Tender Offer Update

Reed International PLC
Elsevier N.V.
7 May 2001


                                  News Release

        Issued on behalf of Reed International P.L.C. and Elsevier N.V.

                                                                7 May 2001

      Reed Elsevier's acquisition of Harcourt General to be allowed by the
                         Department of Justice in the US

Reed Elsevier plc today announced that the United States Department of Justice
will allow the company's proposed acquisition of Harcourt General, Inc. to
proceed without challenge. The US Department of Justice review of the on-sale of
certain Harcourt assets to The Thomson Corporation is continuing.

Outside the United States, the acquisition has already received clearance from
the competition authorities in Germany, Austria and Ireland and now awaits
regulatory clearance only from the UK competition authorities.

Commenting on the Department of Justice's decision, Crispin Davis, Chief
Executive of Reed Elsevier, said: 'We are very pleased that this important
milestone has been passed.'

Contact:

Catherine May - Reed Elsevier, tel: [phone] 
Wendel Carson, Diana Nelson - Brunswick, tel: [phone]

Notes to Editors

On 27 October 2000, Reed Elsevier announced that it had signed a definitive
agreement with US based Harcourt to make a cash tender offer of $59 per share of
common stock, or share equivalent, for the entire issued share capital of
Harcourt (NYSE:H). The offer values the equity of the company at $4.45 billion
(£3.10 billion/EUR5.37 billion) and has been unanimously recommended by the
Harcourt Board. 

Reed Elsevier is acquiring Harcourt's Science, Technical and Medical (STM)
businesses and its Schools Education and Testing businesses. This
will be effected by the purchase of the whole of Harcourt and the on-sale to The
Thomson Corporation of Harcourt's Higher Education business and certain
Corporate and Professional Services businesses. The total cost of the
transaction, after taking into account the on-sale and debt assumed and other
liabilities, will be approximately $4.5 billion. The transactions are subject to
regulatory approvals.

Reed Elsevier plc

Reed Elsevier plc is a world leading publisher and information provider. It
is owned equally by its two parent companies, Reed International P.L.C and
Elsevier NV. The parent companies are listed on the London, Amsterdam and New
York Stock Exchanges, under the following ticker symbols: London: REED;
Amsterdam: ELSN; New York: RUK, ENL.

In 2000, Reed Elsevier made adjusted profit before taxation of £690 million
($1,042million) on turnover of £3,768 million ($5,690 million). The group
employs 27,700 people, including 14,800 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.

Further information on Reed Elsevier can be found on the company's website at
www.reedelsevier.com

Harcourt General Inc

Harcourt General Inc. is a broadband learning company and a major participant
in the growing global markets for education, assessment, training and
professional information. The company has organised its businesses into four
strategic groups, targeting specific customer sets: Scientific Technical and
Medical (STM); Kindergarten to Grade 12 Education (K-12); Higher Education;
and Corporate and Professional Services

In STM, its leading brands include Academic Press, Mosby Inc. and Churchill
Livingstone (part of Harcourt Health Sciences) and MD Consult. The Harcourt
schools education portfolio includes Harcourt School Publishers; Holt,
Reinhart & Winston; Steck-Vaughn; Harcourt College Publishers; Harcourt
Learning Direct and Harcourt Educational Measurement. Corporate and
Professional Services include The Psychological Corporation, Assessment
Systems Inc. and Harcourt Learning Center.