Trading Statement

Reed Elsevier PLC
02 December 2004

                              News Release



          Issued on behalf of Reed Elsevier PLC and Reed Elsevier NV



                                                                 2 December 2004



  REED ELSEVIER PROVIDES UPDATE ON TRADING AND REAFFIRMS ITS FINANCIAL TARGETS



Reed Elsevier today reaffirmed that it is on track to deliver mid to high single
digit adjusted earnings per share growth at constant exchange rates this year.
Strong performance in a low market growth environment and further cost actions
are delivering this overall result whilst funding an increased level of
investment in the business.

The adjusted earnings per share growth, when expressed in sterling and euros, is
expected to be largely eliminated by currency translation effects due, in
particular, to the year-on-year decline of the US dollar against both sterling
and the euro.  (Adjusted eps is stated before amortization of goodwill and
intangible assets and exceptional items.)

Reed Elsevier's markets overall are expected to recover further in 2005 from the
late cycle effects of the challenging economic conditions in prior years; in
particular, business to business markets are expected to be stronger and the US
education market will benefit significantly from the strong state textbook
adoption calendar.  Stronger revenue growth and cost efficiency, as well as
growing returns on recent investments and acquisitions, are targeted to deliver
in 2005 Reed Elsevier's long term financial target of double digit adjusted
earnings per share growth at constant currencies.

The performance trends in Reed Elsevier's businesses are as follows:

Elsevier

The scientific research information market remains challenging with minimal
increases in academic library budgets.  Elsevier has however continued to
perform ahead of the market with strong subscription renewals and new online
sales.  The Health Sciences book publishing programme, which is weighted to the
second half, is performing well.  Weak software sales, including a delay in the
launch of a significant new MDL software product, has pushed some expected sales
growth into next year.  The adjusted operating margin is expected to be
maintained through continued focus on cost efficiency whilst funding additional
investment in new electronic product, sales and marketing.

The renewals process for 2005 subscriptions is progressing well.  New sales of
online product are growing strongly.  Migration to e-only contracts is now over
35% of journal subscriptions by value, with some cannibalizing effect on revenue
growth as production and distribution cost savings are shared with customers.
Usage on ScienceDirect is growing strongly and article downloads are expected to
exceed 230 million this year.  Articles published this year will be
approximately 4% higher than in the prior year and articles submitted for peer
review are up 7%.

The scientific journals business operates in an environment of continuing weak
funding growth for the majority of customers which does constrain the market
opportunities.  Elsevier is however continuing to make substantial investments
in new products and technologies which are having a significant impact on
research productivity.  The Scopus online research navigational service was
launched in November and has been well received by the market.  Elsevier
continues to participate in wide ranging discussions with customers and other
stake holders on how the industry might develop further to benefit from such
advances in productivity within a constraining budgetary environment.

LexisNexis

LexisNexis has continued to perform well, with increasing market demand for new
online services and growing returns from product investment and recent
acquisitions.  Continuing cost efficiencies have funded increased investment and
a modest further improvement in underlying margins is expected for the year.

In US legal markets, the first half trends have continued with good online
growth in the small law firm market and rapid growth in new services beyond core
research, such as the Applied Discovery electronic discovery tools.  Print and
CD products continue to decline as demand migrates online.  In US corporate and
federal markets, the risk management business continues to grow strongly, driven
by the rapidly growing demand for sophisticated identity verification tools and
analytical services.  The Seisint business, acquired in September, is performing
well and is on track to deliver calendar year on year revenue growth of over
40%.

The LexisNexis International business has seen significant share gain and out
performance driven by new online products and marketing initiatives.  The
businesses in the UK, Germany and Australia have followed France with a
successful introduction of the Global Legal Platform, to good positive market
response.

Harcourt Education

Harcourt Education has continued its market success, in a weak US state textbook
adoption year, with the leading share in the 2004 new adoption opportunities.
Despite a US K-12 schools market expected to be several percentage points lower
this year, and a weak UK market, Harcourt is expected to deliver underlying
revenues comparable to, or slightly ahead of, the prior year.  Underlying
margins are expected to be lower reflecting the low textbook revenue growth
whilst sales and marketing investments are made ahead of the strong 2005
adoption year.

