Trading Statement

Pearson PLC
22 January 2007





22 January 2007


PEARSON TRADING UPDATE


STRONG END TO THE YEAR; ON TRACK FOR RECORD PROFITS



Pearson is today providing its regular January trading update.


Pearson continued to perform strongly through the fourth quarter of 2006. We
remain on track to produce record profits in 2006, and we expect to report
adjusted earnings per share towards the top end of current market expectations*.
We also expect good cash generation and a further significant improvement in our
return on invested capital.


All our businesses traded well in the fourth quarter. Pearson Education
sustained its good revenue momentum and achieved further margin improvement,
ahead of expectations, as we benefited from our investments in educational
testing and technology. The Financial Times added circulation and advertising
and Penguin had a good year-end publishing and selling season.


The average £:$ exchange rate for the full-year was £1:$1.84 and we expect our
tax rate to be below 32% (compared with our previous guidance of 32-34%).


Pearson will announce its preliminary results for 2006 on 26 February, 2007. We
expect to complete the sale of our Government Solutions business to Veritas
Capital in the first quarter of this year.


Marjorie Scardino, chief executive, said: "A strong all-round performance in our
key fourth quarter selling season capped another very good year. All around
Pearson, our investments in content and technology are paying off. Those
advantages have produced Pearson's highest ever profits in 2006, and will
bolster our future growth."


Ends


* 2006 adjusted earnings per share including Government Solutions. Analysts'
estimates range from 36.1p-40p (sources: Reuters and Bloomberg).



For more information:


Luke Swanson/ Simon Mays-Smith/ Deborah Lincoln + 44 (0)207 010 2310






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