Recoletos Grupo De Comunicación S.A. proposal for dividend distribution

Recoletos Grupo De Comunicación S.A. proposal for dividend distribution Recoletos the Spanish Media Company in which Pearson owns a 79% stake, has made the following announcement to the Madrid stock exchange:

The Board of Directors of Recoletos Grupo de Comunicación S.A. has decided to call an Extraordinary Shareholders´ General Meeting to be held on December 17th 2003 (in the first call, or the day after in the second call, if necessary) in order to approve the following proposals for dividend distribution:

  1. An extraordinary dividend, amounting to 80,478,391 ? charged to
    a) Voluntary Reserves - amounting to 65,000,000 ? - and
    b) Share Premium Account - the remaining 15,478,391 ? - .
    This would represent a gross payment of 0,6168 ? per share, that could be distributed on December 29th 2003.
  2. An interim dividend of 50,000,000 ? corresponding to financial year 2003. This would represent a gross payment of 0,3832 ? per share, that could be distributed on December 29th 2003.

In case the Extraordinary Shareholders´ General Meeting approves the before mentioned proposals, Recoletos Grupo de Comunicación S.A. would proceed to distribute a gross amount of 1? per share (as a result of adding the proposed extraordinary dividend and the amount charged to the dividend corresponding to the financial year 2003). The payment would take place on December 29 th 2003, being the beneficiaries all shareholders that are registered as such at closure of the market on December 26 th 2003.

Madrid, November 5th 2003 Recoletos Grupo de Comunicación S.A.