John Wiley & Sons, Inc. Reports EPS Increases of 4% for the 3rd Quarter and 18% Year-to-Date.

Business Editors

NEW YORK--(BUSINESS WIRE)--March 5, 2001

John Wiley & Sons, Inc. (NYSE:JWa) (NYSE:JWb) announced today that earnings per diluted share for the third quarter ended January 31, 2001, rose 4% to $0.27 compared with $0.26 in the prior year's third quarter. Net income of $17.3 million for the quarter increased 3%. Revenues increased 2% to $161.0 million, or 4% excluding foreign currency translation effects.

For the first nine months of fiscal year 2001, earnings per diluted share advanced 18% to $0.80 compared with $0.68 in the prior year. Net income of $50.7 million for the nine months increased 15% over the prior year. Revenues grew 5% over the comparable prior year period, or 8% excluding foreign currency translation effects.

Third quarter results were tempered somewhat by industry-wide sluggish sales, particularly in the Higher Education and Professional/Trade segments. Higher Education revenues were essentially flat for the quarter primarily due to accelerated ordering by college bookstores earlier in the year. For the nine months, Wiley's Higher Education revenues were up 6%, which compares favorably with overall market growth. According to the Association of American Publishers (AAP), the Higher Education market reported a sales increase of only 3% in calendar year 2000.

For the quarter, Professional/Trade revenues were up 4%, reflecting the effect of sales softness at some key retail accounts, as well as tighter inventory management practices adopted by major wholesalers. Year-to-date Professional/Trade revenues were up 10%, significantly better than industry results.

Scientific, Technical and Medical (STM) achieved solid revenue gains for the quarter and nine months, with journals, books and online services contributing to the performance. Renewal rates for STM journals were stronger in calendar year 2000 than in the prior year.

"Although our revenue growth was modest in the third quarter, Wiley's year-to-date results remain healthy, as reflected in an 8% increase in revenues, excluding foreign currency translation effects, and an 18% increase in EPS," said William J. Pesce, President & Chief Executive Officer. "Even though the fourth quarter is the least important quarter for Wiley in financial terms, we experienced an unusually strong fourth quarter last year, which will make the year-to-year comparison difficult. In addition, industry-wide sales softness is likely to continue through the remainder of the fiscal year. Despite these factors, we still expect to achieve our EPS growth of 10-12% in fiscal year 2001. Our balance sheet is strong and cash flow is steady. We are well positioned to invest in our future and strengthen our competitive position."

Segment Highlights

The domestic STM segment reported a 10% increase in its contribution to profit for the quarter on a 5% revenue improvement. The journal and book programs reported increases. For the fiscal year-to-date period, STM's profit contribution increased 13% on a revenue gain of 5%. In addition to the revenue growth, improved gross margins contributed to the profit increase.

The domestic Professional/Trade segment reported a 4% revenue increase for the quarter and a 15% gain in profit contribution. For the nine months, revenues advanced 10% and profit contribution increased 13% due to strong frontlist sales, particularly in the business publishing program. Sales through online accounts continued to grow around the world.

Revenues for the domestic Higher Education segment were essentially flat for the quarter, while the contribution to profit advanced 4%. For the nine months, Higher Education revenues were up 6% year over year, while contribution to profit advanced 10%.

European revenues advanced 5% for the quarter, excluding the adverse foreign currency translation impact of the strong U.S. dollar. The European segment's contribution to profit decreased for the quarter reflecting the combined effect of publication schedules, increased investments in new journals and increased journal page volume. For the first nine months of the fiscal year, the European segment's profit contribution advanced 8% on a revenue gain of 9%, excluding foreign currency translation effects. Growth was driven by strong indigenous book publishing programs and healthy backlist sales.

The other segment revenues advanced 8% for the quarter and 12% for the nine months, excluding foreign currency translation effects. The improvement was due to strong market share gains in Asia, partially offset by industry-wide sluggish sales at a major Canadian account.

Business Highlights

Wiley InterScience continues to evolve as a successful online global enterprise. Several enhanced access licenses were signed during the quarter, including multi-year agreements with the NorthEast Research Library Consortium, the Danish Consortium, and Kyoto University. Usage of Wiley InterScience continued to increase during the quarter, as reflected in the 9% growth in the number of registered users and a 12% increase in the average daily user sessions compared with the previous quarter.

A number of Wiley InterScience system enhancements were rolled out during the quarter. ArticleSelect provides individual article access to enhanced access license customers. BoldIdeas, an online collection of 40 business and environmental management periodicals, was launched in January. This new initiative is an excellent example of our ability to leverage Wiley InterScience beyond the STM market.

In January, Wiley published some highly regarded journals as a result of new agreements with scholarly and professional societies, including The Annals of Neurology, published with the American Neurological Society, and Arthritis and Rheumatism and Arthritis Care and Research, published with the American College of Rheumatology. Also, an agreement was reached with the Movement Disorder Society to publish its official journal.

Early in the fourth quarter, Wiley signed a multi-year agreement with the IEEE, the premier society for electrical, electronics and computer engineers with more than 360,000 members in approximately 150 countries. Wiley and the IEEE will publish a co-branded series of books and market, sell and distribute the IEEE Press' extensive backlist.

During the third quarter, The Power of Gold, The Ernst & Young Tax Guide 2001, and J.K. Lasser's Income Tax Guide 2001 appeared on best seller lists in the The Wall Street Journal, New York Times, and Business Week. The 2000 editions of the J.K. Lasser and Ernst & Young tax guides were listed as bestsellers for the year by USA Today. We anticipate a strong fiscal year 2002 for these franchise products due to the proposed tax changes.

