Harold McGraw III

1/8/2002


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Table of Contents

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Harold McGraw III

“Safe Harbor” Statement Under The Private Securities Litigation Reform Act of 1995

MHP’s prospects for 2002

Actions to improve operating efficiency, target resources

Eliminated marginal operations to sharpen focus on core opportunities

Reasons for confidence in 2002 and beyond

Reasons for confidence in 2002 and beyond

Reasons for confidence in 2002 and beyond

Reasons for confidence in 2002 and beyond

Reasons for confidence in 2002 and beyond

Positioned to take advantage of powerful market trends

McGraw-Hill Education

Dynamic American education market

McGraw-Hill Education’s record

McGraw-Hill Education: Diversifying the business

Diversified publishing strategy enhances our ability to compete

We can apply our diverse sources when individual states call for new programs

Glencoe/McGraw-Hill: Strong entry for 2002 science adoption

Intervention products: New materials for new needs

Emerging pre-kindergarten market

2002 state education budgets

McGraw-Hill expects to benefit from new federal legislation, funding

McGraw-Hill expects to benefit from new federal legislation, funding

McGraw-Hill expects to benefit from new federal legislation, funding

McGraw-Hill expects to benefit from new federal legislation, funding

McGraw-Hill expects to benefit from new federal legislation, funding

McGraw-Hill expects to benefit from new federal legislation, funding

McGraw-Hill expects to benefit from new federal legislation, funding

Optimistic about higher education growth prospects in 2002

Key trends in college, university marketplace

Digital solutions for the higher education market

Digital solutions for the higher education market

Digital solutions for the higher education market

McGraw-Hill Education

Financial Services

Expect another solid year in Financial Services

Standard & Poor’s Credit Market Services

Diversification is working for S&P Credit Market Services

Shift to Euro provides growth opportunities for Standard & Poor’s

Expanding our global network

Structured finance: Important growth driver in ‘02

Outlook for S&P Credit Market Services

More growth in our non-traditional business

Expect improved performance in S&P’s Investment Services

Growth in assets under management

Building our fee-generating portfolio business

Leveraging our resources in S&P Investment Services

Standard & Poor’s equity analysts are creating an excellent track record

Standard & Poor’s Corporate Value Consulting

Financial Services

Information and Media Services

BusinessWeek’s steps to take advantage of coming recovery

Expanded BusinessWeek offerings

Broadcasting: Looking forward to a better year

Solid subscription-based business in our three vertical businesses

Information and Media Services

The McGraw-Hill Companies’ outlook for 2002

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Author: Celeste Hughes