John Wiley & Sons Inc. Annual Report 2008

FY2008 Annual Report · John Wiley & Sons Inc.

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J O H N W I L E Y & S O N S , I N C .
1 1 1 R I V E R S T R E E T
H O B O K E N , N J 0 7 0 3 0 - 5 7 74
2 0 1.74 8.6 0 0 0 W W W.W I L E Y. C O M

J O H N W I L E Y & S O N S , I N C .
2 0 0 8 A N N UA L R E P O R T

W i l e y ’s
e d g e i n
p u b l i s h i n g

KNOWLEDGE FOR GENERATIONSTM
KNOWLEDGE FOR GENERATIONS

During our bicentennial year, Wiley introduced the

theme “Knowledge for Generations” to highlight our

legacy. By promoting knowledge and understanding

during the course of two centuries, Wiley has helped

bring about transformation in the world around us.

The technological innovations we have helped

advance are transforming our industry. Technology

is enabling us to build enduring relationships with

our stakeholders; leverage our capabilities across

organizational and geographic boundaries; and serve

our authors, partners, and customers better.

For the 2008 Annual Report, we have focused on

the theme “Knowledge for Generations” as it relates

to our present and future. Our prudent investments

in enabling technology have resulted in many new

business models, new revenue streams, and new

ways to promote knowledge and understanding

around the world.

As we embark on our third century of publishing,

we are sharpening our competitive edge by becoming

even more customer-centric and ﬂ exible as we

continue to make a difference in the personal and

professional lives of the constituencies we serve.

Canada

5353 Dundas Street West
Suite 400
Toronto, Ontario M9B 6H8
Canada
Telephone: 416.236.4433
Facsimile: 416.236.4447
Email: canada@wiley.com

Europe

The Atrium
Southern Gate, Chichester
West Sussex PO19 8SQ
England
Telephone: 44.1243.779777
Facsimile: 44.1243.775878
Email: customer@wiley.co.uk

9600 Garsington Road
Oxford, OX4 2DQ
England
Telephone: 44.1865.776868
Facsimile: 44.1865.714591

1 Rosenørns Allé
DK-1970 Frederiksberg C
Denmark
Telephone: 45.7733.3333
Facsimile: 45.7733.3377

101 George Street
Edinburgh EH2 3ES
Scotland
Telephone: 44.131.226.7232
Facsimile: 44.131.226.3803

Boschstrasse 12
D-69469 Weinheim
Germany
Telephone: 49.6201.6060
Facsimile: 49.6201.606328
Email: info@wiley-vch.de

European Distribution Center
Warehouse 1
Oldlands Way
Bognor PO22 9NQ
England
Telephone: 44.1243.843222
Facsimile: 44.1243.850250

Dividends

On June 18, 2008, the Board
of Directors approved a
quarterly dividend of $0.13
per share on both Class A
Common and Class B Com-
mon shares, payable on July
15, 2008, to shareholders of
record as of July 7, 2008.

Employment

John Wiley & Sons, Inc., is an
equal opportunity employer.

C O R P O R A T E

H E A D Q U A R T E R S

& M A I N O F F I C E S

Certiﬁ cations

United States

The Company has ﬁ led the
required certiﬁ cations under
Sections 302 and 906 of the
Sarbanes-Oxley Act of 2002
as Exhibits 31.1, 31.2, 32.1, and
32.2 to our annual report on
Form 10-K for the ﬁ scal year
ended April 30, 2008.

Following the 2008 Annual
Meeting of shareholders,
the Company intends to ﬁ le
with the New York Stock
Exchange the CEO certiﬁ ca-
tion regarding the Company’s
compliance with the NYSE’s
corporate governance listing
standards as required by
NYSE rule 303A.12. Last year
the Company ﬁ led this CEO
certiﬁ cation with NYSE on
September 24, 2007, without
qualiﬁ cation.

To contact the
Non-Management Directors:

Non-Management Directors
c/o Corporate Secretary
John Wiley & Sons, Inc.
111 River Street
Mail Stop 7-02
Hoboken, NJ 07030-5774
Email: non-managementdirec-
tors@wiley.com

Investor Relations

Brian Campbell
Director, Investor Relations
201.748.6874
brian.campbell@wiley.com

Corporate Headquarters
111 River Street
Hoboken, NJ 07030-5774
Telephone: 201.748.6000
Facsimile: 201.748.6088
Email: info@wiley.com
Web site: www.wiley.com

350 Main Street
Commerce Place
Malden, MA 02148
Telephone: 781.388.8200
Facsimile: 781.388.8210

989 Market Street
San Francisco, CA 94103-1741
Telephone: 415.433.1740
Facsimile: 415.433.0499

10475 Crosspoint Blvd.
Indianapolis, IN 46256
Telephone: 317.572.3000
Facsimile: 317.572.4000

2121 State Avenue
Ames, IA 50014-8300
Telephone: 515.292.0140
Facsimile: 515.292.3348

U.S. Distribution Center
1 Wiley Drive
Somerset, NJ 08875-1272
Telephone: 800.225.5945
Facsimile: 732.302.2300
Email: custserv@wiley.com

U.S. Customer
Care Operations
Trade & Wholesale
1 Wiley Drive
Somerset, NJ 08875
Telephone: 800.225.5945
(Prompt 1)

Consumer Customer Care
10475 Crosspoint Blvd.
Indianapolis, IN 46256
Telephone: 800.434.3422

Global Technical Support
Telephone: 317.572.3994
(Prompt 2)

Susan Spilka Corporate Communications Director / Bernhardt Fudyma Design Group Concept and Design

David Prince Environment Photography / Graytor Printing

Australia

42 McDougall Street
Milton, Queensland 4064
Australia
Telephone: 61.7.3859.9755
Facsimile: 61.7.3859.9715
Email: brisbane@johnwiley.com.au

155 Cremorne Street
Richmond, Victoria 3121
Australia
Telephone: 61.3.9274.3100
Fax: 61.3.9274.3101
Email: melbourne@johnwiley.com.au

Asia

2 Clementi Loop #02-01
Singapore 129809
Telephone: 65.6463.2400
Facsimile: 65.6463.4605
Email: enquiry@wiley.com.sg

600 North Bridge Road
#05-01 Parkview Square
(S) 188 778
Singapore
Telephone: 65.6511.8188
Facsimile: 65.6511.8288

Frontier Koishikawa Bldg, 4F
1-28-1 Koishikawa
Bunkyo-Ku, Tokyo 112-0002, Japan
Telephone: 81.3.3830.1232
Facsimile: 81.3.5689.7276

4435/7 Ansari Road
Daryaganj, New Delhi 110002, India
Telephone: 91.11.4363.0000/01
Facsimile: 91.11.2327.5895

This document is a publication of Wiley’s

Corporate Communications Depart-

ment. An electronic version of this report

is available online at www.wiley.com.

Quarterly earnings results will also be

posted on the site on the day they are

issued; anyone who wishes to receive a

print copy of any of the quarterly earn-

ings press releases should contact

J. Bacchi-Mourtziou at the address listed
on this page under Form 10K.

The editorial section of this annual report

is printed on Mohawk Beckett Expressions
paper. This paper is made carbon neutral

within Mohawk’s production processes

by offsetting thermal manufacturing

emissions with VERs, and purchases

of enough Green-e certiﬁ ed renewable

energy certiﬁ cates (RECs) to match 100%

of the electricity used.

k n o w l

W i l e y ’s
e d g e i n
p u b l i s h i n g

f i n a n c i a l

h i g h l i g h t s

For the fiscal year ended April 30

2008

2007

% CHANGE

REVENUE a

$ 1,674,734,000

$ 1,234,641,000

OPERATING INCOME a

$ 222,990,000

161,304,000

NET INCOME a

ADJUSTED b, c

GAAP

EARNINGS PER DILUTED SHARE a

ADJUSTED b, c

GAAP

RETURN ON EQUITY a
ADJUSTED b, c

GAAP

DIVIDENDS PER SHARE

CLASS A COMMON

CLASS B COMMON

2008 REVENUE
By Core Business

128,873,000

147,536,000

2.1 7

2.49

22%

24%

0.44

58%
Scientific, Technical,
Medical, and Scholarly

94,151,000

99,619,000

1.62

1.71

21%

0.40

2008 REVENUE
By Location of Customer

51%
United
States

28%
Professional /
Trade

36%

38%

37%

48%

34%

46%

14%

10%

24%
Europe

13%
Asia

5%
Australia &
New Zealand

14%
Higher Education

4%
Canada

3%
Other

RE VENUE ($ Millions)

E A R N I N G S P E R D I LU T E D S H A R E (Adjusted)

$2,000

1,600

1,200

13% CAGR

18% CAGR

O P E R AT I N G I N C O M E ($ Millions)

STOCK PRICE (NYSE: JWA; 4/30 closing price)

17% CAGR

C U M U L AT I V E TOTA L R E T U R N (Indexed)

The above graph provides an indicator of the cumulative total return to shareholders of the Company’s Class
A Common Stock as compared with the cumulative total return on the Russell 1000 and the Dow Jones World
Publishing Index, for the period from April 30, 2003, to April 30, 2008. The Company has elected to use the
Russell 1000 Index as its broad equity market index because it is currently included in that index. Cumulative total
return assumes $100 invested on April 30, 2003, and reinvestment of dividends throughout the period.

13% CAGR

a. Includes the results of Blackwell Publishing
(Holdings) Ltd. (“Blackwell”) which was acquired on
February 2, 2007.

b. The amounts reported for ﬁ scal year 2008 exclude
tax beneﬁ ts of $18.7 million or $0.32 per diluted
share associated with new tax legislation enacted in
the United Kingdom and Germany that reduced the
corporate income tax rates to 28% and 29%, respec-
tively. The beneﬁ ts recognized by the Company re-
ﬂ ect the adjustments required to restate all applicable
deferred tax balances at the new tax rates.

c. The amount reported for ﬁ scal year 2007 excludes
a $5.5 million tax beneﬁ t, or $0.09 per diluted share
due to the resolution and settlements of certain tax
matters with authorities in the U.S. and abroad.

d. The results for ﬁ scal year 2005 exclude a $0.12
per diluted share tax charge associated with the
repatriation of $94 million of dividends under the
American Jobs Creation Act of 2004.

The results for ﬁ scal year 2006 exclude a $0.12 per
diluted share tax credit associated with the reversal
of the 2005 tax charge

e. The amounts reported for ﬁ scal year 2004 exclude
a net tax beneﬁ t of $3.0 million, or $0.05 per diluted
share, related to the resolution of certain state and
federal tax matters and an adjustment to accrued
foreign taxes.

f. Fiscal year 2002 and 2003 results exclude $12.3
million ($0.12 per diluted share) and $2.5 million
($0.02 per diluted share) of operating costs associ-
ated with the relocation of the Company’s headquar-
ters, respectively.

g. The amounts reported for ﬁ scal 2003 exclude
a nonrecurring tax beneﬁ t of $12 million, equal to
$0.19 per diluted share, resulting from a corporate
reorganization that enabled the Company to increase
the tax-deductible net asset basis of certain Euro-
pean subsidiaries.

h. Fiscal Year 1998 excludes a gain from the sale of
the U.S. law publishing program of $21.3 million, or
$12.2 million after tax equal to $0.19 per diluted share.

NOTE: The Company’s management internally evalu-
ates its operating performance excluding unusual
and/or non-recurring events. The Company believes
excluding such events provides a more effective
and comparable measure of performance. We also
believe that excluding the effects of these tax beneﬁ ts
and other items provides a more balanced view of the
underlying dynamics of our business. Since adjusted
net income and adjusted earnings per share are not
measures calculated in accordance with GAAP, they
should not be considered as a substitute for other
GAAP measures, including net income and earnings
per share, as an indicator of operating performance.

GAAP – U.S. Generally Accepted Accounting Principles
CAGR – Compound Annual Growth Rate

c u s t o m

t a k i n g
c o n t e n t
t o t h e
n ex t l e ve l

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K N O W L E D G E P U S H E S B O U N D A R I E S > Wiley has
taken an important step to enable our vision of “All Wiley

All the Time,” which will allow customers to access,

seamlessly assemble, output, and purchase any Wiley

content whenever, wherever, and however they need

and want it. In collaboration with leading technology

partners, we will soon provide a fast-track solution

for important new content management and delivery

capabilities.

Wiley’s Content Technology Initiative is creating

an array of systems and services that will transform

our ability to create, acquire, shape, and deliver from

a single repository of all Wiley content, regardless of

geographic origin or product type. Wiley’s customers

will soon be able to choose from select published

content delivered in print, online, or downloaded to

a computer or mobile device. Initial applications will

focus on more efﬁ cient distribution of eBooks to

resellers and an improved system for creating

customized college textbooks, both set to launch by the

end of the calendar year. More applications will follow.

Going forward, our Content Technology Initiative will

facilitate the development of many innovative, ﬂ exible,

and customer-facing products, drawing on content from

across Wiley’s three core businesses around the world.

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K N O W L E D G E E M P O W E R S > Publishing is not a
“one-size-ﬁ ts-all” business. Students do not all learn in

the same way. Professors have unique teaching styles.

Student budgets vary dramatically. Wiley provides

teaching and learning materials worldwide in a variety

of formats, media, prices, and pedagogical approaches

to address the diverse individual needs and preferences

of students and faculty. We are interacting more directly

with students and becoming more involved in the edu-

cational experience. We are bridging the gap between

the classroom, library, and dorm room, enabling learning

when and where it ﬁ ts in busy schedules. In these ways,

we are enhancing the value of our learning materials and

making a positive impact on student success.

WileyPLUS provides an easy-to-use online

workspace for presentations, study, homework, and

assessment in which students receive immediate

feedback and context-sensitive support to build

conﬁ dence and understanding. Used by more than half

a million students in over 16 countries, WileyPLUS is

custom-tailored for different courses globally to target

learning more speciﬁ cally. The result? Nearly 90 percent

of the 10,000 students we surveyed said that WileyPLUS

improved their understanding of their course materials

and helped them to achieve better grades. An instructor

at Dalhousie University in Nova Scotia reported, “I have

used WileyPLUS for two terms and have noted that the

ﬁ nal average was signiﬁ cantly higher for students using

WileyPLUS.” According to a student at the University of

Delaware, WileyPLUS brings “the book to life and helps

you see things you can’t see in just printed text…it made

this course much more enjoyable, understandable.”

WileyPLUS can be purchased as a lower-priced

standalone, or at a nominal cost with a textbook. In

addition to WileyPLUS, Wiley Visualizing and Wiley

Pathways books are available at prices below the

norm for traditional textbooks. Many of our titles are

available in a less expensive, unbound, three-hole

punched format, called Binder Editions. We currently

publish most new textbooks as eBooks, available

through CourseSmart, a new venture founded by Wiley

and ﬁ ve other publishers that offers hundreds of titles

on a common online platform. We also offer our eBooks

through established vendors and on wiley.com, as

Wiley Desktop Editions. All Wiley electronic textbooks

are available at lower cost than the print versions.

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s t u d e n t

e n h a n c i n g
s u c c e s s
by o f fe r i n g va r i e t y
a n d va l u e

m u s t - h a ve

d e l i ve r i n g
i n fo r m a t i o n
w h e n a n d
w h e re i t i s
n e e d e d

K N O W L E D G E E N A B L E S D I S C O V E R Y > Wiley is
employing customer workﬂ ow research to develop

branded content for use precisely when and where

there is a need to know. By observing the ways in

which our customers perform their business respon-

sibilities, engage in lifelong learning experiences, and

pursue their hobbies while using our products and

services, we can better understand their needs and

develop more ﬁ nely tuned solutions. Through this

interaction, our customers become co-creators

without needing to write a single word.

Greater understanding has helped the Frommer’s

travel program grow from a print-on-paper guidebook

business to one in which we are actively engaged with

our customers throughout the travel cycle. Our travel

newsletters, blogs, and online forums fuel their travel

dreams, and they use our travel Web sites and guide-

books to plan their trips. During travel, customers use

our print guides and podcast walking tours to enhance

their experiences. Back home, they share their experi-

ences with family and friends through our online trip

journals and photo albums.

Frommer’s delivers up-to-date guidance, tips, and

news to mobile travelers via podcasts, audio and video

recordings available as streaming content online, or as

ﬁ le downloads for MP3 players. Frommer’s also powers

the Borders Trip Recommender through the Travel

Kiosks rolled out in Borders bookstores this spring,

featuring touch-screen displays and digital tools that

provide targeted travel information and help customers

to plan vacations on the spot that match their interests.

To keep up with the fast pace of software releases

and technological innovations, Wiley’s WroxBlox pdf

downloads provide customers with article-length

information on cutting-edge topics well in advance of

book publications. Written by the best in their ﬁ elds,

WroxBlox help customers get up to speed and stay

up to date with the knowledge they need, on a wide

variety of topics, at an affordable price.

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K N O W L E D G E F O S T E R S C O L L A B O R A T I O N >
Society partnerships are at the heart of Wiley’s

STMS business, also known as Wiley-Blackwell.

Every year, more associations and learned societies

choose to partner with us — this year alone, we signed

new publishing agreements with societies for 65

journals and renewed or extended publishing

contracts for 74 more. A notable 2008 addition is CA:

A Cancer Journal for Clinicians, the most widely read

professional publication (circulation 100,000) of the

American Cancer Society, a long-time Wiley partner.

We work closely with societies to develop long-

term strategies that maximize each publication’s

unique proﬁ le, reach, and inﬂ uence. To help them

maintain the highest standard of excellence, Wiley is

a leader in global industry initiatives such as Cross-

Check, a service administered by CrossRef, the

collaborative reference-linking service, that helps

detect plagiarism in submitted journal articles.

With our society partners, Wiley is venturing onto

new ground by focusing more keenly on the user

experience and blending user-generated content with

expert contributions. For example, Wiley’s new

quarterly magazine with the Association of Women’s

Health, Obstetric and Neonatal Nurses, Health For

Women (www.Health4WomenOnline.com), beneﬁ ts by

the established communication and trust between

nurses and patients at medical ofﬁ ces and clinics in the

U.S. and Canada. Wachter’s World (www.the-hospital-

ist.org/blogs), a blog Wiley publishes with Dr. Robert M.

Wachter, co-founder of the Society of Hospital Medi-

cine, a publishing partner, engages physicians on

current issues in hospital care and inpatient medicine.

With institutional libraries the largest market for

STMS content, Wiley convenes semi-annual advisory

boards around the world, composed of prominent

members of the international library community.

Our Library Advisory Board provides insight that we

share with our society partners about the needs of

our readers. The Board also provides input regarding

product and policy development.

Another forum for maintaining vibrant partnerships

is the Executive Seminar series started by Blackwell

and expanded as part of Wiley. This year, we spon-

sored events in Washington, D.C., London, Tokyo,

Seoul, and Copenhagen. Hundreds of society executives

and editors with whom we publish, as well as poten-

tial partners have attended to hear industry leaders

address trends and innovations in society publishing.

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s o c i e t y

b u i l d i n g e n d u r i n g
re l a t i o n s h i p s w i t h
p u b l i s h i n g p a r t n e rs

b u i l d i n g a
b e t t e r wo r l d
t h ro u g h
re s p o n s i b l e
c i t i z e n s h i p

c o r p o ra t e

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K N O W L E D G E I N S P I R E S C H A N G E > Sustainability
is not a new concept at Wiley, a company that has

prospered for more than 200 years. We are well

known around the world for our leadership in

responsible corporate governance, ethical business

practices, and philanthropic activities that beneﬁ t the

communities in which we are located. Wiley is

actively engaged in various industry initiatives related

to the environment, such as responsible paper

purchasing practices. Through our leadership in

programs such as HINARI, AGORA, and OARE, we

help provide online information to researchers in

developing nations who might otherwise not be able

to afford access. In 2006, Blackwell became the ﬁ rst

publisher to become carbon neutral through offsets,

a designation that was renewed this past year by

Wiley. Last, but not least, we publish a signiﬁ cant

collection of titles on sustainability-related topics that

add to the global discourse.

This is an opportune time to evaluate our practices

and develop company-wide strategies and programs

to manage various social, economic, and environ-

mental challenges we encounter in our business.

We created a team to lead this initiative and engaged

Business for Social Responsibility (www.bsr.org), a

global leader in corporate responsibility consulting

and research that helps its 250 member companies

develop sustainable business strategies. We are in the

process of identifying and prioritizing opportunities to

improve our processes and practices, based on

business conditions; benchmarking the approaches of

peer companies; performing an internal assessment;

and identifying metrics to gauge our progress.

t o o u r
s h a re h o l d e rs

Fiscal year 2008 was a transformative year, as reﬂ ected in Wiley’s record results. Revenue increased 36% over the
previous year to $1.7 billion, up from $1 billion just two years ago. Excluding Blackwell, revenue for the ﬁ scal year
increased 5%, with favorable foreign exchange contributing 2% to the year-on-year growth. On a U.S. GAAP basis,
earnings per diluted share for ﬁ scal year 2008 was $2.49, compared to $1.71 in ﬁ scal year 2007. Excluding Blackwell
and various tax beneﬁ ts, adjusted earnings per diluted share improved 15% to $1.89. Blackwell’s performance was
accretive to ﬁ scal year 2008 earnings per dilutive share by approximately $0.29, excluding non-recurring tax beneﬁ ts.
Free cash ﬂ ow of $117 million for the year, including discretionary pension contributions of approximately $48
million to the Company’s U.S. and U.K. statutory plans, was principally used to repay debt of $158 million and pay
dividends of $26 million. Outstanding debt on April 30, 2008, was $842 million, down signiﬁ cantly from $1.2 bil-
lion at the time of the Blackwell acquisition in February 2007.

B L A C K W E L L S U R P A S S E S E X P E C T A T I O N S

Blackwell was the primary driver of Wiley’s strong results in ﬁ scal year 2008. Revenue of approximately
$485 million and operating income of $63 million contributed approximately $0.55 to Wiley’s full-year adjusted
earnings per diluted share, or $0.29, excluding one-time tax beneﬁ ts, compared to dilution of $0.02 per share in
the previous year. Included in operating expenses for the year were approximately $21 million of transition and
integration-related costs.

By just about every measure, Blackwell’s results exceeded our expectations. We are particularly pleased with our
ability to attract and retain society partners; over the course of the year, we added 65 society journals, renewed or
extended 74 journals, and lost only 3 journals to competitors. These impressive results were accomplished during
a year of transition. Wiley and Blackwell colleagues around the world are collaborating effectively to serve our
authors, society partners, and customers.

In January, the Company announced our plan for a combined, enhanced, and rebranded online platform to support
our global Scientiﬁ c, Technical, Medical, and Scholarly business (STMS, also known as Wiley-Blackwell). The ﬁ rst
phase will be available to all Wiley and Blackwell customers beginning in July 2008, when all of Blackwell Synergy’s
content and customers will be included in Wiley InterScience. The new enhanced service will be launched early in
2009. Book distribution and customer service have been fully integrated into Wiley’s operations in the U.S., Canada,
Europe, Asia, and Australia, resulting in costs savings, service improvements, and incremental sales. Off-shoring
activities accelerated throughout the year, particularly journal production in Singapore and printing in Asia, where
approximately half of the STMS journals are now printed.