Harcourt has been particularly successful in the elementary market with major
market share wins most notably in math.  Significant new Reading First contracts
have also been awarded and good growth seen in open territories and backlist
sales.  The supplemental business has stabilized as the reading product pipeline
is strengthened and aligned to No Child Left Behind Act criteria.  Saxon, the
leading US supplemental math publisher acquired mid year, is performing well and
ahead of expectations.  The integration of the business into Harcourt Achieve in
Austin, Texas is almost complete.

The Assessment business has benefited from increased activity on large state
contracts, although the sales mix, when compared with last year's high margin
new clinical publishing, and higher investment will reduce margins and
profitability in the business against the strong prior year.  The classroom
based interim assessment product, Stanford Learning First, was launched in
September and has already secured its first state-wide contract in Wyoming.

Reed Business

Reed Business is now seeing a more positive market environment with underlying
revenues expected to be slightly ahead of the prior year, and the second half
momentum should continue into 2005.  Performance does however vary by sector and
geography.  Continued cost actions should enable underlying margins to be
maintained whilst investment has been increased in online services and in
developing key titles in Asian markets.

In the US, the entertainment sector continues to perform well, whereas
industrial sectors such as construction and manufacturing still remain
difficult.  In the UK, both print and online recruitment advertising have
performed well but in Continental Europe advertising markets remain depressed,
particularly in the Netherlands and in Germany.  Online advertising and
subscriptions revenues continue to grow strongly.

Reed Exhibitions, after the favourable first half impact of show cycling, has,
as anticipated, seen a number of biennial shows, such as Batimat in France,
cycle out in the second half.  Overall, Reed Exhibitions is expected to deliver
a satisfactory performance for the year.

Outlook

Conditions in the legal and business markets are expected to continue to improve
throughout 2005, and the significant recovery in the US adoption calendar and
improving state finances will support a strong upturn in US education markets.
No real recovery is anticipated in the academic library market, with above
market growth expected from good subscription renewals, online product and new
initiatives.  The healthcare markets are expected to continue to grow well,
benefiting in particular from expansion of the allied health and nursing
professions.

With the focus in recent years on initiatives and investment to accelerate
revenue growth and on operational efficiency, Reed Elsevier is well placed to
capture the benefits delivered by stronger market growth and to continue to
outperform across its markets.

Commenting, Sir Crispin Davis, Chief Executive Officer, said:

'We set prudent but challenging goals for 2004, reflecting the overall low
revenue growth environment and the priority we have given to investment to
accelerate future revenue growth.  I am pleased that we are delivering
successfully against these goals.

Positive customer responses to major products launched in 2004 - Scopus, Global
Legal Platform and Interim Assessment - are very encouraging.  Our investment
programme combined with the fundamental strength of our assets will enable us to
capture the opportunities presented by improved market growth in 2005 and,
importantly, continue our outperformance of these markets.

With improving market growth in 2005 and continued outperformance, stronger
revenue growth and increasing margins are expected to deliver our constant
currency double digit earnings growth target'.

The Reed Elsevier Preliminary Statement on the 2004 financial year will be
issued on 17 February 2005. The 2004 results will be presented under UK GAAP and
also restated on an IFRS basis.

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, 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.

Enquiries:                  Catherine May, Reed Elsevier,                Tel: [phone]
                            (Media)

                            Sybella Stanley                              Tel: [phone]

Notes to editors

Reed Elsevier Group plc

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 2003, Reed Elsevier made adjusted
profit before taxation of £1,010 million on turnover of £4,925 million. The
group employs 35,000 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.  For
further information, please visit the company website www.reedelsevier.com.



Reed Elsevier will be holding a conference call at 08:30 hrs GMT today with Sir
Crispin Davis, CEO, and Mark Armour, CFO, for analysts and investors.


The call will be audiocast live on our website, www.reedelsevier.com, at 08:30
GMT and a recording will be subsequently available on the website.


                      This information is provided by RNS
            The company news service from the London Stock Exchange