LexisNexis concludes review
Reed Elsevier PLC
12 April 2005
NEWS RELEASE
Issued on behalf of Reed Elsevier PLC and Reed Elsevier NV
12 April 2005
LexisNexis concludes review into unauthorised access to US databases
Further to its announcement of 9 March 2005, Reed Elsevier announced today that
LexisNexis, its global legal and business information division, has concluded
its review of all data search activity across its business, including its
Seisint unit.
The comprehensive review analysed data search activity going back over the last
two full years and concluded that there were 59 incidents where unauthorised
persons, predominantly using IDs and passwords of legitimate customers of
Seisint, may have fraudulently acquired personal identifying information from
its US risk management databases. LexisNexis estimates that information on
approximately 310,000 US individuals in total may have been accessed.
LexisNexis is notifying all these individuals and is offering free support
services, including credit bureau reports, credit monitoring for one year and
fraud insurance, to monitor and protect them from possible fraud associated with
identity theft. LexisNexis will provide fraud counselling services or
specialised assistance to any individual who has been the victim of identity
theft related to these incidents. LexisNexis has alerted law enforcement
authorities and is proactively assisting in their investigations of the
potentially fraudulent misuse of the information acquired.
In March, LexisNexis notified approximately 30,000 individuals in relation to
the incidents reported in the announcement of 9 March 2005, that criminals
could have accessed their personal information. To date, approximately two
percent of those individuals have contacted LexisNexis to accept its offer of
free credit reports and credit monitoring, and none has so far advised
LexisNexis that they have experienced any form of identity theft. The 30,000
individuals are included within the 310,000 total referred to above.
The incidents predominantly relate to misappropriation by third parties of IDs
and passwords from legitimate customers of Seisint. The information concerned
relates to names and addresses and other personal identifying information such
as social security and driver's licence numbers. LexisNexis and Seisint
databases do not hold personal credit histories, medical records or financial
records on individuals. Neither the LexisNexis nor the Seisint technology
infrastructure has been breached by hackers nor was any customer data
compromised or accessed in these incidents. As indicated on 9 March 2005,
LexisNexis and Seisint are implementing significant improvements to customers'
password and ID administration security processes to help prevent future
incidents. LexisNexis will continue its long established support of effective
federal and state data privacy policies and practices.
As announced on 9 March 2005, the financial implications of the unauthorised
access to LexisNexis databases are expected to be manageable within the context
of LexisNexis' overall growth. Reed Elsevier also today reaffirmed its 2005
and longer term financial targets of at least 5% organic revenue growth and
double digit adjusted earnings per share growth at constant rates of exchange.
Forward looking statements
This announcement contains forward-looking statements within the meaning of
Section 27A of the US Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. These statements concern
future matters, such as the features and functions of, and markets for,
products and services offered by Reed Elsevier, and Reed Elsevier's business
plans and strategies. Forward-looking statements are based on the current
expectations of the management of Reed Elsevier and are subject to risks and
uncertainties. Actual results and events could differ materially from the
results discussed in the forward-looking statements. Factors which could cause
or contribute to differences in results include, but are not limited to,
general economic conditions and business conditions in Reed Elsevier's markets,
customers' acceptance of its products and services, the actions of competitors,
legislative, fiscal and regulatory developments, changes in law and legal
interpretation affecting Reed Elsevier's intellectual property rights, and the
impact of technological change. Reed Elsevier is not under any obligation (and
expressly disclaims any such obligation) to update or alter its forward-looking
statements whether as a result of new information, future events or otherwise.
Notes to Editors
Reed Elsevier Group plc is a world leading publisher and information provider.
It is owned equally by its two parent companies, Reed Elsevier PLC and Reed
Elsevier NV. The parent companies are listed on the London, Amsterdam and New
York Stock Exchanges, under the following ticker symbols: London: REL;
Amsterdam: REN; New York: RUK and ENL. In 2004, Reed Elsevier made adjusted
profit before taxation of £1,027 million/€1,510 million on turnover of £4,812
million/€7,074 million. The group employs 35,600 people, including
approximately 22,000 in North America. Operating in the scientific, legal,
educational and business-to-business sectors, Reed Elsevier provides high value
and flexible information solutions to professional end users, with increasing
emphasis on internet delivery.
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For further information please contact :
Catherine May: +44 (0)20 7166 5657
Patrick Kerr: +44 (0)20 7166 5646
This information is provided by RNS
The company news service from the London Stock Exchange
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