Exhibit 99.1

ITT EDUCATIONAL SERVICES, INC. REPORTS 2009 THIRD QUARTER RESULTS,

NEW STUDENT ENROLLMENT INCREASED 27.2%; EPS INCREASED 56.3% TO $2.00

CARMEL, IN, October 22, 2009—ITT Educational Services, Inc. (NYSE:  ESI), a leading provider of technology-oriented postsecondary degree programs, today reported that new student enrollment in the third quarter of 2009 increased 27.2% to 27,738 compared to 21,807 in the same period in 2008.  Total student enrollment increased 28.7% to 79,208 as of September 30, 2009 compared to 61,556 as of September 30, 2008.

Earnings per share (“EPS”) in the third quarter of 2009 increased 56.3% to $2.00 compared to $1.28 in the third quarter of 2008. Revenue in the three months ended September 30, 2009 increased 33.6% to $339.6 million compared to $254.3 million in the three months ended September 30, 2008.  Operating margin increased 430 basis points to 36.1% in the third quarter of 2009 compared to 31.8% in the same period in 2008.

The company provided the following information for the three and nine months ended September 30, 2009 and 2008:

Financial and Operating Data for the Three Months Ended September 30th, Unless Otherwise Indicated
(Dollars in millions, except per share and per student data)
	2009			2008			Increase/ (Decrease)
Revenue	$	339.6		$	254.3			33.6	%
Operating Income	$	122.7		$	80.8			52.0	%
Operating Margin		36.1	%		31.8	%	430 basis points
Net Income	$	75.4		$	50.2			50.2	%
Earnings Per Share (diluted)	$	2.00		$	1.28			56.3	%
New Student Enrollment		27,738	(A)		21,807			27.2	%
Continuing Students		51,470	(B)		39,749			29.5	%
Total Student Enrollment as of September 30th		79,208	(C)		61,556			28.7	%
Persistence Rate as of September 30th (D)		73.6	%		72.5	%	110 basis points
Revenue Per Student	$	4,852		$	4,641			4.5	%
Cash and Cash Equivalents, Restricted Cash and Investments as of September 30th	$	280.8		$	286.7			(2.0	)%
Bad Debt Expense as a Percentage of Revenue		6.8	%		5.0	%	180 basis points
Days Sales Outstanding as of September 30th	25.4 days			12.1 days			13.3 days
Deferred Revenue as of September 30th	$	146.2		$	142.0			2.9	%
Debt as of September 30th	$	150.0		$	150.0
Weighted Average Diluted Shares of Common Stock Outstanding		37,763,000			39,195,000
Shares of Common Stock Repurchased		827,842	(E)		184,700	(F)
Land and Building Purchases and Renovations	$	0.7	(G)	$	3.9	(H)		(83.2	)%
Number of New Colleges in Operation		5			1
Capital Expenditures, Net	$	3.9		$	4.3			(8.8	)%

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Financial and Operating Data for the Nine Months Ended September 30th
(Dollars in millions, except per share and per student data)
	2009			2008			Increase/ (Decrease)
Revenue	$	944.8		$	735.5			28.5	%
Operating Income	$	340.2		$	225.8			50.7	%
Operating Margin		36.0	%		30.7	%	530 basis points
Net Income	$	209.2		$	140.0			49.5	%
Earnings Per Share (diluted)	$	5.45		$	3.56			53.1	%
Bad Debt Expense as a Percentage of Revenue		5.9	%		4.0	%	190 basis points
Revenue Per Student	$	14,332		$	13,617			5.3	%
Weighted Average Diluted Shares of Common Stock Outstanding		38,412,000			39,291,000
Shares of Common Stock Repurchased		1,977,875	(I)		1,049,700	(J)
Land and Building Purchases and Renovations	$	2.5	(K)	$	17.1	(L)		(85.3	)%
Number of New Colleges in Operation		7	(M)		6
Capital Expenditures, Net	$	15.9		$	12.1			31.5	%

(A) Includes 223 students enrolled at Daniel Webster College.

