Director Shareholding

Pearson PLC
30 October 2001



30 October 2001


The Manager
Company Announcements Office
London Stock Exchange
The London Stock Exchange Tower
Old Broad Street
London EC2N 1HP


Dear Sirs


Pearson Employee Share Trustees Limited have received an additional 2,579
ordinary shares of 25p each in the company as a result of a Dividend
Reinvestment Plan effective on 26 October 2001.  These shares will be held
under the Pearson Employee Share Trust and will be available to satisfy
conditional awards of shares to various Pearson executive directors and
certain executives under the company's Incentive Share Plan.  The release of
the shares to the executive directors is dependent on certain performance
targets being met.

The value of these shares was 813.614p per share in accordance with the terms
of the Dividend Reinvestment Plan and the market value of the shares on 26
October 2001.

As the Trust is a discretionary trust under which all employees (including
executive directors) of Pearson are potential beneficiaries, each executive
director is treated for Companies Act purposes as interested in the shares
referred to above.


Yours faithfully
PEARSON plc




Stephen Jones
Assistant Company Secretary


SAJ/DC