1	1Q 2010 Earnings Call April 27, 2010 Presenters: Harold McGraw III Chairman, President and CEO Robert J. Bahash Executive Vice President and CFO Donald S. Rubin Senior Vice President, Investor Relations
2	Donald S. Rubin Senior Vice President, Investor Relations The McGraw-Hill Companies
3	“Safe Harbor” Statement Under The Private Securities Litigation Reform Act of 1995 This presentation includes certain forward-looking statements about our businesses and our prospects, new products, sales, expenses, tax rates, cash flows, prepublication investments and operating and capital requirements. Such forward-looking statements include, but are not limited to: the strength and sustainability of the U.S. and global economy; the duration and depth of the current recession; Educational Publishing’s level of success in 2010 adoptions and in open territories and enrollment and demographic trends; the level of educational funding; the strength of School Education including the testing market, Higher Education, Professional and International publishing markets and the impact of technology on them; the level of interest rates and the strength of the economy, profit levels and the capital markets in the U.S. and abroad; the level of success of new product development and global expansion and strength of domestic and international markets; the demand and market for debt ratings, including corporate issuance, CDO’s, residential and commercial mortgage and asset-backed securities and related asset classes; the continued difficulties in the credit markets and their impact on Standard & Poor’s and the economy in general; the regulatory environment affecting Standard & Poor’s; the level of merger and acquisition activity in the U.S. and abroad; the strength of the domestic and international advertising markets; the strength and the performance of the domestic and international automotive markets; the volatility of the energy marketplace; the contract value of public works, manufacturing and single-family unit construction; the level of political advertising; and the level of future cash flow, debt levels, manufacturing expenses, distribution expenses, prepublication, amortization and depreciation expense, income tax rates, capital, technology, restructuring charges and other expenditures and prepublication cost investment. Actual results may differ materially from those in any forward-looking statements because any such statements involve risks and uncertainties and are subject to change based upon various important factors, including, but not limited to, worldwide economic, financial, political and regulatory conditions; currency and foreign exchange volatility; the health of debt and equity markets, including interest rates, credit quality and spreads, the level of liquidity, future debt issuances including, corporate issuance, residential and commercial mortgage-backed securities and CDO’s backed by residential mortgages, related asset classes and other asset-backed securities; the implementation of an expanded regulatory scheme affecting Standard & Poor’s ratings and services; the level of funding in the education market (both domestically and internationally); the pace of recovery in advertising; continued investment by the construction, automotive, computer and aviation industries; the successful marketing of new products, and the effect of competitive products and pricing.
4	Harold McGraw III Chairman, President and CEO The McGraw-Hill Companies
5	MHP 1Q 2010 results 65.0% increase in 1Q EPS 1Q 2010: $0.33 1Q 2009: $0.20 1Q revenue increased 3.7% Grew 6.7% excluding divestitures of BusinessWeek and Vista Research 2010 is off to a good start 1Q is seasonally the smallest quarter of the year
6	Positive indicators of growth in 2010 Real GDP expected to increase 3.0% in 2010 Encouraged by improvement in financial markets: Low interest rates Narrowing bond spreads Prospects for growth in key education markets
7	McGraw-Hill Education Financial Services Information & Media
8	1Q 2010 segment results at McGraw-Hill Education Revenue +1.5% to $317.2 million Higher Education, Professional and International Group: +8.3% to $205.7 million School Education Group: (9.0%) to $111.6 million Operating Loss (19.3%) to $61.8 million
9	1Q results for McGraw-Hill School Education Group 1Q el-hi ordering is typically light North Carolina did not order this year; usually makes substantial purchases before end of March Gains in open territories offset slight decline in adoption states Increased supplemental, residual and intervention product sales
