Final Results - Year Ended 31 Dec 1999, Part 2

Reed International PLC
Elsevier NV
24 February 2000


PART 2

 
Combined profit and loss ACCOUNT  
FOR THE YEAR ENDED 31 DECEMBER 1999 
 
                                         
                                          1999     1998     1999     1998 
                                   Note     £m       £m       Em       Em 
Turnover 
Including share of turnover  
in joint ventures                        3,464    3,271    5,265    4,867 
Less: share of turnover  
in joint ventures                          (74)     (80)    (112)    (118) 
                                    3    3,390    3,191    5,153    4,749 
     Continuing operations  
     before
acquisitions                             3,359    3,163    5,106    4,708 
     Acquisitions                           31        -       47        - 
     Continuing
operations                               3,390    3,163    5,153    4,708 
     Discontinued operations                 -       28        -       41 
Cost of sales                           (1,185)  (1,092)  (1,801)  (1,625) 
Gross profit                             2,205    2,099    3,352    3,124 
Operating
expenses                                (2,028)  (1,706)  (3,083)  (2,540) 
     Before amortisation and  
     exceptional
items                                   (1,420)  (1,304)  (2,159)  (1,941) 
     Amortisation of goodwill  
     and intangible
assets                                    (369)    (323)    (561)    (481) 
     Exceptional items              4     (239)     (79)    (363)    (118) 
Operating profit  
(before joint ventures)                    177      393      269      584 
     Continuing operations  
     before acquisitions                   191      394      290      586 
     Acquisitions                          (14)       -      (21)     - 
     Continuing operations                 177      394      269      586 
     Discontinued operations                 -       (1)       -       (2) 
Share of operating profit  
in joint ventures                            3        9        5       14 
Operating profit including  
joint ventures                             180      402      274      598 
Non operating items                 4 
Continuing      - net profit on  
sale of fixed asset investments              7        -       11        - 
          - merger expenses                  -      (10)       -      (15) 
Discontinued     - net profit  
on sale of businesses                        -      692        -    1,031 
Profit on ordinary activities  
before interest                            187    1,084      285    1,614 
Net interest expense                       (82)     (40)    (125)     (60) 
Profit on ordinary activities  
before taxation                            105    1,044      160    1,554 
Tax on profit on ordinary  
activities                                (167)    (271)    (254)    (404) 
(Loss)/profit on ordinary activities  
after taxation                             (62)     773      (94)   1,150 
Minority interests and  
preference dividends                        (1)      (1)      (1)      (1) 
(Loss)/profit attributable to parent  
companies' shareholders                    (63)     772      (95)   1,149 
Ordinary dividends paid  
and proposed                              (234)    (349)    (356)    (519) 
Retained (loss)/profit taken  
to combined reserves                      (297)     423     (451)     630 
 
ADJUSTED FIGURES 
                                          1999     1998     1999     1998 
                                   Note     £m       £m       Em       Em 
Adjusted operating profit           5      792      813    1,204    1,210 
Adjusted profit before
tax                                 5      710      773    1,079    1,150 
Adjusted profit attributable to  
parent companies' shareholders      5      527      571      801      850 
 
Adjusted figures exclude the amortisation of goodwill and intangible assets,
exceptional items and related tax effects, and are presented as additional  
performance measures. 
 
Combined cash flow statement 
FOR THE YEAR ENDED 31 DECEMBER 1999 
 
                                         
                                          1999     1998     1999     1998 
                                   Note     £m       £m       Em       Em 
Net cash inflow from operating  
activities before exceptional
items                               6      898      937    1,365    1,395 
Payments relating to exceptional  
items charged to operating profit
                                    6     (138)    (258)    (210)    (384) 
Net cash inflow from  
operating activities                       760      679    1,155    1,011 
 
Dividends received from  
joint ventures                               4       11        6       16 
 
Interest received                           33       61       50       91 
Interest paid                             (114)    (106)    (173)    (158) 
Returns on investments and  
servicing of finance                       (81)     (45)    (123)     (67) 
 
