Share Placing to Finance Internet Investment

Pearson PLC
26 January 2000


PEARSON SHARE PLACING TO FINANCE INTERNET INVESTMENT
                                
Pearson plc, the international media company, today intends to
effect a placing for cash of new equity representing
approximately 2.0% of its issued share capital.  Proceeds from
the placing will be used to finance further investment in
expanding existing and developing new Internet related
businesses. The increased investment will enable Pearson to
accelerate the growth of these businesses by capitalising on the
power of the company's brands and content.

The funds raised will be invested over the course of the next
two years, primarily in the following areas:

- Developing ft.com as a major global business portal.
- Building a network of leading European and U.S. business and
  financial news, private investor and personal finance
  websites.
- Creating an on-line consumer focused education network
  linking students, parents and teachers.
- Pursuing Internet opportunities in Spanish and Portuguese
  speaking markets.
- Making strategic investments in Internet businesses that offer
  the potential for Pearson to exploit the strengths of its
  existing businesses, and to develop joint ventures and
  alliances.

Commenting on the placing, Marjorie Scardino, Chief Executive of
Pearson plc said: 'Content and brands count more than ever in
this world. It's not whether we are in 'old' or 'new' media, or
'on-line' or 'off-line' that matters; it's how we use our
content across all channels that will really count.  With this
placing, we will step up our investment in the Internet projects
that enable us to transform the scale and scope of our
businesses faster and more effectively.'

The new ordinary shares are being placed by Cazenove & Co. and
Goldman Sachs International.  The placing is conditional on the
admission of the new ordinary shares to the Official List of the
London Stock Exchange becoming effective by 9am on 2 February
2000.  Application for such admission has been made.  The new
ordinary shares to be issued pursuant to the placing will rank
for all dividends and distributions on Pearson ordinary shares
after the date hereof.

Neither this document nor any copy of it may be taken,
transmitted or distributed, directly or indirectly, into the
United States, Canada, Australia or Japan.  Any failure to
comply with this restriction may constitute a violation of US,
Canadian, Australian or Japanese securities laws.  Pearson
ordinary shares proposed to be issued in connection with the
placing may not be offered or sold in the United States absent
registration under the US Securities Act 1933 (as amended) or an
exemption from such registration.  It is intended that any
Pearson ordinary shares to be offered under the placing to
persons in the United States will be issued in reliance upon an
exemption from such registration.  This announcement is not an
offer of any Pearson ordinary shares for sale or subscription in
the United States or elsewhere. Cazenove & Co. and Goldman Sachs
International are acting for Pearson plc in connection with the
placing and will not be responsible to any other person for
providing the protections afforded to their customers or
advising any such person in connection with the placing.

For further information:

John Makinson     Pearson plc             [phone]
John Fallon

David Mayhew      Cazenove & Co.          [phone]
John Paynter

Andrew Learoyd    Goldman Sachs International   [phone]
1000
Chris Chapple