Director Shareholding

Pearson PLC 31 March 2003 31 March 2003 RNS The London Stock Exchange Old Broad Street London EC2N 1HP Dear Sirs Pearson plc (the Company) In 1999, the Company established the Pearson Reward Plan (the Plan) for the purpose of providing a long term share incentive for executive directors and senior executives of the Pearson group. The Plan provided for the grant of two separate categories of award relating to ordinary shares in the Company (Shares) - Pearson Premium Option awards and Pearson Equity Incentive (PEI) awards. The vesting level of PEI awards is dependent on the Company's performance over a three year period, measured in terms of free cash flow per Share. On 8 June 2002, the PEI awards granted in 1999 vested as to 97.2 per cent. of the Shares originally comprised in the award. These Shares are normally subject to a two-year retention period following vesting. Mourant & Co. Trustees Limited, as trustee of the Pearson Employee Share Ownership Trust, (the Trust) holds sufficient Shares to satisfy these PEI awards. As a result of Shares under PEI awards which vested on 8 June 2002 being released early to participants leaving the Pearson group, the number of Shares held by the Trust has reduced from 850,779 Shares to 817,567 Shares. No executive directors have called for Shares under these PEI awards. Each of the executive directors of the Company is, for Companies Act purposes, regarded as interested in all the Shares held by the Trust. Despite the technical interest in all the Shares each executive director will only be entitled to receive from the Trust that number of Shares to which he or she is entitled under share plans operated by the Company in which he or she participates. Yours faithfully Stephen Jones Deputy Secretary This information is provided by RNS The company news service from the London Stock Exchange

Companies

Pearson (PSON)
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