Trading Statement

Reed Elsevier PLC
16 November 2006




                                  News Release

           Issued on behalf of Reed Elsevier PLC and Reed Elsevier NV

                                                     0700 (GMT) 16 November 2006

                    REED ELSEVIER PROVIDES UPDATE ON TRADING

Reed Elsevier today reaffirmed that it is on track to deliver on its targets
this year of organic revenue growth of 5% (6% in total) and 10% growth in
adjusted earnings per share at constant currencies.

The Elsevier, LexisNexis and Reed Business divisions are performing strongly in
generally favourable market conditions. These businesses, which account for over
85% of Reed Elsevier's adjusted operating profits, are continuing to show
encouraging revenue momentum and good underlying margin improvement. The
Harcourt Education division has however been impacted by underperformance in the
Assessment business and a weak textbook market.

The transition of professional markets towards technology enabled information
and solutions is progressing well for Reed Elsevier: forging new and deeper
relationships with our customers, widening our product offerings, and enabling
us to reach new customers.

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

Elsevier is performing well in both the Science and Health markets. Subscription
renewals have been strong, the second half book publishing programme is going
well, and there is continued good growth in online product sales. Underlying
operating margins are improving with good revenue growth and further cost
efficiency. (Reported margins will be lower than in the prior year due to the
currency effect of the weaker dollar hedge rates on subscription revenues and
lower margin acquisitions.)

LexisNexis is performing well. Good momentum is seen in subscription renewals
and new sales of online information and solutions in US legal and international
markets. Strong growth in risk management and higher volumes of patent
applications are driving good growth in US corporate and federal markets.
Underlying operating margins are improving with the growth in the business and
operational gearing.

Harcourt Education overall revenues are expected to be broadly flat on the prior
year, against earlier expectations of modest growth, largely due to weaker
textbook markets and the underperformance in Assessment. Within the US basal and
supplemental textbook markets, Harcourt Education has performed well and ahead
of market trends, with a leading share in available state textbook adoptions and
good progress in new supplemental publishing. The Assessment business has
however been significantly impacted by the operational difficulties and cost
overruns in the state contract business. Organisational changes and new
leadership are starting to make a difference in Assessment. Overall adjusted
operating margins for the Education business will be down (approximately 4
percentage points) on the prior year.

Reed Business is performing well with particularly strong demand in exhibitions.
(The net cycling out of biennial shows in the second half reverses the cycling
gains in the first half). The magazine and information business is showing
overall solid growth with strongly growing online sales outpacing the decline in
print. Underlying operating margins are showing good progress through growth in
the higher margin exhibition business, increasing profitability of the online
business and continued cost efficiency.

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

'The business is performing well despite the issues in Assessment, with good
revenue growth and underlying margin improvement across the rest of the
business. Of long term significance is the move to online information and
solutions in our markets, which is profound and opening up real opportunities
for us to add more value to our customers and reach new ones. Combining
authoritative content with technology is driving superior outcomes for the
research scientist, medical practitioner, lawyer, teacher and business
professional. With the growing success of our strategy and a favourable market
outlook, the prospects for Reed Elsevier look good.'

This announcement contains forward looking statements within the meaning of
Section 27A of the US Securities Act 1933, as amended, and Section 21E of the US
Securities Exchange Act 1934, as amended. These statements are subject to a
number of risks and uncertainties and actual results, and events could differ
materially from those currently being anticipated as reflected in such forward
looking statements. The terms 'expect', 'should be', 'will be' and similar
expressions identify forward looking statements. Factors which may cause future
outcomes to differ from those foreseen in forward looking statements include,
but are not limited to: general economic conditions in Reed Elsevier's markets;
exchange rate fluctuations; customers' acceptance of our products and services;
the actions of competitors; legislative, fiscal and regulatory developments;
changes in law and legal interpretations affecting Reed Elsevier's intellectual
property rights and internet communications; and the impact of technological
change.
                                    - ends -
Enquiries
Sybella Stanley Tel: [phone]
(Investors)

Patrick Kerr Tel: [phone]
(Media)


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 2005, Reed Elsevier made adjusted
profit before taxation of £1,002 million on turnover of £5,166 million. The
group employs 36,000 people, including approximately 20,000 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




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