Pearson plcAnnual General Meeting

12 May 2000

Pearson plcAnnual General Meeting

12 May 2000

Sales

Operating profit

Pre-tax profit

up 39%up 39%

up 41%up 41%

up 15%up 15%

Strong underlying sales

up 7.3%

Better margins

15.2%

Stronger cash flow

92%

Growing earnings

53.3p

Record dividends

22.5p

Outperforming the market1997 to date

Pearson199%

59%

FTSE All Share

62%

FTSE 100

87%

UK MediaSector

11 countries18 radio stations22 TV channels

25 million listeners every day120 million viewers every day

160 productions in 35 countries

10,000+ hours of new programmes yearly

Library of 20,000+ hours of programmes

250 million viewers worldwide every month

A real powerhouse

New group

Canal+

KirchMedia

BSkyB

Granada

Carlton Media

UN&M - B&E

EndeMol 0.4

0.9

1.4

1.6

2.5

3.1

3.3

3.8

Turnover 1999 (est.) in € billion

Circulation & advertising growth

FT

Expansion

Les Echos

April 1999 April 2000

100

110

120

130

Europe’s leading business portalsCombined monthly traffic (page-views)

Jan 1999 April 2000

100

80

60

40

20

0

Ft.com is now available in a handy new size

CBS MarketWatch Sitesvs. major competitors

0

200

400

600

Oct 98

Jan 99Apr 9

9Jul 9

9Oct

99

yahoo finance

marketwatch.com

cnnfn.com

fool.com

thestreet.com

wsj.com

Source: DoubleClicks

Index

JAN 00