Director Shareholding

Reed Elsevier PLC
06 August 2004



                     ISSUED ON BEHALF OF REED ELSEVIER PLC

                             DIRECTOR SHAREHOLDING

We have received notification today that an option over Reed Elsevier PLC
ordinary shares has been exercised by Mr M H Armour, a director of the Company,
under the Reed Elsevier Group plc 'Save-As-You-Earn' Share Option Scheme,
following the option reaching its 5-year maturity:-



Details of the exercise are:


Date of Grant       Date of Exercise         No. of shares over which   Option price paid per share
                                             an option has been
                                             exercised
19 May 1999         5 August 2004            3,924                      430p



All of the shares acquired following the exercise were retained by Mr Armour.
As a result of the transaction, Mr Armour now holds an interest in 46,926 Reed
Elsevier PLC ordinary shares and 29,846 Reed Elsevier NV ordinary shares.




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