Taxation (including £74m/E112m  
(1998 £nil/Enil) exceptional
repayments)                                (99)    (144)    (150)    (214) 
 
Purchase of tangible fixed
assets                                    (137)     (151)   (208)    (225) 
Proceeds from sale of fixed assets          15        11      23       17 
Capital expenditure                       (122)     (140)   (185)    (208) 
 
Acquisitions                              (166)   (1,232)   (252)  (1,833) 
Payments against acquisition
provisions                                  (1)      (11)     (2)     (16) 
Exceptional net proceeds from sale of 
fixed asset investments and businesses       3       913       5    1,359 
Merger expenses                              -        (8)      -      (13) 
Acquisitions and
disposals                                 (164)     (338)   (249)    (503) 
 
Equity dividends paid to the  
shareholders of the parent
companies                                 (339)     (362)   (515)    (540) 
 
Cash outflow before changes in short  
term investments and
financing                                  (41)     (339)    (61)    (505) 
Decrease in short term investments         297        63     451       94 
Financing                                 (197)      192    (300)     286 
Increase/(decrease) in cash                 59       (84)     90     (125) 
 
Short term investments include deposits of under one year if the maturity or
notice period exceeds 24 hours, commercial paper investments and interest
bearing securities that can be realised without significant loss at short
notice. 
 
ADJUSTED FIGURES 
                                          1999     1998     1999     1998 
                                    Note    £m       £m       Em       Em 
Adjusted operating cash flow          5    780      808    1,186    1,203 
Adjusted operating cash flow 
conversion                                 98%      99%      98%      99% 
 
Reed Elsevier businesses focus on adjusted operating cash flow as the key
cash flow measure. Adjusted operating cash flow is measured after dividends
from joint ventures, tangible fixed asset spend and proceeds from the sale of
fixed assets but before operating exceptional payments and proceeds. Adjusted
operating cash flow conversion expresses adjusted operating cash flow as a
percentage of adjusted operating profit. 
 
Combined BALANCE SHEET 
AS AT 31 DECEMBER 1999 
 
                                         
                                          1999     1998     1999     1998 
                                            £m       £m       Em       Em 
Fixed assets 
Goodwill and intangible
assets                                   3,400    3,598    5,474    5,110 
Tangible assets                            386      399      622      567 
Investments                                119       87      192      123 
                          
                                         3,905    4,084    6,288    5,800 
Current assets 
Stocks                                     113      101      183      144 
Debtors: amounts falling due  
within one year                            666      731    1,072    1,038 
Debtors: amounts falling due  
after more than one year                   148      136      238      193 
Cash and short term investments            440      708      708    1,005 
                                         1,367    1,676    2,201    2,380 
Creditors: amounts falling due  
within one
year                                    (2,676)  (2,791)  (4,308)  (3,963) 
Net current
liabilities                             (1,309)  (1,115)  (2,107)  (1,583) 
                                         
Total assets less current
liabilities                              2,596    2,969    4,181    4,217 
Creditors: amounts falling due  
after more than one
year                                      (620)    (797)    (998)  (1,132) 
Provisions for liabilities and
charges                                   (113)     (36)    (182)     (51) 
Minority interests                          (8)      (6)     (14)      (9) 
Net assets                               1,855    2,130    2,987    3,025 
 
Capital and reserves 
Combined share capitals                    168      168      270      239 
Combined share premium accounts            341      353      549      501 
Combined reserves                        1,346    1,609    2,168    2,285 
Combined shareholders'
funds                                    1,855    2,130    2,987    3,025 
 
Net borrowings                           1,066      962    1,717    1,366 
 
The combined financial statements were approved by the Boards of Reed
International P.L.C. and Elsevier NV, 23 February 2000. 
 