T H R E E G L O B A L B U S I N E S S E S

Clearly, Blackwell was the highlight of ﬁ scal year 2008, but there is much more to this chapter in Wiley’s history,
as the Company continues to evolve as a global enterprise. We have been implementing a global organizational

structure across Wiley’s three core businesses. By leveraging our content services and capabilities around the
world, we can better serve our authors, society partners, and customers, while increasing revenue, proﬁ tability, and
return on investment, and enhancing our position as the place to be. In ﬁ scal year 2009, we anticipate reporting our
Company’s ﬁ nancial and operating results as three global business segments.

STMS: Now the largest of our three core businesses, STMS serves the world’s research and scholarly communities, and
is the largest publisher for professional and scholarly societies. Its programs encompass journals, books, major reference
works, databases, and laboratory manuals, offered in print and electronically. Through our Wiley InterScience online
platform, we provide our customers access to a broad range of content, including 1,400 journals; two million articles; 5,000
online books and major reference works; 10,000 laboratory protocols; and digital backﬁ les going back as far as 200 years.

Wiley’s global STMS revenue grew 74% in ﬁ scal year 2008 to $978 million, including Blackwell, or 6% excluding
Blackwell. U.S. STM revenue grew 2% over prior year to $235 million. Revenue growth in the U.S. was attributable to
moderate journal subscription growth, offset by softness in book sales and advertising revenue. In Asia, ﬁ scal year 2008
offered the ﬁ rst glimpse of the powerful combination of Wiley and Blackwell, as revenue growth was strong, especially
in Southeast Asia, China, and India. STMS journals and The Cochrane Library, an evidence-based medicine collection,
contributed to growth in Europe.

P/T: Our Professional/Trade business serves professionals and consumers alike, producing books, subscription content,
and information services, in all media. Our portfolio of global brands includes For Dummies, Frommer’s, Betty Crocker,
Pillsbury, CliffsNotes, Webster’s New World, J.K. Lasser, Jossey-Bass, Pfeiffer, and Sybex. Subject areas include business,
technology, architecture, professional culinary, psychology, education, travel, health, religion, consumer reference, and
general interest.

Wiley’s global P/T revenue increased 3% to $469 million, with strong showings in Europe and Asia. U.S. P/T revenue
advanced slightly to $395 million from $391 million in the previous year. U.S. P/T delivered solid results for the ﬁ rst
nine months, but the fourth quarter was adversely affected by a combination of sluggish market conditions and tight in-
ventory management by some key accounts. Despite the challenging fourth quarter, the business, psychology, technology,

and general interest programs turned in strong results for the year, as did sales of rights and brand licensing. In Europe,
indigenous publishing programs drove the growth, particularly For Dummies titles. In addition, Frommer’s is building
market share in the U.K. travel market. P/T revenues were strong across almost all territories in Asia.

It was a strong year for P/T digital initiatives, including the launch of the Webster’s New World Web site and
J.K.Lasser.com. Frommers.com included its ﬁ rst sponsored microsite, Family Vacations with Sheraton Hotels, as
well as a custom site for Rail Europe, and a blog by Arthur Frommer, featuring travel resources, tips, travel bargains,
and current events. Nonetheless, P/T is still primarily a global print book business. Notable Wiley titles during 2008
included Fred Kaplan’s Daydream Believers: How a Few Grand Ideas Wrecked American Power; Jim Hightower’s
Swim Against the Current: Even a Dead Fish Can Go With the Flow; Mark Bittman’s How to Cook Everything
Vegetarian; the ﬁ fth title in the best-selling Little Book series, The Little Book That Builds Wealth: The Knockout
Formula for Finding Great Investments by Pat Dorsey; Ready, Fire, Aim: Zero to $100 Million in No Time Flat by
Michael Masterson; How: Why How We Do Anything Means Everything…in Business (and in Life) by Dov Seidman;
and The Architect’s Handbook of Professional Practice, 14th edition.

Raising our bicentennial banner on the Great Wall of China. > Peter Booth Wiley celebrates 200 years of publishing.

HE: In Higher Education, Wiley’s mission is to help teachers teach and students learn. Our Higher Education busi-
ness serves teachers, undergraduate and graduate students, and lifelong learners. We publish educational materials
in all media, notably through WileyPLUS, our integrated online suite of teaching and learning resources. Wiley
publishes higher education learning materials in the sciences, engineering, mathematics, business/accounting,
geography, computer science, statistics, education, psychology, and modern languages.

Globally, Higher Education increased 5% for the full year to $227 million. U.S. Higher Education revenue increased
1% in ﬁ scal year 2008 to $165 million. Solid performances by the science and business/accounting programs, sales
of Microsoft Ofﬁ cial Academic Course books, and the sale of translation rights and reprints were offset by back-
list attrition in mathematics, engineering, and the social sciences. The year ended on a positive note with a strong
fourth quarter, driven primarily by the continued success of WileyPLUS. HE sales were strong in Europe, China,
India, Thailand, Japan, Indonesia, Canada, and Australia. Forty percent of the highly successful Visualizing titles,
published in conjunction with National Geographic, are selling with WileyPLUS.

WileyPLUS sales increased 35% over prior year, with digital-only sales nearly doubling. Student usage around the
world continued to climb sharply, with registered users increasing 10% in the U.S. and more than doubling outside
the U.S. Seventeen percent of the WileyPLUS user base is located outside the U.S. WileyPLUS ended the year with
a milestone achievement, the validation of the 500,000th student user in April. Online sales directly to students also
grew signiﬁ cantly. During the year, Wiley was one of six publishers to launch CourseSmart, which provides thou-
sands of textbooks in eTextbook format on a common platform.

W I L E Y ’ S “ E D G E ” I N P U B L I S H I N G

Throughout the year, as Wiley was deeply engaged in the process of integrating the largest acquisition in the
Company’s 200-year history, we led our businesses in intensely competitive markets; continued Wiley’s evolution
as a global enterprise; invested in our future; and reported record ﬁ nancial results. Our colleagues have been able
to navigate the year’s challenges with the dedication, commitment, and professionalism that distinguish Wiley.

During the past year we had the privilege to celebrate our Bicentennial with Wiley colleagues around the world.
Our interaction with them conﬁ rmed our strongly held view that Wiley’s culture is indeed a powerful source of
sustainable competitive advantage.

Our colleagues work together to make a difference in the personal and professional lives of human beings. Wiley’s
mission is about teaching, learning, enlightening, enriching, and informing. Our publications have opened many
new frontiers for readers to explore. Last fall, we were proud to learn that nine of 2007’s Nobel Prize winners are
members of Wiley’s author community, joining more than 350 Nobel Laureates who have published with us over
the years, representing every category in which the prize is awarded (Literature, Economics, Physiology/Medicine,
Chemistry, Physics, and Peace). Our collaboration with this esteemed group reﬂ ects Wiley’s unwavering commit-
ment to publishing “must-have” content and sharing it with readers around the world.

As we embark on our third century, we are becoming more customer-centric, more ﬂ exible, and more dynamic in
our interactions with the constituencies we serve. Enabled by technology and the creativity of our colleagues, we
are providing more access to more content to more people than ever before in our history. Publishing at Wiley has
certainly evolved, but our core values still endure, providing a rock-solid foundation for future growth and prosperity.

Sincerely,

William J. Pesce
President and Chief Executive Ofﬁ cer

Peter Booth Wiley
Chairman of the Board

c h a r l e s r. e l l i s

1 9 3 5 -2 0 0 8

w i l e yw i l e y

v i s i o n

John Wiley & Sons, Inc.,

aspires to be a valued and

respected provider of

products and services

that make important

contributions to advances

in knowledge and under-

standing, a role that is

essential to progress in a

healthy and prosperous

society. While fulfilling

this role, we strive to

build lasting, collaborative

relationships with all of

our stakeholders. We are

dedicated to sustaining

Wiley’s performance-

driven culture, which

requires our unwavering

commitment to the highest

standard of ethical

behavior and integrity in

everything we do.

Charles R. Ellis, President and CEO of Wiley from June
1990 until May 1998, died in Paris on May 4, 2008, after
a battle with cancer.

Charles led the company from the difﬁ cult days of the
late 1980s into the sustained period of growth and proﬁ t-
ability that continues into the present. On his watch,
Wiley executed the acquisition of VCH Publishing Group
and Alan R. Liss, raising its stature as an STM publisher
considerably; was listed on the NYSE; and launched its
ﬁ rst online ventures. In the year of Charles’s retirement,
the Financial Times ranked Wiley as the world’s 27th
most respected company.

Beyond his role at Wiley, Charles was an insightful and
indefatigable advocate for the publishing community
worldwide. With his considerable diplomatic skills
and a cosmopolitan perspective enhanced by his early
European experiences with Pergamon Press and Elsevier,
Charles was notably effective as Vice President of the
International Publishers Association (IPA) and Chair-
man of the Association of American Publishers (AAP),
which in 1998 presented him with its highest honor, the
Curtis Benjamin Award for Creative Publishing. He was
a staunch defender of copyright, seeing it as essential
to the encouragement and rewarding of creativity, and
he played an important role in developing the Digital
Object Identiﬁ er (DOI) system, which facilitates the
tracking of content use and the enforcement of copy-
right laws online.

A graduate of Princeton University, Charles was initially
attracted to a life in the academic world, and many of his
lifelong beliefs were informed by his work as secretary
to Bertrand Russell during the establishment of the
Campaign for Nuclear Disarmament. In publishing, he
found an ideal way to honor his intellectual and ethical
values while meeting the practical needs of raising a
family. Those with the good fortune to have worked
with this decent, charming, and thoughtful man will not
forget him.

To promote the best corporate governance practices, John Wiley & Sons, Inc., adheres to the Corporate Governance
• We are responsible to the communities in which we
M I S S I O N
work. These communities should beneﬁ t from our
Principles set forth at the Corporate Governance section on wiley.com and in the Company’s Proxy (online at http://
Wiley provides must-have content and services to
good citizenship, including our support of education-
professionals, scientists, educators, students, lifelong
www.wiley.com/go/communications). The Board of Directors and management believe that these Principles, which are
al and cultural organizations.
learners, and consumers worldwide. Wiley is dedicated
consistent with the requirements of the Securities and Exchange Commission and the New York Stock Exchange, are
to serving our customers’ needs, while generating attrac-
in the best interests of the Company, its shareholders, and other stakeholders, including colleagues, authors, customers
tive intellectual and ﬁ nancial rewards for all of our
and suppliers. The Board is responsible for ensuring that the Company has a management team capable of represent-
stakeholders — authors, colleagues, partners, and
ing these interests and of achieving superior business performance.
stockholders.

Wiley has achieved superior results and continues to
grow by focusing on three overarching goals:

G O A L S A N D S T R A T E G I E S

V A L U E S

Founded in 1807, during the presidency of Thomas
Jefferson, Wiley has evolved into one of the world’s
most respected publishing companies. We strongly
believe in the enduring value of collaborative relationships,
built on a solid foundation of trust and integrity. We
strive to be the very best at all that we do, which
strengthens our competitive position and results in
consistently strong performance.

Wiley’s strength is based on the efforts and accomplish-
ments of a diverse group of people who are distin-
guished by their integrity, creativity, talent, initiative,
and dedication.

• We are responsible to our customers, who rely on the
quality of our products and services to meet their
needs. Service must be prompt and efﬁ cient and
prices should be reasonable.

• We are responsible to our authors and partners, who
collaborate with us to create high-quality products
and services, and who deserve appropriate recogni-
tion and compensation for their efforts.

• We are responsible to our colleagues, whom we respect
as human beings ﬁ rst, professionals second. We must
provide a reasonable sense of security, pleasant and
safe working conditions, fair compensation and
beneﬁ t programs, and opportunities for professional
growth.

• We are responsible to our shareholders, who should
realize a fair return on their investments. Investors
can rely on a highly capable leadership team and an
independent Board of Directors distinguished by
their commitment to effective governance, ethical
behavior, and integrity in all that we do.

• Building long-term relationships with our customers
• Increasing proﬁ tability, cash ﬂ ow, and return on

investment

• Enhancing Wiley’s position as the place to be for all

of our stakeholders.

We are realizing these goals through the following
strategies:

• Exploiting our global positions and brands by

collaborating across our organization and constantly
striving to improve the quality of our products and
services around the world

• Capitalizing on the connections among our core

businesses — Professional/Trade; Scientiﬁ c, Techni-
cal, Medical, and Scholarly, also known as Wiley-
Blackwell; and Higher Education — to better serve
customers and drive growth

• Pursuing partnerships and alliances with highly

regarded organizations to add content, services, and
capabilities to our portfolio

• Building on our successful track record with acquisi-

tions by consummating transactions that are strategic
and ﬁ nancially responsible, and executing our
integration plans effectively by adhering to a best
practices approach

• Leveraging our investments in technology to create
value for our customers, facilitate communication
with our stake holders, and increase productivity
throughout the Company.

S C R E E N S

making a differen ce in the personal an d professi ona l li ves of o ur

S H O T T O B E I N S E R T E D

P R O D U C T S

Books, subscription content, and
information services in all media.
Subject areas include business,
technology, architecture, profes-
sional culinary, psychology,
education, travel, health, religion,
consumer reference, pets, and
general interest.

C U S T O M E R S

Professionals, consumers, and
students worldwide.

D I S T R I B U T I O N

Multiple channels globally,
including major chains and online
booksellers, independent book-
stores, libraries, colleges and
universities, warehouse clubs,
corporations, direct marketing,
and Web sites.

B R A N D S / F R A N C H I S E S

For Dummies, Jossey-Bass,
Frommer’s, Betty Crocker,
Pillsbury, CliffsNotes, Webster’s
New World, Visual, Howell Book
House, J.K. Lasser, Unofﬁ cial
Guide, Pfeiffer, Wrox, Archi-
tectural Graphic Standards,
Capstone, Wrightbooks, Audel,
Sybex, Wiley Nautical, Whatson-
when, Fisher Investments Press.

F I S C A L Y E A R
2 0 0 8 H I G H L I G H T S

Increased global Professional/
Trade revenue by 3% to $469
million, driven by our business,
general interest, and psychol-
ogy programs, as well as brand
licensing and global rights.

Grew online business signiﬁ -
cantly through advertising and
licensing of Frommer’s, What-
sonwhen, and For Dummies
content.

Extended Frommer’s brand
with blogs, interactive maps,
and audio walking tours; Arthur
Frommer’s blog named to New
York Post “10 top web sites for
travelers in 2008” list.

Launched several digital initia-
tives, including The Leadership
Challenge Leadercast Series
of podcasts supporting the
Leadership Challenge franchise;
Student LPI (Leadership Prac-
tices Inventory) Online; Sybex
TestSuccess online prepara-
tion material for technology
certiﬁ cation exams; WroxBlox
downloadable pdfs on cutting-
edge technology topics; and For
Dummies audio language CDs.

Launched Web sites for
Webster’s New World (webster-
snewworld.com), featuring
online catalog, “Word of the
Year” selections and archives,
and radio interviews; and for
J.K. Lasser (jklasser.com),
featuring content, services,
and community features.

Signed agreement to launch
Fisher Investments Press imprint
with Ken Fisher, CEO of Fisher
Investments and author of best-
selling Wiley title The Only Three
Questions That Count: Investing
by Knowing What Others Don’t.

P U B L I S H I N G C E N T E R S

Australia, Canada, Germany,
Singapore, U.K., and U.S.

S T R A T E G I E S

Build core publishing categories
through organic growth and
acquisition.

Strengthen and expand
strategic alliances and
franchise products globally.

Develop and grow industry-
leading brands; expand their
reach through partnerships and
electronic platforms.

Capitalize on global organiza-
tion to manage key accounts
and coordinate local operations
globally.

Leverage the Internet for online
sales, advertising revenue from
branded sites, and content
licensing.

Expand electronic publishing
activities, focusing on key fran-
chises, alliances, and brands.

Grow custom and proprietary
publishing business.

Expand Asian publishing pro-
grams, including translations,
co-publishing, and English-
language reprints.

Develop new products and
services that leverage both
multi-channel print sales capa-
bilities and/or electronic/digital
capabilities.

Generate savings and drive
productivity improvements
by expanding off-shoring and
outsourcing of various content-
management, manufacturing,
and shared support services.

targeted audiences

> profes sional and trade

P R O D U C T S

Educational materials in all
media for two- and four-year
colleges and universities,
for-proﬁ t career colleges, and
advanced placement classes, as
well as for secondary schools in
Australia.

C U S T O M E R S

Undergraduate, graduate, and

advanced placement students,

educators, and lifelong learners

worldwide, and secondary

school students in Australia.

D I S T R I B U T I O N

Multiple channels including
college bookstores, online
booksellers, and direct sales to
customers.

B R A N D S / F R A N C H I S E S

Wiley, Wiley/Jossey-Bass,
WileyPLUS, CATALYST,
WileyFLEX, Wiley Desktop
Editions, Wiley Visualizing, Wiley
Pathways, Business Extra Select,
Wiley/MOAC, Jacaranda

F I S C A L Y E A R
2 0 0 8 H I G H L I G H T S

Increased global Higher
Education revenue 5% to
$227 million. Strong sales in
accounting, the sciences,
and content licensing, and of
Microsoft Ofﬁ cial Academic
Course (MOAC) titles,
contributed to the results.

Continued to lower costs
through off-shore composition,
improved vendor terms, and
electronic product delivery.

Increased overall WileyPLUS
revenue by 35%, and WileyPLUS
e-commerce revenue by 80%;
the number of WileyPLUS users
exceeded 500,000.

Overall activity of the Wiley
Faculty Network (WFN), a
peer-to-peer resource to help
instructors use Wiley technology
products effectively, grew by
62%; nearly twice the number of
faculty members registered for
WFN Virtual Guest Lectures as in
prior year.

Signed publishing agreement
for online courses with Gatlin
Education Services (GES),
world’s largest provider of
online workforce development
programs.

Partnered with Scholastic to
create Wiley/Scholastic Library
of Children’s Books for adopters
of the Wiley textbook Flint/
Literate Lives: Teaching Reading
and Writing in the Elementary
Classroom.

Joined with ﬁ ve other publishers
to create CourseSmart, an
online ecommerce portal used
to sell products and distribute
complimentary copies of
textbooks to professors
electronically.

S T R A T E G I E S

Grow market positions in all
disciplines.

Develop and promote products,
services, tools, and business
models that deliver value to our
customers and promote Wiley
brand loyalty.

Expand market penetration
and reach of WileyPLUS globally.

Offer products in a variety
of formats, both print and
electronic, to provide customers
with choices.

Leverage partnerships for
expansion into new markets.

Expand custom publishing
business.

Increase sales of Higher
Education products into non-
traditional college channels,
including career colleges,
advanced placement classes,
and continuing education.

Grow Higher Education
worldwide through adaptations,
translations, and indigenous
publishing.

Tap opportunities in growth
markets in Asia and the
Middle East.

Generate savings and drive
productivity improvements
by expanding off-shoring and
outsourcing of manufacturing
and shared support services.

P U B L I S H I N G C E N T E R S

Australia, Canada, India, U.K.,
and U.S.

h igh er education > h e l p i n g t e a c h e rs

t o t e a c h a n d s t u d e n t s t o l e a r n

P R O D U C T S

Journals, encyclopedias,
books, databases, and
laboratory manuals in the life
sciences, physical sciences,
social sciences, medicine,
the humanities, engineering,
dentistry, veterinary science,
nursing, and other research-
based professions, delivered in
print and online.

C U S T O M E R S

Academic, corporate, govern-

ment, and public libraries;

researchers; clinicians; engineers

and technologists; scholarly and

professional societies; students;

and professors worldwide.

D I S T R I B U T I O N

Multiple channels including
libraries, library consortia,
subscription agents, bookstores,
online booksellers, and direct
sales to customers.

Collaborate with online enter-
prises that add value to Wiley
InterScience and to the new
Wiley-Blackwell platform that
will replace it in 2009.

Expand online offerings of book
backﬁ les and legacy reference
works.

Build advertising-supported
publications business.

Grow business in Asia, adding
new customers, authors, and
publishing programs.

Generate savings and drive
productivity improvements
by expanding off-shoring and
outsourcing of various content-
management, manufacturing,
and shared support services.

F I S C A L Y E A R
2 0 0 8 H I G H L I G H T S

Increased global revenue for
STMS (also known as Wiley-
Blackwell) by 74% to $978
million, or 6% excluding Black-
well. Blackwell’s revenue for

(continued on page 26)

B R A N D S / F R A N C H I S E S
Imprints: Wiley, Wiley-Blackwell,
Wiley-VCH, Blackwell Publish-
ing, 5 Minute Vet Consult, BMJ
Books, BPS-Blackwell, Blackwell
Synergy, Ernst & Sohn, GIT
Verlag, IEEE Press, IFT Press,
ISTE, Le Jacq, Polity, UK Vet,
Verlag Chimica Acta, Wiley
AcerS, Wiley AIChE. Other brands
include Wiley InterScience,
Essential Evidence Plus (formerly
InfoPOEMs), PharmaFile, The
Cochrane Library.

P U B L I S H I N G C E N T E R S

Australia, Germany, Singapore,
U.K., and U.S.

S T R A T E G I E S

Develop and manage as a global
business.

Partner with medical, scholarly,
and professional societies.

Provide superior support to
customers and clients.

Expand online content portfolio
and enhance it with additional
tools and services to improve
researchers’ and professionals’
productivity.

Make content and services more
accessible via enhanced online
platforms.

Create new online business
models and services.

> sc ie nt ific, technical, m edi cal, and sch ol arl y > providing services

and must-have content to researchers and practitioners and their
sc ho la rly and p rofessional s ocieti e s i n rese arch- b ase d p ro fes si o ns

Society for Research in Child
Development, the Society for
the Study of Addiction, and the
Society of Plastics Engineers.

Launched 25 new journals and
other serial publications, includ-
ing Biofuels, Bioproducts and
Bioreﬁ ning (Biofpr, in collabora-
tion with the Society of Chemical
Industry), ChemSusChem,
Current Protocols in Stem Cells,
and Health for Women.

Launched several other key
products, including Essential
Evidence Plus, an enhanced
version of the evidence-based
medicine point-of-care resource
InfoPOEMs with InfoRetriever,
and Mass Spectral Collections of
Drugs, the most comprehensive
such reference, in print and on
CD-ROM.

Sponsored Wiley-Blackwell
Executive Seminars, for execu-
tives and editors of professional
and scholarly societies, in
London, Washington, D.C.,
Copenhagen, Seoul, and Tokyo.

S T M S 2 0 0 8 H I G H L I G H T S
(continued from page 24)

FY 2008 was $485 million,
the vast majority of which is
included in global STMS.

