February 22- March 1, 2007 Edition

Harcourt Up

For Sale; Trade

Division Included

LONDON/2/22/07–Reed Elsevier announced to shareholders February 15 that it will sell the Harcourt Education division, with sales of about $1.63 billion (£889 million). Reed Elsevier’s CEO Sir Crispin Davis said the planned sale “sharpens our strategic focus and concentrates our resources on the digital opportunities across an increasingly synergetic portfolio.” He said the company is well placed on the expanding digital horizon.

Harcourt Education, which employs 5,000 people, includes Harcourt School Publishers, Holt, Rinehart and Winston, Heinemann-Raintree, Harcourt Trade Publishers, Harcourt Religious Publishers, and Harcourt International, and other units, all of which will be on the block for sale.

Reed’s science, medical, legal and business divisions, however, are not included in the sell-off. In fact, the decision to sell Harcourt followed a detailed review to sharpen the company’s focus and to capitalize on growing digital opportunities in precisely these key markets.

Reed’s 2006 company-wide financial results, reported February 15, 2007, showed revenues up 4% to £5,398m and adjusted profits up 6% to £1,210. The company also reported a 10% growth in online information and digital services which now account for 37% of its total revenues.

Reed Elsevier bought Harcourt Education as part of Harcourt General in a $4.5 billion acquisition about six years ago. Harcourt Education is a global education company serving students and teachers in Pre-K through grade 12, adult learners, and readers of all ages.

Reed Elsevier’s principal activities are in North American and Europe. The company employs 36,500 people in more than 200 locations worldwide.