Pearson Education: World's Leading Education Business is Launched

Pearson Education, the world's leading educational publishing business, was officially launched today. Pearson Education has been formed from the merger of Addison Wesley Longman with the Simon & Schuster education, reference and business & professional businesses.

Pearson Education has leading positions in every major sector of educational publishing, including elementary and secondary school, higher education, professional education, English Language Teaching (ELT), and educational technology, both in the U.S. and internationally. In 1997, Pearson Education made pro forma operating profits of $360 million on annual sales of $2.8 billion.

Peter Jovanovich, the new CEO of Pearson Education, said: "Pearson Education is deeply committed to serving the cause of education. We are going to bring our businesses together with great care so that we can meet the educational needs of millions of students and teachers with a full range of outstanding print and electronic products and programs. We are going to achieve the integration savings and economies of scale we have promised. We will also stay absolutely focused on delivering what teachers and students alike expect from the world's leading educational publishing business."

Pearson Education publishes some 40,000 educational, reference and professional titles and programs and employs some 10,000 people in 40 countries around the world. Headquartered in Upper Saddle River, New Jersey, Pearson Education has a significant presence in California, Illinois, Massachusetts, Indianapolis, and New York. Internationally, major headquarters locations are in Harlow, England; Mexico City; Singapore; Sydney and Melbourne, Australia; and Toronto. In addition, Pearson Education currently has substantial operations in Brazil, Colombia, France, Germany, Hong Kong, Japan, South Africa, and Spain.

Mr. Jovanovich, who reports to Marjorie Scardino, CEO of Pearson plc, joined Addison Wesley Longman in August 1997, after serving as president of McGraw Hill's Education and Professional Publishing Group and as president of Harcourt Brace Jovanovich.

The main businesses of Pearson Education, whose heads all report to Mr. Jovanovich, are:

U.S. School
Pearson Education will be one of the leading US school publishers, bringing together imprints highly respected in classrooms throughout the U.S., including Scott Foresman, Addison Wesley, Prentice Hall School, Computer Curriculum Corporation, and Silver Burdett Ginn. Pearson Education will be able to build on a world-leading position in providing electronic media for classrooms and in the delivery of electronic content. The complementary strengths of its imprints mean that Pearson Education will cover all core and supplementary disciplines throughout the elementary and secondary school sector and have the scale to support separate elementary and secondary groups. This will enable it to compete more effectively and to offer its customers unparalleled professional support and service. The groups will be organized as follows:

The Elementary Group, headed by Kathryn Costello, includes the elementary basal division, the elementary supplementary division, and digital publishing. The merged Scott Foresman - Addison Wesley (SFAW) and Silver Burdett Ginn (SBG) elementary publishing groups will together be known as Scott Foresman. The group's principal imprints include Scott Foresman-Addison Wesley and Silver Burdett Ginn. The supplementary group has been named Pearson Learning and includes Modern Curriculum, Cuisenaire, Dale Seymour, Good Year Books, and Celebration Press. Computer Curriculum Corporation (CCC), the world's premier provider of electronic courseware, is also part of this group. The Pearson Education Development Group will provide development support and expertise across the Pearson Education organization.

Ms. Costello joined Addison Wesley Longman in July 1997, when AWL acquired the educational development group McClanahan & Company, of which she was president. Prior to that she held positions in sales and marketing since 1972 at Macmillan and Harper & Row Publishers.

The Secondary Group, headed by president Martha Smith, will be one of the leading U.S. secondary school publishers. It includes Prentice Hall School, which will consist of the merged Prentice Hall and Scott Foresman-Addison Wesley middle school and high school programs in language arts, social studies, science, math, foreign languages, and health and safety; and Globe Fearon, a publisher of secondary supplementary products.

Ms Smith has 25 years of experience as a product developer, marketer, and general manager in the educational publishing field. She served as vice president and general manager of Prentice Hall in Needham, Mass, from 1992 to 1997, and has been the unit's president since 1997.

