Edgar Filing: CHAMPAGNE RENE R

Ownership Submission

FORM 4

Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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(Print or Type Responses)

1. Name and Address of Reporting Person ^*

CHAMPAGNE RENE R

2. Issuer Name and Ticker or Trading Symbol
ITT EDUCATIONAL SERVICES INC [ESI]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

__X__ Director	_____ 10% Owner
__X__ Officer (give title below)	_____ Other (specify below)
Chairman and CEO

(Last)

(First)

(Middle)

13000 NORTH MERIDIAN STREET

3. Date of Earliest Transaction (Month/Day/Year)
10/12/2006

(Street)

CARMEL,, IN 46032

4. If Amendment, Date Original Filed(Month/Day/Year)

6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person

(City)

(State)

(Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
1.Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
Common Stock	10/12/2006		M⁽¹⁾		15,935 ⁽²⁾	A	$ 6.75 ⁽³⁾	117,123 ⁽⁴⁾	D
Common Stock	10/12/2006		S⁽¹⁾		11,309 ⁽²⁾	D	$ 70	105,814 ⁽⁴⁾	D
Common Stock	10/12/2006		S⁽¹⁾		855 ⁽²⁾	D	$ 70.01	104,959 ⁽⁴⁾	D
Common Stock	10/12/2006		S⁽¹⁾		1,512 ⁽²⁾	D	$ 70.02	103,447 ⁽⁴⁾	D
Common Stock	10/12/2006		S⁽¹⁾		920 ⁽²⁾	D	$ 70.03	102,527 ⁽⁴⁾	D
Common Stock	10/12/2006		S⁽¹⁾		329 ⁽²⁾	D	$ 70.04	102,198 ⁽⁴⁾	D
Common Stock	10/12/2006		S⁽¹⁾		460 ⁽²⁾	D	$ 70.05	101,738 ⁽⁴⁾	D
Common Stock	10/12/2006		S⁽¹⁾		550 ⁽²⁾	D	$ 70.08	101,188 ⁽⁴⁾	D

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security
(Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code
(Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date
(Month/Day/Year)

7. Title and Amount of Underlying Securities
(Instr. 3 and 4)

8. Price of Derivative Security
(Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)

11. Nature of Indirect Beneficial Ownership
(Instr. 4)

Code

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Stock Option (Right to Buy)

$ 6.75

10/12/2006

M⁽¹⁾

15,935

⁽⁵⁾

01/09/2010

Common Stock

15,935

$ 0

29,065

Reporting Owners

Reporting Owner Name / Address	Relationships
Reporting Owner Name / Address	Director	10% Owner	Officer	Other
CHAMPAGNE RENE R 13000 NORTH MERIDIAN STREET CARMEL,, IN 46032	X		Chairman and CEO

Signatures

Clark D. Elwood, Attorney-In-Fact for Rene R. Champagne		10/13/2006
^**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	The transactions reported on this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on February 1, 2006.
(2)	Represents a portion of the: (a) 67,500 shares subject to a stock option (right to buy) granted on January 7, 2000 ("2000 Option"); and (b) the increase of 67,500 shares subject to the 2000 Option pursuant to the 2-for-1 split of the ESI common stock on June 6, 2002 ("June 2002 Split").
(3)	Represents an original exercise price of $13.50 for the shares of ESI common stock subject to the 2000 Option, reduced to $6.75 pursuant to the June 2002 Split.
(4)	This total does not include 10,801 shares of ESI common stock beneficially owned under the ESI 401(k) Plan on October 12, 2006.
(5)	The option vested in three equal installments on January 7, 2001, 2002 and 2003.

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