10	1Q results for McGraw-Hill School Education Group Benefited from improved orders: Ohio, Maryland and South Dakota completed adoptions in 2010 that were initiated in 2009 Discontinued summative testing contracts in Florida, California and Arizona offset gains from instructional materials Continued progress in formative market: Steady progress with Acuity, our market-leading assessment program
11	Tracking buying patterns closely Timing issues: Local school districts in some adoption states have two or more years to purchase materials
12	Contra intuitive growth in elementary-high school market
13	Still expect 6% to 7% growth in 2010 el-hi market Now estimate 2010 state new adoption market to grow between $875 million and $925 million Versus earlier forecast of $925 million to $975 million New forecast represents about an 80% year-over-year increase for the market No formal postponements announced in 1Q, but there may be pullbacks due to implementation of Common Core Standards and budget pressure
14	Outlook for el-hi state new adoption market Indiana’s Department of Education is recommending delay of 2010 K–12 math adoption until materials are aligned with the Common Core Standards Difficult to gauge district response to this recommendation Adoption has been funded Where Common Core Standards are an issue, McGraw-Hill will provide online and print supplements in accordance with the standards
15	Outlook for el-hi state new adoption market Budgetary pressures may drive more district-level postponements than originally anticipated Forecasting lower spending in Georgia, California, Virginia and Kentucky Florida K–5 math adoption looks solid, but some districts are delaying high school math purchases South Carolina may delay its 9–12 math adoption Higher residual sales in these states for replacement copies, consumable materials should help offset the reduction in the state new adoption market
16	Outlook for 2010 open territory market Expect low single-digit decline in industry’s open territory sales Seeing some district-level postponements Overall sales outlook is reasonably optimistic Evidence of pent-up demand: Federal stimulus funding helped states implement some adoptions delayed in second half 2009 Federal stimulus will contribute to purchasing in 2010 School Education Group still aiming for 30% share or better in 2010 in state new adoption market
17	The outlook for the testing market Gaining share in the formative testing market Coming from district-level adoptions New opportunities: Race to the Top grant winners beginning to implement plans for formative and summative testing Movement toward Common Core standards and assessments gaining momentum
18	Assessing the Common Core Standards Initiative An effort among the states to agree upon concepts and skills in math and language arts that all students should master at each grade level to meet internationally benchmarked criteria for college and career readiness Final drafts of standards are now under review 48 states (excluding Texas and Alaska) plus the District of Columbia are taking part in the movement Delaware and Tennessee have won Phase 1 awards of $100 million and $500 million, respectively Phase 2 winners will be announced in September
19	Assessing the Common Core Standards Initiative Department of Education will also award a total of $350 million to a multi-state consortia with winning proposals for developing new assessments based on the standards
20	Common Core Standards to create new opportunities Testing development will begin late 2010/early 2011 Common Assessments will be implemented in 2012–2014 Common Core movement has favorable implications Expect more purchasing of instructional materials that incorporate the new standards Cost savings for McGraw-Hill School Education Group Deliver more content to schools in digital form Less state-level customization of content required
21	Outlook for higher education: Surge in enrollments driving growth Federal stimulus dollars helped increase enrollments last fall and again this year More funding for students: Increased Pell Grants Higher allowable tax deductions for college-related expenses New Post 9/11 GI Bill provides subsidies to more than 150,000 veterans since Fall 2009 New Student Aid and Fiscal Responsibility Act increases Pell Grant awards through 2017