Wiley InterScience visits grew
by 60%, with journal article
downloads increasing by 22% to
47 million and nonjournal content
downloads increasing by 18%
to 7.5 million. Similarly, journal
article downloads on Black-
well’s online platform, Blackwell
Synergy, grew by 14% to 71.5
million; Blackwell’s online book
program, launched in October
2006, had 1.5 million accesses in
the past year.

The number of books available
online through Wiley Inter-
Science continued to grow, with
over 6,000 titles now available,
including over 1,500 from the
former Blackwell.

Signed new publishing agree-
ments for 65 journals with
societies including the American
Association of Anatomists,
the American Anthropological
Association (AAA), the Cognitive
Science Society, the Interna-
tional Union of Biochemistry
and Molecular Biology, the
RAND Corporation, the Royal
Statistical Society, the Society
of Academic Emergency
Medicine, the Statistical Society
of Canada, and the Triological
Society, among others.

Renewed or extended publishing
contracts for 74 journals with
societies including the American
Association for the Study of
Liver Diseases, the American
Cancer Society, the American
Institute of Chemical Engineers,
The Cochrane Library, the
German Pharmaceutical Society,
the International Society on
Thrombosis and Haemostasis,
the Pathological Society, the
Policy Studies Organisation,
the Royal Entomological
Society, the Society for Applied
Microbiology, the Scandinavian
Plant Physiology Society, the

FORM 10-K

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

[x]

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended: April 30, 2008

[ ]

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)

For the transition period from to
Commission file number 1-11507

JOHN WILEY & SONS, INC.
(Exact name of Registrant as specified in its charter)

NEW YORK

State or other jurisdiction of incorporation or
organization

111 River Street, Hoboken, NJ

Address of principal executive offices

13-5593032

I.R.S. Employer Identification No.

07030

Zip Code

(201) 748-6000

Registrant’s telephone number
including area code

Securities registered pursuant to Section 12(b) of
the Act: Title of each class
Class A Common Stock, par value $1.00 per share

Class B Common Stock, par value $1.00 per share

Name of each exchange on which
registered
New York Stock Exchange

New York Stock Exchange

Securities registered pursuant to
Section 12(g) of the Act:
None

-1-

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes |X| No | |

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the
Exchange Act.

Yes | | No |X |

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes |X| No | |

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein,
and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. | |

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated
filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes | | No |X|

The aggregate market value of the voting stock held by non-affiliates of the registrant, computed by reference to the
closing price as of the last business day of the registrant’s most recently completed second fiscal quarter, October 31,
2007, was approximately $1,943,059,902. The registrant has no non-voting common stock.

The number of shares outstanding of the registrant’s Class A and Class B Common Stock as of May 31, 2008 was
49,006,732 and 9,645,765 respectively.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s definitive proxy statement for use in connection with its annual meeting of stockholders
scheduled to be held on September 18, 2008, are incorporated by reference into Part III of this form 10-K.

-2-

JOHN WILEY AND SONS, INC. AND SUBSIDIARIES
FORM 10-K
FOR THE FISCAL YEAR ENDED APRIL 30, 2008
INDEX

PART I
ITEM 1.
ITEM 1A.
ITEM 1B.
ITEM 2.
ITEM 3.
ITEM 4.

Business
Risk Factors
Unresolved Staff Comments
Properties
Legal Proceedings
Submission of Matters to a Vote of Security Holders

PAGE

4
4-7
7
8
8
9

PART II
ITEM 5. Market for the Company’s Common Equity and Related Stockholder Matters and

Issuer Purchases of Equity Securities

9
ITEM 6. Selected Financial Data
9
ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 9
ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk
9
ITEM 8. Financial Statements and Supplemental Data
9
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 80
ITEM 9.
Controls and Procedures
ITEM 9A.
80
Other Information
ITEM 9B.
80

Directors and Executive Officers of the Registrant
Executive Compensation

PART III
ITEM 10.
ITEM 11.
ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters
ITEM 13.
ITEM 14.

Certain Relationships and Related Transactions
Principal Accounting Fees and Services

82
82
82

81-82
82

PART IV
ITEM 15.

Signatures

Exhibits, Financial Statement Schedules and Reports on Form 8-K

83-85

86-92

-3-

PART I

Item 1. Business

The Company, founded in 1807, was incorporated in the state of New York on January 15, 1904. (As used
herein the term “Company” means John Wiley & Sons, Inc., and its subsidiaries and affiliated companies,
unless the context indicates otherwise.)

The Company is a global publisher of print and electronic products, providing content and solutions to
customers worldwide. Core businesses produce professional and consumer books and subscription products;
scientific, technical, medical and scholarly journals, encyclopedias, books, and online products; and textbooks
and educational materials, including integrated online teaching and learning resources, for undergraduate and
graduate students, teachers and lifelong learners. The Company takes full advantage of its content from all
three core businesses in developing and cross-marketing products to its diverse customer base of
professionals, consumers, researchers, students, and educators. The use of technology enables the Company
to make its content more accessible to its customers around the world. The Company maintains publishing,
marketing, and distribution centers in the United States, Canada, Europe, Asia, and Australia.

Further description of the Company’s business is incorporated herein by reference in the Management’s
Discussion and Analysis section of this 10-K.

Employees

As of April 30, 2008, the Company employed approximately 4,800 persons on a full-time basis worldwide.

Financial Information About Industry Segments

The note entitled “Segment Information” of the Notes to Consolidated Financial Statements and the
Management’s Discussion and Analysis section of this 10-K, both listed in the attached index, are incorporated
herein by reference.

Financial Information About Foreign and Domestic Operations and Export Sales

Item 1A. Risk Factors

This section describes the major business risks to the Company and should be carefully considered.

Cautionary Statement Under the Private Securities Litigation Reform Act of 1995:

This 10-K and our Annual Report to Shareholders for the year ending April 30, 2008 report contains certain
forward-looking statements concerning the Company’s operations, performance, and financial condition. In
addition, the Company provides forward-looking statements in other materials released to the public as well as
oral forward-looking information. Statements which contain the words anticipate, expect, believes, estimate,
project, forecast, plan, outlook, intend and similar expressions constitute forward-looking statements that
involve risk and uncertainties. Reliance should not be placed on forward-looking statements, as actual results
may differ materially from those in any forward-looking statements.

-4-

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
level of investment in new technologies and products; (ii) subscriber renewal rates for the Company’s journals;
(iii) the financial stability and liquidity of journal subscription agents; (iv) the consolidation of book wholesalers
and retail accounts; (v) the market position and financial stability of key retailers; (vi) the impact of the used-
book market; (vii) worldwide economic and political conditions; and (viii) the Company’s ability to protect its
copyrights and other intellectual property worldwide (ix) 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.

Operating Costs and Expenses

The Company has a significant investment, and cost, in its employee base around the world. The Company
offers competitive salaries and benefits in order to attract and retain the highly skilled workforce needed to
sustain and develop new products and services required for growth. Employment and benefit costs are
affected by competitive market conditions for qualified individuals, and factors such as healthcare, pension and
retirement benefits costs. The Company is a large paper purchaser, and paper prices may fluctuate
significantly from time-to-time. The Company attempts to moderate the exposure to fluctuations in price by
entering into multi-year supply contracts and having alternative suppliers available. In general, however, any
significant increase in the costs of goods and services provided to the Company may adversely affect the
Company’s costs of operation.

Protection of Intellectual Property Rights

Substantially all of the Company’s publications are protected by copyright, held either in the Company’s name,
in the name of the author of the work, or in the name of the sponsoring professional society. Such copyrights
protect the Company’s exclusive right to publish the work in the United States and in many countries abroad
for specified periods, in most cases the author’s life plus 70 years, but in any event a minimum of 28 years for
works published prior to 1978 and 50 years for works published thereafter. The ability of the Company to
continue to achieve its expected results depends, in part, upon the Company’s ability to protect its intellectual
property rights. The Company’s results may be adversely affected by lack of legal and/or technological
protections for its intellectual property in some jurisdictions and markets.

Maintaining the Company’s Reputation

Professionals worldwide rely upon many of the Company’s publications to perform their jobs. It is imperative
that the Company consistently demonstrates its ability to maintain the integrity of the information included in its
publications. Adverse publicity, whether or not valid, may reduce demand for the Company’s publications.

Trade Concentration and Credit Risk

In the journal publishing business, subscriptions are primarily sourced through journal subscription agents
who, acting as agents for library customers, facilitate ordering by consolidating the subscription orders/billings
of each subscriber with various publishers. Cash is generally collected in advance from subscribers by the
subscription agents and is remitted to the journal publisher, including the Company, generally prior to the
commencement of the subscriptions. Although at fiscal year-end the Company had minimal credit risk
exposure to these agents, future calendar-year subscription receipts from these agents are highly dependent

-5-

on their financial condition and liquidity. Subscription agents account for approximately 20% of consolidated
book and journal revenue and no one agent accounts for more than 8% of total consolidated revenue.

The Company’s business is not dependent upon a single customer; however, the industry is concentrated in
national, regional, and online bookstore chains. Although no one book customer accounts for more than 6% of
consolidated book and journal revenue, the top 10 book customers account for approximately 19% of total
consolidated revenue and approximately 39% of total gross trade accounts receivable at April 30, 2008.
Payments for the sale of journals are predominantly collected in advance.

Changes in Regulation and Accounting Standards

The Company maintains publishing, marketing and distribution centers in Asia, Australia, Canada, Europe and
the United States. The conduct of our business, including the sourcing of content, distribution, sales, marketing
and advertising is subject to various laws and regulations administered by governments around the world.
Changes in laws, regulations or government policies, including taxation requirements and accounting
standards, may adversely affect the Company’s future financial results.

Introduction of New Technologies or Products

Media and publishing companies exist in rapidly changing technological and competitive environments.
Therefore, the Company must continue to invest in technological and other innovations and adapt in order to
continue to add value to its products and services and remain competitive. There are uncertainties whenever
developing new products and services, and it is often possible that such new products and services may not
be launched or if launched, may not be profitable or as profitable as existing products and services.

Competition for Market Share and Author and Society Relationships

The Company operates in highly competitive markets. Success and continued growth depends greatly on
developing new products and the means to deliver them in an environment of rapid technological change.
Attracting new authors and societies, while retaining our existing relationships are also critical to our success.
We believe the Company is well positioned to meet these business challenges with the strength of our brands,
our reputation and innovative abilities.

Effects of Inflation and Cost Increases

The Company, from time to time, experiences cost increases reflecting, in part, general inflationary factors. To
mitigate the effect of cost increases, the Company may take various steps to reduce development, production
and manufacturing costs. In addition, the selling prices for our products may be selectively increased as
marketplace conditions permit.

Ability to Successfully Integrate Key Acquisitions

The Company’s growth strategy includes title, imprint and business acquisitions which complement the
Company’s existing businesses; the development of new products and services; designing and implementing
new methods of delivering products to our customers, and organic growth of existing brands and titles.
Acquisitions may have a substantial impact on costs, revenues, cash flows, and financial position such as, the
Company’s acquisition of Blackwell Publishing (Holdings) Ltd. (“Blackwell”) more fully described in Note 4 of
the annual report. Acquisitions involve risks and uncertainties, including difficulties in integrating acquired

-6-

operations and in realizing expected opportunities, diversions of management resources and loss of key
employees, challenges with respect to operating new businesses, debt incurred in financing such acquisitions,
and other unanticipated problems and liabilities.

Attracting and Retaining Key Employees

The Company’s success is highly dependent upon the retention of key employees globally. In addition, we are
dependent upon our ability to continue to attract new employees with key skills to support the continued
organic growth of the business.

Item 1B. Unresolved Staff Comments

None

-7-

Item 2. Properties

The Company occupies office, warehouse, and distribution facilities in various parts of the world, as listed
below (excluding those locations with less than 10,000 square feet of floor area, none of which is considered
material property). All of the buildings and the equipment owned or leased are believed to be in good
condition and are generally fully utilized.

Location

Purpose

Approx. Sq. Ft. Lease Expiration

Leased
Australia

Canada

England

Office
Office
Warehouse

Office & Warehouse
Office

Warehouse
Office
Office
Warehouse

Singapore

Office & Warehouse
Office

Germany

Office
Office

India

Warehouse

26,000
33,000
68,000

87,000
19,000

81,000
63,000
17,000
146,000

61,000
15,000

19,000
29,000

12,000

United States:
New Jersey

Corporate Headquarters

383,000

New Jersey

Distribution Center & Office 185,000

New Jersey

Warehouses

380,000

Indiana

California

Office

Massachusetts Office

Owned
Germany

England

Office

Office
Office

116,000

38,000

49,000

58,000

49,000
21,000

Iowa

Office & Warehouse

27,000

Item 3. Legal Proceedings

2018
2020
2016

2011
2010

2012
2027
2025
2021

2010
2008

2013
2009

2010

2017

2020

2021

2019

2012

2017

The Company is involved in routine litigation in the ordinary course of its business. In the opinion of
management, the ultimate resolution of all pending litigation will not have a material effect upon the financial
condition or results of operations of the Company.

-8-

Item 4. Submission of Matters to a Vote of Security Holders

No matters were submitted to the Company’s security holders during the last quarter of the fiscal year ended
April 30, 2008.

PART II

Item 5. Market for the Company’s Common Equity and Related Stockholder Matters and Issuer Purchases of

Equity Securities

The Quarterly Share Prices, Dividends, and Related Stockholder Matters listed in the index on page 10 are
incorporated herein by reference.

Item 6. Selected Financial Data

The Selected Financial Data listed in the index on page 10 is incorporated herein by reference.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s Discussion and Analysis of Financial Condition and Results of Operations listed in the index
on page 10 are incorporated herein by reference.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

The information appearing under the caption “Market Risk” in Management’s Discussion and Analysis of
Financial Condition and Results of Operations listed in the index on page 10 is incorporated herein by
reference.

Item 8. Financial Statements and Supplemental Data

The Financial Statements and Supplemental Data listed in the index on page 10 is incorporated herein by
reference.

-9-

JOHN WILEY & SONS, INC., AND SUBSIDIARIES
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULES

The following financial statements and information appearing on the pages indicated are filed as part of this report:

Page(s)

Management’s Discussion and Analysis of Business, Financial Condition

and Results of Operations.......................................……………………….…….………… 11-41

Results by Quarter (Unaudited)........................................………………………………………..

Quarterly Share Prices, Dividends, and Related Stockholder Matters and Issuer

Purchases of Equity Securities.....……………………………………………………..........

Selected Financial Data...............................................…………………………………………... 44

Management’s Report on Internal Control over Financial Reporting ……………………………

Reports of Independent Registered Public Accounting Firm…………………………………….. 46-47

Consolidated Statements of Financial Position as of April 30, 2008 and 2007.............……….

Consolidated Statements of Income for the years ended

April 30, 2008, 2007, and 2006 ………………………………………………………………

Consolidated Statements of Cash Flows for the years ended

April 30, 2008, 2007, and 2006…………………………………………………….

Consolidated Statements of Shareholders’ Equity and Comprehensive Income for the

years ended April 30, 2008, 2007, and 2006…...............................………………………

Notes to Consolidated Financial Statements...................………………....…………….………. 52-78

Schedule II — Valuation and Qualifying Accounts

for the years ended April 30, 2008, 2007, and 2006….......................…………………… 79

Other schedules are omitted because of the absence of conditions under which they apply or because the information
required is included in the Notes to Consolidated Financial Statements.

-10-

Management’s Discussion and Analysis of Business,
Financial Condition and Results of Operations

Business growth comes from a combination of title, imprint and business acquisitions which complement the
Company’s existing businesses; from the development of new products and services; from designing and
implementing new methods of delivering products to our customers; and from organic growth of existing brands
and titles.

Core Businesses

Professional/Trade:

The Company’s Professional/Trade business acquires, develops and publishes books and subscription products
in all media, in the subject areas of business, technology, architecture, culinary, psychology, education, travel,
consumer reference, and general interest. Products are developed for worldwide distribution through multiple
channels, including major chains and online booksellers, independent bookstores, libraries, colleges and
universities, warehouse clubs, corporations, direct marketing, and Web sites. Global Professional/Trade
publishing accounted for approximately 28% of total Company revenue in fiscal year 2008.

Key revenue growth strategies of the Professional/Trade business include adding value to its content,
developing its leading brands and franchises, and executing strategic acquisitions. Revenue for the Company’s
worldwide Professional/Trade business grew at a compound annual rate of 5% over the past five years.

Publishing alliances and franchise products are central to the Company’s strategy. The Company’s ability to
bring together Wiley’s product development, sales, marketing, distribution and technological capabilities with a
partner’s content and brand name recognition has been a driving factor in its success. Professional/Trade
alliance partners include General Mills, the Culinary Institute of America, the American Institute of Architects,
Mergent, Inc., the Microsoft Executive Leadership Series, the Leader to Leader Institute, Fisher Investments,
Morningstar, and Weight Watchers, among many others.

The Company’s Professional/Trade customers are professionals, consumers, and students worldwide. Highly
respected brands and extensive backlists are especially well suited for online bookstores such as Amazon.com.
With their unlimited “virtual” shelf space, online retailers merchandise the Company’s products for longer periods
of time than brick-and-mortar bookstores.

The Company promotes an active and growing Professional/Trade custom publishing program. Custom
publications are typically used by organizations for internal promotional or incentive programs. Books that are

-11-

specifically written for a customer or an existing Professional/Trade publication can be customized, such as
having the cover art include custom imprint, messages or slogans. Of special note are customized For
Dummies publications, which leverage the power of this well-known brand to meet the specific information
needs of a wide range of organizations around the world.

Key Acquisitions: The Company’s business plan includes organic growth as well as growth through acquisitions.
Key Professional/Trade acquisitions in recent years include: (i) In fiscal 2007, WhatsonWhen.com, a provider of
travel-related online content, technology, and services which compliment the Company’s travel products. (ii) In
fiscal year 2006, the publishing assets of Sybex, Inc., a leading publisher to the global information technology
professional community for nearly 30 years. Sybex published about 100 new titles a year and maintained a
backlist of over 450 titles in digital photography, operating systems, programming and gaming categories. (iii) In
fiscal year 2002, the Company acquired Hungry Minds Inc., a leading publisher with an outstanding collection of
respected brands, with such product lines as the For Dummies series, the Frommer’s and Unofficial Guide travel
series, the Bible and Visual technology series, the CliffsNotes study guides, Webster’s New World dictionaries,
and Betty Crocker and Weight Watchers cookbooks.

Scientific, Technical, and Medical (STM):

The Company is a leading publisher for the scientific, technical, medical and scholarly communities worldwide
including, scientists, researchers, clinicians, engineers, students and professors, and academic and corporate
librarians. STM products include journals, major reference works, reference books and protocols, in print and
online. STM publishing areas include the physical sciences and engineering, medical, social science and
humanities, life sciences, technology and professional. STM develops products for global distribution through
multiple channels, including library consortia, subscription agents, direct sales to professional society members,
bookstores, online booksellers and other customers. Global STM represented 58% of total Company revenue in
fiscal year 2008 including Blackwell. STM’s revenue grew at a compound annual rate of 26% over the past five
years, including Blackwell.

Publishing alliances play a major role in STM’s success. The Company publishes the journals of prestigious
societies, including the American Cancer Society, the British Journal of Surgery Society, the Federation of
European Biochemistry Societies and the German Chemical Society. These alliances bring mutual benefit, with
the societies gaining Wiley’s publishing, marketing, sales and distribution expertise, while Wiley benefits from
being affiliated with prestigious societies and their members.

1999,

commercially

service, Wiley

the Company’s web-based

Established
InterScience
(www.interscience.wiley.com), offers online access to more than 2,500 journals, books, reference works,
Current Protocols laboratory manuals and databases, as well as a suite of professional and management
resources. Wiley InterScience is based on a successful business model that features Enhanced Access
Licenses. One to three years in duration, Enhanced Access Licenses provide academic and corporate
customers with multi-site online access. The Company also offers other flexible pricing options such as, Basic
Access licenses, which provide click-on access title-by-title to the Company’s electronic journal content. Access
is also provided through Pay-Per-View, which serves customers who wish to purchase individual articles or
chapters. With over 25 million users in 87 countries around the globe, Wiley InterScience is one of the world’s
leading providers of scientific, technical, medical and scholarly content.

Wiley InterScience takes advantage of technology to update content frequently, and it adds new features and
resources on an ongoing basis to increase the productivity of scientists, professionals and students. Two
examples are EarlyView, through which customers can access individual articles well in advance of print

-12-

publication, and MobileEditions, which enables users to view tables of content and abstracts on wireless
handheld devices and Web-enabled phones.

In 2005, the Company announced a program to digitize its entire historical journal content, dating back to the
1800s. Wiley’s digitization of legacy content is designed to improve the research pathway and ensure content
discovery is as seamless and efficient as possible. The backfile collection, which is available online through
Wiley InterScience, spans two centuries of scientific research and comprise over 14 million pages – one of the
largest archives of its kind issued by a single publisher. As of April 30, 2008 virtually all of Wiley’s existing
journal content was digitized and made available to customers. The digitization program has been expanded to
include the journals acquired in the Blackwell acquisition described below.

Blackwell Publishing (Holdings) Ltd. (“Blackwell”): In fiscal year 2007, the Company acquired Blackwell, a
leading publisher of journals and books for the academic, research and professional markets focused on
science, technology, medicine and social sciences and humanities. Headquartered in Oxford, England,
Blackwell also maintains publishing locations in the United States, Asia, Australia, Denmark and Germany.
Approximately 50% of Blackwell’s annual revenue is derived from the United States. Blackwell currently
employs approximately 1,000 individuals worldwide with just over half located in the United Kingdom. The
acquisition of Blackwell enhances Wiley’s global position as a provider of must-have content and services,
expands and diversifies its journal portfolio, increases both print and on-line advertising revenue and increases
society relationships. With the acquisition of Blackwell, the Company now publishes approximately 1,500
journal titles with approximately 50% being affiliated with a professional or scholarly society.

In fiscal year 2006, the Company acquired InfoPoems Inc., a leading provider of evidence-based medicine
(EBM). This acquisition along with the Cochrane Collaboration database provides the foundation for the
Company’s growing suite of EBM products designed to improve patient healthcare. EBM facilitates the effective
management of patients through clinical expertise informed by best practice evidence that is derived from
medical literature.

Higher Education:

The Company publishes educational materials for the higher education market in all media, focusing on courses
in the sciences, geography, mathematics, engineering, accounting, business, economics, computer science,
psychology, education, and modern languages. In Australia, the Company is also a leading publisher for the
secondary school market.

Higher Education customers include undergraduate, graduate, and advanced placement students, educators,
and lifelong learners worldwide. Product is delivered principally through college bookstores, online booksellers,
and Web sites. Globally, Higher Educational generated 14% of total Company revenue in fiscal year 2008. The
Company’s worldwide Higher Education revenue grew at a compound annual rate of 5% over the past five
years.

Higher Education’s mission is to help teachers teach and students learn. Our strategy is to provide value-added
quality materials and services through textbooks, supplemental study aids, course and homework management
tools and more, in print and electronic formats. The Higher Education web site offers online learning materials
with links to more than 4,000 companion sub-sites to support and supplement textbooks.

