Pearson

Table 5: Movements in directors’ interests in share options

Shares under option are designated as: a worldwide save for shares; b long-term incentive; and * where options are exercisable.

Date of grant		1 Jan 10	Granted	Exercised	Lapsed	31 Dec 10	Option price	Earliest exercise date	Expiry date	Date of exercise	Price on exercise	Gain on exercise
Marjorie Scardino
a	8/5/09	1,672				1,672	547.2p	1/8/12	1/2/13
b*	9/5/01	41,550				41,550	1,421.0p	9/5/02	9/5/11
b*	9/5/01	41,550				41,550	1,421.0p	9/5/03	9/5/11
b*	9/5/01	41,550				41,550	1,421.0p	9/5/04	9/5/11
b*	9/5/01	41,550				41,550	1,421.0p	9/5/05	9/5/11
Total		167,872	0	0	0	167,872						£0
Will Ethridge
b*	9/5/01	11,010				11,010	$21.00	9/5/02	9/5/11
b*	9/5/01	11,010				11,010	$21.00	9/5/03	9/5/11
b*	9/5/01	11,010				11,010	$21.00	9/5/04	9/5/11
b*	9/5/01	11,010				11,010	$21.00	9/5/05	9/5/11
b*	1/11/01	14,680		14,680		0	$11.97	1/11/02	1/11/11	18/3/10	$15.40	$50,352
b*	1/11/01	14,680		14,680		0	$11.97	1/11/03	1/11/11	18/3/10	$15.40	$50,352
b*	1/11/01	14,680		14,680		0	$11.97	1/11/04	1/11/11	18/3/10	$15.40	$50,352
Total		88,080	0	44,040	0	44,040						$151,057
Rona Fairhead
a	4/5/07	2,371				2,371	690.4p	1/8/12	1/2/13
b*	1/11/01	20,000				20,000	822.0p	1/11/02	1/11/11
b*	1/11/01	20,000				20,000	822.0p	1/11/03	1/11/11
b*	1/11/01	20,000				20,000	822.0p	1/11/04	1/11/11
Total		62,371	0	0	0	62,371						£0
Robin Freestone
a	9/5/08	1,757				1,757	534.8p	1/8/11	1/2/12
Total		1,757	0	0	0	1,757						£0
John Makinson
a	9/5/03	4,178		4,178		0	424.8p	1/8/10	1/2/11	24/11/10	945.5p	£21,755
b*	9/5/01	19,785				19,785	1,421.0p	9/5/02	9/5/11
b*	9/5/01	19,785				19,785	1,421.0p	9/5/03	9/5/11
b*	9/5/01	19,785				19,785	1,421.0p	9/5/04	9/5/11
b*	9/5/01	19,785				19,785	1,421.0p	9/5/05	9/5/11
Total		83,318	0	4,178	0	79,140						£21,755
Total		403,398	0	48,218	0	355,180
Total (£)												£21,755
Total ($)												$151,057

Note 1: No variations to the terms and conditions of share options were made during the year.

Note 2: Each plan is described below.

a Worldwide save for shares – The acquisition of shares under the worldwide save for shares plan is not subject to the satisfaction of a performance target.

Marjorie Scardino, Rona Fairhead, Robin Freestone and John Makinson hold options under this plan. Details of these holdings are itemised as a.

b Long-term incentive – All options that remain outstanding are exercisable and lapse if they remain unexercised at the tenth anniversary of the date of grant.

Details of the option grants under this plan for Marjorie Scardino, Will Ethridge, Rona Fairhead and John Makinson are itemised as b.

Note 3: Marjorie Scardino contributes US$1,000 per month (the maximum allowed) to the US employee stock purchase plan. The terms of this plan allow participants to make monthly contributions for six month periods and to acquire shares twice annually at the end of these periods at a price that is the lower of the market price at the beginning or the end of each period, both less 15%.

Note 4: The 1,672 share options granted to Marjorie Scardino under the Worldwide Save for Shares plan on 8 May 2009 were inadvertently omitted from the 2009 report.

Note 5: The market price on 31 December 2010 was 1,008.0p per share and the range during the year was 855.0p to 1,051.0p.

Approved by the board and signed on its behalf by

David Arculus Director

7 March 2011