Pearson Selects IBM for IT Infrastructure Services

Pearson, plc, and IBM (NYSE: IBM) today announced a five year, $128 million Information Technology (IT) infrastructure services agreement to continue to help Pearson provide new services and reduce costs for its publishing, information and education businesses.

The agreement -- which includes The Penguin Group and Pearson Education -- covers U.S. operations across thirty locations in eleven states, and is an extension of a seven-year contract signed in September 2002.

IBM will continue to manage key systems for Pearson, including critical business applications for billing, inventory control, order entry, product distribution, inventory, payroll, human resources and sales reporting. IBM will also continue to provide business resiliency services to help ensure that its computer systems can continue to perform vital business functions in the event of a business disruption.

Under the agreement, IBM will provide Pearson with a usage-based billing methodology that allows Pearson to manage its costs through a pay-as-you-go system. This unique model will give Pearson more control and insight into how they utilize their IT resources.

"Since the beginning of our partnership in 2002, IBM has brought Pearson economies of scale while maintaining the flexibility of our operating units," said Atish Banerjea, Executive Vice President and Chief Technology Officer, Pearson plc. "IBM is also helping Pearson innovate by creating new services, which improve our interactions with customers."

"Through this agreement, Pearson continues to be a leader in the publishing industry by providing advanced IT and industry-leading services," said Norman Korey, Vice President IBM Global Technology Services. "With extensive experience in the publishing industry, IBM is ideally-suited to help Pearson continue to innovate and grow."

Signed in January 2007, the new contract extends the original agreement to 2014.

About Pearson

Pearson plc (NYSE: PSO) is an international media company. Its major business operations are: The Financial Times Group, which has an international network of business and financial newspapers and online services that are read by millions of business executives and investors every day; Pearson Education, the world's leading education business, which helps teachers teach and students learn at every stage and in every part of the world; and Penguin Group, which is one of the pre-eminent names in consumer publishing, with an unrivalled range of fiction and non-fiction, bestsellers, and classic titles. For more information, visit http://www.pearson.com