Combined statement of total recognised gains and losses 
FOR THE YEAR ENDED 31 DECEMBER 1999 
 
                                         
                                          1999     1998     1999     1998 
                                            £m       £m       Em       Em 
(Loss)/profit attributable to  
parent companies' shareholders             (63)     772      (95)   1,149 
Exchange translation differences            17       (3)     405     (196) 
Total recognised gains and  
losses for the year                        (46)     769      310      953 
 
 
 
 
 
 
Combined shareholders' funds reconciliation 
FOR THE YEAR ENDED 31 DECEMBER 1999 
 
                                         
                                          1999     1998     1999     1998 
                                            £m       £m       Em       Em 
Combined shareholders'  
funds at 1 January                       2,130    1,692    3,025    2,564 
(Loss)/profit attributable to  
parent companies' shareholders             (63)     772      (95)   1,149 
Ordinary dividends paid and
proposed                                  (234)    (349)    (356)    (519) 
Issue of shares on exercise of  
options, less capital redemptions            5       18        8       27     

Exchange translation differences            17       (3)     405     (196) 
Combined shareholders'  
funds at 31 December                     1,855    2,130    2,987    3,025 
 
COMBINED FINANCIAL STATEMENTS 
NOTES TO THE COMBINED FINANCIAL STATEMENTS 
 
1     Basis of preparation 

The Reed Elsevier combined financial statements encompass the businesses of
Reed Elsevier plc and Elsevier Reed Finance BV and their respective
subsidiaries, joint ventures and associates, together with the parent
companies, Reed International and Elsevier. They are presented in both £
sterling and euros. 
 
 
2     Exchange translation rates 
                                          Profit & loss     Balance sheet 
                                          1999     1998     1999     1998 
Euros to sterling                         1.52     1.49*    1.61     1.42 
Dutch guilders to sterling                3.35     3.28     3.55     3.13 
US dollars to sterling                    1.62     1.66     1.62     1.66 
Euros to US dollars                       0.94     0.90*    0.99     0.86 
*based on the average guilder rate for 1998. 
 
 
3     Segment analysis 
 
                                 Adjusted                          Adjusted 
                                 operating                         operating 
                     Turnover      profit         Turnover         profit 
                   1999   1998   1999   1998    1999     1998    1999    1998 
                     £m     £m     £m     £m      Em       Em      Em      Em 
Geographical 
origin 
North
America            1,836 1,663    359    390   2,791    2,476     547     581 
United Kingdom       698   692    191    204   1,061    1,030     290     304 
The
Netherlands          391   383    135    128     594      570     205     190 
Rest of Europe       307   293     87     76     467      436     132     113 
Rest of world        158   132     20     15     240      196      30      22 
Continuing
operations         3,390 3,163    792    813   5,153    4,708     1,204 1,210 
Discontinued 
operations             -    28      -      -       -       41         -     - 
Total              3,390 3,191    792    813   5,153    4,749     1,204 1,210 
 
 
                    1999  1998                  1999     1998 
                    £m      £m                    Em       Em 
Geographical 
market 
North America    1,906   1,726                 2,898    2,569 
United Kingdom     484     483                   736      719 
The Netherlands    237     222                   360      330 
Rest of Europe     418     407                   635      606 
Rest of world      345     325                   524      484 
Continuing 
operations       3,390   3,163                 5,153    4,708 
Discontinued
operations           -      28                     -       41 
Total            3,390   3,191                 5,153    4,749 
 
Discontinued operations comprise IPC Magazines and the remaining consumer book
publishing operations sold in 1998. 
 
COMBINED FINANCIAL STATEMENTS 
NOTES TO THE COMBINED FINANCIAL STATEMENTS 
 
4     Exceptional items 
                                          1999     1998     1999     1998 
                                            £m       £m       Em       Em 
Reorganisation costs                     (161)        -     (244)       - 
Acquisition related  
integration costs                         (28)     (26)      (43)     (39) 
Year 2000 compliance costs                (50)     (53)      (76)     (79) 
Charged to operating
profit                                   (239)     (79)     (363)     (118) 
Net profit on sale of fixed asset  
investments and businesses                  7      692        11     1,031 
Merger expenses                             -      (10)        -       (15) 
Total exceptional
(charge)/credit                          (232)     603      (352)      898 
Tax credit/(charge)                        15      (70)       23      (105) 
 
