Maveron at www.maveron.com.