Higher Education delivers high-quality online learning materials that offer more opportunities for customization
and accommodate diverse learning styles. The prime example is WileyPLUS, an integrated suite of teaching
and learning resources. By offering an electronic version of a text along with supplementary materials, content

-13-

provided by the instructor, and administrative tools, WileyPLUS supports the full range of course-oriented
activities, including online-planning, presentations, study, homework, and testing.

The Company also provides the services of the Wiley Faculty Network, a peer-to-peer network of
faculty/professors supporting the use of online course material tools and discipline-specific software in the
classroom. The Company believes this unique, reliable, and accessible service gives the Company a
competitive advantage.

Higher Education is also leveraging the web in its sales and marketing efforts. The web enhances the
Company’s ability to have direct contact with students and faculty at universities worldwide through the use of
interactive electronic brochures and e-mail campaigns.

Key Acquisition/Collaborations: In fiscal year 2007, Wiley became Microsoft’s sole publishing partner worldwide
for all Microsoft Official Academic Course (MOAC) materials. Microsoft and Wiley have begun publishing a co-
branded series of textbook and e-learning products on several topics released under Wiley-Microsoft logos.
Wiley has also assumed responsibility for the sale of existing MOAC titles. All titles will be marketed globally
and available in several languages. With Microsoft’s position as the world’s leading software company and
Wiley’s global presence in higher education, the alliance is an ideal strategic fit.

In fiscal year 2003, the Company acquired the assets of Maris Technologies to support the Company’s efforts to
produce web-enabled products. This acquisition included the market-leading software Edugen, which provides
the underlying technology for WileyPLUS. Located in Moscow, the development facility is staffed by
approximately 75 programmers and designers.

Publishing Operations

Journal Products:

The Company now publishes over 1,400 Scientific, Technical, Medical, Scholarly and approximately 100
Professional/Trade journals. Journal revenue and other related publishing income, such as advertising,
accounted for approximately 48% of the Company’s fiscal year 2008 revenue. The journal portfolio includes
journals owned by the Company, in which case they may or may not be sponsored by a professional society,
jointly owned with a professional society and those owned by such societies and published by the Company
pursuant to long-term contract. Societies that sponsor or own such journals generally receive a royalty and/or
other consideration. The Company usually enters into agreements with outside independent editors of journals
that state the duties of the editors, and the fees and expenses for their services. Contributors of journal articles
transfer publication rights to the Company or a professional society, as applicable. Journal articles may be
based on research funded through government or charitable grants. In certain cases the terms of the grant may
require the grantholder to make published articles available free of charge to the public, typically after an
embargo period. The Company provides services for a fee to enable the grantholder to comply.

The Company sells journal subscriptions through sales representatives; direct mail or other advertising;
promotional campaigns; and memberships in professional societies for those journals that are sponsored by
such societies. Journal subscriptions are primarily licensed through contracts for on-line content derived
through Wiley InterScience and/or Blackwell-Synergy. The contracts are negotiated directly with customers or
their subscription agents. Licenses range from one to three years in duration and typically cover calendar years.
Early in the fourth quarter of fiscal year 2008, the Company announced its plan for a combined enhanced and
rebranded online platform to support the Scientific, Technical, Medical and Scholarly business. The first phase
will be available to all customers beginning in July 2008.

-14-

Printed journals are generally mailed to subscribers directly from independent printers. Journal content is
available online. Subscription revenue is generally collected in advance, and is deferred and recognized as
earned when the related issue is shipped or made available online, or over the term of the subscription as
services are rendered.

Book Products:

Book products and book related publishing revenue, such as advertising revenue and the sale of publishing
rights, accounted for approximately 52% of the Company’s fiscal year 2008 revenue. Materials for book
publications are obtained from authors throughout most of the world through the efforts of an editorial staff,
outside editorial advisors, and advisory boards. Most materials originate with their authors, or as a result of
suggestion or solicitations by editors and advisors. The Company enters into agreements with authors that state
the terms and conditions under which the materials will be published, the name in which the copyright will be
registered, the basis for any royalties, and other matters. Most of the authors are compensated by royalties,
which vary with the nature of the product and its anticipated sales potential. The Company may make advance
payments against future royalties to authors of certain publications.

The Company continues to add new titles, revise existing titles, and discontinue the sale of others in the normal
course of its business, also creating adaptations of original content for specific markets fulfilling customer
demand. The Company’s general practice is to revise its textbooks every three to five years, if warranted, and to
revise other titles as appropriate. Subscription-based products are updated more frequently on a regular
schedule. Approximately 31% of the Company’s fiscal year 2008 U.S. book-publishing revenue was from titles
published or revised in the current fiscal year.

Professional and consumer books are sold to bookstores and online booksellers serving the general public;
wholesalers who supply such bookstores; warehouse clubs; college bookstores for their non-textbook
requirements; individual practitioners; and research institutions, libraries (including public, professional,
academic, and other special libraries), industrial organizations, and government agencies. The Company
employs sales representatives who call upon independent bookstores, national and regional chain bookstores
and wholesalers. Trade sales to bookstores and wholesalers are generally made on a returnable basis with
certain restrictions. The Company provides for estimated future returns on sales made during the year
principally based on historical experience. Sales of professional and consumer books also result from direct mail
campaigns, telemarketing, online access, and advertising and reviews in periodicals.

Adopted textbooks and related supplementary material, such as WileyPLUS, are sold primarily to bookstores,
including online bookstores, serving educational institutions. The Company employs sales representatives who
call on faculty responsible for selecting books to be used in courses, and on the bookstores that serve such
institutions and their students. Textbook sales are generally made on a fully returnable basis with certain
restrictions. The textbook business is seasonal, with the majority of textbook sales occurring during the June
through August and November through January periods. There is an active used textbook market, which
adversely affects the sales of new textbooks.

Like most other publishers, the Company generally contracts with independent printers and binderies for their
services. The Company purchases its paper from independent suppliers and printers. The fiscal year 2008
weighted average U.S. paper prices increased approximately 7% over fiscal year 2007. Management believes
that adequate printing and binding facilities, and sources of paper and other required materials are available to
it, and that it is not dependent upon any single supplier. Printed book products are distributed from both
Company-operated warehouses and independent distributors.

-15-

The Company develops content in digital format that can be used for both online and print products, which
results in productivity and efficiency savings, as well as enabling the Company to offer customized publishing
and print-on-demand products. Book content is increasingly being made available online through Wiley
InterScience, WileyPLUS and other platforms, and in eBook format through licenses with alliance partners. The
Company also sponsors online communities of interest, both on its own and in partnership with others, to
expand the market for its products.

The Company believes that the demand for new electronic technology products will continue to increase.
Accordingly, to properly service its customers and to remain competitive, the Company anticipates it will be
necessary to increase its expenditures related to such new technologies over the next several years.

The Internet not only enables the Company to deliver content online, but also helps to sell more books. The
growth of online booksellers benefits the Company because they provide unlimited virtual “shelf space” for the
Company’s entire backlist.

Marketing and distribution services are made available to other publishers under agency arrangements. The
Company also engages in co-publishing of titles with international publishers and in publication of adaptations of
works from other publishers for particular markets. The Company also receives licensing revenue from
photocopies, reproductions, and electronic uses of its content as well as advertising revenue from web sites
such as Frommers.com.

Global Operations

The Company’s publications are sold throughout most of the world through operations located in Europe,
Canada, Australia, Asia, and the United States. All operations market their indigenous publications, as well as
publications produced by other parts of the Company. The Company also markets publications through agents
as well as sales representatives in countries not served by the Company. John Wiley & Sons International
Rights, Inc. sells reprint and translations rights worldwide. The Company publishes or licenses others to publish
its products, which are distributed throughout the world in many languages. Approximately 49% of the
Company’s fiscal year 2008 revenue was derived from non-U.S. markets.

Competition and Economic Drivers Within the Publishing Industry

The sectors of the publishing industry in which the Company is engaged are highly competitive. The principal
competitive criteria for the publishing industry are considered to be the following: product quality, customer
service, suitability of format and subject matter, author reputation, price, timely availability of both new titles and
revisions of existing books, online availability of published information, and timely delivery of products to
customers.

The Company is in the top rank of publishers of scientific and technical journals worldwide, as well as a leading
commercial chemistry publisher at the research level; one of the leading publishers of university and college
textbooks and related materials for the “hardside” disciplines, (i.e. sciences, engineering, and mathematics), and
a leading publisher in its targeted professional/trade markets. The Company knows of no reliable industry
statistics that would enable it to determine its share of the various international markets in which it operates.

Performance Measurements

The Company measures its performance based upon revenue, operating income, earnings per share and cash
flow, excluding unusual or one-time events, and considering worldwide and regional economic and market
conditions. The Company evaluates market share statistics for publishing programs in each of its businesses.

-16-

STM uses various reports to monitor competitor performance and industry financial metrics. Specifically for
journal titles, the ISI Impact Factor, published by the Institute for Scientific Information, is used as a key metric of
a journal titles influence in scientific publishing. For Professional/Trade, market share statistics published by
BOOKSCAN, a statistical clearinghouse for book industry point of sale data in the United States, are used. The
statistics include survey data from all major retail outlets, on-line booksellers, mass merchandisers, small chain
and independent retail outlets. For Higher Education, the Company subscribes to Management Practices Inc.,
which publishes customized comparative sales reports.

-17-

Results of Operations

Fiscal Year 2008 Summary Results

Revenue for fiscal year 2008 increased 36% to $1,673.7 million, or 33% excluding the favorable impact of
foreign exchange. Blackwell Publishing Ltd. (“Blackwell”), which was acquired on February 2, 2007, contributed
$379.4 million to the revenue growth, increasing from $105.8 million in fiscal year 2007 to $485.2 million in fiscal
year 2008. Excluding Blackwell, revenue grew 5% to $1,188.5 million, or 3% excluding the favorable impact of
foreign exchange. Strong revenue growth in Europe and Asia was tempered by moderate growth in the U.S.
markets.

Gross profit margin in fiscal year 2008 of 67.9% was essentially the same as in the prior year. Operating and
administrative expenses for fiscal year 2008 increased 33% to $874.9 million, including $187.5 million of
incremental operating expenses for Blackwell. Included in Blackwell operating and administrative expenses are
approximately $21 million of costs related to the transition and integration of Blackwell. Operating and
administrative expenses for fiscal year 2008 increased 2%, excluding Blackwell and the unfavorable impact of
foreign exchange. The increase was mainly due to higher planned employment and other costs to support
business growth; increased editorial and production associated with new journals; and costs associated with the
development of indigenous publishing programs. The Company recorded a $4.4 million bad debt provision in
fiscal year 2007 related to the bankruptcy of Advanced Marketing Services and a $1.9 million recovery of that
bad debt in the current fiscal year. Amortization of intangibles increased $18.3 million, principally due to the
Blackwell acquisition.

Operating income improved 38% to $223.0 million in fiscal year 2008, including incremental operating income of
$56.6 million related to Blackwell, which increased from $6.5 million in fiscal year 2007 to $63.1 million in fiscal
year 2008. Excluding Blackwell, operating income improved 3% to $159.9 million, or 1% excluding the
favorable impact of foreign exchange. Revenue growth was partially offset by higher planned operating
expenses. Net interest expense and other increased $39.7 million to $61.5 million, mainly due to finance costs
associated with the Blackwell acquisition.

The effective tax rate for fiscal year 2008 was 8.7% compared to 28.6% in the prior year period. During fiscal
year 2008, the Company recorded an $18.7 million tax benefit associated with new tax legislation enacted in the
United Kingdom (U.K.) and Germany that reduced the corporate income tax rates from approximately 30% to
28% and 39% to 29%, respectively. The benefits recognized by the Company reflect the adjustments required
to restate all applicable deferred tax balances at the new income tax rates. The new tax rates were effective in
Germany as of May 1, 2007 and in the U.K. as of April 1, 2008. The tax provision for fiscal year 2007 included
tax benefits of $5.5 million related to the settlement and resolution of certain tax matters with authorities in the
U.S. and abroad. Excluding Blackwell and the tax benefits described above, the effective tax rates for fiscal
years 2008 and 2007 were 30.2% and 35.1%, respectively. The decrease was principally due to lower taxes on
non-U.S. sourced earnings. Blackwell’s effective tax rate had, and is expected to have, a favorable impact on
the Company’s consolidated effective tax rate.

Reported earnings per diluted share and net income for fiscal year 2008 were $2.49 and $147.5 million,
respectively. Adjusted to exclude the non-cash deferred tax benefits described above, earnings per diluted
share and net income for fiscal year 2008 were $2.17 and $128.9 million, respectively. Earnings per diluted
share and net income for fiscal year 2007 adjusted to exclude the 2007 tax benefits described above were $1.62
and $94.2 million, respectively. Excluding the tax benefits, Blackwell’s results were accretive to earnings per

-18-

diluted share and net income by approximately $0.29 and $17.0 million, respectively. See Non-GAAP Financial
Measures described below.

Non-GAAP Financial Measures: The Company’s management internally evaluates its operating performance
excluding unusual and/or nonrecurring events. The Company believes excluding such events provides a more
effective and comparable measure of current and future performance. We also believe that excluding the effects
of the following tax benefits provides a more balanced view of the underlying dynamics of our business.

Deferred Tax Benefit on Changes in Statutory Tax Rates

The Company recorded an $18.7 million tax benefit ($15.6 million for Blackwell) associated with new tax
legislation enacted in the United Kingdom (U.K.) and Germany that reduced the corporate income tax rates from
approximately 30% to 28% and 39% to 29%, respectively. The benefits recognized by the Company reflect the
adjustments required to restate all applicable deferred tax balances at the new income tax rates. These benefits
have been adjusted below due to their infrequent non-recurring nature.

Benefits on the Finalization of Tax Audits

Fiscal year 2007 includes a $5.5 million tax benefit, or $0.09 per diluted share, which resulted from the favorable
resolution and settlements of certain tax matters with authorities in the U.S. and abroad. The Company has
excluded these benefits from adjusted net income and adjusted earnings per share due to their significance to
both measurements and uncertainty as to their reoccurrence in the future.

Since adjusted net income and adjusted earnings per share are not measures calculated in accordance with
GAAP, they should not be considered as a substitute for other GAAP measures, including net income and
earnings per share as indicators of operating performance. Accordingly, adjusted net income and adjusted
earnings per diluted share are reconciled below to net income and earnings per share on a GAAP basis, for
fiscal years 2008 and 2007.

Reconciliation of Non-GAAP Financial Disclosure

Net Income (in thousands)

For the Years Ended
April 30,
2008

2007

As Reported

$147,536

$99,619

Deferred Tax Benefit on Changes in Statutory Rates

(18,663)

Tax Benefits on The Finalization of Audits

(5,468)

Adjusted

$128,873 $94,151

Earnings Per Diluted Share

As Reported

For the Years Ended
April 30,

2008

2007

$2.49

$1.71

Deferred Tax Benefit on Changes in Statutory Rates

(0.31)

Tax Benefits on The Finalization of Audits

(0.09)

Adjusted

$2.17

$1.62

-19-

Fiscal Year 2008 Segment Results

Blackwell is reported below as a separate segment. In connection with the integration of Blackwell, we have
conformed the classification of certain accounts in our Statements of Income and segment reporting and
realigned certain product lines in our segment reporting to correspond with management responsibility. All prior
year periods have been restated for comparability. These changes had no impact on Wiley’s consolidated net
income or earnings per share.

The Company is developing a global organizational structure encompassing Wiley’s three core businesses
(Scientific, Technical, Medical and Scholarly; Professional Trade and Higher Education). We believe that by
leveraging our content services and capabilities around the world, we can better serve our authors, society
partners, and customers, while increasing revenue, profitability and return on investment and enhancing our
position in the market. In fiscal year 2009, we anticipate implementing and reporting our Company’s financial
and operating results as three global business segments.

Professional/Trade (P/T):

Dollars in thousands
Revenue
Direct Contribution
Contribution Margin

2008
$395,200
$110,943
28.1%

2007
$390,524
$106,546
27.3%

%
change
1%
4%

Wiley’s U.S. P/T revenue for fiscal year 2008 advanced slightly to $395.2 million from $390.5 million in the
previous year. Revenue growth was adversely affected by sluggish market conditions, tight inventory
management by some key accounts late in the fiscal year and higher sales returns. Growth during the year was
principally in business, psychology, technology and general interest programs and the sale of rights and brand
licensing. Globally, P/T revenue increased 3% for the full year.

Direct contribution to profit for fiscal year 2008 improved 4% to $110.9 million. Direct contribution margin
improved 80 basis points to 28.1%. The improvement for the year was principally due to the favorable year-on-
year effect of a $4.4 million bad debt provision recorded in fiscal year 2007 related to the bankruptcy of
Advanced Marketing Services and a $1.9 million recovery of that bad debt in the current fiscal year. In addition,
the effect of lower variable incentive compensation on direct contribution margin was partially offset by higher
inventory obsolescence provisions.

Highlights for fiscal year 2008 included the publication of the fifth title in the best-selling Little Book series, The
Little Book That Builds Wealth: The Knockout Formula for Finding Great Investments by Pat Dorsey; two firsts
from the For Dummies technology list, the inaugural “do-it-yourself” title, Web Sites Do-It-Yourself For Dummies,
and the first title targeted at the “over-50” consumer, Computers For Seniors For Dummies. Quarter highlights
also included Jim Hightower’s Swim against the Current: Even a Dead Fish Can Go With the Flow; Heaven and
Hell: My Life in the Eagles (1974-2001) by Don Felder; The Architect’s Handbook of Professional Practice, 14th
edition, edited by the American Institute of Architects; Clinician’s Guide to Treating Stress After War and
Strategies for Managing Stress After War, both by Julia M. Whealin, Lori T. DeCarvalho and Edward M. Vega;
and the four-volume reference work, Comprehensive Handbook of Social Work and Social Welfare by Karen M.
Sowers and Catherine N. Dulmus.

Previously published titles continued to sell well throughout the year, including Weight Watchers New Complete
Cookbook and Weight Watchers All-Time Favorites, along with Mark Bittman’s, How to Cook Everything

-20-

Vegetarian. The Kouzes/Posner Leadership Challenge and Patrick Lencioni’s suite of leadership titles had
strong years.

Several P/T books received considerable media and customer attention during the year, including: Fred
Kaplan’s Daydream Believers: How a Few Grand Ideas Wrecked American Power, which was reviewed
prominently in the New York Times’s Arts Section, on National Public Radio, MSNBC and in regional media.
Swim against the Current: Even a Dead Fish Can Go with the Flow by Jim Hightower received national radio
and newspaper attention. Mark Bittman’s How to Cook Everything Vegetarian continued to garner national
media attention, supported by the author’s regular appearances on the Today Show, the launch of his own New
York Times blog, “Bitten,” and a column in Men’s Health magazine. Pauline Frommer continued to provide
expert opinion in local and national media as an authority on budget travel.

Timely P/T environmental titles, Green Building and Remodeling for Dummies, Green Living for Dummies and
Solar Power Your Home for Dummies, attracted national and regional attention. Books featured on major
bestseller lists included Five Dysfunctions of a Team by Patrick Lencioni; Ready, Fire, Aim: Zero to $100 Million
in No Time Flat by Michael Masterson; J.K. Lasser’s Your Income Tax 2008; Staring at the Sun: Overcoming the
Terror of Death by Irvin D. Yalom; How: Why How We Do Anything Means Everything...in Business (and in Life)
by Dov Seidman; and Swim against the Current: Even a Dead Fish Can Go With the Flow by Jim Hightower.

Several P/T titles were honored with awards during the year. The International Association of Culinary
Professionals (IACP) named Fish Forever by Paul Johnson “Cookbook of the Year,” a first for Wiley, and three
Wiley cookbooks won best-in-category, How to Cook Everything Vegetarian by Mark Bittman; Chocolates and
Confections by Peter C. Greweling and The Culinary Institute of America; and Fish Forever. The Nautilus Book
Awards recognized six Wiley publications that contribute to positive social change, spiritual growth, conscious
living, high-level wellness and responsible leadership with silver awards.

Fiscal year 2008 was a strong year for P/T digital initiatives, including the launch of the Webster’s New World
Web site and JKLasser.com. Frommers.com included its first sponsored microsite, Family Vacations with
Sheraton Hotels, as well as a custom site for Rail Europe, and a blog by Arthur Frommer, featuring travel
resources, tips, travel bargains, message boards and current events.

Scientific, Technical and Medical (STM):

Dollars in thousands
Revenue
Direct Contribution
Contribution Margin

2008
$235,094
$114,243
48.6%

2007
$230,916
$115,169
49.9%

%
change
2%
(1%)

U.S. STM revenue for fiscal year 2008 grew 2% over prior year to $235.1 million. Revenue growth was
attributable to moderate journal subscription growth. Global STM revenue advanced 6% for the full year,
excluding Blackwell.

Direct contribution to profit for fiscal year 2008 decreased 1% to $114.2 million. Direct contribution margin
declined 130 basis points to 48.6% mainly due to increased production costs associated with new journal titles,
higher marketing costs and consulting fees.

Throughout the year, STM signed agreements to publish journals with a number of scholarly societies. During
the fourth quarter, the American Cancer Society (ACS) selected the Company to publish CA, beginning in
January 2009. Wiley and the ACS already collaborate on Cancer and Cancer Cytopathology. Wiley was also
chosen by the Triological Society to publish The Laryngoscope, a venerable journal first published in 1896, and
-21-

the Society of Plastics Engineers, to publish Plastics Engineering, a news magazine delivering the latest
information for the global market in machinery, materials, plastics processing and all matters relating to the
plastics industry.

During the fiscal year, Wiley also signed agreements with the Society for Science and the Public to electronically
distribute its news magazine, Science News, and to designate the Wiley-published journal, Statistical Analysis
and Data Mining, as “an official journal of the American Statistical Association (ASA),” The ASA will also
collaborate with Wiley on the editorial direction, strategy and process for this new cross-disciplinary publication.
Wiley reached an agreement to publish the quarterly Canadian Journal of Statistics next year on behalf of the
Statistical Society of Canada. These two agreements reinforce the Company’s leadership in statistics
publishing.

STM reached an agreement with the Boston-based JoVE (Journal of Visualized Experiments) for the publication
of online videos detailing the research process for its Current Protocols series. Since being indexed in Medline
earlier in the year, Current Protocols online publications (particularly Current Protocols Molecular Biology and
Current Protocols Cell Biology) have experienced a substantial increase in traffic.

The Hospitalist, which Wiley publishes with the Society of Hospital Medicine (SHM), received two awards from
the American Society of Healthcare Publication Editors: Bronze for Best Custom Publication and Gold for Best
Regular Staff-Written column. Earlier in the year, in conjunction with SHM, Wiley launched "Wachter's World," a
blog written by Dr. Robert M. Wachter, which addresses current issues in hospital care and inpatient medicine.
Dr. Wachter is co-founder of SHM.

