exhibit99

Exhibit 99.1

ITT EDUCATIONAL SERVICES, INC. REPORTS 2009 FOURTH QUARTER AND FULL YEAR RESULTS, NEW STUDENT ENROLLMENT INCREASED 31.2%; EPS INCREASED 59.0% TO $2.56

CARMEL, IN, January 21, 2010—ITT Educational Services, Inc. (NYSE: ESI), a leading provider of technology-oriented postsecondary degree programs, today reported that new student enrollment in the fourth quarter of 2009 increased 31.2% to 19,563 compared to 14,911 in the same period in 2008. Total student enrollment increased 30.3% to 80,766 as of December 31, 2009 compared to 61,983 as of December 31, 2008.

Earnings per share (“EPS”) in the fourth quarter of 2009 increased 59.0% to $2.56 compared to $1.61 in the fourth quarter of 2008. Revenue in the three months ended December 31, 2009 increased 33.8% to $374.4 million compared to $279.8 million in the three months ended December 31, 2008. Operating margin increased 440 basis points to 40.8% in the fourth quarter of 2009 compared to 36.4% in the same period in 2008.

The company provided the following information for the three and twelve months ended December 31, 2009 and 2008:

Financial and Operating Data for the Three Months Ended December 31st, Unless Otherwise Indicated
(Dollars in millions, except per share and per student data)
	2009				2008	(A)	Increase/ (Decrease)

Revenue	$	374.4		$	279.8			33.8	%
Operating Income	$	152.9		$	101.8			50.2	%
Operating Margin		40.8	%		36.4	%	440 basis points
Net Income	$	93.7		$	62.8			49.0	%
Earnings Per Share (diluted)	$	2.56		$	1.61			59.0	%
New Student Enrollment		19,563			14,911			31.2	%
Continuing Students		61,203			47,072			30.0	%
Total Student Enrollment as of December 31st		80,766			61,983			30.3	%
Persistence Rate as of December 31st (B)		77.3	%		76.5	%	80 basis points
Revenue Per Student	$	4,727		$	4,545			4.0	%
Cash and Cash Equivalents, Restricted Cash and Investments as of December 31st	$	274.1		$	375.4			(27.0	)%
Bad Debt Expense as a Percentage of Revenue		6.9	%		4.9	%	200 basis points
Days Sales Outstanding as of December 31st	21.0 days			9.8 days			11.2 days
Deferred Revenue as of December 31st	$	171.9		$	162.2			6.0	%
Debt as of December 31st	$	150.0		$	150.0
Weighted Average Diluted Shares of Common Stock Outstanding		36,549,000			39,100,000
Shares of Common Stock Repurchased		1,500,000	(C)		--
Land and Building Purchases and Renovations	$	1.7	(D)	$	1.0	(E)		74.4	%
Number of New Colleges in Operation		3			2
Number of Learning Sites Converted to Colleges		5			--
Capital Expenditures, Net	$	8.1		$	5.4			48.5	%

Financial and Operating Data for the Twelve Months Ended December 31st
(Dollars in millions, except per share and per student data)
	2009				2008	(A)	Increase/ (Decrease)

Revenue	$	1,319.2		$	1,015.3			29.9	%
Operating Income	$	488.8		$	325.5			50.2	%
Operating Margin		37.1	%		32.1	%	500 basis points
Net Income	$	300.3		$	201.5			49.0	%
Earnings Per Share (diluted)	$	7.91		$	5.13			54.2	%
Bad Debt Expense as a Percentage of Revenue		6.2	%		4.3	%	190 basis points
Revenue Per Student	$	19,059		$	18,162			4.9	%
Weighted Average Diluted Shares of Common Stock Outstanding		37,942,000			39,243,000
Shares of Common Stock Repurchased		3,477,875	(F)		1,049,700	(G)
Land and Building Purchases and Renovations	$	4.2	(H)	$	18.1	(I)		(76.8	)%
Number of New Colleges in Operation		10	(J)		8
Number of Learning Sites Converted to Colleges		5			--
Capital Expenditures, Net	$	24.0		$	17.5			36.8	%

(A)	Financial data is adjusted from amounts reported in prior periods for the change in accounting for direct costs related to the enrollment of new students.

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

(C)	For approximately $139.3 million or at an average price of $92.86 per share.

(D)	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.

(E)	Represents costs associated with renovating, expanding or constructing buildings at 10 of the company’s locations.

(F)	For approximately $348.1 million or at an average price of $100.10 per share.

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

(H)	Represents costs associated with renovating, expanding or constructing buildings at 19 of the company’s locations, but it excludes all land and buildings of Daniel Webster College that the company acquired.

(I)	Represents costs associated with purchasing a parcel of land on which the company constructed a building, and purchasing, renovating, expanding or constructing buildings at 19 of the company's locations.

(J)	Excludes Daniel Webster College.