 
5     Adjusted figures 
Adjusted profit and cash flow figures are used by the Reed Elsevier
businesses as additional performance measures. These exclude the amortisation
of
goodwill and intangible assets, exceptional items and related tax effects,
and are derived as follows: 
 
                                          1999     1998     1999     1998 
                                            £m       £m       Em       Em 
Operating profit                           180      402      274      598 
Adjustments: 
     Amortisation of goodwill  
and intangible assets                      373      332      567      494 
     Exceptional items                     239       79      363      118 
Adjusted operating profit                  792      813    1,204    1,210 
 
Profit before tax                          105    1,044      160    1,554 
Adjustments: 
     Amortisation of goodwill  
and intangible assets                      373      332      567      494 
     Exceptional items                     232     (603)     352     (898) 
Adjusted profit before tax                 710      773    1,079    1,150 
 
(Loss)/profit attributable to  
parent companies' shareholders             (63)     772      (95)   1,149 
Adjustments: 
     Amortisation of goodwill  
and intangible assets                      373      332      567      494 
     Exceptional items                     217     (533)     329     (793) 
Adjusted profit attributable to  
parent companies' shareholders             527      571      801      850 
 
Net cash inflow from  
operating activities                       760      679    1,155    1,011 
Dividends received  
from joint ventures                          4       11        6       16 
Purchase of tangible fixed
assets                                    (137)    (151)    (208)    (225) 
Proceeds from sale of fixed assets          15       11       23       17 
Payments in relation to exceptional  
items charged to operating profit          138      258      210      384 
Adjusted operating cash flow               780      808    1,186    1,203 
 
 
COMBINED FINANCIAL STATEMENTS 
NOTES TO THE COMBINED FINANCIAL STATEMENTS 
 
6     Reconciliation of net cash inflow from operating activities 
                                          1999     1998     1999     1998 
                                            £m       £m       Em       Em 
Operating profit (before joint ventures)   177      393      269      584 
Exceptional charges to operating profit    239       79      363      118 
Operating profit before exceptional
items                                      416      472      632      702 
 
Amortisation of goodwill and intangible
assets                                     369      323      561      481 
Depreciation charges                       117       97      178      144 
Net SSAP24 pension credit                   (3)      (4)      (5)      (6) 
Total non cash items                       483      416      734      619 
 
Increase in stocks                          (9)       -      (14)       - 
(Increase)/decrease in debtors              (8)      17      (12)      26 
Increase in creditors                       16       32       25       48 
Movement in working capital                 (1)      49       (1)      74 
 
Net cash inflow from operating  
activities before exceptional
items                                      898      937    1,365    1,395 
 
Payments relating to exceptional  
items charged to operating
profit                                    (138)    (258)    (210)    (384) 
Net cash inflow from operating
activities                                 760      679    1,155    1,011 
 
 
7     Reconciliation of net borrowings 
                                          1999     1998     1999     1998 
                                            £m       £m       £m       Em 
Net borrowings at 1
January                                   (962)    (630)  (1,366)    (955) 
 
Increase/(decrease) in cash                 59      (84)      90     (125) 
Decrease in short term
investments                               (297)     (63)    (451)     (94) 
Decrease/(increase) in
borrowings                                 202     (174)     308     (259) 
Change in net borrowings resulting  
from cash flows                            (36)    (321)     (53)    (478) 
Inception of finance
leases                                     (11)     (10)     (17)     (15) 
Exchange translation differences           (57)      (1)    (281)      82 
Net borrowings at 31
December                                (1,066)    (962)  (1,717)  (1,366) 
 
