Issue of Euro 650,000,000 Bonds Due 2007

Pearson plc, the international media company, announces the issue of euro 650,000,000 Bonds due February 2007 ("the Bonds"). The Bonds were priced to yield a margin of 82 basis points over the gross redemption yield of the 6 per cent. Bund due January 2007. The Bonds carry an annual coupon of 6.125 per cent. with an issue/re-offer price of 99.695 per cent. The Bonds will redeem on 1 February 2007. The joint lead managers and bookrunners to the issue are Dresdner Kleinwort Benson and JP Morgan.

The proceeds of the issue will be used for the repayment of existing bank debt.