(B) Includes 647 students enrolled at Daniel Webster College.

(C) Includes 870 students enrolled at Daniel Webster College.

(D) Represents the number of Continuing Students in the academic term, divided by the Total Student Enrollment in the immediately preceding academic term.

(E) For approximately $84.5 million or at an average price of $102.06 per share.

(F) For approximately $16.0 million or at an average price of $86.47 per share.

(G) Represents costs associated with renovating, expanding or constructing buildings at nine of the company’s locations, but it excludes all land and buildings of Daniel Webster College that the company acquired.

(H) Represents costs associated with renovating, expanding or constructing buildings at 14 of the company’s locations.

(I) For approximately $208.8 million or at an average price of $105.58 per share.

(J) For approximately $87.8 million or at an average price of $83.62 per share.

(K) Represents costs associated with renovating, expanding or constructing buildings at 15 of the company’s locations, but it excludes all land and buildings of Daniel Webster College that the company acquired.

(L) Represents costs associated with purchasing a parcel of land on which the company constructed a building, and purchasing, renovating, expanding or constructing buildings at 17 of the company's locations.

(M) Excludes Daniel Webster College.

ITT Educational Services, Inc. will conduct a conference call with financial analysts to discuss its third quarter 2009 earnings at 11:00 am (ET) this morning.  The public is invited to listen to a live webcast of the conference call.  The webcast may be accessed by following the “Live Webcast” directions on ITT/ESI’s website at www.ittesi.com.

FOR FURTHER INFORMATION:

COMPANY:                                                                                                            WEB SITE:

Lauren Littlefield                                                                                                     www.ittesi.com

Manager of Communications

(317) 706-9200

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ITT EDUCATIONAL SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
	As of
	September 30, 2009			December 31, 2008			September 30, 2008
	(unaudited)						(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	130,971		$	226,255		$	136,698
Short-term investments		144,146			138,709			150,000
Restricted cash		5,723			10,405			17
Accounts receivable, net		93,819			29,779			33,309
Deferred income taxes		16,328			12,104			13,012
Prepaid expenses and other current assets		19,106			13,793			12,980
Total current assets		410,093			431,045			346,016
Property and equipment, net		192,341			166,671			166,140
Direct marketing costs, net		27,222			22,973			22,694
Other assets		20,705			3,170			19,481
Total assets	$	650,361		$	623,859		$	554,331
Liabilities and Shareholders' Equity
Current liabilities:
Current portion of long-term debt	$	150,000		$	--		$	--
Accounts payable		67,183			54,815			58,781
Accrued compensation and benefits		23,340			21,133			28,574
Accrued income taxes		7,917			14,976			1,753
Other accrued liabilities		15,884			11,423			12,274
Deferred revenue		146,203			162,206			142,044
Total current liabilities		410,527			264,553			243,426
Long-term debt		--			150,000			150,000
Deferred income taxes		4,092			1,504			10,108
Other liabilities		22,262			19,951			19,207
Total liabilities		436,881			436,008			422,741
Shareholders' equity:
Preferred stock, $.01 par value,
5,000,000 shares authorized, none issued		--			--			--
Common stock, $.01 par value,
300,000,000 shares authorized, 54,068,904 issued		541			541			541
Capital surplus		151,653			135,655			133,723
Retained earnings		929,907			732,107			670,073
Accumulated other comprehensive (loss)		(12,558	)		(13,384	)		(3,417	)
Treasury stock, 17,123,838, 15,352,376 and 15,376,719
shares, at cost		(856,063	)		(667,068	)		(669,330	)
Total shareholders' equity		213,480			187,851			131,590
Total liabilities and shareholders' equity	$	650,361		$	623,859		$	554,331