22	Growing digital opportunities in higher education Accelerating pace of students embracing our digital products Online study tools like McGraw-Hill Connect ™, online courses, and e-books Now more than 1.2 million registered users of McGraw-Hill Connect™ and other homework management products McGraw-Hill Connect™ will be added to more than 170 courses this year
23	Growing digital initiatives in professional markets New digital products in 1Q 2010: Kiss, Bow or Shake Hands—a digital subscription-based reference for international business etiquette Perfect Phrases for Managers—a performance support tool that helps managers find the right phrase at the right time Select™: E-Chapters in an Instant—enable customers to download chapters from our best-selling business books as stand-alone items More than 750 chapters now available
24	Growing digital initiatives in professional markets New AccessPhysiotherapy is sixth specialty site in the AccessMedicine suite Broadens market beyond medical education and clinical practice to the allied health field Provides searchable access to: McGraw-Hill’s leading physical therapy and internal medicine titles Interactive imaging content Curricular management tracking tools and tests More than 80 videos and exclusive lectures
25	Growing digital initiatives in professional markets Digital offering broadens geographic coverage New partnership agreement with the Chinese Education and Research Network Makes Access suite available for the first time to Chinese students, educators and researchers Digital products are producing double-digit growth in professional markets
26	2010 outlook for McGraw-Hill Education Growth in key education markets in 2010 6% to 7% in the elementary-high school market 5% to 7% in the U.S. college market Segment revenue: 6% to 7% growth Operating margin: Unchanged from 2009
27	McGraw-Hill Education Financial Services Information & Media
28	1Q 2010 results at Financial Services Revenue +9.3% to $667.0 million S&P Credit Market Services: +15.4% to $451.5 million S&P Investment Services: (1.5%) to $215.5 million Operating Profit +12.3% to $260.0 million Operating Margin 39.0% compared to 38.0% in 1Q 2009
29	Key drivers in Financial Services’ 1Q 2010 results S&P Credit Market Services: 15.4% growth in 1Q revenue Increase driven by: Record high-yield issuance Strong growth in bank loan ratings Solid gain in public finance Modest improvement in structured finance 18.4% growth in international markets 12.8% growth in domestic markets S&P Investment Services: 1.5% decrease in 1Q revenue Decline primarily attributable to: Divestiture of Vista Research in May 2009 Expiration of contracts under Research Settlement in July 2009
30	Key revenue driver at S&P Credit Market Services Transaction revenue: +33.6% in 1Q Driven by surging high-yield volume, bank loan ratings and public finance
31	Record 1Q growth in worldwide corporate high-yield debt issuance
32	Interest rate spreads: A key gating factor for issuance
33	Favorable trends in the credit markets Steady spread contraction across all asset-backed securities
34	Public finance up in 1Q and near record 2007 issuance
35	Structured finance contributed modestly to 1Q increase
36	Non-transaction revenue up 8.1% at S&P Credit Market Services Non-transaction revenue represents 67% of S&P Credit Market Services’ revenue S&P continues to build its deferred revenue stream Recurring annual fees through frequent issuer programs, surveillance fees and subscription services Non-transaction: Revenue stream expected to be durable for some time
37	How non-transaction revenue grew in 1Q 8.1% non-transaction revenue growth in 1Q primarily from increased subscriptions and annual fees Other contributions: Increased demand for products and services not tied to new issuance An increase in new credits under surveillance Price increases A modest favorable foreign exchange impact
38	Data and information benefiting S&P Investment Services Capital IQ and S&P Indices were primary drivers in 1Q Capital IQ now serves more than 3,000 clients An increase of 13.5% vs. 1Q 2009 4.8% increase since year-end 2009 Growing global demand Capital IQ opening new offices in Milan and Tokyo
39	S&P Indices: Growth in asset-based revenue 1Q 2010: New high of $254.2 billion for assets under management in exchange-traded funds based on S&P indices 2.9% higher than the previous record high at year-end 2009 21 new exchange-traded funds based on S&P indices were launched in 1Q, bringing the total to 238
40	Finding new ways to grow S&P Indices Goal: An index for every type of investment In March 2010, S&P introduced indices in: Commodities Fixed income Equities Strategy Custom More indices are on the way
