"We are having an outstanding year for earnings, and are exceeding the earnings guidance we gave at the beginning of the year by wide margins," said Oakleigh Thorne, chairman and CEO of eCollege. "This is primarily a result of the operating leverage we are building into our businesses, a reduction in SOX and audit fees and lower interest payments."

Thorne continued, "We expect a significant upturn in revenue growth for the fourth quarter as we realize an acceleration of marketing programs in our Enrollment Division and the impact of new customer signings and strong customer renewals in our eLearning Division. Additionally, we expect strong revenue growth in the eLearning Division in 2006 as we roll out major new customers we signed this year."

Some eCollege Financial Highlights:

- Revenue for the third quarter ended September 30, 2005 was $26.4 million, up 9 percent from the third quarter of 2004. Results for the quarter include revenue of $10.4 million from the Company's eLearning Division and $16.0 million from the Company's Enrollment Division, Datamark, Inc.

- Operating income for the third quarter of 2005 was $4.0 million, up 63 percent from the third quarter of 2004. Operating margin for the quarter was 15.0 percent compared to 10.0 percent for the same period last year.

- Net income before taxes for the third quarter of 2005 was $3.1 million, up 171 percent from the third quarter of 2004. The Company expensed $1.3 million for income taxes in the third quarter of 2005 versus $40 thousand in the same period last year, resulting in net income for the third quarter of 2005 of $1.8 million ($0.08 per diluted share), up 59 percent from $1.1 million ($0.05 per diluted share), for the same period last year.

eLearning Division revenue for the third quarter of 2005 increased 18 percent from the same period last year to $10.4 million. Student fee revenue, which represented 89 percent of the eLearning Division's revenue, increased 18 percent compared to the third quarter of 2004. All other eLearning revenue was up 25 percent compared to the same period last year, primarily driven by academic consulting revenue associated with new customers.

eCollege Operating Highlights

- For the 2005 summer academic term, which impacts both second and third quarters, the total number of distance student enrollments supported by the eLearning Division was approximately 168,000, up 60 percent from approximately 105,000 distance student enrollments in the summer term of 2004.

- For the 2005 fall academic term, which primarily impacts third and fourth quarters, the number of distance student enrollments supported by the eLearning Division is expected to exceed 280,000, up 61 percent from approximately 174,000 distance student enrollments in the 2004 fall term.

- eCollege's eLearning Division has signed seven new platinum customers for the year, ahead of internal plans.

- Average annualized revenue per client at the eLearning Division was $220,000, up 22 percent from $181,000 in the third quarter of last year.

- Total media under management (defined as customers' gross media spending for direct mail, interactive and other media managed by Datamark), totaled approximately $27 million for the third quarter, up 38 percent from the same quarter last year.

- The Company's Board of Directors approved the adoption of a share repurchase program, authorizing the repurchase by the Company of up to $15 million of its outstanding shares of common stock. The program will continue until December 31, 2006. No shares were repurchased during the third quarter.

eCollege (Nasdaq: ECLG) is a provider of value-added information services to the post-secondary and K-12 education industries. The Company's eLearning Division designs, builds and supports some of the most successful, full online training and degree, certificate diploma and professional development programs in the country. The Company's Enrollment Division, Datamark, Inc., helps institutions build new enrollments and increase student retention. Customers include publicly traded for-profit institutions, community colleges, public and private universities, school districts and state departments of education. eCollege is headquartered in Chicago, with the eLearning Division headquartered in Denver.