The Association of American Publishers cited the WAIMH Handbook of Infant Mental Health as the year's best social science reference book. Secrets and Lies was selected as a finalist for one of Software Development Magazine's Jolt Product Excellence and Productivity Awards in the books and computer-based training category. During the quarter, we published the first title in our partnership with CNBC, CNBC 24/7 Trading by Barbara Rockefeller. CNBC promoted the title on-air and on CNBC.com.

During the quarter, Wiley published several e-books for the Higher Education market, including the Interactive Learning Editions of Boyce & DiPrima: Elementary Differential Equations, and Callister: Fundamentals of Materials Science and Engineering. Based on customer feedback, we relaunched our Higher Education Web site with greater e-commerce capabilities. The company is leveraging the Web in its sales and marketing efforts to reach students and faculty at universities worldwide. Two notable examples include an interactive electronic brochure that was created to drive sales of our leading accounting textbook and a major e-mail campaign promoting upper-level titles to faculty.

Founded in 1807, John Wiley & Sons, Inc., is a global publisher of print and electronic products, specializing in scientific, technical, and medical books and journals; professional and consumer books and subscription services; and textbooks and other educational materials for undergraduate and graduate students as well as lifelong learners. The company has publishing, marketing and distribution centers in the United States, Canada, Europe, Asia, and Australia. The company's Class A and Class B shares are listed on the New York Stock Exchange under the symbols JWa and JWb, respectively. The company's Internet site can be accessed at http://www.wiley.com

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

This report contains certain forward-looking statements concerning the company's operations, performance and financial condition. Reliance should not be placed on forward-looking statements, as actual results may differ materially from those in any forward-looking statements. Any such forward-looking statements are based upon a number of assumptions and estimates that are inherently subject to uncertainties and contingencies, many of which are beyond the control of the company, and are subject to change based on many important factors. Such factors include, but are not limited to: (i) the pace, acceptance, and level of investment in emerging new electronic technologies and products; (ii) subscriber renewal rates for the company's journals; (iii) the consolidation of the retail book trade market; (iv) the seasonal nature of the company's educational business and the impact of the used book market (v) worldwide economic and political conditions; and (vi) other factors detailed from time to time in the company's filings with the Securities and Exchange Commission. The company undertakes no obligation to update or revise any such forward-looking statements to reflect subsequent events or circumstances.

Conference Call Instructions - Third Quarter Fiscal Year 2001

John Wiley & Sons, Inc. will hold a conference call today, March 5, 2001, at 11:00 a.m. (EST) to discuss its financial results for the third quarter and nine months of fiscal year 2001. To participate please dial the following number approximately 10 minutes prior to starting time: [phone] International callers may participate by dialing the following number: [phone].

A replay of the call will be available from 2:00 p.m. (EST) on Monday, March 5 through 8:00 p.m. (EST) on Monday, March 12 by dialing [phone] or [phone] and entering Passcode 408569.

                        JOHN WILEY & SONS, INC.
                         SUMMARY OF OPERATIONS
                FOR THE SECOND QUARTER AND NINE MONTHS
                    ENDED JANUARY 31, 2001 AND 2000
               (in thousands, except per share amounts)


                                       Third Quarter
                                     Ended January 31,
                         ---------------------------------------------
                                   2001             2000      % Change
                                   ----             ----      --------

Revenues                 $       160,960          158,394          2%

Costs and Expenses
 Cost of Sales                    52,442           52,861         -1%
 Operating and
  Administrative Expenses         75,143           72,676          3%
 Amortization of Intangibles       4,679            4,371          7%
                          --------------   --------------

   Total Costs and Expenses      132,264          129,908          2%
                          --------------   --------------

Operating Income                  28,696           28,486          1%
 Operating Margin                   17.8%            18.0%        -1%

Interest Expense Net
 of Interest Income                1,482            1,714        -14%
                          --------------   --------------

Income  Before Taxes              27,214           26,772          2%

Provision For Income Taxes         9,933           10,040         -1%
                          --------------   --------------

Net Income               $        17,281           16,732          3%
                          ==============   ==============


Income Per Share
  Diluted                $          0.27             0.26          4%
  Basic                  $          0.28             0.27          4%

Average Shares
  Diluted                         63,414           64,242
  Basic                           60,644           61,201



                                        Nine Months
                                     Ended January 31,
                         ---------------------------------------------
                                   2001             2000      % Change
                                   ----             ----      --------

Revenues                         468,987          445,712          5%

Costs and Expenses
 Cost of Sales                   149,376          149,675          0%
 Operating and
  Administrative Expenses        221,558          207,995          7%
 Amortization of Intangibles      13,109           12,073          9%
                          --------------   --------------

   Total Costs and Expenses      384,043          369,743          4%
                          --------------   --------------

Operating Income                  84,944           75,969         12%
 Operating Margin                   18.1%            17.0%         6%

Interest Expense Net
 of Interest Income                5,102            5,303         -4%
                          --------------   --------------

Income Before Taxes               79,842           70,666         13%

Provision For Income Taxes        29,142           26,500         10%
                          --------------   --------------

Net Income                        50,700           44,166         15%
                          ==============   ==============

Income Per Share
  Diluted                           0.80             0.68         18%
  Basic                             0.84             0.72         17%

Average Shares
  Diluted                         63,378           64,951
  Basic                           60,484           61,745