In January 2008, legislation was passed in the U.S. mandating the NIH Public Access Policy. Under this policy,
all research funded by the National Institutes of Health (NIH) must be made available to the public free of charge
after a 12-month embargo. Wiley will support its authors by complying on their behalf through posting the
accepted journal articles written by NIH grant-holders to PubMedCentral.

In fiscal year 2008, Wiley nearly doubled its Online Books offering. Over 6,000 titles are now available on Wiley
InterScience, including approximately 1,700 Blackwell books.

Blackwell:

Dollars in thousands
Revenue
Direct Contribution
Contribution Margin

2008
$485,241
$170,211
35.1%

2007
$105,760
$28,853
27.3%

Blackwell’s operating results have been included in the consolidated results of the Company since February 2,
2007, the date of the acquisition. Blackwell revenue and direct contribution for fiscal year 2008 were $485.2
million and $170.2 million, respectively. Included in fiscal year 2008 operating costs were approximately $21
million of transition and integration related costs. Direct contribution included $22.3 million of non-cash
amortization charges for intangible assets related to the acquisition. For the full year, interest costs associated
with the financing of the acquisition were approximately $65.8 million. Blackwell contributed approximately
$0.55 to the Company’s fiscal year 2008 earnings per share, or $0.29, excluding one-time tax benefits. New tax
legislation reduced the U.K. corporate income tax rate from 30% to 28%, resulting in a $0.26 per share deferred
tax benefit, mainly attributable to the intellectual publishing assets acquired with Blackwell. In fiscal year 2007,
Blackwell results were dilutive to earnings per share by approximately $0.02.

-22-

Blackwell revenue for the fourth quarter, which is the first quarter with comparative year over year results,
increased to $138.2 million from $105.8 million in the prior year. The increase was principally driven by
subscription revenue and backfile sales. The improvement also reflected a purchase accounting adjustment of
approximately $16 million that reduced revenue in the fourth quarter of fiscal year 2007. The growth in backfile
sales was due to accelerated digitization of Blackwell journals. Direct contribution for the quarter improved to
$50.9 million from $28.9 million in the previous year, mainly due to revenue growth. Blackwell’s results for the
fourth quarter of fiscal year 2008 contributed approximately $0.11 to Wiley’s earnings per share compared to
$0.02 dilution in the same period of the last year.

Over the course of the year, the Company added 65 society journals, renewed or extended 74 journals, and lost
only 3 journals to competitors. The Scandinavian Plant Physiology Society renewed the publishing agreement
for one of its key plant science journals, Physiologia Plantarum. A new agreement was signed for Economic
Geography, the leading journal in its field. The Australian Anthropological Society chose Blackwell as publisher
of the Australian Journal of Anthropology. The Certified Public Accountants of Australia selected Blackwell to
publish Australian Accounting Review. Blackwell entered into a collaborative agreement with the Association for
the Study of Ethnicity and Nationalism to publish, Studies in Ethnicity and Nationalism and Nations and
Nationalism. The International Journal of Experimental Pathology renewed its contract for its eponymous
journal.

Blackwell published a new edition of the Five Minute Veterinary Consult as a workflow tool on Personal Digital
Assistants (PDAs). This best-selling reference book is now delivered to the point of care, providing
veterinarians in the field with easy access to medical data. The service provides for instant information on
diagnostic signs, causes of the disease, treatment protocols, medicines and dosage.

Several Blackwell publications were highlighted by the media and honored with awards during the year. The
British Medical Association recognized eleven Blackwell publications with book awards and the Association of
American Publishers Professional and Scholarly Publishing Awards for Excellence named Mind, Brain, and
Education as the “Best New Journal in 2007.” Blackwell Reference Online, which was enhanced by the addition
of many new titles during the year, was cited by Choice as “an outstanding academic resource.”

Higher Education:

Dollars in thousands
Revenue
Direct Contribution
Contribution Margin

2008
$164,708
$44,303
26.9%

2007
$162,473
$42,554
26.2%

%
change
1%
4%

U.S. Higher Education revenue increased 1% in fiscal year 2008 to $164.7 million. Solid performances by the
science and business/accounting programs, sales of Microsoft Official Academic Course (MOAC) titles and the
sale of translation rights and reprints were offset by backlist attrition in mathematics, engineering and the social
sciences. Globally, Higher Education revenue increased 5% for the full year.

Direct contribution to profit for fiscal year 2008 advanced 4% to $44.3 million. Revenue growth and prudent
expense management contributed to the improvement over the prior year periods.

WileyPLUS delivered strong results in fiscal year 2008 with sales increasing 35% over prior year, and digital-
only sales nearly doubling. Student usage around the world continued to climb sharply, with registered users
increasing 10% in the U.S. and more than doubling outside the U.S. Seventeen percent of WileyPLUS’ user
base is located outside the U.S. WileyPLUS ended the year with a milestone achievement, the validation of the
500,000th student user in April.

-23-

Online sales directly to students grew significantly during the year. Wiley built on its successful relationships
with online retailers by participating in a number of marketing promotions. Wiley also continued to utilize
CourseSmart to distribute digital complimentary copies to faculty. CourseSmart is a venture founded by six
higher education publishers, with the goal of providing instructors and students access to digital course
materials. Launched in its Beta version this year, CourseSmart provides thousands of textbooks across
hundreds of courses in an eTextbook format on a common platform. Nearly 200 Wiley titles were available to
professors through the site for their review.

During the year, Wiley signed an agreement with Economic Modeling Specialists, Inc. (EMSI), a provider of
detailed information about regional economies for assessment and planning purposes. Under the agreement,
EMSI will produce co-branded regional reports focusing on the labor market demand for occupations linked to
Wiley Pathways curricula, which cover four major fields: business, emergency management, health care
management and information technology. The reports will inform colleges about opportunities for developing,
expanding or supporting related programs.

Key revisions published in fiscal year 2008 include Psychology, 5th edition, by Robin M. Kowalski and Drew
Westen; Introduction to Finance: Markets, Investments, and Financial Management, 13th edition, by Ronald W.
Melicher and Edgar A. Norton; Educational Psychology: Reflection for Action, 2nd edition, by Angela O'Donnell,
Johnmarshall Reeve, and Jeffrey Smith; Financial Accounting in an Economic Context, 7th edition, by Jamie
Pratt; Foundations of Multinational Financial Management, 6th edition, by Alan C. Shapiro and Atulya Sarin;
Chemistry: Structure and Dynamics, 4th edition, by James N. Spencer, George M. Bodner and Lyman H.
Rickard; and Principles of Anatomy and Physiology, 12th edition, by Gerard J. Tortora and Bryan H. Derrickson.

Europe:

Dollars in thousands
Revenue
Direct Contribution
Contribution Margin

2008
$348,338
$121,904
35.0%

2007
$315,908
$109,825
34.8%

%
change
10%
11%

%
excluding FX
5%
9%

Wiley Europe’s revenue for fiscal year 2008 increased 10% to $348.3 million, or 5% after adjusting for the
favorable effect of foreign exchange. Revenue growth for the year was driven by STM journal subscriptions and
P/T and Higher Education indigenous book programs. Direct contribution to profit for the full year increased
11% over prior year, or 9% after adjusting for foreign exchange mainly due to top-line results. Direct
contribution margin increased 20 basis points to 35.0% mainly due to cost savings in production, sales and
marketing.

In Europe, P/T had a solid year with For Dummies titles and P/T English language products contributing to the
results. U.K. travel guides accelerated the global expansion of the Frommer’s brand outside North America.
During the year, P/T continued to diversify into corporate sales, custom publishing and travel, thereby opening
new revenue streams. During the fourth quarter, Wiley and the Dana Center, an extension of the Science
Museum in London, launched three P/T titles: Being Virtual: Who You Really Are Online by Davey Winder;
Powering Up: Are Computer Games Changing Our Lives? by Rebecca Mileham; and Enhancing Me: The Hope
and the Hype of Human Enhancement by Pete Moore with live and virtual launch events at the Dana Centre and
in Second Life, the three-dimensional online virtual world. Wiley also signed a contract with NYSE-Euronext to
publish a series of introductory trading titles.

While STM books had a difficult year as a result of scheduling delays for new publications. The Microscopy &
Analysis Directory 2008 published during the fourth quarter to strong response. The Directory is primarily a print

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product with an online counterpart. In addition, two new major reference works were launched on Wiley
InterScience, following their print publication earlier in the year: Handbook of Biosensors and Biochips by
Robert S. Marks and Encyclopedia of Statistics in Quality and Reliability by Fabrizio Ruggeri, Ron S. Kennett
and Frederick W. Faltin.

During the year, Wiley signed an agreement with the Novartis Foundation to digitize the Ciba Foundation series
from its beginning in 1953 up to 1986 when Wiley became the Foundation’s publisher. The collection will only
be available electronically as a complete set or as separate volumes with individual chapters downloadable from
Wiley InterScience.

In Higher Education, Organizational Behaviour by Dr. Ray French, a European adaptation of a successful U.S.
Higher Education textbook by John Schermerhorn, was released during the year. A showcase Web site,
featuring video interviews for Managing Innovation: Integrating Technological, Market and Organizational
Change by Joe Tidd, was also launched, in advance of the book’s 4th edition. WileyPLUS gained traction
throughout the year, especially in the Middle East, where a new adoption was won earlier this year in Saudi
Arabia.

Asia, Australia and Canada:

Dollars in thousands
Revenue
Direct Contribution
Contribution Margin

2008
$154,961
$34,377
22.2%

2007
$132,992
$28,145
21.2%

%
change
17%
22%

%
excluding FX
8%
(3%)

Wiley’s revenue in Asia, Australia and Canada increased over prior year by 17% to $155.0 million. Favorable
foreign exchange contributed approximately 9% to the annual growth. Growth was driven mainly by strong P/T
and STM sales in Asia. Results were tempered by a disappointing year for Wiley Australia’s School business
and lower P/T sales in Canada, which were affected by pricing pressure caused by the strengthening of the
Canadian dollar against the U.S. dollar.

Direct contribution to profit for fiscal year 2008 increased 22%, but declined 3% after adjusting for foreign
exchange. Excluding the favorable effect of foreign exchange, direct contribution margin declined 230 basis
points to 18.9% due to product mix and increased investments in indigenous publishing programs.

In Asia, fiscal year 2008 offered the first glimpse of the powerful combination of Blackwell and Wiley. The efforts
undertaken to build Wiley’s newest STMS publishing center in Asia, while consolidating Wiley and Blackwell
operations, produced strong revenue growth, especially in Southeast Asia, China, and India.

In fiscal year 2008, P/T was strong across almost all territories in Asia with frontlist performing well in a buoyant
retail market. Sell-through was strong in all categories with business and finance leading the way, but with
technology following close behind. Corporate sales, custom publishing, and translation licensing, involving titles
such as The Future and Me: Power of Youth Market in Asia by MasterCard; A Guide to Asian High Yield Bonds:
Financing Growth Enterprises by Florian Schmidt and Adam Harper, The Holy Grail of Macro Economics:
Lessons from Japan's Great Recession by Richard Koo and Hot Commodities: How Anyone Can Invest
Profitably in the World's Best Market by Jim Rogers, also drove growth.

Higher Education experienced good results in China, Thailand, Japan and Indonesia, but this growth was offset
by sluggish markets in Singapore and Taiwan, especially in the fourth quarter. With several new Wiley Precise
Edition textbooks publishing during the year, India delivered strong results. WileyPLUS continued to make
inroads throughout Asia. A successful class test was conducted in China in the fourth quarter.

-25-

Wiley Australia had mixed results. Higher revenue from the sale of imported P/T and Higher Education books
was partially offset by a weak showing from the indigenous School frontlist. There was extensive Australian
media coverage of a number of local and imported Wiley trade titles during the year. Wiley Australia was
honored with several awards during the year, including the Australian Awards for Excellence in Educational
Publishing in the Tertiary Adaptation Single Title category for Principles of Accounting by Jerry J. Weygandt.
Peter Donoughue, Managing Director of Wiley Australia, was honored as one of the inaugural recipients of the
Australian Publishers Association’s George Robertson Service to the Publishing Industry Award, which
recognizes those with more than 30 years devoted and loyal service to the publishing industry.

Throughout the fiscal year, Wiley Canada experienced considerable success in the Higher Education channel,
with a 25% revenue gain from WileyPLUS and excellent results from the indigenous publishing program. While
several P/T channels (including online, special and custom sales, and clubs) performed well, the strength of the
Canadian dollar against the U.S. dollar offset those gains. Standout products include SMART Boards For
Dummies (for which there was a large custom order); leadership books; Frommer’s travel guides; Weight
Watchers All-Time Favorites; and the Canadian Encyclopedia of Natural Medicine.

Shared Service and Administrative Costs

Shared services and administrative costs for fiscal year 2008 increased 38% to $373.0 million, mainly due to
$84.8 million of incremental shared service and administrative costs related to Blackwell. Included in Blackwell
shared service and administrative costs are transition and integration costs of approximately $21 million.
Shared services and administrative costs, excluding Blackwell and unfavorable foreign exchange, increased
5%, mainly due to higher employment costs, higher facility costs to support business growth and professional
fees.

-26-

Results of Operations

Fiscal Year 2007 Summary Results

For the full year, revenue advanced 18% over prior year to $1.2 billion, or 17% excluding the favorable impact of
foreign exchange. Blackwell Publishing Ltd. (“Blackwell”) contributed $105.8 million to the revenue growth since
it was acquired on February 2, 2007. The year-on-year growth reflected continued momentum in the
Company’s global businesses. Excluding Blackwell, revenue grew 8% to $1.1 billion, or 7% excluding the
favorable impact of foreign exchange.

Gross profit margin for fiscal year 2007 decreased to 65.9% from 67.2% in the prior year. Lower inventory and
author advance provisions due to higher sales were more than offset by the adverse impact of a $13 million
acquisition accounting adjustment to revenue, and gross margins on Blackwell sales. Excluding the acquisition
accounting adjustment, Blackwell’s gross margin was approximately 53%. Excluding Blackwell, gross profit
margin improved 40 basis points to 67.6%.

Operating and administrative expenses increased 18% over the prior year, or 16% excluding the adverse impact
of foreign exchange. The increase primarily reflects $38.7 million of incremental operating expenses related to
Blackwell; increased editorial/production costs, marketing and selling to support business growth; stock option
costs of $11.3 million associated with the adoption of SFAS 123R; and a $4.4 million bad debt provision related
to the bankruptcy of Advanced Marketing Services (AMS).

Amortization of intangibles increased $7.2 million principally due to acquisitions. The Blackwell acquisition
contributed approximately $5.5 million of the increase. Operating income improved 6% to $161.3 million in fiscal
year 2007, including operating income of $6.5 million related to Blackwell. The operating margin for fiscal year
2007 was 13.1% or 13.7% excluding Blackwell, as compared to 14.6% in the prior year period. Improved gross
margin and lower depreciation were offset by incremental expenses associated with the adoption of SFAS 123R
and the AMS bad debt provision. Net interest expense and other increased $12.9 million to $21.8 million mainly
due to finance costs associated with the Blackwell acquisition.

The effective tax rate for fiscal year 2007 was 28.6% compared to 23.3% in the prior year. Fiscal years 2007
and 2006 include tax benefits of $5.5 million and $6.8 million, respectively, due to the resolution and settlements
of certain matters with state, federal and international tax authorities. Fiscal year 2006 also includes a $7.5
million tax benefit associated with the reversal of a tax accrual recorded on the repatriation of dividends from
European subsidiaries in the fourth quarter of fiscal year 2005. On May 10, 2005, the U.S. Internal Revenue
Service issued Notice 2005-38. The notice provided for a tax benefit that fully offset the tax accrued by the
Company on foreign dividends in the fourth quarter of fiscal year 2005. None of the tax benefits had a cash
impact on the Company. Fiscal years 2007 and 2006 effective tax rates excluding these benefits and without
Blackwell were 35.1% and 33.2%, respectively. The increase was principally due to higher taxes on non-U.S.
sourced earnings. Blackwell’s effective tax rate had, and is expected to have, a favorable impact on the
Company’s consolidated effective tax rate.

Reported earnings per diluted share and net income for fiscal year 2007 were $1.71 and $99.6 million,
respectively. Excluding the tax benefits, earnings per diluted share for fiscal years 2007 and 2006 were $1.62
and $1.61, respectively. See Non-GAAP Financial Measures described below. The results for fiscal year 2007
include an incremental $7.1 million after-tax charge, or $0.12 per diluted share, related to the adoption of SFAS
123R. The Blackwell acquisition was dilutive to net income and earnings per diluted share by $1.2 million and
$0.02, respectively.

-27-

Non-GAAP Financial Measures: The Company’s management internally evaluates its’ operating performance
excluding unusual and/or nonrecurring events. The Company believes excluding such events provides a more
effective and comparable measure of current and future performance. We also believe that excluding the effects
of the following tax benefits provides a more balanced view of the underlying dynamics of our business.

Tax (Benefit) Provision on Dividends Repatriated

In fiscal year 2006, the Company recorded a $7.5 million, or $0.12 per diluted share, tax benefit associated with
the reversal of a tax accrual recorded on the repatriation of dividends from European subsidiaries in the fourth
quarter of fiscal year 2005. On May 10, 2005, the U.S. Internal Revenue Service issued Notice 2005-38.

The notice provided for a tax benefit that fully offset the tax accrued by the Company on foreign dividends in the
fourth quarter of fiscal year 2005. The tax benefit did not have a cash impact on the Company. The tax benefit
has been adjusted below due to its infrequent non-recurring nature.

Resolution of Tax Matters

Fiscal year 2007 and 2006 include tax benefits of $5.5 million ($0.09 per diluted share) and $6.8 million ($0.11
per diluted share), respectively, resulting from the favorable resolution and settlements of certain tax matters
with authorities in the U.S. and abroad. None of the tax benefits had a cash impact on the Company. The
Company has excluded these benefits from adjusted net income and adjusted earnings per share due to their
significance to both measurements and uncertainty as to their reoccurrence in the future.

Reconciliation of Non-GAAP Financial Disclosure

Net Income (in thousands)

For the Years Ended
April 30,

2007

2006

As Reported

$99,619

$110,328

Tax (Benefit) Provision on Dividends Repatriated

(7,476)

Resolution of Tax Matters

(5,468)

(6,776)

Adjusted

$94,151

$96,076

Earnings Per Diluted Share

For the Years Ended
April 30,

2007

2006

As Reported

$1.71

$1.85

Tax (Benefit) Provision on Dividends Repatriated

(0.12)

Resolution of Tax Matters

(0.09)

(0.11)

Adjusted

$1.62

$1.61

-28-

Fiscal Year 2007 Segment Results

In the first quarter of fiscal year 2007, the Company finalized a review of certain product prices used to settle
inter-segment sales. As a result of the study, certain intersegment product prices were modified. While the
modification had no effect on consolidated financial results, it did impact individual segment operating results.
Below is a supplemental segment report adjusting prior year results to reflect the current modified product
prices:

Adjusted Segment Results

(Amounts in millions)

2007

For The Years Ended April 30,

2006

Inter-
Segment
Impact

% Change

Adjusted

As
Reported

Revenue:

Professional/Trade

$ 390.5

$ 371.9

$ (7.9)

$ 364.0

Scientific, Technical and Medical

230.9

214.1

(1.1)

213.0

Higher Education

European Segment

Blackwell

162.5

156.2

(3.7)

152.5

315.9

292.4

(4.1)

288.3

10%

105.8

Asia, Australia & Canada

132.9

124.0

(0.1)

123.9

Inter-Segment Sales Eliminations

(103.9)

(114.7)

16.9

(97.8)

(6)%

Total Revenue

$ 1,234.6

$ 1,043.9

$ -

$ 1,043.9

18%

Direct Contribution to Profit:

Professional/Trade

$ 106.5

$ 105.8

$ (5.8)

$ 100.0

Scientific, Technical and Medical

115.2

108.7

Higher Education

European Segment

Blackwell

42.6

41.7

(3.4)

38.3

11%

109.8

96.8

5.9

102.7

13%

28.9

Asia, Australia & Canada

28.1

27.3

3.3

30.6

(8)%

Total Direct Contribution to Profit

$ 431.1

$ 380.3 $ -

$ 380.3

13%

Shared Services and Admin. Costs

(269.8)

(227.6)

(19)%

Operating Income

$ 161.3

$ 152.7

$ -

$ 152.7

-29-

Professional/Trade (P/T):

Dollars in thousands
Revenue
Direct Contribution
Contribution Margin

2007
$390,524
$106,546
27.3%

2006
$371,923
$105,800
28.4%

%
change
5%
1%

Wiley’s U.S. P/T revenue for fiscal year 2007 advanced 5% to $390.5 million from $371.9 million in the previous
year, or 7% after adjusting for the effect of the change in inter-segment product prices. The results were driven
by the cooking, travel, business, and technology programs, as well as strong global rights and advertising
revenue partially offset by lower SuDoku sales as planned. Revenue from acquisitions in the current year
contributed approximately $2.0 million of growth over the prior year.

Adjusting for the effect of the change in inter-segment product prices, direct contribution improved 7%. Also on
an adjusted basis, contribution margin for fiscal year 2007 decreased 20 basis points to 27.3%. Favorable
product mix and lower inventory and royalty advance provisions were more than offset by a bad debt provision
related to the bankruptcy of Advanced Marketing Services of $4.4 million and stock option costs associated with
the adoption of SFAS 123R of $1.4 million.

Frommer’s reached a milestone during Wiley’s bicentennial year, as the well-known travel-guide brand
celebrated its 50th anniversary with the publication of new editions and titles in its Day by Day and Pauline
Frommer series. Several finance, business, and leadership titles stood out among the year’s publications,
including True North by Bill George, a follow-up to Authentic Leadership; The Only Three Questions That Count,
by Ken Fisher, long-time Forbes columnist and Chairman and CEO of Fisher Investments; the third book in the
best-selling Little Book series, Little Book of Common Sense Investing by John Bogle; The Science of Success:
How Market-Based Management Built the World’s Largest Private Company by Charles Koch, Chairman and
CEO of Koch Industry; and Chocolates on the Pillow Aren’t Enough: Reinventing the Customer Experience by
the Chairman and CEO of Loewe’s Hotels, Jonathan Tisch.

Previously published titles continued to build momentum, including Weight Watchers New Complete Cookbook
and The Bon Appetit Cookbook. Hedgehogging by Barton Biggs; The Little Book That Beats The Market by
Joel Greenblatt; Empire of Debt: The Rise of an Epic Financial Crisis by William Bonner and Addison Wiggin;
The Invisible Employee: Realizing the Hidden Potential in Everyone by Adrian Gostick and Chester Elton; and
Stock Investing For Dummies, 2nd Edition by Paul Mladjenovic were all featured on major bestseller lists in
2007 along with perennial Wiley bestsellers, Five Dysfunctions of a Team by Patrick Lencioni; Investing For
Dummies, by Eric Tyson; J.K. Lasser’s Income Tax 2006; and SuDoku For Dummies by Andrew Heron and
Andrew Stuart.

