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Wolters Kluwer Third-Quarter 2006 Results


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Strong Results Support Foundation for Accelerating Profitable Growth

Amsterdam (November 8, 2006) - Wolters Kluwer, a leading global information services company and publisher, today released its third-quarter 2006 results showing ordinary diluted earnings per share increase of 23%. Revenues grew 7% resulting from increased organic revenue growth of 4%, with particularly strong performance from Corporate & Financial Services and Tax, Accounting & Legal. The transformation and strengthening of the Company over the past three years has established a foundation for accelerating profitable growth. The Company reiterates meeting its goals for 2006.
Highlights include:

Third-quarter 2006:

* Revenues of €920 million, a 7% increase over third quarter of 2005 (€862 million)
* Organic revenue growth of 4% (2005: 2%)
* Ordinary EBITA of €183 million, an increase of 27% over third quarter of 2005 (€143 million), ordinary EBITA margin of 20% (2005: 17%)
* Product development spending of €72 million (an increase of 7% over same period 2005)
* Structural cost savings of €33 million (an increase of 32% over same period 2005)
* Strong free cash flow of €160 million (2005: €120 million)
* Ordinary diluted EPS increased 23% to €0.37 (increase of 31% at constant currencies)

Nine months ended September 30, 2006:

* Revenues of €2,690 million, a 10% increase over first nine months of 2005 (€2,442 million)
* Organic revenue growth of 2%, in line with full-year outlook
* Ordinary1 EBITA of €445 million, an increase of 15% over first nine months of 2005 (€385 million), ordinary EBITA margin of 17% (2005: 16%)
* Product development spending of €198 million (an increase of 11% over same period 2005)
* Structural cost savings of €91 million (an increase of 26% over same period 2005)
* Strong free cash flow of €239 million (2005: €143 million)
* Ordinary diluted EPS increased 19% to €0.89 (increase of 15% at constant currencies)


Nancy McKinstry, CEO and Chairman of the Executive Board, commented on the Company’s performance over the third quarter of 2006:

“Our results for the third quarter were strong, and through the first nine months, we are well on course to meet our goals for 2006. We continue strong execution as we near the completion of the three-year transformation of the Company that has resulted in restored organic revenue growth, structural cost savings, significant growth of online and software positions, and a deeper customer focus.”

Key division highlights, reflecting progress made in the third quarter:

Health: The division restored organic revenue growth in the third quarter, led by strong growth in Professional & Education and solid performance across all other business units. Compared to the prior year, third-quarter results reflect the impact of the acquisitions of Healthcare Analytics and ProVation Medical.

Corporate & Financial Services: Both overall revenue and organic revenue growth were strong for the third quarter, supported by double-digit growth in the Corporate Legal Services unit and continued strong performance in the Financial Services unit.

Tax, Accounting & Legal: The Tax and Accounting unit led the division’s third-quarter revenue and organic revenue growth results, with solid performances from ProSystem fx Engagement, Tax and Document software products, Accounting Research Manager, and the State Tax Group; it also closed the acquisition of ATX/Kleinrock during the quarter. Law & Business continued to realize good results from expanded online product offerings and its Legal Education unit.

Legal, Tax & Regulatory Europe: Improved results continued with both positive revenues and slightly positive organic revenue growth for the third quarter. Central and Eastern Europe, Scandinavia, Spain, Italy and Belgium all contributed to stronger results, driven largely by growth in online and software products.

Education: Positive organic revenue growth results were achieved for the third quarter, driven by good performance from Sweden and the United Kingdom. Wolters Kluwer has begun exploring strategic alternatives for the Education division as announced on September 27, 2006.

PDF version of full press release: www.wolterskluwer.com/NR/rdonlyres/C78603A9-ECD5-4E46-A8E6-81F1ADD98B52/0/110806q3results.pdf

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1 Wherever used in this report, the term “ordinary” refers to figures adjusted for exceptional items and, where applicable, amortization of publishing rights. Exceptional items for 2005 consist of restructuring expenses relating to initiatives that followed the strategic update. “Ordinary” figures are non-IFRS compliant financial figures, but are internally regarded as key performance indicators to measure the underlying performance of our base business. These figures are presented as additional information and do not replace the information in the income statement and in the cash flow statement. The term “ordinary” is not a defined term under International GAAP.



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