Bridgepoint Education (BPI), C+, 7.5

. Scheduled for Wednesday, April 15, 2009

. Credit Suisse, J.P.Morgan, William Blair & Company, BMO Capital Markets, Piper Jaffray, Signal Hill . Price range $14-16, 13.5mm shares, 19% from company, 81% from shareholders

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Bridgepoint Educ	BPI, C+, 7.5
Post-secondary online ed
Compare & contrast	Market Cap	P/E*
	($mm)
Apollo Group (APOL)	$10,000	15
Capella Education (CPLA)	$795	28
Strayer Education (STRA)	$2,300	29
Bridgepoint Educ (BPI)	$783	30
Grand Canyon (LOPE)	$675	93
		*trailing 12 months
Financials & ratios						Post-IPO shrs: 52.2mm
San Diego, CA		2006	2007	2008		IPO Mkt
Rev ($mm)		$27	$86	$218		Cap (mm)
Gross profit %		54%	65%	71%		$783
Net after-tax income		-$5.2	$3.3	$26.4		@$15
Net income %		-19.3%	3.8%	12.1%
			2008 Quarterly Progression
	March	June	Sept	Dec
Rev ($mm)	$39	$50	$60	$69
Gross profit %	67%	74%	73%	70%
Net after-tax income	$4.0	$8.0	$8.8	$5.7
Net income %	10%	16%	15%	8%
Enrollment
. Online	18,918	22,201	29,786	30,921
. Ground	591	406	761	637
Total	19,509	22,607	30,547	31,558
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales*	Earnings*	BookValue	TangibleBV	in IPO
Bridgepoint Educ (BPI)	$783	3.6	29.7	20.8	21.7	26%
SCORECARD		Mgt*	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	2	2	1.5	7.5
		*trailing 12 months

BUSINESS

. 31,558 students enrolled as of December 31, 2008, 98% of whom were attending classes exclusively online. As of December 31, 2008, offered over 860 courses and 44 degree programs with 55 specializations and 30 concentrations

. Revenue growth primarily attributed to enrollment growth

RISKS

. Recent market conditions affecting the availability of credit have caused some lenders, including some lenders that historically have provided Title IV loans to BPI’s students, to cease providing Title IV loans to students.

. On the other hand, during 2008, BPI did not see any unfavorable impact from the decline in general economic conditions on liquidity, capital resources or results of operations.

COMPETITION

. Traditional public and private two- and four-year colleges as well as with other post secondary schools. Traditional colleges and universities may offer programs similar to BPI’s at lower tuition levels as a result of government subsidies, etc.

. Companies in the post-secondary online market include Apollo Group (APOL), Capella Education (CPLA), Grand Canyon (LOPE), Strayer Education (STRA). See above for ratio compare & contrast

ACQUISITION HISTORY

. In March 2005, acquired the assets of The Franciscan University of the Prairies, located in Clinton, Iowa, and renamed it Ashford University. Founded in 1918 by the Sisters of St. Francis, a non-profit organization, The Franciscan University of the Prairies originally provided post secondary education to individuals seeking to become teachers and later expanded to offer a broader portfolio of programs. At the time of the acquisition, the university had 332 students, 20 of whom were enrolled in the university's first online program, which launched in January 2005.

. In September 2007, acquired the assets of the Colorado School of Professional Psychology, located in Colorado Springs, Colorado, and renamed it the University of the Rockies. Founded as a non-profit organization in 1998 by faculty from Chapman University, the school offers master's and doctoral programs primarily in psychology. At the time of the acquisition, the school had 75 students and did not offer any online courses or programs. In October 2008, through the University of the Rockies, launched one online master's program with two specializations, and our first online doctoral program.

USE OF $30.6mm in IPO PROCEEDS From sales of 2.6mm shares, shareholders plan to sell 10.9mm shares

. $27.6 million to pay preferred stock dividends

. Balance for general corporate purposes