41	Positive signs at S&P Credit Market Services High-yield issuance will continue at a good pace Proceeds mainly used for leveraged loan repayments Activity will continue in the bank loan market Refinancing will be a factor with $2 trillion in debt maturities due through 2014 Number of investment-grade corporate transactions will increase in 2010 Par amounts will be moderate versus 2009
42	Positive signs at S&P Credit Market Services Muni market looks promising despite focus on state and local budget deficits Deficits have not reduced ability to issue debt Taxable bonds are expected to drive growth Traditional tax-exempt securities will make up the largest share of issuance
43	Positive signs at S&P Credit Market Services Structured finance market has improved but new federal rules/regulations may: Increase cost of securitization Temper new issuance
44	Latest developments on litigation front Courts are issuing decisions in lawsuits against McGraw-Hill and Standard & Poor’s 12 cases have been dismissed; 11 since beginning of 2010 Decisions by eight federal court judges A motion to dismiss two related cases alleging fraud has been denied pending discovery Dismissals in all three major categories: 1. Underwriter lawsuits 2. “Stock drop” suits 3. Suits involving state law claims, including alleged fraud No dismissal has been based on assertion of a First Amendment defense Underscores erroneous claim that Standard & Poor’s is using First Amendment to shield it from claims
45	Latest developments on litigation front Underwriter lawsuits allege that McGraw-Hill is liable under Securities Act of 1933 To date, four federal judges have granted motions to dismiss in six separate “underwriter” actions In light of favorable rulings, class action counsel in the Fort Worth Employees’ Retirement Fund litigation recently dropped all claims against S&P and two other rating agencies
46	Latest developments on litigation front “Stock drop” suits allege the Company’s statements about its earnings and ratings business were misleading and violated the Securities Exchange Act of 1934 and ERISA Three stock drop suits have been dismissed Suits involving state law claims, alleged fraud Three dismissals to date
47	Latest developments on litigation front Significant decisions in cases in which Standard & Poor’s is not a party Claims against an issuer or underwriter based on allegedly misleading statements about ratings included in disputed offering documents The federal courts have rejected these claims outright These decisions constitute meaningful legal precedent and should help guide judicial rulings in remaining cases
48	How the courts have ruled In dismissing “underwriter” claims against rating agencies The New Jersey Carpenters Vacation Fund case “Plaintiffs’ allegations do not support an inference that the Rating Agency Defendants were involved in the sale or distribution of the securities such that they could be considered underwriters…” — Judge Baer
49	How the courts have ruled In rejecting claims that rating agencies “controlled” Lehman Lehman Brothers Securities and ERISA Litigation “This complaint, fairly read, alleges only that the Rating Agencies had the power to influence Lehman with respect to the composition of the pools of mortgages to be securitized and the credit enhancements the Rating Agencies regarded as necessary to obtain the desired rating. But these allegations fall considerably short of anything that could justify a reasonable trier of fact in concluding the decision making power lay entirely with the Rating Agencies.” — Judge Kaplan
50	How the courts have ruled In concluding that ratings are opinions and not statements of fact that are actionable under securities laws “Credit ratings and the relative adequacy of protective credit enhancements are statements of opinion, as they are predictions of future value and future protection of that value.” — Judge Baer
51	How the courts have ruled In dismissing allegations, based upon alleged purported failures to disclose rating agencies conflicts of interest “The Securities Act does not require disclosure of that which is publicly known, and the risk that rating agencies operating under a conflict of interest because they were paid by the issuers has been known publicly for years.” — Judge Kaplan