 
8     Contingent liabilities 

A lawsuit has been filed in the United States against Reed Elsevier Inc. by
Jurisline.com LLC seeking declaratory relief relating to copyrights and
trademarks and challenging the validity of subscription agreements. It also
alleges that Reed Elsevier Inc. has engaged in anti-competitive behaviour and
seeks damages and injunctive relief. The lawsuit is being vigorously
defended. In a related lawsuit the Reed Elsevier subsidiary, Matthew Bender &
Company Inc., has filed a suit alleging that Jurisline has fraudulently
obtained its products and has sought to use those products in developing a
legal information service in breach of express contractual restrictions. Reed
Elsevier fully expects the courts to reaffirm the enforceability of its
contracts and dismiss the claims filed against Reed Elsevier Inc.. A decision
against Reed Elsevier could, however, have significant consequences across
the information industry in relation to the protection of databases. A
lawsuit has also been recently filed against Reed Elsevier Inc. and the
Thomson Corporation by two practising attorneys in the US Virgin Islands
alleging anti-competitive behaviour and claiming $6bn in damages and
penalties. The claim is regarded as baseless and Reed Elsevier expects that it
will be successfully defended. No amounts have been provided in respect of the
above claims. 
 
REED INTERNATIONAL P.L.C. 
SUMMARY FINANCIAL INFORMATION 
 
Basis of preparation 
The results for the year ended 31 December 1999 reflect Reed International's
50% share of the Reed Elsevier combined businesses, and its 5.8% interest 
in Elsevier, both of which are accounted for on an equity basis.  
 
Adjusted figures, which exclude amortisation of goodwill and intangible
assets, exceptional items and related tax effects, are presented as additional
performance measures. 
 
 
Summary consolidated profit and loss account 
                                                          1999     1998 
FOR THE YEAR ENDED 31 DECEMBER 1999                         £m       £m 
Share of combined turnover                               1,793    1,688 
Share of adjusted profit before tax 
     Reed Elsevier combined businesses (50%)               355      387 
     Elsevier (5.8%)                                        21       22 
                                                           376      409 
Share of amortisation                                     (197)    (176) 
Share of exceptional items before tax                     (122)     319 
Elsevier's share of UK tax credit on distributed
earnings                                                    (6)     (12) 
Profit on ordinary activities before taxation               51      540 
Tax on profit on ordinary activities                       (90)    (144) 
(Loss)/profit attributable to ordinary
shareholders                                               (39)     396 
Dividends paid and proposed                               (116)    (172) 
Retained (loss)/profit taken to reserves                  (155)     224 
Basic (loss)/earnings per share                           (3.4)p  34.7p 
Diluted (loss)/earnings per share                         (3.4)p  34.6p 
Adjusted earnings per share                               24.4p   26.4p 
 
Adjusted earnings per share is based upon the Reed International's
shareholders' 52.9% share of the adjusted profit attributable of the Reed
Elsevier combined businesses. 

Tax on profit on ordinary activities includes £95m (1998 £143m) in respect of
joint ventures.
 
Dividends 
The directors of Reed International have proposed a final dividend of 5.4p per
ordinary share (1998 10.4p) which when added to the interim dividend already
paid of 4.6p per ordinary share (1998 4.6p), amounts to a total 1999 dividend
of 10.0p per ordinary share (1998 15.0p), a decrease of 33%. Dividends paid to
Reed International and Elsevier shareholders are equalised at the gross level
inclusive of the UK tax credit received by certain Reed International
shareholders. The equalisation adjustment equalises the benefit of the tax
credit between the two sets of shareholders in accordance with the
equalisation agreement. 
 
Reconciliation of shareholders' funds 
                                                          1999     1998 
                                                            £m       £m 
Shareholders' funds at 1 January                         1,127      895 
Retained (loss)/profit                                    (155)     224 
Issue of shares on exercise of options                       4       14 
Redemption of preference shares                             (4)       - 
Exchange translation differences                             9       (6) 
Shareholders' funds as at 31 December                      981    1,127 
 
The balance sheet of Reed International reflects its shareholders' 52.9%
interest in the net assets of the Reed Elsevier combined businesses.
Shareholders' funds are largely represented by the investment in Reed
Elsevier. 
 