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ITT EDUCATIONAL SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	(unaudited)						(unaudited)
	2009			2008			2009			2008
Revenue	$	339,643		$	254,273		$	944,816		$	735,533
Costs and expenses:
Cost of educational services		116,730			95,011			328,609			282,219
Student services and administrative expenses		100,187			78,500			276,044			227,535
Total costs and expenses		216,917			173,511			604,653			509,754
Operating income		122,726			80,762			340,163			225,779
Interest income		716			1,565			2,827			4,774
Interest (expense)		(191	)		(1,012	)		(593	)		(3,588	)
Income before provision for income taxes		123,251			81,315			342,397			226,965
Provision for income taxes		47,891			31,129			133,185			87,017
Net income	$	75,360		$	50,186		$	209,212		$	139,948
Earnings per share:
Basic	$	2.02		$	1.29		$	5.51		$	3.59
Diluted	$	2.00		$	1.28		$	5.45		$	3.56
Supplemental Data:
Cost of educational services		34.4	%		37.4	%		34.8	%		38.4	%
Student services and administrative expenses		29.5	%		30.8	%		29.2	%		30.9	%
Operating margin		36.1	%		31.8	%		36.0	%		30.7	%
Student enrollment at end of period		79,208			61,556			79,208			61,556
Campuses at end of period  *		112			103			112			103
Shares for earnings per share calculation:
Basic		37,324,000			38,777,000			37,950,000			38,938,000
Diluted		37,763,000			39,195,000			38,412,000			39,291,000
Effective tax rate		38.9	%		38.3	%		38.9	%		38.3	%
* Does not include the Daniel Webster College campus.

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ITT EDUCATIONAL SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	(unaudited)						(unaudited)
	2009			2008			2009			2008
Cash flows from operating activities:
Net income	$	75,360		$	50,186		$	209,212		$	139,948
Adjustments to reconcile net income to net cash flows
from operating activities:
Depreciation and amortization		6,276			5,077			18,204			16,335
Provision for doubtful accounts		23,183			12,839			56,012			29,457
Deferred income taxes		1,471			(1,948	)		(2,344	)		(7,251	)
Excess tax benefit from stock option exercises		(1,385	)		(686	)		(5,272	)		(773	)
Stock-based compensation expense		2,891			1,628			10,247			5,731
Other		113			--			(309	)		--
Changes in operating assets and liabilities, net of acquisition:
Restricted cash		(5,743	)		181			2,581			6,039
Accounts receivable		(47,255	)		(16,950	)		(119,255	)		(47,634	)
Direct marketing costs, net		(1,234	)		(731	)		(4,249	)		(2,127	)
Accounts payable		4,763			4,375			10,819			13,661
Accrued income taxes		(2,432	)		(2,982	)		(1,308	)		(3,467	)
Other operating assets and liabilities		(377	)		4,331			1,007			11,214
Deferred revenue		19,325			3,706			(17,631	)		(71,083	)
Net cash flows from operating activities		74,956			59,026			157,714			90,050
Cash flows from investing activities:
Facility expenditures and land purchases		(664	)		(3,944	)		(2,516	)		(17,107	)
Capital expenditures, net		(3,907	)		(4,286	)		(15,913	)		(12,103	)
Acquisition of college, net of cash acquired		--			--			(20,792	)		--
Proceeds from sales and maturities of investments		57,352			492,760			142,741			964,565
Purchase of investments		(56,543	)		(472,260	)		(147,362	)		(811,205	)
Issuance of note receivable, net of repayments		(71	)		--			(13,991	)		--
Net cash flows from investing activities		(3,833	)		12,270			(57,833	)		124,150
Cash flows from financing activities:
Excess tax benefit from stock option exercises		1,385			686			5,272			773
Proceeds from exercise of stock options		2,756			1,996			8,750			2,271
Repurchase of common stock and shares tendered for taxes		(84,497	)		(15,971	)		(209,187	)		(87,774	)
Net cash flows from financing activities		(80,356	)		(13,289	)		(195,165	)		(84,730	)
Net change in cash and cash equivalents		(9,233	)		58,007			(95,284	)		129,470
Cash and cash equivalents at beginning of period		140,204			78,691			226,255			7,228
Cash and cash equivalents at end of period	$	130,971		$	136,698		$	130,971		$	136,698

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