52	How the courts have ruled In ruling that investors were adequately cautioned about risks in offering documents The New Jersey Carpenters Vacation Fund case “The Offering Documents adequately bespoke caution about the risk entailed by the credit ratings and credit enhancements…[and] disclosed the risks of relying on credit ratings, the potential inadequacy of credit enhancements and that a lack of historical data made future predictions about value inherently difficult. In other words, the Offering Documents ‘warn investors of exactly the risk the plaintiffs claim [were] not disclosed.’ ” — Judge Baer
53	Latest developments on litigation front Federal courts are making important decisions in similar cases in which Standard & Poor’s and the other rating agencies are not defendants: Plumbers Union Local versus Nomura Asset Acceptance Corp. New Jersey Carpenters Health Fund versus DLJ New Jersey Carpenters Health Fund versus RALI
54	How the courts have ruled In addressing after-the-fact criticism of rating agencies Plumbers Union Local No. 12 Pension Fund vs. Nomura “None of the purported comments made by S&P and Moody’s employees in the wake of the collapse of the sub-prime mortgage market (in 2007) ‘support the inference’ that the ratings were compromised as of the dates (in 2005 and 2006) when registration statements and prospectus supplements became effective.” — Judge Stearns
55	Latest developments on litigation front Clear takeaways from recent court decisions: Rating agencies are not underwriters or sellers of securities under securities laws Rating agencies are not controlling persons under securities laws Ratings are opinions, not statements of fact After-the-fact criticisms of rating agencies do not support an inference that rating agencies did not believe their ratings were appropriate at the time they were issued
56	Latest developments on litigation front Clear takeaways from recent court decisions (continued): Rating agencies’ alleged conflicts of interest were widely known by investors Investors were adequately apprised of risks and limitations of using credit ratings They are not recommendations to buy, sell or hold securities
57	Latest developments on litigation front Courts understand the difference between credit risk and market risk Misunderstanding by others are on display almost daily by some sophisticated investors who claim they relied on ratings to make their investment decisions for themselves or as fiduciaries for others
58	The regulatory outlook for S&P remains fluid Potential problems for Nationally Recognized Statistical Rating Organizations (NRSROs) in proposed U.S. Senate bill Preamble to bill says NRSROs should be subject to same standards of liability and accountability as securities analysts, investment banks, auditors and other market participants As currently written, parts of the legislation would lead to opposite effect Materially different standards would establish a separate, lower pleading standard for NRSROs
59	The regulatory outlook for S&P remains fluid We are seeking a level playing field All parties should be subject to the same legal pleading standards To impose lower pleading standard on NRSROs is unprecedented and discriminatory
60	The regulatory outlook for S&P remains fluid We fully support the increased accountability, transparency and oversight of credit rating agencies We will continue to work with both political parties to clarify our position Passage of the bill is hard to predict Senate may vote on its bill before Memorial Day Uncertainty remains on when the Senate and House would convene a meeting to reconcile differences
61	The regulatory outlook for S&P remains fluid New SEC regulations go into effect on June 2 New 17g5 rule requires issuers and arrangers to make information available to all NRSROs—whether paid or not Promotes unsolicited ratings S&P is working with market participants to implement 17g5 rule and to meet new disclosure rules on history of its ratings actions
62	2010 outlook for Financial Services Summary Market is recovering Progress on the legal front Meeting new regulatory requirements Outlook for U.S. legislation remains fluid High single-digit revenue growth with improvement at S&P Credit Market Services and S&P Investment Services Operating profit will grow Operating margin will decline 100 basis points Reflects infrastructure investments and compliance with new regulatory requirements
63	McGraw-Hill Education Financial Services Information & Media
64	1Q 2010 results at Information & Media Revenue (8.5%) to $206.2 million Broadcasting Group: +2.2% to $18.7 million Business-to-Business Group: (9.5%) to $187.5 million Operating Profit Increased $25.0 million to $27.8 million Operating Margin 13.5% vs. 1.2% in 1Q 2009 Highest operating margin since 14.9% for full year 2004
