Good Financial Progress
Adjusted figures
Continuing Operations (Elsevier, LexisNexis and Reed Business)
Revenues unchanged at £2,235m/up 1% to €3,308m; up 6% at constant currencies.
Adjusted operating profits, before amortisation of acquired intangible assets and acquisition integration costs, up 3% to £530m/up 5% to €784m; up 10% at constant currencies.
12% growth in online information and digital services which now account for 45% of revenues.
Adjusted operating margins up 0.8%pts at 23.7%.
90% of adjusted operating profits converted into cash.

Total Operations (including Harcourt Education)

Adjusted earnings per share, at reported exchange rates, up 1% to 14.3p for Reed Elsevier PLC and unchanged at €0.32 for Reed Elsevier NV; up 8% at constant currencies.
Equalised interim dividends up 10% to 4.5p for Reed Elsevier PLC and up 12% to €0.114 for Reed Elsevier NV.
Reported figures

Reported operating profits, after amortisation of acquired intangibles and acquisition integration costs, up 6% to £412m/up 8% to €610m.
Reported earnings per share, including disposal gains, up 46% to 12.5p for Reed Elsevier PLC/up 46% to €0.30 for Reed Elsevier NV.
Sharpened Strategic Focus

Announced definitive sale agreements for entire Harcourt Education division for total proceeds of $4.95bn.
Intention to return the expected net proceeds of approximately $4.0bn to shareholders following completion. The sale of the Harcourt Education division is expected to be broadly neutral to adjusted earnings per share.
Elsevier, LexisNexis and Reed Business show good growth momentum as they accelerate their online information and workflow solution strategies.
Reed Elsevier is making encouraging progress in delivering on its strategic priorities:
- Delivering authoritative content through leading brands
- Driving online solutions
- Improving cost efficiency
- Upgrading portfolio

OUTLOOK
On track to deliver in 2007 a minimum 10% growth in adjusted earnings per share at constant currencies.
Reed Elsevier's Chief Executive Officer, Sir Crispin Davis, commented:

"We are seeing good momentum across our businesses, particularly with the growing impact of our online solutions strategy. We were pleased to announce sales of our Harcourt Education businesses at prices which recognised the exceptional quality of the Harcourt assets. We have also made good progress in the first half in putting together our plans to further drive cost efficiencies.

The 2007 first half financial results are encouraging. Market conditions continue to be generally favourable, our strategy is clear, the business well focused, and we are leveraging our resources to good effect. Reed Elsevier is well placed for a strong second half and we are firmly on track to deliver our 2007 goals."