New investment led growth strategy starts to pay off

• Strong overall growth: revenues up 18%, adjusted pre tax profits up 20% at constant rates
  
• Strategic targets of above market revenue and double digit earnings growth at constant rates achieved one year early
  
• Strong financial result despite challenging economic environment
  • Science & Medical, Legal and Education prove resilient, with organic revenues and profit growth at 6% and 10%
    
  • Business division outperforms market, with organic revenue and profit declines held to 3% and 8%
• $4.5bn acquisition of Harcourt makes strong contribution, ahead of expectations
  
• On track to meet strategic and financial targets in 2002 and beyond

Reed Elsevier
	2001 £m	2000 £m		2001 €m	2000 €m	Change at constant currencies %
Turnover	4,560	3,768		7,342	6,180	18%
Adjusted profit before taxation	848	690		1,365	1,132	20%
Parent Companies	Reed International			Elsevier
	2001	2000	Change %	2001	2000	Change %
Adjusted earnings per share	26.1p	23.3p	12%	€0.64	€0.59	8%
Dividend per share	10.5p	10.0p	5%	€0.30	€0.28	7%

Click here to view a PDF of the full results statement.

Crispin Davis, Chief Executive Officer of Reed Elsevier, commented:

In the last two years major effort has been put into reshaping the business and organisation, and in addressing the fundamentals around product, sales and marketing. 2001 started to see the benefits of this coming through despite the challenging economic environment. We are now well placed to see the full impact of this work in the year ahead and we have great confidence in Reed Elsevier's future growth.