P/T’s online business had an excellent year with strong advertising sales. Wiley acquired Whatsonwhen.com, a
provider of travel-related online content, technology, and related services during the second quarter. The
acquisition is already enhancing Wiley’s extensive travel-related content business, which includes the integrated
online and print Frommer’s, For Dummies, and Unofficial Guides brands. Nearly 1,400 articles adapted from
For Dummies text were delivered to Yahoo! Tech during the year. Yahoo! Tech provides consumers with advice
and information on technology. Wiley significantly increased the number of Podcasts offered on its websites
during the fiscal year.

In March, Wiley acquired the publishing assets of Anker Publishing, including approximately 100 backlist titles
and a quarterly newsletter (Department Chair) which covers professional development for faculty and
administrators in higher education.

-30-

During fiscal year 2007, Wiley signed an agreement with Microsoft to publish business books under a Microsoft
Executive Circle series. P/T also signed a multi-year publishing agreement with the Lincoln Center for the
Performing Arts, Inc. for a minimum of 15 books that will draw on Lincoln Center’s community of artists,
extensive archives, and educational expertise. Another alliance was formed during the fall with Essential
Learning Partnership, a provider of web-based continuing education for clinical professionals in psychology,
counseling, and social work, to enable clinicians to purchase training courses using Wiley titles to meet license
requirements.

Scientific, Technical and Medical (STM):

Dollars in thousands
Revenue
Direct Contribution
Contribution Margin

2007
$230,916
$115,169
49.9%

2006
$214,144
$108,832
50.8%

%
change
8%
6%

U.S. STM revenue for fiscal year 2007 increased 8% to $230.9 million from $214.1 million in the previous year.
Revenue growth was driven by journal subscriptions, non-subscription revenue, such as advertising and the
sale of journal reprints, and STM reference books. New businesses and publication rights acquired during the
year, such as InfoPOEMS, Dialysis & Transplantation, The Hospitalist, the Journal of Orthopedic Research,
Clinical Cardiology and Carpe Diem contributed approximately $5.0 million of the top-line growth for the year.

Direct contribution to profit for fiscal year 2007 increased 6% to $115.2 million. Contribution margin decreased
to 49.9% from 50.8% in the prior year. The decline in margin was primarily due to the higher cost of imported
products and higher royalties due to product mix. STM results were also affected by costs associated with the
adoption of SFAS 123R of approximately $1.2 million.

Customers continue to take advantage of Wiley InterScience’s content. The number of visits grew by nearly
24% during fiscal year 2007 compared to the previous year. Pay-Per-View and Article Select sales were strong
around the world.

During fiscal year 2007, the Company embarked on an aggressive program to further exploit its intellectual
content by digitizing selected landmark STM books. Consequently, the number of online books downloaded
from Wiley InterScience grew by 30% during the year. The program includes the digitization of more than 750
volumes from at least 21 book series. Series editors include such eminent and pioneering scientists as Nobel
Laureates Ilya Prigogine and Jean-Marie Lehn, and National Medal of Science Winner Stuart Rice. The Book
Series is available as individual volumes, complete series, or multiple series, with discounts offered based on
the number of volumes purchased. Wiley currently publishes approximately 2,800 online books, with
approximately 40-50 new titles added every month. With the addition of the 750 back volumes, total online book
content will comprise over one million pages.

During fiscal year 2007, Wiley signed publishing agreements with several scholarly societies, including the Mt.
Sinai School of Medicine, the International Society of Magnetic Resonance in Medicine, the Society of
Biochemistry and Molecular Biology, and the American College of Rheumatology. The Company also expanded
its partnership with Skyscape, Inc., a leading provider of interactive, intelligent health solutions for desktop and
mobile devices, to make InfoPOEMs evidence-based medicine summaries available to Skyscape’s customer
base of more than 575,000 medical professionals.

Earlier in fiscal year 2007, Wiley signed an agreement with the New York Public Library to provide public online
access to over 300 peer-reviewed journals that until now have been available principally through academic or
corporate collections. The objectives of this pilot project are to accumulate usage data on high-level journal
-31-

content in a public library setting. This is Wiley's first such license for journal content with a major public library
in North America.

Higher Education:

Dollars in thousands
Revenue
Direct Contribution
Contribution Margin

2007
$162,473
$42,554
26.2%

%
change
4%
2%

2006
$156,200
$41,654
26.7%

U.S. Higher Education revenue in fiscal year 2007 increased 4% to $162.5 million, or 7% after adjusting for the
effect of the change in inter-segment product prices. Strong growth in accounting, driven by new editions sold
through WileyPLUS, social sciences and sales of Microsoft Official Academic Course (MOAC) titles were
partially offset by softness in mathematics, science, and engineering.

Direct contribution to profit for fiscal year 2007 improved 2%, or 11% adjusted for the effect of the change in
inter-segment product prices. The improvement was due to revenue growth and lower costs driven by off-
shoring composition, improved vendor terms, lower inventory provisions and lower costs associated with the
delivery of electronic product, partially offset by incremental stock option costs associated with the adoption of
SFAS 123R of $1.1 million. Contribution margin adjusted for the effect of the change in inter-segment prices
improved 110 basis points to 26.2%.

WileyPLUS sales for fiscal year 2007 increased 90% over the prior year. Digital-only, i.e., not accompanied by
a textbook, accounted for 20% of WileyPLUS sales. Marketing programs in the UK and Asia are helping to
establish a presence for WileyPLUS in those regions. WileyPLUS Assignment Editions were officially launched
in the Australian and New Zealand markets.

Soon after the end of the fiscal year 2007, Higher Education enhanced and re-launched its WileyPLUS online
presence at www.wileyplus.com. Redesigned with intuitive navigation and user-focused content, the site will
offer introductory information and demos, along with resources for current student and faculty users. The Wiley
Faculty Network, a peer-to-peer network to help instructors better utilize technology, experienced a 50%
increase in the number of attendees to its Guest Lectures throughout the fiscal year.

Early in fiscal year 2007, Wiley became Microsoft’s sole publishing partner worldwide for all MOAC materials.
Microsoft and Wiley are collaborating on a new co-branded series of textbook and e-learning products on
several topics. Wiley also assumed responsibility for the sale of existing MOAC titles. Sales of MOAC titles
have surpassed the expectations of both Wiley and Microsoft.

The National Geographic Collegiate Atlas, which Wiley publishes as part of its alliance with the National
Geographic Society (NGS), was awarded the Best Book/Atlas at the American Congress on Surveying and
Mapping design competition. Earlier in the year, Higher Education launched Wiley Visualizing, a series of
introductory textbooks developed in exclusive partnership with the NGS that integrate rich visuals and media
with text to enhance learning. Marketplace response to the new textbook series has been very positive. Higher
Education also announced partnerships with the CFA Institute, a global membership organization of investment
practitioners and educators, to publish finance titles under the CFA Institute Investment Series brand. Earlier in
the year, Wiley and the George Lucas Educational Foundation, a non-profit organization dedicated to innovation
and improvement in education, signed an agreement to co-produce a series of six textbooks employing “project-
based” learning, which, has been demonstrated to increase self-direction and improve research and problem-
solving skills.

-32-

Europe:

Dollars in thousands
Revenue
Direct Contribution
Contribution Margin

2007
$315,908
$109,825
34.8%

%
change
2006
8%
$292,380
$96,837 13%
33.1%

%
excluding FX
4%
12%

Wiley Europe's revenue for fiscal year 2007 increased 8% to $315.9 million, or 5% after adjusting for the effect
of the change in inter-segment product prices and favorable foreign exchange. The revenue growth was
principally driven by journal subscriptions and STM reference books partially offset by lower SuDoku For
Dummies sales, as planned.

Direct contribution for the full year increased 13% over the prior year, or 5% after adjusting for the effect of the
change in inter-segment product prices and favorable foreign exchange. Higher royalties due to product mix
and a $1.2 million charge for stock option costs associated with the adoption of SFAS 123R were partially offset
by improved costs associated with electronic revenue. Also on an adjusted basis, the contribution margin was
flat with the prior year.

Fiscal year 2007 ended on a positive note with indigenous books showing strength. P/T sales picked up
momentum in continental Europe during the fourth quarter with much of the growth coming from technology
books. STM journal subscriptions continued to increase in all disciplines, particularly chemistry, which includes
the Angewandte Chemie journals published on behalf of the German Chemical Society.

Early in fiscal year 2007, Wiley Europe announced the formation of a multi-year publishing partnership with the
Dana Centre, an extension of the Science Museum in London. Written by leading technology journalists and
experts in the U.K., the books will examine technology-related news stories from around the world; explore their
implications on everyday life; and provide predictions for the future. The Dana Centre is well known for its
innovative and thought-provoking events and debates on contemporary science, technology, and culture.

Wiley Europe also signed a contract with the Strategic Management Society to publish a new journal, Strategic
Entrepreneurship, extending its relationship with the Society. Wiley Europe signed a co-publishing agreement
during the fourth quarter for a new book series with the Royal Microscopy Society, aiming to deliver three titles
per year. Earlier in the year, an agreement was reached with the Royal Meteorological Society (RMetS), a
leading professional and learned society, to publish all five of its journals. This agreement expands an existing
relationship, establishing Wiley as the exclusive publisher of all the RMetS journals. Wiley and the RMetS have
worked together since 1980, when they launched the International Journal of Climatology.

During fiscal year 2007, Wiley Europe renewed its contract with National Health Service in the U.K. for the
Cochrane National Site License. In July, Wiley-VCH re-launched the pro-physik.de portal with a number of new
customer-oriented features, such as enhanced search capabilities. Wiley Europe acquired the European
Transactions on Telecommunications journal, which it has been publishing under a collaborative agreement for
years. Wiley and the British Journal of Surgery Society renewed their contract.

Wiley Europe has been exploring new business opportunities with telecommunications companies. As a result, it
extended its publishing partnership with Symbian to include the formation of a new Symbian Academy program
for accredited Higher Education institutions, drawing on content from across all of Wiley's publishing programs.

-33-

Blackwell:

Dollars in thousands
Revenue
Direct Contribution
Contribution Margin

2007
$105,760
$28,853
27.3%

Blackwell’s operating results have been included in the consolidated results of the Company since the effective
date of the acquisition February 2, 2007. Blackwell revenue and direct contribution for fiscal year 2007 was
$105.8 million and $28.9 million, respectively. Included in the results are approximately $5.5 million of
amortization charges for intangible assets related to the acquisition. While not included in direct contribution,
financing costs charged to interest expense for the acquisition were approximately $16.7 million in the quarter.
The acquisition was dilutive to EPS by approximately $0.02 in the quarter and the fiscal year.

Since completing the acquisition, we have made significant progress integrating Blackwell with Wiley's global
STM business. We have validated many of the key assumptions that underlie our acquisition plan. During the
fourth quarter of fiscal year 2007, we announced the global organization structure for the merged business,
which will include Blackwell and Wiley colleagues on the leadership team. Plans have been approved to merge
global sales, marketing and content management which will result in significant synergies. As planned, we are
capitalizing on Blackwell's successful off-shoring and outsourcing of various content management,
manufacturing and shared support services.

Our current priorities are to finalize plans for the implementation of a single web platform; complete the
integration of technology infrastructure resources; and to complete the transition to a common financial
reporting, distribution and customer service infrastructure.

Since the acquisition closed, Wiley and Blackwell have renewed society journal contracts and announced the
launch of new journals and new partnerships. New publications include Clinical and Translational Science,
which will focus on the rapidly expanding field of translational studies, a complex medical discipline emerging at
the intersection of applied bench research and clinical medicine; Regulation & Governance, a specialized
international journal addressing the world’s most pressing audit and risk challenges; Asian Social Work and
Policy Review, the Korean Academy of Social Welfare’s official publication; and Archives of Drug Information, a
new, freely available peer-reviewed journal featuring the results of drug studies. This journal will help to address
requests for transparency voiced by societies, health care practitioners, patients, media, and the government to
disclose clinical trial information.

Asia, Australia and Canada:

Dollars in thousands
Revenue
Direct Contribution
Contribution Margin

2007
$132,992
$28,145
21.2%

2006
$124,000
$27,265
22.0%

%
change
7%
3%

%
excluding FX
5%
(3%)

Wiley's fiscal year 2007 revenue in Asia, Australia, and Canada advanced 7% to $133.0 million, or 5% excluding
favorable foreign exchange. Growth was driven by strong P/T sales in all regions and the sale of rights, partially
offset by disappointing school sales in Australia. Direct contribution for the full year increased 3% to $28.1
million, but decreased 13% after adjusting for the effect of the change in inter-segment product prices and
favorable foreign exchange. The decline was principally due to product mix and investments in the development
of indigenous publishing programs.

-34-

WileyPLUS gained ground with new adoptions across Asia, Australia, and Canada. Microsoft Official Academic
Course (MOAC) books are eliciting much interest, especially in Malaysia and India.

Wiley Canada delivered mixed results throughout the year, showing strength in its P/T business, but falling short
in Higher Education. P/T’s growth was driven by demand for local real estate titles and front-list releases, as
well as strong demand for For Dummies titles. An indigenous title, Beyond the Crease by hockey player Martin
Brodeur, has been selling well globally. Sales of WileyPLUS have exceeded expectations in Canada.

Shared Service and Administrative Costs

Shared services and administrative costs for fiscal year 2007 increased 19% to $269.8 million, or 17% excluding
the unfavorable impact of foreign exchange. Blackwell contributed $22.4 million to the increase in fiscal year
2007 operating expenses. In addition, the increase reflects costs due to business growth and performance,
stock options costs of $6.1 million associated with the adoption of SFAS 123R, and higher occupancy costs,
mainly due to new facilities, partially offset by lower depreciation expense.

Liquidity and Capital Resources

The Company’s cash and cash equivalents balance was $59.3 million at the end of fiscal year 2008, compared
with $71.5 million a year earlier. Cash provided by operating activities in fiscal year 2008 increased $59.5 million
to $280.1 million due to higher cash earnings and lower working capital, partially offset by higher pension
contributions. Cash provided from operations includes a full year of Blackwell results versus only the fourth
quarter in the prior period. The improvement in working capital was principally due to higher prepaid
subscriptions on Blackwell journals and WileyPLUS, lower income tax payments and higher accrued Blackwell
royalties, partly offset by higher pension contributions, lower accrued interest and higher accounts receivable.

With respect to the improvement in Blackwell prepaid journal subscriptions over prior year, cash for calendar
year 2007 journal subscriptions was received from November 2006 through January 2007. Due to the timing of
the acquisition (February 2, 2007) the majority of prior years subscription receipts were received by Blackwell
prior to the acquisition and retained in the acquired business. In addition the favorability in Blackwell royalties
was mainly due to the timing of the acquisition, as most of the annual journal royalties had been accrued at the
time of the acquisition and were paid subsequently prior to the end of fiscal year 2007.

Pension contributions in fiscal year 2008 were $59.4 million, compared to $8.3 million in the prior year. New
regulations in the U.S. and the U.K. require companies to fully fund their statutory pension plans, generally
within seven years. Over the seven-year transition funding period companies face significantly increased levies
based upon present funding levels and restrict flexibility in modifying those plans. The Company determined
that it was appropriate for both participants in the plans and the Company to accelerate a portion of the newly
required funding in the current fiscal year. The accelerated funding will provide economic and earnings benefits
to the Company in the form of a reduction in aggregate future cash funding to the plans and accretion to future
earnings over the seven-year funding transition period. In addition, it will decrease future volatility in earnings
and cash flows, and provide Wiley flexibility in managing those plans involved. The accelerated funding was
$10 million to the U.S. statutory plan and $15 million to a U.K. statutory plan. In addition, the Company provided
approximately $23 million of funding to the U.K. plan acquired with the Blackwell acquisition as anticipated.
The Company anticipates making pension contributions in fiscal year 2009 of approximately $10.0 million.

Cash used for investing activities for fiscal year 2008 was approximately $170.2 million compared to $1.0 billion
in fiscal year 2007. The Company invested $6.8 million in the acquisition of publishing businesses, assets and
-35-

rights compared to $972.9 million in the prior year. Significant prior year acquisitions included Blackwell for
approximately $1.1 billion in cash plus liabilities assumed less cash acquired. As part of the Blackwell
acquisition on February 2, 2007, the Company acquired $42.3 million in marketable securities which were all
sold by the Company during the fourth quarter of fiscal year 2007.

Cash used for property, plant and equipment and product development increased $ 55.7 million in fiscal year
2008 versus the prior year. Product development spending increased approximately $35.0 million related to
Blackwell. The additions to property, plant and equipment in both years were principally for computer hardware
and software to support customer products and improve productivity. Additions in fiscal year 2007 also included
approximately $7.0 million associated with additional publishing facilities acquired in the United Kingdom.

Cash used in financing activities was $124.5 million in fiscal year 2008, as compared to cash provided of $817.0
million in fiscal year 2007. In fiscal 2008, cash was used primarily to repay debt and pay dividends to
shareholders. Financing activities in fiscal 2007 included approximately $1.1 billion of acquisition debt
associated with Blackwell, the repayment of other debt facilities and dividend payments to shareholders. During
fiscal year 2008 the Company repurchased 100,000 shares at an average price of $36.79. The Company
increased its quarterly dividend to shareholders by 10% to $0.11 per share in fiscal year 2008 versus $0.10 per
share in the prior year.

As of April 30, 2008 the Company had approximately $842 million of debt outstanding with approximately $522
million of unused borrowing capacity. See Note 12 for description of credit facilities.

On October 19, 2007, the Company entered into an interest rate swap agreement, designated by the Company
as a cash flow hedge as defined under SFAS No. 133, "Accounting for Derivative Instruments and Hedging
Activities". The hedge will fix a portion of the variable interest due on the Revolving Credit Facility. Under the
terms of the interest rate swap, the Company will pay a fixed rate of 4.60% and will receive a variable rate of
interest at three month LIBOR (as defined) from the counterparty which will be reset every three months for a
three-year period ending August 8, 2010. The notional amount of the rate swap is $100 million. Aggregate
notional amount of interest rate swap agreements associated with the Term Loan and Revolving Credit Facility
were $715 million as of April 30, 2008. It is management's intention that the notional amount of the interest rate
swap be less than the Term Loan and Revolving Credit Facility outstanding during the life of the derivative.

The Company’s operating cash flow is affected by the seasonality of its U.S. Higher Education business and
receipts from its journal subscriptions. Journal receipts occur primarily from November through January from
companies commonly referred to as journal subscription agents. Reference is made to the Credit Risk section,
which follows, for a description of the impact on the Company as it relates to journal agents’ financial position
and liquidity. Sales in the U.S. higher education market tend to be concentrated in June through August, and
again in November through January. The Company normally requires increased funds for working capital from
May through September.

Working capital at April 30, 2008 was negative $260.4 million. Working capital is negative as a result of
including, in current liabilities, deferred revenue related to subscriptions for which cash has been received. This
deferred revenue will be recognized into income as the products are shipped or made available online to the
customers over the term of the subscription. Current liabilities as of April 30, 2008 include $315.8 million of such
deferred subscription revenue.

The Company has adequate cash and cash equivalents available, as well as short-term lines of credit to finance
its short-term seasonal working capital requirements. The Company does not have any off-balance-sheet debt.

-36-

Projected product development and property, equipment and technology capital spending for fiscal year 2009 is
forecast to be approximately $125 million and $45 million, respectively, including incremental ongoing spending
associated with Blackwell and significant one-time integration-related capital spending to merge the operations
of the two businesses. These investments will be funded primarily from internal cash generation, the liquidation
of cash equivalents, and the use of short-term lines of credit.

A summary of contractual obligations and commercial commitments, excluding interest charges on debt, and
unrecognized tax benefits further described in Note 11, as of April 30, 2008 is as follows:

Contractual Obligations
Total Debt

Total
$842.3

Payments Due by Period
2-3
Years
$157.5

4-5
Years
$639.8

Within
Year 1
$45.0

After 5
Years
$-

Non-Cancelable Leases

272.7

35.8

64.0

57.0

115.9

Minimum Royalty Obligations

111.2

27.1

43.4

26.7

14.0

Other Commitments

8.1

7.3

0.8

Total

$1,234.3

$115.2

$265.7

$723.5

$129.9

Market Risk

The Company is exposed to market risk primarily related to interest rates, foreign exchange, and credit risk. It is
the Company’s policy to monitor these exposures and to use derivative financial investments and/or insurance
contracts from time to time to reduce fluctuations in earnings and cash flows when it is deemed appropriate to
do so. The Company does not use derivative financial instruments for trading or speculative purposes.

Interest Rates:

The Company had $842.3 million of variable rate loans outstanding at April 30, 2008, which approximated fair
value. On February 16, 2007, the Company entered into an interest rate swap agreement, designated as a
cash flow hedge as defined under SFAS No. 133, “Accounting for Derivative Instruments and Hedging
Activities”. The hedge will fix a portion of the variable interest due on a portion of the new Term Loan. Under the
terms of the interest rate swap, the Company will pay a fixed rate of 5.076% and will receive a variable rate of
interest based on three month LIBOR (as defined) from the counter party which will be reset every three months
for a four-year period ending February 8, 2011. The notional amount of the rate swap was initially $660 million
which will decline through February 8, 2011, based on the expected amortization of the Term Loan. As of April
30, 2008, the notional amount of the rate swap was $615.0 million. On October 19, 2007, the Company entered
into an additional interest rate swap agreement designed by the Company as a cash flow hedge that will fix a
portion of the variable interest due on the Revolving Credit Facility. Under the terms of this interest rate swap,
the Company will pay a fixed rate of 4.60% and will receive a variable rate of interest based on three month
LIBOR (as defined) from the counterparty which will be reset every three months for a three-year period ending
August 8, 2010. The notional amount of the rate swap is $100 million.

It is management’s intention that the notional amount of interest rate swaps be less than the Term Loan and the
Revolving Credit Facility outstanding during the life of the derivatives. During fiscal year 2008, the Company
recognized a loss on its hedge contracts of approximately $2.2 million which is reflected in interest expense. At
-37-

April 30, 2008, the aggregate fair value of the interest rate swaps was a net loss of $27.1 million which is
included in Other Long Term Liabilities in the Consolidated Statement of Financial Position. On an annual
basis, a hypothetical one percent change in interest rates for the $127.3 million of unhedged variable rate debt
as of April 30, 2008 would affect net income and cash flow by approximately $0.8 million.

Foreign Exchange Rates:

The Company is exposed to foreign exchange movements primarily in sterling, euros, Canadian and Australian
dollars, and certain Asian currencies. Under certain circumstances, the Company may enter into derivative
financial instruments in the form of foreign currency forward contracts as a hedge against specific transactions,
including inter-company purchases. The Company does not use derivative financial instruments for trading or
speculative purposes. There were no contracts outstanding at April 30, 2008.

Credit Risk:

In the journal publishing business, subscriptions are often sourced through journal subscription agents who,
acting as agents for library customers, facilitate ordering and consolidate the subscription orders/billings with
various publishers. Subscription agents account for approximately 20% of total consolidated revenue and no
one agent accounts for more than 8% of total consolidated revenue. Subscription agents generally collect cash
in advance from subscribers and remit payments to journal publishers, including the Company, prior to the
commencement of the subscriptions. While at fiscal year-end the Company had minimal credit risk exposure to
these agents, future calendar-year subscription receipts from these agents may depend significantly on their
financial condition and liquidity. Insurance for payment on these accounts is not commercially feasible and/or
available.

