11 September 2017

Pearson plc - (the "Company")

Notification of Directors' Interests

Long-Term Incentive Plan

In 2001, the Company established the Pearson Long-Term Incentive Plan (the "LTIP"). Its purpose is to link management's long-term reward with Pearson's financial performance and returns to shareholders. The LTIP was renewed and approved by shareholders in 2011.  The operation of the LTIP is governed by the remuneration policy approved by shareholders at the Annual General Meeting on 5 May 2017.

2017 Award

On 11 September 2017, the Company made a grant of performance-related restricted shares to executive directors under the LTIP. This represents the company's annual grant of long-term incentives to executive directors for 2017.

The awards will vest on 1 May 2020 subject to the following performance conditions:

a)  40% of the award will be based on Pearson's earnings per share in 2019;

b)  30% of the award will be based on Pearson's return on invested capital in 2019; and

c)  30% of the award will be based on Pearson's total shareholder return performance relative to the constituents of the FTSE 100 Index over the three-year period 1 January 2017 to 31 December 2019

Details of the performance conditions can be found on the Company's website (https://www.pearson.com/corporate/investors) and will also be contained in the Directors' Remuneration Report for the year ending 31 December 2017.

Any shares which vest on 1 May 2020 will be subject to an additional two year holding period to 1 May 2022.

The awards are consistent with the remuneration policy approved by shareholders at the Annual General Meeting on 5 May 2017 and were made on the following basis:

The notification below is made in accordance with the requirements of the EU Market Abuse Regulation.

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them