Director Shareholding

Reed Elsevier PLC
Reed Elsevier NV
23 February 2004


                            Directors' interests
                            --------------------

We are writing to advise you that we received notifications on 20 February 2004 
that the following options were granted to directors of Reed Elsevier PLC and 
Reed Elsevier NV on 19 February 2004, under the Reed Elsevier Group plc share 
option arrangements:
     
(i)  Reed Elsevier Group plc Share Option Scheme
     -------------------------------------------

     Subject to the achievement of 6% per annum compound growth in the averaged 
     adjusted EPS during the three years 2004-2006, the following options will, 
     subject to the Rules of the Scheme, vest after three years:

                            No. of                 No. of          
                       Reed Elsevier PLC      Reed Elsevier NV 
                       options awarded at    options awarded at 
Director               487.25p per share      €10.57 per share     Exercisable 
------------------------------------------------------------------------------     
G J A van de Aast           124,956                85,805           2007-2014
M H Armour                  155,147               106,536           2007-2014
C H L Davis                 305,303               209,645           2007-2014
A Prozes                    162,666               111,699           2007-2014
P Tiemey                    162,666               111,699           2007-2014

There is no re-testing of the three year EPS performance.
     
(ii) Reed Elsevier Group plc Long Term Incentive Share Option Scheme
     ---------------------------------------------------------------

     Subject to the achievement of 10% per annum averaged compound growth in EPS 
     of Reed Elsevier PLC and Reed Elsevier NV over a three year performance 
     period 2004-2006, the following awards will, subject to the Rules of the 
     Scheme, vest after three years:

     Director   No. of Reed   No. of Reed   No. of Reed   No. of Reed 
                Elsevier PLC  Elsevier NV   Elsevier PLC  Elsevier NV 
                  options       options       nil cost      nil cost 
                 awarded at    awarded at   conditional   conditional 
                  487.25p       €10,57          shares       shares 
                 per share     per share       awarded       awarded Exercisable
--------------------------------------------------------------------------------     
G J A van de Aast 229,087       157,309                               2007-2014
                                               104,130        71,504  2007
--------------------------------------------------------------------------------     
M H Armour        284,437       195,317                               2007-2014
                                               129,289        88,780  2007
--------------------------------------------------------------------------------     
C H L Davis       559,722       384,349                               2007-2014
                                               254,419       174,704  2007
--------------------------------------------------------------------------------     
A Prozes          298,221       204,782                               2007-2014
                                               135,555        93,083  2007
--------------------------------------------------------------------------------     
P Tiemey          298,221       204,782                               2007-2014
                                               135,555        93,083  2007
--------------------------------------------------------------------------------     

Awards will vest on a sliding scale, determined by the averaged compound growth 
in EPS over the three year performance period 2004-2006. There will be no 
re-testing of performance. If EPS growth is less than 8% per annum then none of 
the awards will vest; if EPS is 8% per annum 25% of the award will vest, if EPS 
is 10% per annum 100% of the award will vest and if EPS is 12% per annum 125% of 
the award will vest.

Awards will vest on a straight line basis between each of the above points.

The above Schemes were approved by the shareholders of Reed Elsevier PLC and 
Reed Elsevier NV at their respective Annual General Meetings on 8 and 9 April 
2003, respectively.


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