Critical Accounting Policies

The preparation of the Company’s financial statements in conformity with accounting principles generally
accepted in the U.S. requires management to make estimates and assumptions that affect the reported amount
of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and
reported amounts of revenue and expenses during the reporting period. Management continually evaluates the
basis for its estimates. Actual results could differ from those estimates, which could affect the reported results.

Financial Reporting Release No. 60, released by the Securities and Exchange Commission, requires all
companies to discuss critical accounting policies or methods used in the preparation of financial statements.
Note 2 of the “Notes to Consolidated Financial Statements” includes a summary of the significant accounting
policies and methods used in preparation of our Consolidated Financial Statements. Set forth below is a
discussion of the Company’s more critical accounting policies and methods.

Revenue Recognition: In accordance with SEC Staff Accounting Bulletin No. 104, “Revenue Recognition in
Financial Statements,” the Company recognizes revenue when the following criteria are met: persuasive
evidence that an arrangement exists; delivery has occurred or services have been rendered; the price to the
customer is fixed or determinable; and collectability is reasonably assured. If all of the above criteria have been

-38-

met, revenue is principally recognized upon shipment of products or when services have been rendered.
Subscription revenue is generally collected in advance. The prepayment is deferred and recognized as earned
when the related issue is shipped or made available online over the term of the subscription. Where a product
has been sold with multiple deliverables the Company follows EITF No. 00-21 “Accounting for Revenue
Relationships with Multiple Deliverables” to determine the timing of revenue recognition. Collectability is
evaluated based on the amount involved, the credit history of the customer, and the status of the customer’s
account with the Company. Revenue is reported net of any amounts billed to customers for taxes which are
remitted to government authorities.

Allowance for Doubtful Accounts: The estimated allowance for doubtful accounts is based on a review of the
aging of the accounts receivable balances, the historical write-off experience, and a credit evaluation of the
customer. A change in the evaluation of a customer’s credit could affect the estimated allowance. The
allowance for doubtful accounts is shown as a reduction of accounts receivable in the accompanying
consolidated balance sheets and amounted to $8.0 million and $11.2 million at April 30, 2008 and 2007,
respectively.

Sales Return Reserve: The estimated allowance for sales returns is based on a review of the historical return
patterns associated with the various sales outlets, as well as current market trends in the businesses in which
we operate. Sales return reserves, net of estimated inventory and royalty costs, are reported as a reduction of
accounts receivable in the Consolidated Statement of Financial Position and amounted to $55.5 million and
$56.1 million at April 30, 2008 and 2007, respectively. A one percent change in the estimated sales return rate
could affect net income by approximately $4.4 million. A change in the pattern or trends in returns could affect
the estimated allowance.

Reserve for Inventory Obsolescence: Inventories are carried at cost or market whichever is lower. A reserve
for inventory obsolescence is estimated based on a review of damaged, obsolete, or otherwise unsalable
inventory. The review encompasses historical unit sales trends by title; current market conditions, including
estimates of customer demand; and publication revision cycles. A change in sales trends could affect the
estimated reserve. The inventory obsolescence reserve is reported as a reduction of the inventory balance in
the Consolidated Statement of Financial Position and amounted to $35.4 million and $32.2 million as of April 30,
2008 and 2007, respectively.

Allocation of Acquisition Purchase Price to Assets Acquired and Liabilities Assumed: In connection with
acquisitions, the Company allocates the cost of the acquisition to the assets acquired and the liabilities assumed
based on estimates of the fair value of such items including goodwill and other intangible assets. Such
estimates include expected cash flows to be generated by those assets and the expected useful lives based on
historical experience, current market trends, and synergies to be achieved from the acquisition and expected tax
basis of assets acquired. For significant acquisitions, the Company uses independent appraisers to confirm the
reasonableness of such estimates.

-39-

Impairment of Long-Lived Assets: Depreciable and amortizable assets are only evaluated for impairment upon
a significant change in the operating or macroeconomic environment. In these circumstances, if an evaluation
of the undiscounted cash flows indicates impairment, the asset is written down to its estimated fair value based
on discounted future cash flow.

Recently Issued Accounting Pronouncements: In September 2006, the FASB issued SFAS No. 157 “Fair Value
Measurements” (“SFAS 157”). In February 2008, the FASB issued a partial deferral of the statement’s effective
date. SFAS 157 provides a new single authoritative definition of fair value and provides enhanced guidance for
measuring the fair value of assets and liabilities and requires additional disclosures related to the extent to
which companies measure assets and liabilities at fair value, the information used to measure fair value, and the
effect of fair value measurements on earnings. Included in the deferral, the FASB agreed to a one-year delay of
the fair value measurement requirement for certain nonfinancial assets and liabilities. The Company plans to
adopt SFAS 157 as of May 1, 2008 for assets and liabilities not subject to the deferral and as of May 1, 2009 for
those nonfinancial assets and liabilities subject to the deferral. The Company does not expect the May 1, 2008
adoption for financial assets and liabilities to have a significant impact on its consolidated financial statements
and is currently assessing the impact, if any, of the deferred portion of SFAS 157 on its consolidated financial
statements.

In February 2007, the FASB issued SFAS No. 159 “The Fair Value Option for Financial Assets and Financial
Liabilities” (“SFAS 159”). SFAS 159 provides companies with an option to irrevocably elect to measure certain
financial assets and financial liabilities at fair value on an instrument-by-instrument basis with the resulting
changes in fair value recorded in earnings. The objective of SFAS 159 is to reduce both the complexity in
accounting for financial instruments and the volatility in earnings caused by using different measuring attributes
for financial assets and liabilities. The Company is required to adopt SFAS 159 as of May 1, 2008. However,
the Company does not expect to apply the fair value option of SFAS 159 to any of its existing assets and
liabilities and therefore does not expect the standard to have a significant impact on its consolidated financial
statements.

In December 2007, the FASB issued Statements No. 141R, Business Combinations (“SFAS 141R”). SFAS
141R expands the scope of acquisition accounting to all transactions under which control of a business is
obtained. Principally, SFAS 141R requires that contingent consideration as well as contingent assets and
liabilities be recorded at fair value on the acquisition date and that certain transaction and restructuring costs be
expensed. SFAS 141R is effective for acquisitions made on and after May 1, 2009. While The Company is
currently assessing the impact of SFAS 141(R) on its consolidated financial statements, The Company expects
that upon adoption of SFAS 141(R), the application of the new standard is likely to have a significant impact on
how the Company allocates the purchase price of any future acquired businesses.

In March 2008, the FASB issued Statement No. 161, Disclosures about Derivative Instruments and Hedging
Activities (“FAS 161”), which is effective for the Company February 1, 2009. SFAS 161 requires enhanced
disclosures about derivative instruments and hedging activities to allow for a better understanding of their effects
on an entity’s financial position, financial performance, and cash flows. Since SFAS 161 requires only additional
disclosures about the Company’s derivatives and hedging activities, the adoption of SFAS 161 will not affect the
Company’s financial position or results of operations.

-40-

arrangement, consistent with its expected use of the asset. SFAS 142-3 also requires several incremental
disclosures for renewable intangible assets. The Company is required to adopt SFAS 142-3 as of May 1, 2009.
The guidance for determining the useful life of a recognized intangible asset must be applied prospectively to
intangible assets acquired after the effective date. The Company is currently assessing the impact, if any, on its
consolidated financial statements.

There have been no other new accounting pronouncements issued during fiscal year 2008 that have had, or are
expected to have a material impact on the Company’s consolidated financial statements.

“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 level of investment in new technologies and products;
(ii) subscriber renewal rates for the Company’s journals; (iii) the financial stability and liquidity of journal
subscription agents; (iv) the consolidation of book wholesalers and retail accounts; (v) the market position and
financial stability of key online retailers; (vi) the seasonal nature of the Company’s educational business and the
impact of the used-book market; (vii) worldwide economic and political conditions; and (viii) the Company’s
ability to protect its copyrights and other intellectual property worldwide (ix) 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.

-41-

Results By Quarter (Unaudited)

Dollars in millions, except per share data

2008

2007

Revenue
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Fiscal Year

Operating Income
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Fiscal Year

Net Income
First Quarter
Second Quarter (a)
Third Quarter (b)
Fourth Quarter
Fiscal Year

Income Per Share
First Quarter
Second Quarter (a)
Third Quarter (b)
Fourth Quarter
Fiscal Year

388.5
423.0
429.3
432.9
$ 1,673.7

46.3
61.9
68.0
46.8
$ 223.0

40.2
38.3
40.0
29.0
$ 147.5

Diluted
0.68
$
0.65
0.67
0.49
2.49

263.4
284.4
296.7
390.1
1,234.6

35.0
42.0
50.7
33.6
161.3

21.9
29.9
33.4
14.4
99.6

Diluted
0.38
0.52
0.57
0.25
1.71

Basic
0.70
0.67
0.69
0.49
2.55

Basic
0.39
0.53
0.59
0.25
1.75

NOTE:

The Company acquired Blackwell Publishing (Holdings) Ltd. (“Blackwell”) on February 2, 2007 the beginning of the Company’s
fourth quarter of fiscal year 2007. See segment data in Note 17 to the Consolidated Financial Statements for details on the
operating results of Blackwell during fiscal year 2007.

(a)

(b)

In the second quarter of fiscal year 2008, the Company recognized a net tax benefit of $15.3 million, or $0.26 per diluted share,
associated with a new tax law enacted in the United Kingdom on July 19, 2007 that reduced the corporate income tax rate from
30% to 28%. The benefit recognized by the Company reflects the adjustment required to record all UK-related deferred tax
balances at the new UK corporate income tax rate of 28%. In the second quarter of fiscal year 2007, the Company recognized
a net tax benefit of $4.2 million, or $0.07 per diluted share. This benefit coincided with the resolution and settlement of certain
tax matters with authorities in the U.S. and abroad.

In the third quarter of fiscal year 2008 the Company recognized a $3.4 million, or $0.06 per diluted share, tax benefit associated
with new tax laws enacted in Germany that reduced the corporate income tax rate from 39% to 29%. The benefits recognized
by the Company reflect the adjustments required to record all Germany-related deferred tax balances at the new corporate
income tax rates. In the third quarter of fiscal year 2007, the Company recognized a net tax benefit of $1.3 million, or $0.02 per
diluted share. This benefit coincided with the resolution and settlements of certain tax matters with authorities in the U.S. and
abroad.

-42-

Quarterly Share Prices, Dividends, and Related Stockholder Matters

The Company’s Class A and Class B shares are listed on the New York Stock Exchange under the symbols
JWa and JWb, respectively. Dividends per share and the market price range by fiscal quarter for the past two
fiscal years were as follows:

Class A Common Stock

Market Price

Dividends

High

Low

Class B Common Stock
Market Price
Low

High

Dividends

2008
First Quarter
Second Quarter
Third Quarter
Fourth Quarter

2007
First Quarter
Second Quarter
Third Quarter
Fourth Quarter

$0.11
0.11
0.11
0.11

$49.35
45.24
44.33
46.54

$38.01
40.00
35.98
36.01

$0.11
0.11
0.11
0.11

$49.03
45.21
43.72
46.63

$38.00
40.22
36.14
36.02

$0.10
0.10
0.10
0.10

$36.39
36.15
41.00
39.24

$32.62
31.86
35.12
36.75

$0.10
0.10
0.10
0.10

$36.44
36.01
40.78
39.05

$32.61
31.76
35.14
36.95

As of April 30, 2008, the approximate number of holders of the Company’s Class A and Class B Common Stock
were 1,203 and 113 respectively, based on the holders of record.

The Company did not repurchase any common stock during the fourth quarter of fiscal year 2008.

The Company’s credit agreement contains certain restrictive covenants related to the payment of dividends and
share repurchases. Under the most restrictive covenant, approximately $115.0 million was available for such
restricted payments as of April 30, 2008. Subject to the foregoing, the Board of Directors considers quarterly
the payment of cash dividends based upon its review of earnings, the financial position of the Company, and
other relevant factors.

-43-

Selected Financial Data

For the Years Ended April 30,

Dollars in thousands

(except per share data)

2008

2007

2006

2005

2004

Revenue

$1,673,734

$1,234,641

$1,043,932

$974,048

Operating Income

222,990

161,304

Net Income (a-b)

147,536

99,619

152,679

110,328

141,381

83,841

Working Capital (c)

(243,581)

(199,657)

(35,801)

(2,393)

Total Assets

2,588,814

2,553,069

1,026,009

1,032,569

Long-Term Debt

Shareholders’ Equity

797,318

689,118

977,721

529,508

160,496

401,840

196,214

396,574

$922,962

129,379

88,840

17,641

998,946

200,000

415,064

Per Share Data

Income Per Share (a-b)

Diluted

Basic

$2.49

$1.71

$1.85

$1.35

$1.41

$2.55

$1.75

$1.90

$1.38

$1.44

Cash Dividends

Class A Common

$0.44

$0.40

$ 0.36

$ 0.30

$ 0.26

Class B Common

$0.44

$0.40

$0 .36

$0.30

$ 0.26

NOTE:

The Company acquired Blackwell Publishing (Holdings) Ltd. (“Blackwell”) on February 2, 2007. See segment data in Note 17
to the Consolidated Financial Statements for details on the operating results of Blackwell.

(a)

Tax benefits included in fiscal year results are as follows:

(cid:131)

Fiscal year 2008 includes a $18.7 million tax benefit, or $0.32 per diluted share, associated with new tax legislation
enacted in the United Kingdom and Germany that reduced the corporate income tax rates from 30% to 28% and
from 39% to 29%, respectively. The benefits recognized by the Company reflect the adjustments required to
record all U.K. and Germany-related deferred tax balances at the new corporate income tax rates.

Fiscal year 2007 includes a $5.5 million tax benefit, or $0.09 per diluted share. This benefit coincides with the
resolution and settlements of certain tax matters with authorities in the U.S. and abroad.

Fiscal year 2006, the Company recognized a net tax benefit of $6.8 million, or $0.11 per diluted share, related to
the favorable resolution of certain matters with tax authorities.

In the fourth quarter of fiscal year 2005, the Company elected to repatriate approximately $94 million of dividends
from its European subsidiaries under the American Jobs Creation Act of 2004, which became law in October 2004.
The law provided for a favorable one-time tax rate on dividends from foreign subsidiaries. The tax accrued on the
dividend in the fourth quarter of fiscal year 2005 was approximately $7.5 million, or $0.12 per diluted share.
Pursuant to guidance issued by the Internal Revenue Service in May 2005, the Company recorded a tax benefit in
the first quarter of fiscal year 2006 reversing the accrued tax recorded in the previous year. Neither the first
quarter fiscal year 2006 tax benefit nor the corresponding fourth quarter fiscal year 2005 tax accrual had a cash
impact on the Company.

(cid:131)

In fiscal year 2004, the Company recognized a net tax benefit of $3.0 million, or $0.05 per diluted share, related to
the favorable resolution of certain state and federal tax matters, and an adjustment to accrued foreign taxes.

(b)

(c)

Effective May 1, 2006, the Company adopted SFAS 123R which required that companies recognize share-based compensation
to employees in the Statement of Income based on the fair value of the share-based awards. The adoption of SFAS 123R
resulted in the recognition of an incremental share-based compensation expense of $11.3 million ($7.0 million after taxes) or
$0.12 per diluted share for the full year ended April 30, 2007.

Working capital is reduced or negative as a result of including in current liabilities the deferred revenue related to journal
subscriptions for which the cash has been received. The deferred revenue will be recognized into income as the journals are
shipped or made available online to the customers over the term of the subscription.

-44-

Financial Statements and Supplementary Data

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

To our Shareholders
John Wiley and Sons, Inc.:

The management of John Wiley and Sons, Inc. and subsidiaries is responsible for establishing and maintaining
adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and
15d-15(f).

Under the supervision and with the participation of our management, we conducted an evaluation of the
effectiveness of our internal control over financial reporting based on the framework in Internal Control –
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission
(COSO). Based on our evaluation under the framework in Internal Control – Integrated Framework issued by
COSO, our management concluded that our internal control over financial reporting was effective as of April 30,
2008.

Changes in Internal Control over Financial Reporting: Except as described below, there were no changes in our
internal control over financial reporting that have materially affected, or are reasonably likely to materially affect,
our internal control over financial reporting during fiscal year 2008.

As part of the acquisition of Blackwell Publishing we are integrating Blackwell finance functions and processes
into Wiley’s processes. This integration has and will result in business process changes. We have enhanced
the design and documentation of our internal control processes to ensure suitable controls over financial
reporting.

The effectiveness of our internal control over financial reporting as of April 30, 2008 has been audited by KPMG
LLP, an independent registered public accounting firm, as stated in their report which is included herein.

The Company’s Corporate Governance Principles, Committee Charters, Business Conduct and Ethics Policy
and the Code of Ethics for Senior Financial Officers are published on our web site at www.wiley.com under the
“About Wiley—Investor Relations—Corporate Governance” captions. Copies are also available free of charge
to shareholders on request to the Corporate Secretary, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ
07030-5774.

/s/ William J. Pesce

William J. Pesce
President and Chief Executive Officer

/s/ Ellis E. Cousens

Ellis E. Cousens
Executive Vice President and
Chief Financial and Operations Officer

/s/ Edward J. Melando

Edward J. Melando
Vice President, Controller and
Chief Accounting Officer

June 26, 2008

-45-

Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders
John Wiley & Sons, Inc.:

We have audited the accompanying consolidated balance sheets of John Wiley & Sons, Inc. (the “Company”)
and subsidiaries as of April 30, 2008 and 2007, and the related consolidated statements of income, stockholders’
equity and comprehensive income, and cash flows for each of the years in the three-year period ended April 30,
2008. In connection with our audits of the consolidated financial statements, we also have audited the financial
statement schedule (as listed in the index to Item 8). These consolidated financial statements and financial
statement schedule are the responsibility of the Company’s management. Our responsibility is to express an
opinion on these consolidated financial statements and financial statement schedules based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board
(United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the
financial position of John Wiley & Sons, Inc. and subsidiaries as of April 30, 2008 and 2007, and the results of
their operations and their cash flows for each of the years in the three-year period ended April 30, 2008, in
conformity with U.S. generally accepted accounting principles. Also in our opinion, the related financial
statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole,
present fairly, in all material respects, the information set forth therein.

As discussed in Note 2 of the consolidated financial statements, the Company adopted Statement of Financial
Accounting Standards No. 123R, “Share-Based Payment,” as of May 1, 2006.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board
(United States), John Wiley & Sons, Inc.’s internal control over financial reporting as of April 30, 2008, based
on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO)”), and our report dated June 26, 2008 expressed an
unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

New York, New York
June 26, 2008

(signed) KPMG LLP

-46-

Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders
John Wiley & Sons, Inc.:

We have audited John Wiley & Sons, Inc.’s internal control over financial reporting as of April 30, 2008, based
on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). John Wiley & Sons, Inc.’s management is responsible for
maintaining effective internal control over financial reporting and for its assessment of the effectiveness of
internal control over financial reporting, included in the accompanying Management’s Report on Internal
Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control
over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board
(United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether effective internal control over financial reporting was maintained in all material respects. Our audit
included obtaining an understanding of internal control over financial reporting, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on
the assessed risk. Our audit also included performing such other procedures as we considered necessary in the
circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles. A company’s internal control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and expenditures of the company are
being made only in accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.

In our opinion, John Wiley & Sons, Inc. maintained, in all material respects, effective internal control over
financial reporting as of April 30, 2008, based on criteria established in Internal Control – Integrated
Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board
(United States), the consolidated balance sheets of John Wiley & Sons, Inc. and subsidiaries as of April 30, 2008
and 2007, and the related consolidated statements of operations, stockholders’ equity and comprehensive
income, and cash flows for each of the years in the three-year period ended April 30, 2008, and our report dated
June 26, 2008 expressed an unqualified opinion on those consolidated financial statements.

(signed) KPMG LLP

New York, New York
June 26, 2008

-47-

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

John Wiley & Sons, Inc., and Subsidiaries
Dollars in thousands
Assets:
Current Assets

Cash and cash equivalents
Accounts receivable
Inventories
Deferred income tax benefits
Prepaid and other
Total Current Assets

Product Development Assets
Property, Equipment and Technology
Intangible Assets
Goodwill
Deferred Income Tax Benefits
Other Assets
Total Assets

Liabilities and Shareholders’ Equity:
Current Liabilities

Accounts and royalties payable
Deferred revenue
Accrued income taxes
Accrued pension liability
Other accrued liabilities
Current portion of long-term debt
Total Current Liabilities

Long-Term Debt
Accrued Pension Liability
Other Long-Term Liabilities
Deferred Income Taxes
Shareholders’ Equity

Preferred Stock, $1 par value: Authorized - 2 million, Issued - zero
Class A Common Stock, $1 par value: Authorized - 180 million,
Issued – 69,641,921 and 69,387,799
Class B Common Stock, $1 par value: Authorized - 72 million,
Issued – 13,548,341 and 13,802,463
Additional paid-in capital
Retained earnings
Accumulated other comprehensive gain (loss):
Foreign currency translation adjustment
Unamortized pension and retiree medical
Unrealized gain (loss) on interest rate swap

Less Treasury Shares At Cost (Class A – 20,661,469 and 21,735,471;
Class B – 3,902,576 and 3,902,576)
Total Shareholders’ Equity
Total Liabilities and Shareholders’ Equity

The accompanying notes are an integral part of the consolidated financial statements.

-48-

April 30

2008

2007

59,311
224,757
118,209
3,651
41,652
447,580

95,126
145,709
1,120,398
708,233
29,136
42,632
$ 2,588,814

$ 189,332
315,830
1,633
2,499
136,867
45,000
691,161

797,318
82,755
100,421
228,041

71,493
201,407
112,863
16,734
18,683
421,180

86,041
126,712
1,166,289
704,143
16,568
32,136
2,553,069

147,778
305,405
9,353
2,139
133,662
22,500
620,837

977,721
112,271
41,174
271,558

69,642

69,388

13,549
140,723
794,762

53,292
(26,813)
(13,831)
1,031,324

13,803
100,013
673,254

57,224
(30,465)
(1,802)
881,415

(342,206)
689,118
$ 2,588,814

(351,907)
529,508
2,553,069

CONSOLIDATED STATEMENTS OF INCOME

John Wiley & Sons, Inc., and Subsidiaries
Dollars in thousands, except per share data

2008

2007

2006

For the years ended April 30

Revenue

1,673,734

1,234,641

1,043,932

Costs and Expenses
Cost of sales
Operating and administrative expenses
Amortization of intangibles
Total Costs and Expenses

Operating Income

Interest income and other, net
Interest expense

Net Interest Expense and Other

Income Before Taxes
Provision for Income Taxes

536,852
874,912
38,980
1,450,744

222,990

5,351
(66,813)
(61,462)

161,528
13,992

393,546
659,116
20,675
1,073,337

161,304

4,386
(26,188)
(21,802)

139,502
39,883

Net Income

Income Per Share
Diluted
Basic

Cash Dividends Per Share
Class A Common
Class B Common

Average Shares
Diluted
Basic

147,536

99,619

2.49
2.55

0.44
0.44

1.71
1.75

0.40
0.40

59,323
57,921

58,287
56,932

The accompanying notes are an integral part of the consolidated financial statements.

