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CAREER EDUCATION CORPORATION.
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BOSTIC R STEVEN
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Steve Bostic issued the following press release on May 5, 2006:
For Immediate Release
ISS RECOMMENDS SHAREHOLDERS VOTE FOR STEVE BOSTIC'S NOMINEES ON THE BLUE
PROXY CARD AT CAREER EDUCATION'S UPCOMING ANNUAL MEETING
SEA ISLAND, GA, May 5, 2006 -- Steve Bostic, the beneficial owner of
approximately 1% of the outstanding stock of Career Education Corporation (CEC
or NASDAQ: CECO), today announced that Institutional Shareholder Services (ISS)
recommends that stockholders vote FOR Mr. Bostic's slate of directors,
consisting of James Copeland, William Ide and Mr. Bostic on the BLUE proxy card
at the company's May 18th Annual Meeting of Stockholders. ISS, one of the
nation's leading independent proxy voting advisors, provides voting
recommendations to more than 1,500 major institutional funds, mutual funds and
fiduciaries.
In its analysis, ISS stated: "Last year, shareholders sent a strong signal of
concern and dissatisfaction to the board expressed through a record withhold
vote from the management nominees and an overwhelming mandate on the shareholder
proposals. Since the 2005 annual meeting, management has taken some steps in the
right direction in addressing shareholder concerns over governance and
regulatory issues. However, we believe that management has not gone far enough
in addressing the shareholder mandate and serious issues remain to be resolved.
Since last year's annual meeting, the company came under scrutiny by the ED and
AIU was put under "probation" status with SACS. The company's performance
hindered by these events has been poor and will continue to suffer if these
issues are not resolved expeditiously. Election of the dissident nominees would
bring credibility, accountability, and additional oversight to the board in
navigating the company through these regulatory issues and to further improve
the company's governance practices. As such, we recommend that shareholders
support the dissident slate."
Mr. Bostic commented, "We are very pleased that ISS recognizes the need for
change at Career Education Corporation, and the commitment of our qualified
nominees to take the right steps to restore leadership, integrity and
credibility at CEC and put the company back on the right path to restoring
stockholder value. Our experienced nominees have a clear vision for the company
and specific enterprise transformation plans which we will propose to my fellow
independent directors in order to promptly address and resolve the AIU
accreditation and probation issues and enhance the quality of the company's
performance."
Mr. Bostic concluded, "My fellow nominees and I stand ready to work together
with the Board of Directors to identify the real problems that are depressing
CEC's market value and to work constructively to substantially improve value for
stockholders, both in the short and long term. Management of CEC has for years
failed to recognize and address the company's fundamental problems of providing
quality education at a fair price. The result is missed earnings, slipping
admissions and significant and increasing drop-out rates. If management believes
personal attacks on me will either fix these problems, or make me stop fighting
for both stockholder and student value, they are sadly mistaken. I encourage all
stockholders to review management's promises at the beginning of this year and
the results that they just announced earlier this week. It is clearly time for
change."
ISS also recommends that its clients vote FOR all the other proposals on the
BLUE card, and not use the company's white proxy card.
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Peter Duda
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