65	Business-to-Business Group: Making steady progress Divestiture of BusinessWeek is having a positive impact on results Late 2009 divestiture will positively impact year-over-year comparisons for 11 months in 2010 Excluding BusinessWeek divestiture: Revenue grew 4.3% in 1Q Business-to-Business Group’s revenue increased 4.5% versus reported decline of 9.5%
66	Revenue growth at Business-to-Business Group Platts: Primary driver in B2B’s 1Q results Growing demand for Platts’ data and information produced strong domestic and international growth Improvement at J.D. Power and Aviation Softness in construction reflected difficult conditions for smaller regional contractors
67	Tracking the digital transformation of Information & Media A plus for the segment in 2010 Digital products and services represented more than 60% of B2B Group’s 1Q revenue Contributed to margin improvement
68	Broadcasting: Positive signs in 1Q results Revenue increased 2.2% in 1Q Pick up in political and automotive advertising
69	Outlook for 2010: Information & Media Summary for 2010: 2009 sale of BusinessWeek will have a positive impact on revenue and operating margin in 2010 Revenue: Expect mid single-digit decline Excluding $99 million from BusinessWeek divestiture, revenue will increase in the mid single-digit range Operating margin: Expect to rebound into the mid-teens
70	Outlook for 2010: The McGraw-Hill Companies Summary for 2010: Year is off to a good start Maintaining our original guidance of diluted earnings per share of $2.55 to $2.65
71	Robert J. Bahash Executive Vice President and Chief Financial Officer The McGraw-Hill Companies
72	MHP starts 2010 in a strong financial position Maintaining a healthy balance sheet 1Q 2010 total debt: $1.2 billion Comprised of long-term unsecured senior notes No commercial paper outstanding Ended 1Q 2010 with cash and short-term investments of $1.235 billion Slight positive net cash position
73	The outlook for investments and expenses 1Q 2010 segment expenses declined 2.6% Even with increase in EPS in 1Q, guidance remains the same due to increased investments later in the year Technology investments Additional selling and marketing expenses Increasing our talent base in each segment
74	1Q expense savings at McGraw-Hill Education Expenses declined 2.6% Expenses, at constant currencies, declined 4.7% Benefited from savings: 2Q 2009 merging of our core basal publishing operations with alternative basal and supplemental publishing operations Reduced expenses due to planned phase out of custom contracts in California, Florida and Arizona
75	2010 guidance for McGraw-Hill Education 2010 revenue guidance: 6% to 7% growth Compared to previous guidance of 7% to 8% growth Maintaining adjusted operating margin from 2009 Now expect expenses to increase 6% to 7% versus previous guidance of a 7% to 8% increase Additional selling and marketing expenses due to robust state new adoption opportunities Investments in technology and personnel to support digital initiatives, particularly at Higher Education and Professional
76	1Q expenses at Financial Services Expenses increased 7.5% Expenses, at constant currencies and excluding impact of divestiture of Vista Research, increased 5.4%
77	2010 guidance for Financial Services 2010 expense guidance: Expect 9% to 10% increase versus 2009 adjusted expenses. Driven by: Continued investment in our fast growing businesses Carry over impact of 2009 hires and planned hires in 2010 Additional investments to support regulatory and compliance efforts Expense guidance assumes approximately $20 million in additional regulatory and compliance initiatives Highly dependent on final form of regulation
78	1Q expense savings at Information & Media Expenses declined 19.9% Expenses, at constant currencies, also declined 20.5% Factors influencing decline: 4Q 2009 divestiture of BusinessWeek reduced revenue and expenses by $27.8 million and $40.0 million, respectively, for a positive profit impact of approximately $12 million in 1Q 2010 2009 restructuring actions
79	Measuring the impact of BusinessWeek divestiture Information & Media’s 2010 results will reflect $38 million in savings from BusinessWeek divestiture Corporate expense will increase $13 million as a result of managing vacant space and other support costs following the divestiture
80	2010 guidance for Information & Media Expect expenses to decline in the low teens versus 2009 adjusted expenses Primarily reflects the divestiture of BusinessWeek
