Holding in Company

Pearson PLC
8 August 2001


LETTER TO: COMPANY ANNOUNCEMENTS OFFICE


Notification of change in interest in shares

We write in accordance with rule 9.12, under the continuing obligations section
of the Listing Rules, to notify you that we have today received information
that, pursuant to section 198 of the Companies Act 1985, the shareholding of
CGNU plc which equals 24,139,981 shares, now represents 3.02% of the issued
ordinary share capital of Pearson plc.

The registered holders of the shares are listed on the schedule below.


LETTER FROM: PEARSON PLC


APPENDIX: CGNU PLC

REGISTERED HOLDERS                             NUMBER OF SHARES HELD

BNY Norwich Union Nominees Ltd                 9,332,451     (Material)
BT Globenet Nominees Ltd                           5,548     (Material)
Chase GA Group Nominees Ltd                    9,053,589     (Material)
Chase Nominees Ltd                                52,912     (Material)
CUIM Nominee Ltd                               5,189,012     (Material)
RBSTB Nominees Ltd                               352,456     (Material)
Hibernian Investment Managers Ltd                154,013     (Material)


TOTAL PERCENTAGE INTEREST OF CGNU PLC: 3.02% 

ISSUED SHARE CAPITAL ON WHICH THIS NOTIFICATION IS BASED: 799,634,687