23 June 1997. Reed Elsevier plc announced today that it has agreed to acquire the three principal divisions of Chilton Business Group ("Chilton") from ABC, Inc., a subsidiary of The Walt Disney Company, for a cash consideration of $447 million. This acquisition is an important extension of Reed Elsevier's position as a leading business-to-business publisher in the United States. The transaction, which is subject to satisfactory US Government clearances, is expected to be completed by the end of July 1997.

Chilton, which operates mainly from Radnor, Pennsylvania, is a major business-to-business publisher in the United States. The three divisions to be acquired by Reed Elsevier are:

• US Trade Magazines - a major US business to business publisher with a strong portfolio of leading trade magazines in the manufacturing, entertainment, automotive and specialty retail sectors. In total the division publishes 39 titles, and accounted for 83% of Chilton's 1996 revenues.
• Professional Exposition Management Company ("PEMCO") - the Exhibitions division is well known for the major shows it organises in the manufacturing, jewellery retail and consumer markets.
• Chilton Research Services - a major business research company providing custom research services to major US companies.

In commenting on the acquisition, Nigel Stapleton, co-Chairman of Reed Elsevier plc, said:

"The acquisition provides an outstanding opportunity to bring together two leading US information companies. Chilton fits superbly with both Cahners Publishing and Reed Exhibitions, and this acquisition offers attractive opportunities for revenue growth and operational synergies. In addition, Chilton brings a strong management team and excellent content which will enhance the critical mass in our on-going electronic community initiatives in the manufacturing and entertainment sectors.

The transaction will be funded from our cash resources and its structure enables significant tax benefits to be realised. We expect the acquisition to be earnings accretive for Reed International and Elsevier shareholders from the outset."

Chilton's US Trade Magazines Division and Chilton Research Services are to be merged with Cahners Publishing Company, a division of Reed Elsevier Inc, to form Reed Elsevier Business Information. This new operating group will be headed by Bruce Barnet, Cahners President and Chief Executive Officer. Cahners currently publishes more than 90 specialised trade journals serving more than 5 million readers around the world. PEMCO is to become part of Reed Exhibition Companies.

In the year to 31 December 1996, Chilton reported profit before taxation of $28 million on revenues of $203 million and at 31 December 1996 had net assets of $25 million. Since 1992 Chilton has achieved compound annual growth in revenues and profit before taxation of 8% and 17% respectively.

Reed Elsevier plc is owned equally by Reed International P.L.C. (NYSE: RUK) and Elsevier NV (NYSE: ENL). Reed Elsevier is a world leading publisher and information provider. Its activities include scientific, professional, business and consumer publishing. Reed Elsevier's principal operations are in North America and Europe and it has annual sales in excess of £3 billion ($5 billion).