 
 
 
The financial information set out above has been abridged from the financial
statements for the year ended 31 December 1999, which have been audited by
Deloitte & Touche, and will be filed with the UK Registrar of Companies
following the Annual General Meeting. The audit report was unqualified and
did not contain statements under S237(2) or (3) Companies Act 1985. 
 
ELSEVIER NV 
SUMMARY FINANCIAL INFORMATION 
 
Basis of preparation 
The results for the year ended 31 December 1999 reflect Elsevier's 50% share
of the Reed Elsevier combined businesses, which are accounted for on an equity
basis. 

Adjusted figures, which exclude amortisation of goodwill and intangible
assets, exceptional items and related tax effects, are presented as additional
performance measures. 
 
 
Summary profit and loss account 
                                                          1999     1998 
FOR THE YEAR ENDED 31 DECEMBER 1999                         Em       Em 
Share of combined turnover                               2,577    2,375 
Share of adjusted profit before tax  
from Reed Elsevier combined businesses (50%)               540      575 
Share of amortisation                                     (284)    (247) 
Share of exceptional items before tax                     (176)     449 
Taxation                                                  (128)    (203) 
(Loss)/profit attributable to shareholders                 (48)     574 
Allocation of (loss)/profit 
Dividends paid and proposed                                179      263 
Transfer (from)/to reserves                               (227)     311 
(Loss)/profit attributable to shareholders                 (48)     574 
Adjusted earnings per share (in euros)                    0.57     0.60 
 
Adjusted earnings per share is based upon Elsevier's shareholders' 50% share
of the adjusted profit attributable of the Reed Elsevier combined businesses. 
 
Dividends 
The directors of Elsevier have proposed a final dividend of E0.15/Dfl 0.33
per ordinary share (1998 E0.26/Dfl 0.58), which when added to the interim
dividend already paid of E0.12/Dfl 0.26 per ordinary share (1998 E0.13/Dfl
0.29), amounts to a total 1999 dividend of E0.27/Dfl 0.59 per ordinary share
(1998 E0.39/Dfl 0.87), a decrease of 31%. Dividends paid to Reed
International and Elsevier shareholders are equalised at the gross level
inclusive of the UK tax credit received by certain Reed International
shareholders. Equalisation represents the net movement to maintain Elsevier's
shareholders' funds at 50% of the combined net assets. Movements include
Elsevier's share of the UK tax credit on distributed earnings and an
adjustment to recognise Reed International's entitlement on its shareholders'
5.8% interest to distributions equivalent to those payable to other Elsevier
shareholders. 
 
Reconciliation of shareholders' funds 
                                                          1999     1998 
                                                            Em       Em 
Shareholders' funds at 1 January                         1,512    1,282 
Retained (loss)/profit                                    (227)     311 
Issue of shares on exercise of options                       8        5 
Exchange translation differences and equalisation          200      (86) 
Shareholders' funds at 31 December                       1,493    1,512 
 
The balance sheet of Elsevier reflects its 50% share of the net assets of the
combined businesses. Shareholders' funds are largely represented by the
investments in Reed Elsevier. 
 
The financial information in respect of the year ended 31 December
1999 has been extracted from the statutory accounts of Elsevier which have
been audited by Deloitte & Touche.


ADDITIONAL information 
FOR us INVESTORS 
REED ELSEVIER SUMMARY COMBINED 
FINANCIAL INFORMATION UNDER US GAAP 
 
SUMMARY OF PRINCIPAL differences between UK and Dutch GAAP and US GAAP 
 
Basis of preparation 
The combined financial statements for Reed Elsevier are prepared in
accordance with UK and Dutch GAAP, which differ in certain significant
respects from US GAAP. The principal differences relate to the US GAAP
requirements in respect of the capitalisation and amortisation of goodwill
and other intangibles, deferred taxes, and the definition of continuing and
discontinued operations. A more complete explanation of accounting policies
used by the combined businesses and the differences between UK and Dutch GAAP
and US GAAP will be set out in the 1999 Reed Elsevier Annual Report and Reed
Elsevier Annual Report on Form 20-F. 
 
