July 29, 2002
Bloomington, Minnesota

Pearson plc (NYSE: PSO), parent company of NCS Pearson, today announced its interim financial results for the six months ending June 30, 2002, reporting revenues of $2,756 million, a 3 percent decrease over 2001, and operating profit of $116 million, a 27 percent increase over the previous year.

NCS Pearson, which operates as a business of Pearson Education, reported underlying revenue growth of 10 percent and profit growth of 13 percent. NCS Pearson's revenues are on track to grow 15 percent for the year, topping $1 billion in annual sales for the first time in its history.

NCS Pearson's performance can be attributed to a number of factors, including growth in its government business, renewal of several state testing contracts and the launch of testing centers aimed at the professional certification and licensure market.

"We are very pleased with NCS Pearson's performance in 2002," said Peter Jovanovich, CEO, Pearson Education. "The growth in the government business and the continued wins and renewals of state testing contracts, as well as professional testing contracts, have made strong contributions for the year."

The company's Government Solutions business won several contracts this year, including the contract to recruit and screen airport baggage screeners for the Transportation Security Administration, and a contract to operate a national customer service call center for the Immigration and Naturalization Service. The Assessments and Testing business won renewal of state testing contracts in Florida and California, and is launching 200 Pearson Professional Centers across the U.S., which will provide highly secure sites for administering high-stakes tests for the professional certification and licensure market. NCS Learn, the company's software and services business, has seen steady sales across its online curriculum and administrative software products, including the introduction of a new finance software module for schools. The Data Management Solutions business received two large orders for scanners.

About NCS Pearson

NCS Pearson is a global provider of applications, services and technologies for education, testing, assessment, government and complex data management. Previously known as National Computer Systems, the company was acquired by Pearson plc in September 2000. NCS Pearson is based in Bloomington, Minn., and employs 6,000 people worldwide, with major operations in Minnesota, Arizona, Iowa, Kansas and Virginia.