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PEARSON GOVERNMENT SOLUTIONS WINS $440 MILLION CONTRACT WITH CENTERS FOR MEDICARE & MEDICAID SERVICES

CMS Expands Work with Pearson as Sole Provider of 1-800-MEDICARE Help Line; Pearson Poised to Significantly Expand Health Business

ARLINGTON, VA, November 16, 2006 - Pearson Government Solutions was awarded a $440 million contract by the Centers for Medicare & Medicaid Services (CMS) to manage the Beneficiary Contact Center program. The contract expands and continues Pearson's work with CMS for an additional two and a half years in support of the 1-800-MEDICARE Help Line, considered one of the largest citizen contact management programs in the Federal government. Pearson Government Solutions has successfully managed the program since 2002.

"We are extremely proud that the Centers for Medicare & Medicaid Services continue to place their trust and confidence in Pearson for this important program by allowing us to be the sole provider of the Beneficiary Contact Center program," stated Mac Curtis, President and CEO, Pearson Government Solutions. "We look forward to continuing our partnership with CMS and helping the agency meet its mission of providing complete, accurate, and consistent answers to over 43 million Medicare beneficiaries who rely on 1-800-MEDICARE for critical information about their health."

Under the new contract, Pearson Government Solutions will manage all 1-800-MEDICARE calls. With over 20 millions calls annually, the Help Line is accessible 24 hours a day, 7 days a week in English or Spanish in all 50 states, Washington, D.C., Puerto Rico, Guam, American Samoa and Northern Mariana Islands. Medicare beneficiaries call the Help Line to receive general information and printed materials on Medicare and Medicare health plan options and the new Medicare Prescription Drug Program known as Part D. In addition, Pearson will manage Medicare claims calls and written correspondence.

This award represents the first task order under the Contact Center Operations Indefinite Delivery-Indefinite Quantity (IDIQ) valued at $9 Billion over 10 years. In addition, Pearson also won the Contact Center Systems and Support IDIQ valued at $1 Billion over 10 years. The two contract vehicles represent a combined total of $10 Billion in potential new health business opportunities for Pearson Government Solutions over the next decade.

"Pearson has done well working with CMS over the past four years implementing the Prescription Drug Discount Card and Prescription Drug Coverage under the Medicare Modernization Act. CMS has greatly benefited from working with a capable, flexible partner during times of significant change. We are confident they will continue to deliver world class customer assistance to Medicare beneficiaries," stated Mary Agnes Laureno, Director, Beneficiary Information Services Group, Center for Beneficiary Choices at the Centers for Medicare & Medicaid Services, U.S. Department of Health and Human Services.

Pearson Government Solutions has more than 20 years experience in managing award-winning, customer interaction centers for federal agencies in the U.S. and internationally. Pearson has four major domestic contact centers and over 3,000 information specialists who serve as the voice of the federal government including 1-800-4-FED-AID for the U.S. Department of Education Student Financial Aid program, 1-800-CDC-INFO for the Centers for Disease Control and Prevention and 1-800-MEDICARE for the Departments of Health and Human Services, Centers for Medicare & Medicaid Services.

About Pearson Government Solutions

With over 5,500 employees worldwide, Pearson Government Solutions, Arlington, Va., serves the U.S. federal, state and local and international governments; higher education institutions and student financial aid entities. The company designs, builds, and operates solutions that optimize the performance of public sector entities in delivering information, benefits, and services to their constituents. Clients include the Centers for Medicare and Medicaid Services, the U.S. Departments of Education, Health and Human Services, Homeland Security, Justice, Labor, and Veterans Affairs; the Equal Employment Opportunity Commission and the U.S. Office of Personnel Management.

Pearson Government Solutions is a business of Pearson, the international publishing, education and professional services company, including the Financial Times Group, and the Penguin Group.

Pearson Government Solutions is ranked #36 on Washington Technology's annual "Top 100" list of federal prime contractors, #38 on Government Executive's list of Top 200 Government Contractors, and #14 on Government Executive's list of Top 100 Civilian Agency Contractors.