Trading Statement

Pearson PLC
12 June 2002

12 June 2002



                  PRESENTATION AT MERRILL LYNCH TMT CONFERENCE


At the Merrill Lynch telecommunications, media and technology conference in
London today, Marjorie Scardino, Pearson's chief executive, made a presentation
on the company's performance and priorities, focusing in particular on the
growth opportunities in US education.

In the course of the presentation, Mrs Scardino reported that trading continues
to be in line with the guidance given at the company's annual general meeting on
April 26.  The key points made by Mrs Scardino were:

Outlook for the full year. Although Pearson generates most of its revenues and
almost all its profits in the second half of the year, the prospects of a
significant recovery in adjusted earnings per share for the full year continue
to be good.

Guidance for the half year. The results for the first six months of the year
will reflect a significantly weaker advertising environment than in the same
period last year, a quieter adoption programme in US school publishing and a
consumer publishing schedule weighted more to the second half of the year.
Earnings should benefit from lower losses at the company's internet enterprises,
good growth from US college publishing and government solutions operations and a
reduced interest charge.

Pearson Education. In US school publishing, spending in the major state
adoptions in which we are competing is holding up well at this stage and we
expect to meet, or beat, our market share expectations. While school software
markets remains sluggish, our testing & assessment operations continue to grow.
Our US college publishing business is on track to perform ahead of the market as
a whole, which is showing strong growth in the year to date. Worldwide, our
technology publishing and corporate training operations continue to suffer in
the economic downturn. However, we are seeing very good revenue growth from the
new US federal government contracts announced in March. Outside the US, our
school and college publishing businesses are also performing well.

Financial Times group. Across our network of business newspapers, advertising
revenues are, as expected, significantly lower than in the same period last year
and, at this stage, we see no sign of a recovery. FT Interactive Data is
performing well and is on track for another year of double digit profit growth.
FT.com remains on track to break-even by the fourth quarter of this year.

Penguin Group. Trading is in line with expectations, with this year's release of
new titles more heavily weighted to the second half of the year. Trading is
improving at Dorling Kindersley, which is on course to make a profit for the
full year.


Ends



For further information:
John Fallon + 1 212 641 2408
Luke Swanson + 44 (0) 20 7010 2313

Marjorie Scardino's presentation is available at www.pearson.com



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