Financial highlights

• Revenue up 7% and adjusted operating profit up 12%, at constant currencies
• Underlying revenue growth of 4% (6% excluding Reed Business Information), driven by growing demand for online information and workflow solutions
• Online information and workflow solutions now account for over 50% of revenue
• Adjusted operating margin up 1.1% from good revenue growth, ongoing cost initiatives and restructuring programme
• Adjusted earnings per share up 15% at constant currencies; at reported rates up 24% for Reed Elsevier PLC and up 9% for Reed Elsevier NV; reported growth impacted by strength of US dollar and euro
• 102% of adjusted operating profit converted into cash
• Return on capital increased to 12.1%, fifth consecutive year of improvement

Reed Elsevier combined businesses - continuing operations

The results of the Harcourt Education division, sold in separate transactions in 2007 and January 2008, are presented as discontinued operations and are excluded from revenue, operating profit, profit before tax, operating margin and operating cash flow. The results of Reed Business Information (RBI) are included within continuing operations. The Reed Elsevier combined financial statements are presented in pounds sterling in the Combined financial statements. The primary Combined financial statements and selected notes are presented in the summary combined financial information in euros. The Reed Elsevier combined financial statements presented in euros are available on the Reed Elsevier website, www.reedelsevier.com.

Parent companies - total operations

The Reed Elsevier combined businesses encompass the businesses of Reed Elsevier Group plc and Elsevier Reed Finance BV, together with their two parent companies, Reed Elsevier PLC and Reed Elsevier NV (the “Reed Elsevier combined businesses”). The results of Reed Elsevier PLC reflect its shareholders’ 52.9% economic interest in the Reed Elsevier combined businesses. The results of Reed Elsevier NV reflect its shareholders’ 50% economic interest in the Reed Elsevier combined businesses. The respective economic interests of the Reed Elsevier PLC and Reed Elsevier NV shareholders take account of Reed Elsevier PLC’s 5.8% interest in Reed Elsevier NV.

Adjusted figures are presented as additional performance measures and are stated before amortisation of acquired intangible assets and goodwill impairment, exceptional restructuring and acquisition related costs, and, in respect of earnings, reflect a tax rate that excludes the effect of movements in deferred taxation assets and liabilities that are not expected to crystallise in the near term. Profit and loss from disposals and other non operating items are excluded from the adjusted figures. Reconciliations between the reported and adjusted figures are provided in the notes to the combined financial statements. Adjustments made to reported operating profit from continuing operations are amortisation of acquired intangible assets and goodwill impairment of £290m (2007: £221m), exceptional restructuring and acquisition related costs of £179m (2007: £20m) and reclassifications of tax in joint ventures of £9m (2007: £8m).

The percentage change at constant currencies refers to the movements at constant exchange rates, using 2007 full year average and hedge rates.