Lincoln Educational Services Corporation
Acquires Euphoria Institute of Beauty Arts and Sciences 

            Enters High-End Spa Services Education Market Through Accretive Acquisition 
 

    WEST ORANGE, N.J., Dec. 14, 2005 /PRNewswire-FirstCall/ -- Lincoln Educational

Services Corporation (Nasdaq: LINC) ("Lincoln") announced today that it has completed the acquisition of Euphoria Institute of Beauty Arts and Sciences for approximately $10 million in cash.  The acquisition, which is immediately accretive to Lincoln's earnings, provides the company with entry into the fast-growing high-end salon and spa services education segment.

    Founded in 2002 by a group of successful salon/spa owners who were looking to develop a highly trained talent pool to serve the high-end salon/spa market, Euphoria has expanded rapidly and now includes two campuses serving approximately 300 students in Las Vegas and Henderson, Nevada.  Euphoria currently offers certificate programs in Esthetics, Cosmetology and Nail Design.  As the baby boom generation continues to age and with the ever increasing interest in wellness and stress-relief, the spa industry has become a multi-billion dollar industry with new locations opening daily.

    David Carney, Chairman and CEO, commented, "This transaction falls well within our target profile and is consistent with our strategy of pursuing accretive acquisitions where we can leverage our curriculum development and replication expertise, facilities footprint and proven management to generate profitable growth.  Euphoria is a well-run, profitable enterprise with an excellent track record in training salon/spa services professionals.  When combined with our massage therapy program in Henderson, we believe we can further improve on Euphoria's offerings and efficiently drive enrollment, particularly among women, in this high-demand vertical.  Through our disciplined approach, we have built a successful track record in integrating acquisitions, including 13 schools in the past five years.  Going forward, we will continue to utilize market research to identify emerging sectors of the economy where there are clear opportunities to expand our footprint."
 

About Lincoln Educational Services Corporation

Lincoln is a leading and diversified for-profit provider of career- oriented post-secondary education.  It offers recent high school graduates and working adults degree and diploma programs in four principal areas of study: automotive technology, skilled trades, business and information technology and health sciences (which includes programs for medical administrative assistants, medical assistants, pharmacy technicians and massage therapists). 

Lincoln has provided the workforce with skilled technicians since its inception in 1946.  Lincoln currently operates 34 campuses in 15 states under eight brands: Lincoln Technical Institute, The Cittone Institute, CEI, Denver Automotive and Diesel College, Nashville Auto-Diesel College, Southwestern College, New England Technical Institute and Euphoria Institute of Beauty Arts and Sciences.  Lincoln has a combined enrollment of approximately 19,000 students as of September 30, 2005.