Holding in Company

Pearson PLC
22 August 2001


LETTER TO: COMPANY ANNOUNCEMENTS OFFICE

Notification of change in interest in shares

We write in accordance with rule 9.12, under the continuing obligations section
of the Listing Rules, to notify you that we have today received information
that, pursuant to section 198 of the Companies Act 1985, the shareholding of The
Capital Group Companies, Inc., which equals 47,944,419 shares, now represents 6%
of the issued ordinary share capital of Pearson plc.

The registered holders of the shares are listed on the schedule below.

LETTER FROM PEARSON PLC


As of 17 August 2001

Pearson plc

                                               Number of Shares    Percent of
                                                                   Outstanding

The Capital Group Companies, Inc. ('CG') holdings  47,944,419        6.00%

Holdings by CG Management Companies and Funds:

* Capital Guardian Trust Company                   27,213,853        3.41%

* Capital International Limited                     9,395,768        1.18%

* Capital International S.A.                        1,215,369        0.15%

* Capital International, Inc.                       2,502,157        0.31%

* Capital Research and Management Company           7,617,272        0.95%

                                 Schedule A



Schedule of holdings in Pearson plc
As of 17 August 2001

Capital Guardian Trust Company

Registered Name                                                Local Shares

State Street Nominees Limited                                    4,183,071
Bank of New York Nominees                                          538,800
Chase Nominees Limited                                          10,640,865
BT Globenet Nominees Ltd                                           115,700
Midland Bank plc                                                 5,524,700
Deutsche Bank Mannheim                                               2,300
Bankers Trust                                                    1,336,900
Barclays Bank                                                      504,500
Citibank London                                                    848,786
Nortrust Nominees                                                3,283,831
Royal Bank of Scotland                                              10,000
MSS Nominees Limited                                                32,600
State Street Bank & Trust Co.                                        8,000
National Westminster Bank                                            2,900
RBSTB Nominees Ltd                                                   3,100
Citibank NA                                                         39,200
Deutsche Bank AG                                                     4,300
HSBC Bank plc                                                        3,300
ROY Nominees Limited                                                23,800
Mellon Nominees (UK) Limited                                       107,200

                                            TOTAL               27,213,853

                                   Schedule B


Capital International Limited

Registered Name                                                Local Shares

State Street Nominees Limited                                      247,998
Bank of New York Nominees                                          812,601
Chase Nominees Limited                                           2,701,626
Midland Bank plc                                                    19,800
Bankers Trust                                                    3,771,598
Citibank London                                                     72,000
Morgan Guaranty                                                     10,359
Nortrust Nominees                                                1,272,025
Royal Bank of Scotland                                               8,100
MSS Nominees Limited                                                33,600
Lloyds Bank                                                         18,000
Vidacos Nominees Ltd                                                 9,327
Citibank                                                            14,800
*New Account* - Nominee Information Not Available                   22,000
Deutsche Bank AG                                                   296,909
HSBC Bank plc                                                       34,000
KAS UK                                                              13,025
Bank One London                                                     38,000

                                           TOTAL                 9,395,768


                                Schedule B


Capital International S.A.

Registered Name                                                Local Shares

State Street Nominees Limited                                       37,536
Bank of New York Nominees                                           34,927
Chase Nominees Limited                                             391,253
Credit Suisse London Branch                                         20,000
Midland Bank plc                                                    98,000
Barclays Bank                                                      128,718
Royal Bank of Scotland                                             332,818
National Westminster Bank                                           49,000
Lloyds Bank                                                         16,600
Vidacos Nominees Ltd.                                               19,090
RBSTB Nominees Ltd.                                                 19,327
Citibank NA                                                         12,000
Deutsche Bank AG                                                    56,100

                                           TOTAL                 1,215,369

                              Schedule B



Capital International. Inc.

Registered Name                                                 Local Shares
                                                                   
State Street Nominees Limited                                      776,779
Bank of New York Nominees                                          101,857
Chase Nominees Limited                                           1,392,921
Midland Bank plc                                                    14,400
Deutsche Bank Mannheim                                              34,500
Bankers Trust                                                        6,700
Citibank London                                                      5,000
Nortrust Nominees                                                  113,000
State Street Bank & Trust Co.                                       30,000
Citibank NA                                                         14,800
Deutsche Bank AG                                                    12,200

                                           TOTAL                  2,502,157

                                 Schedule B


Capital Research and Management Company

Registered Name                                                 Local Shares

State Street Nominees Limited                                       500,000
Chase Nominees Limited                                            7,117,272

                                           TOTAL                  7,617,272


                                Schedule B