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Universal Technical Institute Provides Business Update

| July 1, 2020

Positive new student start, enrollment and inquiry trends reflect strong demand and the Company’s attractive student value proposition

Universal Technical Institute the nation’s leading provider of transportation technician training, provided an update on its business and campus operations. The company is expected to report fiscal 2020 third quarter results in early August.

“In the midst of record unemployment and the economic downturn, our graduates will continue to be in demand for years to come, keeping America’s vehicles running and rebuilding our economy and infrastructure,” said Jerome A. Grant, Chief Executive Officer. “We are seeing growing interest in a UTI education and expect more students to turn to industry-aligned technical training as a gateway to stable, rewarding careers. Through this extraordinarily difficult time, we are proud that we are able to give students a quality education that prepares them for good jobs in essential industries.”

In response to the COVID-19 pandemic, UTI has developed a blended education model, combining online, instructor-delivered lectures and demonstrations with in-person labs at its 13 campuses across the country. The Company has also adapted its campus facilities, hands-on teaching methods and schedules to align with Centers for Disease Control & Prevention (CDC) and local health authority guidelines in support of the health and well-being of students and employees.

The Company is diligently monitoring the COVID-19 situation nationally, in the local jurisdictions where it operates and on its campuses, and will continue adapting its plans and operations in response.

Business Update:

  • As previously announced, 12 of the Company’s 13 campuses are currently open with in-person labs operating according to CDC and local jurisdiction guidelines. The Bloomfield, NJ campus is scheduled to resume in-person labs July 1, 2020.
  • Student starts for the fiscal 2020 third quarter are expected to increase approximately 3 percent to 6 percent versus the prior year quarter.
  • New student enrollments for the fiscal 2020 fourth quarter currently exceed 90 percent of the Company’s pre-COVID goal for the quarter and could meet or exceed that goal if current pacing is maintained.
  • New student inquiry volume from the Company’s enhanced digital media marketing strategy has continued to exhibit positive momentum and has shown accelerating year over year growth throughout the fiscal third quarter.
  • Since resuming in-person labs at all but one campus location, more than 500 students have graduated from various programs and students on leaves of absence (LOA) have decreased by approximately 65 percent from their peak in early May. The campus with the largest number of current student LOAs is Bloomfield, NJ due to the delayed resumption of in person labs at the campus.
  • The Company continues to distribute emergency financial aid to students utilizing the Higher Education Emergency Relief Funds (HEERF) granted through the CARES Act. The direct cash grants will help students impacted by the pandemic with expenses such as food, housing, childcare, transportation and technology. UTI is allocating grants based on need consistent with guidance issued by the U.S. Department of Education (ED). The grant program is ongoing, and to date approximately 7,600 students have received grants totaling approximately $11 million. The Company continues to evaluate potential uses of the HEERF institutional funds. All the HEERF funds granted to UTI will be used to support and train future technicians to serve in the essential industries that need them.

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