 
Net income 
For the year ended 31 December 1999
                                          1999     1998     1999     1998 
                                            £m       £m       Em       £m 
Net income under UK and Dutch
GAAP                                       (63)     772     (95)    1,149 
US GAAP adjustments: 
     Amortisation of goodwill and other
intangibles                                (83)    (477)   (126)     (710) 
     Deferred taxation                      67       77      101      114 
     Pensions                                6       30        9       45 
     Other items                             -       (4)       -       (6) 
Net income under US GAAP                   (73)     398     (111)     592 
 
Analysed: 
     Continuing
operations                                 (73)    (122)    (111)    (182) 
     Discontinued operations 
     - income from operations                -       (1)       -       (1) 
     - gain on sales                         -      521        -      775 
Net income under US GAAP                   (73)     398     (111)     592 
 
Discontinued operations comprised IPC Magazines and the remaining consumer
book publishing operations which were the final elements of the Consumer
segment sold in 1998. 

The adjustment for amortisation of goodwill and intangible assets in 1998
includes the additional write downs arising as a consequence of the
re-evaluation of the remaining asset lives of goodwill and intangible assets
under US GAAP. 
 
Shareholders' funds 
As at 31 December                         1999     1998     1999     1998 
                                            £m       £m       Em       £m 
Combined shareholders' funds under  
UK and Dutch GAAP                        1,855    2,130    2,987    3,025 
US GAAP adjustments: 
     Goodwill and other intangibles        553      637      890      905 
     Deferred taxation                    (180)    (242)    (290)    (344) 
     Pensions                               63       57      102       81 
     Other items                             5        7        8       10 
     Ordinary dividends not declared in the
period                                     127      244      204      346 
Combined shareholders' funds under US
GAAP                                     2,423    2,833    3,901    4,023 
 
NOTES FOR EDITORS 
 
Reed Elsevier is a world leading publisher and information provider and its
principal operations are in North America and Europe. Its two parent
companies - Reed International P.L.C. ('Reed International') and Elsevier NV
('Elsevier') - are listed on the Amsterdam, London and New York Stock
Exchanges and the returns to their respective shareholders are equalised in
terms of dividend and capital rights. 'Reed Elsevier' and 'the combined
businesses' comprise Reed International and Elsevier plus their two jointly
owned companies, Reed Elsevier plc and Elsevier Reed Finance BV and their
respective subsidiaries and joint ventures. 

Both Reed International ('RUK', CUSIP No. 758212872) and Elsevier ('ENL',
CUSIP No. 290259100) have American Depositary Shares (ADSs) listed on the 
New York Stock Exchange (Depositary: Citibank NA). An ADS in Elsevier
represents two ordinary shares in Elsevier, while a Reed International ADS
represents four ordinary shares in Reed International. Final dividends on
Reed International and Elsevier ADSs will be paid on 30 May 2000. 

The final dividends will be paid on 22 May 2000 to Reed International and
Elsevier shareholders.  The ex-dividend date for the Reed International
ordinary shares is 2 May 2000 and for the Elsevier ordinary shares is 1 May
2000. For the Reed International payment the record date will be 8 May 2000. 

The Reed Elsevier Annual Review 1999 and Reed International P.L.C. 1999
Report and Accounts are being posted to Reed International shareholders on 
17 March 2000. Copies of the Reed Elsevier Annual Review 1999 and Elsevier NV
Annual Report 1999 will be available to shareholders in Elsevier on request.
Copies of the Preliminary Statement are available to the public from the
respective companies: 
 
Reed International P.L.C.        Elsevier NV 
25 Victoria Street               Van de Sande Bakhuyzenstraat 4 
London SW1H 0EX                  1061 AG, Amsterdam 
UK                               The Netherlands 
 
 
 
 

Copies of all recent announcements, including this Preliminary Statement,
and additional information on Reed Elsevier can be found on the Reed Elsevier
Home Page on the World Wide Web: 
http://www.reed-elsevier.com