ADDITIONAL INFORMATION FOR US INVESTORS > REED ELSEVIER PLC Summary of the principal differences between UK and US GAAP Effects on net income of material differences between UK and US GAAP Effects on shareholders’ funds of material differences between UK and US GAAP Reed Elsevier PLC accounts for its 52.9% economic interest in the Reed Elsevier combined businesses  before the effect of tax credit equalisation  using the gross equity method in conformity with UK GAAP which is similar to the equity method in US GAAP. Using the equity method to present its net income and shareholders’ funds under US GAAP  Reed Elsevier PLC reflects its 52.9% share of the effects of differences between UK and US GAAP relating to the combined businesses as a single reconciling item. The most significant differences relate to the capitalisation and amortisation of goodwill and intangibles  pensions  deferred taxes and derivative financial instruments. A more complete explanation of the accounting policies used by the Reed Elsevier combined businesses and the differences between UK and US GAAP is given on pages 108 and 109. The Reed Elsevier Annual Report 2003 on Form 20-F provides further information for US investors. For the year ended 31 December 2003 2003 2002 £m £m Net income under UK GAAP 169 89 Impact of US GAAP adjustments to combined financial statements 109 97 Net income under US GAAP 278 186 Earnings per ordinary share under US GAAP 22.0p 14.7p As at 31 December 2003 2003 2002 £m £m Shareholders’ funds under UK GAAP 1 288 1 397 Impact of US GAAP adjustments to combined financial statements 350 269 Equity dividends not declared in the period 110 102 Shareholders’ funds under US GAAP 1 748 1 768 112 REED ELSEVIER ANNUAL REPORTS & FINANCIAL STATEMENTS 2003