The following table sets forth information provided by the company regarding its 2010 internal goals for the metrics indicated:

2010 Internal Goal Range

Days Sales Outstanding at December 31st 10 days to 15 days

Bad Debt Expense as a Percentage of Revenue 4% to 6%

Earnings Per Share (diluted) $10.00 to $10.50

Kevin M. Modany, Chairman and Chief Executive Officer of ITT/ESI, said, "We are very pleased with our results in the final quarter and full year of 2009. As we begin the New Year, we believe that we are well positioned to achieve our internal financial and operating goals for 2010."

ITT Educational Services, Inc. will conduct a conference call with financial analysts to discuss its 2009 fourth quarter 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.

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are made based on the current expectations and beliefs of the company's management concerning future developments and their potential effect on the company. The company cannot assure you that future developments affecting the company will be those anticipated by its management. These forward-looking statements involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: business conditions and growth in the postsecondary education industry and in the general economy; changes in federal and state governmental regulations with respect to education and accreditation standards, or the interpretation or enforcement thereof, including, but not limited to, the level of government funding for, and the company's eligibility to participate in, student financial aid programs utilized by the company's students; the company's failure to comply with the extensive education laws and regulations and accreditation standards that it is subject to; effects of any change in ownership of the company resulting in a change in control of the company, including, but not limited to, the consequences of such changes on the accreditation and federal and state regulation of its institutes; the company's ability to implement its growth strategies; the company's failure to maintain or renew required regulatory authorizations or accreditation of its institutes; receptivity of students and employers to the company's existing program offerings and new curricula; loss of access by the company's students to lenders for education loans; the company's ability to collect internal student financing from its students; the company’s exposure under its guarantees related to private student loan programs; the company's ability to successfully defend litigation and other claims brought against it; and other risks and uncertainties detailed from time to time in the company's filings with the U.S. Securities and Exchange Commission. The company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future developments or otherwise.

FOR FURTHER INFORMATION:

COMPANY: WEB SITE:

Lauren Littlefield, Manager of Communications www.ittesi.com

(317) 706-9200

ITT EDUCATIONAL SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)


	As of
	December 31, 2009			December 31, 2008 (a)
	(unaudited)			(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	128,788		$	226,255
Short-term investments		143,407			138,709
Restricted cash		1,891			10,405
Accounts receivable, net		85,426			29,779
Deferred income taxes		13,799			12,104
Prepaid expenses and other current assets		17,651			13,793
Total current assets		390,962			431,045

Property and equipment, net		195,449			166,671
Deferred income taxes		6,416			7,462
Other assets		23,878			3,170
Total assets	$	616,705		$	608,348

Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable	$	61,275		$	54,815
Accrued compensation and benefits		26,323			21,133
Accrued income taxes		10,218			14,976
Other accrued liabilities		15,043			11,423
Deferred revenue		171,933			162,206
Total current liabilities		284,792			264,553

Long-term debt		150,000			150,000
Other liabilities		25,328			19,951
Total liabilities		460,120			434,504

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
Capital surplus		154,495			135,655
Retained earnings		1,006,903			718,100
Accumulated other comprehensive (loss)		(10,093	)		(13,384	)
Treasury stock, 18,622,809 and 15,352,376
shares, at cost		(995,261	)		(667,068	)
Total shareholders' equity		156,585			173,844
Total liabilities and shareholders' equity	$	616,705		$	608,348

(a)

Amounts as of December 31, 2008 have been retrospectively adjusted from amounts reported in prior periods for a change in accounting for direct costs related to the enrollment of new students (“Direct Marketing Costs”). Total shareholders' equity as of December 31, 2008 decreased by $14,007 from the previously reported amount as a result of the change in accounting for Direct Marketing Costs.

ITT EDUCATIONAL SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)

	Three Months						Twelve Months
	Ended December 31,						Ended December 31,
	(unaudited)						(unaudited)
	2009 (a)			2008 (b)			2009 (a)			2008 (b)

Revenue	$	374,378		$	279,799		$	1,319,194		$	1,015,333

Costs and expenses:
Cost of educational services		121,226			101,550			449,835			383,769
Student services and administrative expenses		100,274			76,436			380,567			306,099
Total costs and expenses		221,500			177,986			830,402			689,868

Operating income		152,878			101,813			488,792			325,465
Interest income		464			1,730			3,291			6,505
Interest (expense)		(133	)		(1,023	)		(726	)		(4,611	)
Income before provision for income taxes		153,209			102,520			491,357			327,359
Provision for income taxes		59,568			39,666			191,094			125,854

Net income	$	93,641		$	62,854		$	300,263		$	201,505

Earnings per share:
Basic	$	2.59		$	1.62		$	8.01		$	5.18
Diluted	$	2.56		$	1.61		$	7.91		$	5.13

