Pearson Plc prices senior notes

LONDON May 11, 2010 – Pearson plc (NYSE: PSO), the international education and information company, today announced that it has sold a total of $350 million of 4.00% senior notes due May 2016. The notes will be issued by Pearson Funding Two plc, a newly formed finance subsidiary, and guaranteed by Pearson plc. The sale of the notes is expected to close on May 17, 2010.

The company intends to use the net proceeds from this offering to further extend the duration of its debt maturity profile and for general corporate purposes.

In the United States, the notes have been offered to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933. The notes have not been registered under the Securities Act and may only be offered to sold in the United States pursuant to an or applicable exemption from the registration requirements. 

This press release is neither an offer to sell nor the solicitation of an offer to buy the notes or any other securities and shall not constitute an offer of solicitation or sale in any jurisdiction in which, or to any person to whom, such an offer, solicitation or sale is unlawful. Any offers of the notes will be made only by means of a private offering memorandum.

For more information

Simon Mays-Smith/ Charles Goldsmith + 44 (0) 20 7010 2310

Forward looking statements

Except for the historical information contained herein, the matters discussed in this Statement include forward-looking statements. In particular, all statements that express forecasts, expectations and projections with respect to future matters, including trends in results of operations, margins, growth rates, overall market trends, the impact of interest or exchange rates, the availability of financing, anticipated costs savings and synergies and the execution of Pearson's strategy, are forward looking statements. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will occur in future. There are a number of factors which could cause actual results and developments to differ materially from those expressed or implied by these forward looking statements, including a number of factors outside Pearson's control. These include international, national and local conditions, as well as competition. They also include other risks detailed from time to time in the company's publicly-filed documents. Any forward looking statements speak only as of the date they are made, and Pearson gives no undertaking to update forward-looking statements to reflect any changes in its expectations with regard thereto or any changes to events, conditions or circumstances on which any such statement is based.