Contact: Robert McKeon
President
Veritas Capital
(212) 415-6701

Lawrence Budgar
Burson-Marsteller
(212) 614-4140

VERITAS CAPITAL TO ACQUIRE PEARSON GOVERNMENT SOLUTIONS

NEW YORK, NY, December 11, 2006 - Veritas Capital Partners, a leading private equity firm, today announced that it has agreed to acquire Arlington, VA-based Pearson Government Solutions (PGS) from Pearson plc, the international media and education company. Veritas Capital will pay $600 million of consideration, and as part of the agreement Pearson plc will retain a minority interest in PGS.

Veritas Capital has particular expertise investing in companies that provide outsourcing services to government agencies. It partners with experienced management teams to develop leading companies in industries with attractive dynamics.

With more than 5,500 employees, PGS serves national and local governments, education institutions and corporations in the U.S.and around the world. The company designs, builds and operates solutions to provide information, benefits and services to its clients' customers. Clients include the U.S. Departments of Defense, Education, Health, Justice and Labor, and the London, England Borough of Southwark. In the last 18 months, it has renewed and extended its two largest contracts: The Federal Student Aid contract for the U.S. Department of Education and the Centers for Medicare & Medicaid Services contract for the U.S Department of Health and Human Services.

"Government Solutions has a strong management team and an ambitious strategy for expansion, and Veritas Capital will invest in and support those plans," said Marjorie Scardino, chief executive of Pearson.

"Our business has grown tremendously. And now, as a standalone company with a strong partner like highly regarded Veritas Capital, a committed senior management and a talented workforce we have an enormous opportunity to create an even more formidable position in the marketplace," said Mac Curtis, chief executive officer of Pearson Government Solutions, who will hold the same role after the acquisition by Veritas Capital.

"Our record for client retention is one of the best in the industry. We're known for delivering high-quality services and solutions to government and commercial customers, and this will continue to be our top priority," Curtis added.

"Pearson Government Solutions is consistent with our strategy of acquiring strong companies that provide critical services to government," said Veritas Capital founder and President Robert McKeon. "It will become an important part of our portfolio, and we are committed to the organization's vision and growth plans, which include expanding its presence geographically and in vertical, high-potential markets, such as healthcare and business process outsourcing. We look forward to working with its strong management team over the long-term to execute PGS's growth initiatives as an independent company."

PGS will maintain its headquarters in Arlington, Virginia. In early 2007, the company will announce a new name.

The transaction is subject to regulatory approval and is expected to be completed in early 2007.

About Pearson Government Solutions

Pearson Government Solutions has 5,500 employees working across the U.S. and in the U.K., Canada, Mexico, Argentina and Venezuela. 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.

About Pearson

Pearson plc (LSE: PSON; NYSE: PSO) is an international media company with world-leading businesses in education, business information and consumer publishing. Pearson Education, the world's leading education company, provides print and digital learning materials and services to more than 100 million students of all ages every year. The Financial Times Group has an international network of business and financial newspapers and online services that are read by millions of business executives and investors every day. Penguin, one of the world's pre-eminent names in consumer publishing, publishes an unrivalled range of fiction and non-fiction, bestsellers and classics, children's books and illustrated reference titles in more than 100 countries. For more information, visit www.pearson.com.

About Veritas Capital

Veritas Capital is a private equity investment firm headquartered in New York. Founded in 1992 by Robert B. McKeon, Veritas invests primarily in companies specializing in outsourcing services to the government, primarily in the areas of defense and aerospace, security and infrastructure. Veritas' portfolio of companies includes, or has included, DynCorp International, Integrated Defense Technologies, Athena Innovative Solutions, Vertex Aerospace, McNeil Technologies, The Wornick Company, and TRAK Communications, among others. Veritas is dedicated to providing the highest level of critical services and equipment to the defense and federal sectors around the world. For more information, please visit http://www.veritascapital.com.