Supplemental Data:
Cost of educational services		32.4	%		36.3	%		34.1	%		37.8	%
Student services and administrative expenses		26.8	%		27.3	%		28.8	%		30.1	%
Operating margin		40.8	%		36.4	%		37.1	%		32.1	%
Student enrollment at end of period		80,766			61,983			80,766			61,983
Campuses at end of period		121	(c)		105			121	(c)		105
Shares for earnings per share calculation:
Basic		36,125,000			38,712,000			37,490,000			38,881,000
Diluted		36,549,000			39,100,000			37,942,000			39,243,000


Effective tax rate		38.9	%		38.7	%		38.9	%		38.4	%

(a)	In the fourth quarter of 2009, we changed our accounting for Direct Marketing Costs to expense those costs in the period incurred. Previously, we capitalized Direct Marketing Costs and amortized those costs over the period during which the associated revenue was recognized. If we had not changed our accounting for Direct Marketing Costs: · in the three months ended December 31, 2009, · our net income would have been approximately $384 higher, and · our diluted earnings per share would have been $0.01 higher; and · in the twelve months ended December 31, 2009, · our net income would have been approximately $2,974 higher, and · our diluted earnings per share would have been $0.08 higher.
(b)	Amounts for the three and twelve months ended December 31, 2008 have been retrospectively adjusted from amounts reported in prior periods for the change in accounting for Direct Marketing Costs. The change in accounting resulted in the previously reported amounts of our: · net income decreasing by $169 in the three months ended, and $1,467 in the twelve months ended, December 31, 2008; and · diluted earnings per share decreasing by $0.04 in the twelve months ended December 31, 2008. The change in accounting did not affect our reported diluted earnings per share in the three months ended December 31, 2008.
(c)	Includes the conversion of five learning sites to campuses.

ITT EDUCATIONAL SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)

	Three Months						Twelve Months
	Ended December 31,						Ended December 31,
	(unaudited)						(unaudited)
	2009 (a)			2008 (b)			2009 (a)			2008 (b)
Cash flows from operating activities:
Net income	$	93,641		$	62,854		$	300,263		$	201,505
Adjustments to reconcile net income to net cash flows
from operating activities:
Depreciation and amortization		6,704			5,895			24,908			22,230
Provision for doubtful accounts		25,971			13,829			81,983			43,286
Deferred income taxes		937			(1,309	)		(3,066	)		(9,389	)
Excess tax benefit from stock option exercises		(17	)		(385	)		(5,289	)		(1,158	)
Stock-based compensation expense		2,827			1,504			13,074			7,235
Other		(854	)		1,554			(1,163	)		1,554
Changes in operating assets and liabilities, net of acquisition:
Restricted cash		3,194			(10,389	)		5,775			(4,350	)
Accounts receivable		(17,582	)		(10,299	)		(136,837	)		(57,933	)
Accounts payable		(5,908	)		(3,966	)		4,911			9,695
Accrued income taxes		2,318			13,630			1,010			10,163
Other operating assets and liabilities		4,327			(10,171	)		5,334			1,042
Deferred revenue		27,986			20,162			10,355			(50,921	)
Net cash flows from operating activities		143,544			82,909			301,258			172,959

Cash flows from investing activities:
Facility expenditures and land purchases		(1,720	)		(986	)		(4,236	)		(18,093	)
Capital expenditures, net		(8,079	)		(5,440	)		(23,992	)		(17,543	)
Acquisition of college, net of cash acquired		--			--			(20,792	)		--
Proceeds from sales and maturities of investments		99,586			120,994			242,327			1,085,559
Purchase of investments		(97,425	)		(109,275	)		(244,787	)		(920,480	)
Issuance of note receivable		(1,531	)		--			(18,225	)		--
Proceeds from repayments of note receivable		2,669			--			5,374			--
Net cash flows from investing activities		(6,500	)		5,293			(64,331	)		129,443

Cash flows from financing activities:
Excess tax benefit from stock option exercises		17			385			5,289			1,158
Proceeds from exercise of stock options		50			970			8,800			3,241
Repurchase of common stock and shares tendered for taxes		(139,294	)		--			(348,483	)		(87,774	)
Net cash flows from financing activities		(139,227	)		1,355			(334,394	)		(83,375	)

Net change in cash and cash equivalents		(2,183	)		89,557			(97,467	)		219,027

Cash and cash equivalents at beginning of period		130,971			136,698			226,255			7,228

Cash and cash equivalents at end of period	$	128,788		$	226,255		$	128,788		$	226,255

(a)	Net cash flows from operating activities, investing activities and financing activities in the three and twelve months ended December 31, 2009 did not change as a result of the changes in accounting for Direct Marketing Costs.
(b)	Amounts for the three and twelve months ended December 31, 2008 have been retrospectively adjusted from amounts reported in prior periods for the change in accounting for Direct Marketing Costs. Net cash flows from operating activities, investing activities and financing activities in the three and twelve months ended December 31, 2008 did not change as a result of the change in accounting.