Wolters Kluwer, one of the world's leading publishers and providers of information products and services, announced today improved performance in the third-quarter 2004 compared with the second quarter results, as it continued to make progress on its three-year strategic plan.


Highlights of Wolters Kluwer's financial performance include:

Third-quarter results showed continued improvement in operations in line with strategic plan
Revenues €825 million, organic revenue growth up 1% for the quarter in constant currencies
Third-quarter ordinary EBITA €143 million; EBITA margin 17%, reflecting increased investments in new product development, reinstatement of one-time cost savings from the prior year, and the positive effect of cost restructuring initiatives, all of which will accelerate during the fourth quarter
Strong free cash flow €293 million for the first nine months, compared with €153 million for the same period in 2003
Structural cost savings of €50 million for the first nine months were in line with plan

Nancy McKinstry, Chairman of the Executive Board, commented on the company's performance in the third-quarter: "Wolters Kluwer is making progress on our three-year strategic plan to deliver enhanced value to our shareholders. Our management team continues to make investments in products and market segments with clear growth opportunities, while achieving the benefits associated with our restructuring initiatives. These efforts have yielded results in line with our market outlook."

Key highlights that reflect the progress implementing the strategic plan include:

Health continued to achieve organic growth driven by good performance in Pharma Solutions and in Medical Research
Corporate & Financial Services demonstrated growth in on-demand corporate and UCC services and gains in representation and trademark services
Tax, Accounting & Legal performance benefited from robust sales of the Prosystem fx software suite coupled with the positive impact of new products
Legal, Tax & Regulatory Europe improved its performance compared to the first half-year, while restructuring efforts in the Netherlands, the United Kingdom, and Belgium progressed in line with plan
Education's revenues in the third-quarter 2004 reflect the positive effect of the curriculum changes in the Netherlands offset by weaker than expected market conditions in Sweden, Germany, and the United Kingdom.

Outlook Full-Year 2004 in Constant Currencies
The company reiterates the guidance set in its half-year financial results of ordinary EBITA margins of 14-16% and ordinary EPS of between €0.99 and €1.10. The company continues to expect strong free cash flow of at least €300 million and revenue growth guidance is maintained at 0-1%.