U.S. Higher Education
The Higher Education Group, headed by president Henry Hirschberg, is the largest higher education publisher in the U.S. It includes some of the most authoritative imprints in higher education and professional publishing - including Prentice Hall, Allyn & Bacon, Addison Wesley Longman and Macmillan - and covers a comprehensive, complementary range of subjects, disciplines, and delivery systems. The group will expand its already extensive Internet and technology capability, both to augment textbooks and to provide unique distance learning solutions. It has the largest sales force in the industry and a distinguished roster of authors. Pearson Education will be a leading provider of pre-service and in-service teacher education and professional development. It will also be the global leader in technology publishing.

Mr. Hirschberg joined Prentice Hall in 1972 as a European sales representative and rose through the ranks to become president of Simon & Schuster International and, in 1992, president of Simon & Schuster Higher Education.

The International Group, headed by president Steven A. Dowling, is the leading international education publisher, with strengths that include the world's leading English Language Teaching (ELT) business, primarily under the Longman brand; and established local language publishing infrastructure; a significant position in the translation and export of U.S. programs; and a strong presence in Asia, Europe and Latin America. Pearson Education International will consist of established regional publishing and distribution centers directed by experienced publishers drawn from Addison Wesley Longman and Simon & Schuster staffs.

Mr. Dowling joined Addison Wesley Longman in 1997 as executive vice president and as president of AWL's International Publishing Group. He previously served as president of the McGraw-Hill School Division and president of Academic Press.

William Oldsey is Senior Vice President, Planning and Market Development, for Pearson Education, leading in the development of new strategic initiatives and the opening of new markets for the company. Mr. Oldsey will also oversee the companies that make up the Professional Group, including Appleton-Lange, Prentice Hall Direct, Jossey Bass, Library Reference, New York Institute of Finance, Bureau of Business Practice and Master Data Center.

For the last two years, Mr. Oldsey has led Simon & Schuster's elementary publishing operations as president of Silver Burdett Ginn. Prior to that, he was head of Prentice Hall Business Publishing.

Pearson Education Visual Identity
A new visual identity and branding strategy is being developed for the company, which will be announced in the near future.

The Pearson Technology Centre
Pearson also announces today the creation of the Pearson Technology Centre (PTC). The PTC is a combination of Simon & Schuster's world-renowned IS&T organization, Pearson Business Services, and select back office functions. It is designed to drive value for Pearson across the globe by providing and maintaining a cost-effective, world class processing service, securing cost and revenue advantages and leveraging the group's technology resources and expertise across the Pearson companies. Gloria Samuels will be chief executive officer of the Pearson Technology Centre reporting to John Makinson, Pearson plc finance director. Rob Berkley will be the chief information officer of the Pearson Technology Centre reporting to Samuels.

Ms. Samuels and Mr. Berkley were both senior vice presidents of Simon & Schuster, responsible for program management and technology management respectively.

Business Integration
The combination of the two businesses creates significant economies of scale and will produce strong cash flow to fund future growth. The integration of the two businesses is already under way. Substantial back- office synergies will result from the integration of shared services projects, as well as the opportunity to achieve substantial production, distribution, central management, property and information technology savings. As a result, Pearson expects to achieve $130 million of annual cost savings by the year 2000. The on-line cost of the full integration of the two businesses is expected to be around $270 million, which will be accounted for in the current year.



Pearson plc is an international media group. In addition to Pearson Education, its primary operations include the Financial Times Group, one of the world's most authoritative sources of general business news and analysis; Penguin Group, one of the world's leading consumer publishing businesses; and Pearson TV, one of the world's leading independent international television producers. Pearson also owns a 50 percent stake in the Economist Group, publisher of the world's leading weekly business and current affairs journal, and publishes business newspapers in Spain, Portugal, France, and South Africa.

Pearson announced on 23 November that it had received regulatory clearance from the US Department of Justice to complete the $4.6 billion acquisition of the Simon & Schuster education, reference and business & professional publishing divisions from Viacom Inc.


For further information

Pearson Education
Susan Stockman
+ 781 944 3700 ext. 2845

Pearson plc
John Fallon
+ 44 171 411 2310