81	2010 outlook for corporate expenses 1Q 2010: $35.8 million $2.4 million increase compared to 1Q 2009, largely due to increased excess space 2010: Expect to increase $25 million to $30 million Primarily due to increase in vacant space in New York resulting from BusinessWeek divestiture and restructuring actions at McGraw-Hill Education
82	Outlook for free cash flow in 2010 1Q 2010: ($12.8 million) Compared to ($56.2 million) in 1Q 2009 Guidance for 2010: We anticipate free cash flow in the range of $550 million to $600 million Reduction in free cash flow versus 2009 is due largely to more challenging working capital comparisons and increased investments
83	Outlook for pension plan funding 2010: We do not anticipate any funding requirements for U.S. pension plan Pension expense is expected to increase roughly $20 million in 2010
84	Increasing prepublication investments 1Q 2010: $29.9 million $12.8 million decrease versus 1Q 2009, largely due to timing 2010: Expect $225 million to $235 million Expected to increase $48 million to $58 million versus 2009, primarily for opportunities in the growing state new adoption market
85	Increasing property and equipment expenditures 1Q 2010: $7.6 million Slight decrease versus 1Q 2009 2010: Expect $90 million to $100 million Compared to $68.5 million in 2009 Largely reflects increase in technology spending
86	Outlook for non-cash items: Amortization of prepublication costs 1Q 2010: $25.8 million $1.5 million decrease versus 1Q 2009 2010: Continue to expect $260 million to $265 million Compared to $270 million in 2009 Reflects lower level of investment in 2009
87	Outlook for non-cash items: Depreciation 1Q 2010: $25.9 million Compared to $29.4 million in 1Q 2009 2010: Now expect $115 million, versus our earlier forecast of $120 million Compared to $113 million in 2009 Reflects shift in timing of certain capital expenditures
88	Outlook for non-cash items: Amortization of intangibles 1Q 2010: $10 million 2010: Continue to expect approximately $40 million
89	Diluted weighted average shares outstanding (WASO) 1Q 2010: 316.3 million shares 4.2 million share increase compared to 1Q 2009 1.8 million share increase from 4Q 2009 Increase driven by stock price appreciation and issuance related to employee plans Fully-diluted shares at end of 1Q 2010: Approximately 317 million shares
90	Outlook for net interest expense 1Q 2010: $22.0 million Compared to $20.6 million in 1Q 2009 and $20.0 million in 4Q 2009 2010: Expect net interest expense to be roughly comparable to $76.9 million in 2009
91	Outlook for effective tax rate 1Q 2010: 36.4% Unchanged from 2009 2010: Expect a comparable rate
92	1Q ’10 tax payments 1Q 2010: We made a cash tax payment of approximately $35 million due to restructuring actions related to our international operations Will largely be recovered through reduced tax payments in the second half of the year Does not impact tax rate
93	Immaterial impact from new healthcare legislation New healthcare law eliminates the tax deductibility of employer paid retiree prescription drug benefits McGraw-Hill’s post-retirement benefits program does not include a significant portion of retiree prescription drug benefits which are reimbursed per the Medicare Modernization Act of 2003
94	Outlook for unearned revenue in 2010 1Q 2010: $1.1 billion 2.8% increase over 1Q 2009 In constant currency and excluding impact of divestitures, grew 4.3% versus prior year Financial Services represents approximately 75% of MHP’s unearned revenue While comparatively small, McGraw-Hill Education is showing strong unearned revenue growth driven by an increase in subscription-based products, particularly at Higher Education 2010: Expect mid single-digit growth
95	Update on share repurchase program In January, we announced plans to resume share repurchases in 2010 No repurchases in 1Q 17.1 million shares remaining from the 2007 authorization from the Board of Directors We remain committed to resuming the program later in 2010
96	1Q 2010 Earnings Call April 27, 2010 Presenters: Harold McGraw III Chairman, President and CEO Robert J. Bahash Executive Vice President and CFO Donald S. Rubin Senior Vice President, Investor Relations
97	1Q 2010 Earnings Call April 27, 2010 Replay Options Internet replay available for one year Go to www.mcgraw-hill.com/investor_relations Click on the Earnings Announcement link under Investor Presentation Webcasts Telephone replay available through May 27, 2010 Domestic: 800-839-4838 International: +1-402-220-5089 No password required