Trading Update

Reed Elsevier PLC
05 December 2002



Issued on behalf of Reed Elsevier PLC and Reed Elsevier NV


                                                                 5 December 2002



   Reed Elsevier Provides Update on Trading and Reaffirms its Financial Targets

Reed Elsevier today reaffirmed that it is on track to deliver double digit
adjusted earnings per share growth at constant exchange rates this year and
reiterated its commitment to this target for next year.  This is despite the
continuing tough economic environment, which is affecting all markets, but in
particular Business to Business.

The strength of the euro and, to a lesser extent, sterling relative to the US
dollar this year on last year will have a small adverse impact on the adjusted
EPS of both Reed Elsevier NV and Reed Elsevier PLC at reported exchange rates.
(Adjusted EPS is stated before amortisation of goodwill and intangible assets
and exceptional items.)

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

In Science & Medical, Elsevier Science has performed well.  A reversal in
journal phasing and an increase in sales growth for the medical book publishing
programme have, as expected, driven an improvement in overall revenue growth in
the second half.  As a result we expect both Science and Medical divisions to
outperform markets that are seeing growth somewhat constrained by pressures on
institutional budgets.  In the Science & Technology business, subscription
renewals are strong, migration to electronic only contracts is accelerating and
sales of new information services, including backfiles and subject collections,
are going well.  In Health Sciences, the Harcourt business is gaining momentum
and the actions implemented over the last nine months are now paying off.  US
book sales are seeing good growth with a strong publishing programme and
increased demand from the expanding healthcare professions.  Electronic revenues
are also growing well with new subscribers for online services and new products.

In Legal, LexisNexis has continued the positive revenue momentum seen in the
first half.  This, together with increasing cost efficiency, particularly in the
US, is driving margin improvement.  In US Legal markets, LexisNexis continues to
show satisfactory growth in online usage and revenues.  Although not immune from
the economic slowdown, it continues, we believe, to perform ahead of the market.
In corporate and federal markets, as in the first half, strong growth in risk
solutions is more than compensating for weakness in corporate business
information.  The LexisNexis International businesses are performing
satisfactorily, other than in Latin America where conditions are particularly
difficult.  Investment is being made in the development of the German business
following the acquisition of MBO Verlag.  The impact on margins of the
investment will be largely offset by rationalisation of editorial processes
within the UK as the business moves further online.

In Education, the Harcourt US K-12 schools business has performed well against a
market that is now expected to be weaker than in the prior year.  The weaker
adoptions cycle has been compounded in recent months by more cautious spending
by US states with budgets under pressure and deferral of spend in anticipation
of the increased federal funding.  Harcourt has offset this market decline
through significant outperformance and is expected to achieve revenues in the US
K-12 market comparable with the prior year.  It has gained the leading market
share of new state adoption revenues and has performed well relative to the
market in backlist sales and in open territories.  Additional investment in
electronic learning has been funded by higher than expected cost savings.  The
Testing business has seen good growth driven by state testing contracts and new
publishing.  Outside the US, growth in the Harcourt International businesses is
held back by a much lower UK primary schools market against a prior year of
significant curriculum change.

In Business, advertising markets remain difficult and there is still no sign of
real recovery.  Reed Business is however on track to outperform the market again
this year, through its focus on building market share and managing yields, as
well as continued action to reduce costs.  The exhibitions business, although
affected by late cycle pressures in its markets, is performing satisfactorily
reflecting the strength of its shows and tight cost management.  Although
underlying revenues, excluding acquisitions and disposals, are expected to be
lower for Reed Business than the prior year, the impact on profits is expected
to be offset by the lower cost base to deliver underlying profits comparable
with the prior year.

Turning to next year, Reed Elsevier remains committed to its target of double
digit adjusted earnings per share growth at constant currencies for Reed
Elsevier PLC and Reed Elsevier NV.  This is despite the continuing difficult
economic environment from which none of the businesses is immune but does assume
that there is no marked further deterioration.  If current exchange rates
prevail, there will be an adverse translation impact on reported earnings,
particularly in the first half.

The Science & Medical and Legal businesses are expected to make good progress in
revenues and margin improvement.  The Education business is expected to see
continuing state budget pressures but some recovery in its markets with the
benefit of the additional federal funding and more state adoption revenues
available.  In Business markets, no upturn is forecast at this stage.  Given the
tough trading environment, significant further cost actions have been taken in
the second half of the year to protect and improve margins and release funds for
investment in 2003.

Commenting, Crispin Davis, Chief Executive Officer, said:

'We continue to execute well against our strategic milestones and I am pleased
to report that, despite the challenging economic environment, we are on track to
deliver against our two key financial targets of above market revenue growth and
double digit adjusted earnings growth.'

The Reed Elsevier Preliminary Statement on the 2002 financial year will be
issued on 20 February 2003.

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.


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