331,851
545,904
13,498
891,253

152,679

1,125
(9,960)
(8,835)

143,844
33,516

110,328

1.85
1.90

0.36
0.36

59,792
58,071

-49-

CONSOLIDATED STATEMENTS OF CASH FLOWS

John Wiley & Sons, Inc., and Subsidiaries

Dollars in thousands

For the years ended April 30

2008

2007

2006

Operating Activities

Net Income
Noncash Items

Amortization of intangibles
Amortization of composition costs

Depreciation of property, equipment and technology
Stock-based compensation (net of tax)

Excess tax benefits from stock-based compensation
Non-cash tax benefits

Reserves for returns, doubtful accounts, and obsolescence
Deferred income taxes

Pension expense
Earned royalty advances and other

Changes in Operating Assets and Liabilities

Increase/(Decrease), excluding acquisitions
Accounts receivable
Net taxes payable

Inventories

Deferred revenue
Other accrued liabilities
Accounts and royalties payable
Pension contributions
Other

Cash Provided by Operating Activities

Investing Activities

Additions to product development assets
Additions to property, equipment and technology
Blackwell acquisition, net of cash acquired
Acquisition of other publishing businesses, assets and rights
Sale of marketable securities

Cash Used for Investing Activities

Financing Activities

Repayment of long-term debt
Borrowings of long-term debt
Purchase of treasury stock
Change in book overdrafts
Debt financing costs
Cash dividends
Proceeds from exercise of stock options and other
Excess tax benefit from stock-based compensation arrangements

Cash (Used for)/Provided by Financing Activities

Effects of Exchange Rate Changes on Cash

Cash and Cash Equivalents

(Decrease)/Increase for year
Balance at beginning of year

Balance at end of year

Cash paid During the Year for

Interest
Income taxes, net

147,536

99,619 $

110,328

38,980
43,613

33,330
17,475

(11,223)
(18,663)

6,419
10,784

22,894
58,100

(20,007)
20,311
(10,038)
10,277
(10,838)
4,421
(59,360)
(3,876)
280,135

(113,069)
(50,315)
-
(6,802)
-
(170,186)

(1,049,360)
891,476
(3,679)
36,253
-
(25,613)
15,190
11,223
(124,510)
2,379

20,676
38,722

28,926
12,559

(4,455)
(5,468)

6,931
3,604

16,710
40,661

1,167
(956)
(4,060)
(15,872)
11,543
(22,465)
(8,338)
1,090
220,594

(76,225)
(31,445)
(953,197)
(19,712)
42,334
(1,038,245)

(620,678)
1,458,400
(7,278)
6,754
(8,315)
(22,839)
6,462
4,455
816,961
2,437

13,498
36,473

32,031
4,854

-
(14,252)

12,961
5,009

15,469
21,990

(20,519)
8,422
(12,111)
390
9,834
26,443
(7,043)
(1,135)
242,642

(70,921)
(21,355)
-
(31,354)
10,000
(113,630)

(336,298)
303,754
(108,867)
(7,514)
-
(21,103)
5,173
-
(164,855)
(315)

(12,182)
71,493

1,747
69,746

(36,158)
105,904

59,311

71,493

69,746

$
$

69,071
24,679

$
$

12,294
40,422

$
$

8,001
33,829

The accompanying notes are an integral part of the consolidated financial statements.

-50-

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

AND COMPREHENSIVE INCOME

John Wiley & Sons, Inc., and Subsidiaries
Dollars in thousands

Common
Stock
Class A

Common
Stock
Class B

Additional
Paid-in
Capital

Retained
Earnings

Treasury
Stock

Unearned
Deferred
Comp-
ensation

Accumulated
Other Comp-
rehensive
Income
(Loss)

Total
Share-
holder’s
Equity

Balance at May 1, 2005

$68,984

$14,207

$55,478

$507,249

$(248,252)

$(3,074)

$1,982

$396,574

Shares Issued Under Employee Benefit Plans
Purchase of Treasury Shares
Exercise of Stock Options, including taxes
Class A Common Stock Dividends
Class B Common Stock Dividends
Other
Comprehensive Income:
Net income
Foreign currency translation adjustments
Minimum liability pension adjustments, net of
a $5,547 tax charge
Total Comprehensive Income

(51)

6,795

7,314

2,348
(108,867)
3,202

(17,252)
(3,851)

110,328

(438)

9,143
(108,867)
10,516
(17,252)
(3,851)
(438)

110,328
(2,791)

8,478
116,015

(2,791)

8,478

Balance at May 1, 2006

$69,035

$14,156

$69,587

$596,474

$(351,569)

$(3,512)

$7,669

$401,840

Shares Issued Under Employee Benefit Plans
Purchase of Treasury Shares
Exercise of Stock Options, including taxes
Stock-based compensation expense
Class A Common Stock Dividends
Class B Common Stock Dividends
Other
Adoption of FASB Statement No. 158, net of a
$6,025 tax benefit
Comprehensive Income:
Net income
Foreign currency translation adjustments
Unamortized pension and retiree medical, net

of a $3,217 tax benefit

Unrealized loss on interest rate swap, net of a
$1,086 tax benefit

Total Comprehensive Income

8,149

5,663
20,126

(18,806)
(4,033)

2,976
(7,278)
3,964

353

(353)

(3,512)

3,512

99,619

11,125
(7,278)
9,627
20,126
(18,806)
(4,033)

(8,078)

31,484

99,619
31,484

(4,316)

(1,802)

(1,802)
124,985

Balance at April 30, 2007

$69,388

$13,803

$100,013

$673,254

$(351,907)

$ -

$24,957

$529,508

Shares Issued Under Employee Benefit Plans
Purchase of Treasury Shares
Exercise of Stock Options, including taxes
Stock-based compensation expense
Class A Common Stock Dividends
Class B Common Stock Dividends
Other
Adoption of FIN 48, tax liability adjustment
Comprehensive Income:
Net income
Foreign currency translation adjustments
Unamortized pension and retiree medical, net

of a $ 1,848 tax benefit

Unrealized loss on interest rate swap, net of a
$7,248 tax benefit
Total Comprehensive Income

254

(254)

(2,665)

15,334
28,041

3,590
(3,679)
9,790

(21,263)
(4,350)

(415)

147,536

925
(3,679)
25,124
28,041
(21,263)
(4,350)

(415)

147,536
(3,932)

(3,932)

3,652

(12,029)

(12,029)
135,227

Balance at April 30, 2008

$69,642

$13,549

$140,723

$794,762

($342,206)

$--

$12,648

$689,118

The accompanying notes are an integral part of the consolidated financial statements.

-51-

Notes to Consolidated Financial Statements

Note 1 – Description of Business

The Company is a global publisher of print and electronic products, providing content to customers worldwide.
Core businesses include professional and consumer books and subscription products; scientific, technical,
medical and scholarly journals, encyclopedias, books, and online products; and educational materials for
undergraduate and graduate students and lifelong learners. The Company has publishing, marketing, and
distribution centers in the United States, Canada, Europe, Asia, and Australia.

Note 2 - Summary of Significant Accounting Policies

Principles of Consolidation: The consolidated financial statements include the accounts of the Company.
Investments in entities in which the Company has at least a 20%, but less than a majority interest, are
accounted for using the equity method of accounting. Investments in entities in which the Company has less
than a 20% ownership and in which it does not exercise significant influence are accounted for using the cost
method of accounting. All significant intercompany accounts and transactions have been eliminated in
consolidation.

In connection with the integration of the Company’s acquisition of Blackwell Publishing (Holdings) Ltd.
(“Blackwell”) on February 2, 2007, the Company made various reclassifications within the Condensed
Consolidated Statements of Income which mainly consisted of a realignment of the reporting of journal
distribution costs from cost of sales to operating and administrative costs. The reclassification of these costs
resulted in reductions of cost of sales of $16.5 million and $10.5 million, for the fiscal years ended April 30, 2007
and 2006 respectively, with corresponding increases to operating and administrative costs for those periods.

Under the Company’s cash management system, a book overdraft balance exists for the Company’s primary
disbursement accounts. This overdraft represents uncleared checks in excess of cash balances in the related
bank accounts. The Company’s funds are transferred from existing bank account balances or from lines of credit
on an as-needed basis to pay for clearing checks. As of April 30, 2007, book overdrafts, which were previously
reported in Cash and Cash Equivalents, of $15.7 million, have now been reclassified into Accounts and
Royalties Payable in the Condensed Consolidated Statements of Financial Position to conform to the current
presentation. As of April 30, 2008, $52.0 million of book overdrafts were included in Accounts and Royalties
Payable.

Use of Estimates: The preparation of the Company’s financial statements in conformity with accounting
principles generally accepted in the United States requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and reported amounts of revenue and expenses during the reporting period.
Actual results could differ from those estimates.

-52-

the price to the customer is fixed or determinable; and collectability is reasonably assured. If all of the above
criteria have been met, revenue is principally recognized upon shipment of products or when services have
been rendered. Subscription revenue is generally collected in advance. The prepayment is deferred and
recognized as earned when the related issue is shipped or made available online over the term of the
subscription. Where a product has been sold with multiple deliverables the Company follows EITF No. 00-21
“Accounting for Revenue Relationships with Multiple Deliverables” to determine the timing of revenue
recognition. Collectability is evaluated based on the amount involved, the credit history of the customer, and the
status of the customer’s account with the Company. Revenue is reported net of any amounts billed to
customers for taxes which are remitted to government authorities.

Cash Equivalents: Cash equivalents consist of highly liquid investments with an original maturity of three months
or less and are stated at cost plus accrued interest, which approximates market value.

Allowance for Doubtful Accounts: The estimated allowance for doubtful accounts is based on a review of the
aging of the accounts receivable balances, the historical write-off experience, and a credit evaluation of a
customer. A change in the evaluation of a customer’s credit could affect the estimated allowance. The
allowance for doubtful accounts is shown as a reduction of accounts receivable in the accompanying
consolidated balance sheets and amounted to $8.0 million and $11.2 million at April 30, 2008 and 2007,
respectively.

Sales Return Reserves: The process which the Company uses to determine its sales returns and the related
reserve provision charged against revenue is based on applying an estimated return rate to current year sales.
This rate is based upon an analysis of actual historical return experience in the various markets and geographic
regions in which the Company does business. The Company collects, maintains and analyzes significant
amounts of sales returns data for large volumes of homogeneous transactions. This allows the Company to
make reasonable estimates of the amount of future returns. All available data is utilized to identify the returns
by market and as to which fiscal year the sales returns apply. This enables management to track the returns in
detail and identify and react to trends occurring in the marketplace, with the objective of being able to make the
most informed judgments possible in setting reserve rates. Sales return reserves, net of estimated inventory
and royalty costs, are reported as a reduction of accounts receivable in the Consolidated Statement of Financial
Position and amounted to $55.5 million and $56.1 million at April 30, 2008 and 2007, respectively.

Reserve for Inventory Obsolescence: A reserve for inventory obsolescence is estimated based on a review of
damaged, obsolete, or otherwise unsalable inventory. The review encompasses historical unit sales trends by
title; current market conditions, including estimates of customer demand; and publication revision cycles. The
inventory obsolescence reserve is reported as a reduction of the inventory balance in the Consolidated
Statement of Financial Position and amounted to $35.4 million and $32.2 million as of April 30, 2008 and 2007,
respectively.

Allocation of Acquisition Purchase Price to Assets Acquired and Liabilities Assumed: In connection with
acquisitions, the Company allocates the cost of the acquisition to the assets acquired and the liabilities assumed
based on estimates of the fair value of such items, including goodwill and other intangible assets. Such
estimates include discounted estimated cash flows to be generated by those assets and the expected useful
lives based on historical experience, current market trends, and synergies to be achieved from the acquisition
and expected tax basis of assets acquired. For major acquisitions, the Company may use an independent
appraiser to confirm the reasonableness of such estimates.

-53-

Inventories: Inventories are stated at cost or market, whichever is lower. U.S. book inventories aggregating
$73.9 million and $73.9 million at April 30, 2008 and 2007, respectively, are valued using the last-in, first-out
(LIFO) method. All other inventories are valued using the first-in, first-out (FIFO) method.

Product Development Assets: Product development assets consist of composition costs and royalty advances
to authors. Costs associated with developing any publication are expensed until the product is determined to be
commercially viable. Composition costs, primarily representing the costs incurred to bring an edited commercial
manuscript to publication including typesetting, proofreading, design and illustration, etc., are capitalized and
generally amortized on a double-declining basis over estimated useful lives, ranging from 1 to 3 years. Royalty
advances to authors are capitalized and, upon publication, are recovered as royalties earned by the authors
based on sales of the published works. Author advances are periodically reviewed for recoverability and a
reserve for loss is maintained, if appropriate.

Advertising Expense: Advertising costs are expensed as incurred. The Company incurred $34.1 million, $39.8
million and $36.9 million in advertising costs in fiscal years 2008, 2007 and 2006, respectively.

Property, Equipment and Technology: Property, equipment and technology is recorded at cost. Major renewals
and improvements are capitalized, while maintenance and repairs are expensed as incurred.

Costs incurred for computer software developed or obtained for internal use are capitalized during the
application development stage and expensed as
the preliminary project and post-
implementation stages. Costs incurred during the application development stage include costs of materials and
services, and payroll and payroll-related costs for employees who are directly associated with the software
project. Such costs are amortized over the expected useful life of the related software generally 3 to 5 years.
Maintenance, training, and upgrade costs that do not result in additional functionality are expensed as incurred.

incurred during

Buildings, leasehold improvements, and capital leases are amortized over the lesser of the estimated useful
lives of the assets up to 40 years, or over the duration of the lease, using the straight-line method. Furniture and
fixtures are depreciated principally on the straight-line method over estimated useful lives ranging from 3 to 10
years. Computer equipment is amortized on a straight-line basis over estimated useful lives ranging from 3 to 5
years.

Goodwill and Other Intangible Assets: Goodwill is the excess of the purchase price paid over the fair value of
the net assets of the business acquired. Other intangible assets principally consist of brands, trademarks,
acquired publication rights, customer relationships and non-compete agreements. Goodwill and indefinite-lived
intangible assets are not amortized but are reviewed at least annually for impairment, or more often if events or
circumstances occur that would more likely than not reduce the fair market value of a reporting unit, or intangible
asset, below its’ carrying amount. The Company evaluates the recoverability of indefinite-lived intangible assets
by comparing the fair value of the intangible asset to the carrying value. For goodwill impairment, the Company
uses a two-step impairment test approach at the reporting unit level. In the first step the fair value for the
reporting unit is compared to its book value including goodwill. In the case that the fair value of the reporting
unit is less than the book value, a second step is performed which compares the implied fair value of the
reporting unit’s goodwill to the book value of the goodwill. The fair value for the goodwill is determined based on
the difference between the fair values of the reporting units and the net fair values of the identifiable assets and
liabilities of such reporting units. If the fair value of the goodwill is less than the book value, the difference is
recognized as impairment.

Finite-lived intangible assets are amortized over their useful lives and management evaluates the estimated life
in accordance with SFAS 142. The most significant factors in determining the life of these intangibles is the

-54-

history and longevity of the brands, trademarks or titles acquired, combined with the strength of cash flows.
Acquired publishing rights that have an indefinite life are typically characterized by intellectual property with a
long and well-established revenue stream resulting from strong and well-established imprint/brand recognition in
the market.

Acquired publication rights, trademarks, customer relationships and brands with finite lives are amortized on a
straight-line basis over periods ranging from 5 to 40 years. Non-compete agreements are amortized over the
terms of the individual agreement.

Impairment of Long-Lived Assets: Depreciable and amortizable assets are only evaluated for impairment upon a
significant change in the operating or macroeconomic environment. In these circumstances, if an evaluation of
the undiscounted cash flows indicates impairment, the asset is written down to its estimated fair value based on
discounted future cash flows.

Derivative Financial Instruments: The Company, from time to time, enters into forward exchange and interest
rate swap contracts as a hedge against foreign currency asset and liability commitments, and anticipated
transaction exposures, including intercompany purchases. The Company accounts for its derivative instruments
in accordance with SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities,” as amended.
Accordingly, all derivatives are recognized as assets or liabilities and measured at fair value. Derivatives that
are not determined to be effective hedges are adjusted to fair value with a corresponding effect on earnings.
The Company does not use financial instruments for trading or speculative purposes.

Foreign Currency Gains/Losses: The Company translates the results of operations of its international
subsidiaries using average exchange rates during each period, whereas balance sheet accounts are translated
using exchange rates at the end of each period. Currency translation adjustments are recorded as a component
of accumulated other comprehensive income (loss) in shareholders’ equity, while foreign denominated
transactions are revalued monthly and recorded in operating and administrative expenses. Included in
operating and administrative expenses were net foreign exchange transaction losses of approximately $2.7
million, $0.2 million, and $0.2 million in fiscal years 2008, 2007, and 2006, respectively.

Shared-Based Compensation: The Company adopted SFAS 123R on May 1, 2006, the beginning of the
Company’s 2007 fiscal year. SFAS 123R requires that companies recognize share-based compensation to
employees in the Statement of Income based on the fair value of the share-based awards.

Prior to the adoption of SFAS 123R, the Company accounted for stock-based compensation using the “intrinsic
value” method prescribed in Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to
Employees” (“APB 25”), and using the disclosure-only provisions of SFAS 123, as amended by SFAS 148.
Under this approach, the value of restricted stock awards was expensed over their requisite service periods and
the imputed cost of stock options were disclosed only in footnotes to the financial statements.

The Company uses the modified prospective approach allowed under SFAS 123 Under this approach, awards
that are granted, modified or settled after May 1, 2006 are measured and expensed in accordance with SFAS
123R. Unvested awards that were granted prior to May 1, 2006 are expensed and recognized in the Company’s
results of operations, prospectively. No previous periods are restated.

The adoption of SFAS 123R resulted in the recognition of an incremental share-based compensation expense
of $11.3 million ($7.0 million after taxes) for the twelve months ended April 30, 2007, which is reflected in
operating and administrative expenses. For periods prior to fiscal year 2007, the adoption of SFAS 123R, this
portion of stock-based compensation was reflected in the Company’s disclosures, but was not recognized in the
consolidated income statements. For comparative purposes, the following adjusted net income and earnings
-55-

per share reflect the amounts which have been reported in the income statement for the twelve months ended
April 30, 2008 and 2007, and the amounts which would have been reported in the income statement for 2006, if
the provisions of SFAS 123R were in effect at that time.

(In thousands, except per share amounts)

2008

2007

2006

Net Income, as Reported

$147,536

$99,619

$110,328

Add: Stock-Based Compensation Expense

Included in Reported Net Income, Net of Taxes

17,475

12,559

4,854

Deduct: Total Stock-Based Compensation Expense
Determined Under Fair-Value Based
Method for all Awards, Net of Taxes (1)

(17,475)

(12,559)

(10,942)

Adjusted Net Income

$147,536

$99,619

$104,240

Reported Earnings Per Share:

Diluted

Basic

Adjusted Earnings Per Share:

Diluted

Basic

$2.49

$2.55

$2.49

$2.55

$1.71

$1.75

$1.85

$1.90

$1.71

$1.75

$1.74

$1.80

(1) Total stock-based compensation expense for all awards presented in the table above is net of taxes of $10.5 million, $7.6 million and $6.6

million for the years ended April 30, 2008, 2007 and 2006, respectively.

Pursuant to the provisions of SFAS 123R, the Company records share-based compensation as a charge to
earnings reduced by the estimated cost of anticipated forfeited awards. As such, share-based compensation
expense is only recognized for those awards that are expected to ultimately vest. Stock-based compensation
expense associated with performance restricted share awards is recognized based on management’s best
estimates of the achievement of the performance goals specified in such awards and the estimated number of
shares that will be earned. The cumulative effect on current and prior periods of a change in the estimated
number of performance share awards, or estimated forfeiture rate is recognized as an adjustment to earnings in
the period of the revision.

Concurrent with the adoption of SFAS 123R the Company accelerated the recognition of compensation expense
related to post-adoption awards granted to near-retirement and retirement-eligible employees to reflect
accelerated vesting as provided in the Company’s Key Employee Stock Plan. The impact of the change was not
significant.

-56-

and is currently assessing the impact, if any, of the deferred portion of SFAS 157 on its consolidated financial
statements.

In December 2007, the FASB issued Statements No. 141R, Business Combinations (“SFAS 141R”). SFAS
141R expands the scope of acquisition accounting to all transactions under which control of a business is
obtained. Principally, SFAS 141R requires that contingent consideration as well contingent assets and liabilities
be recorded at fair value on the acquisition date and that certain transaction and restructuring costs be
expensed. SFAS 141R is effective for acquisitions made on and after May 1, 2009. While the Company is
currently assessing the impact of SFAS 141(R) on its consolidated financial statements, the Company expects
that upon adoption of SFAS 141(R), the application of the new standard is likely to have a significant impact on
how the Company allocates the purchase price of any future acquired businesses.

In March 2008, the FASB issued Statement No. 161, Disclosures about Derivative Instruments and Hedging
Activities (“FAS 161”), which is effective for the Company February 1, 2009. FAS 161 requires enhanced
disclosures about derivative instruments and hedging activities to allow for a better understanding of their effects
on an entity’s financial position, financial performance, and cash flows. Among other things, FAS 161 requires
disclosure of the fair values of derivative instruments and associated gains and losses in a tabular format. Since
FAS 161 requires only additional disclosures about the Company’s derivatives and hedging activities, the
adoption of FAS 161 will not affect the Company’s financial position or results of operations.

In April 2008, the FASB issued FASB Staff Position No. FSP SFAS 142-3 “Determination of the Useful Life of
Intangible Assets” (“SFAS 142-3”). SFAS 142-3 amends the factors that must be considered in developing
renewal or extension assumptions used to determine the useful life over which to amortize the cost of a
recognized intangible asset under FASB Statement No. 142, “Goodwill and Other Intangible Assets” SFAS 142-
3 requires an entity to consider its own assumptions about the renewal or extension of the term of the
arrangement, consistent with its expected use of the asset. SFAS 142-3 also requires several incremental
disclosures for renewable intangible assets. The Company is required to adopt SFAS 142-3 as of May 1, 2009.
The guidance for determining the useful life of a recognized intangible asset must be applied prospectively to
intangible assets acquired after the effective date. The Company is currently assessing the impact, if any, on its
consolidated financial statements.

There have been no other new accounting pronouncements issued during fiscal year 2008 that have had, or are
expected to have a material impact on the Company’s consolidated financial statements.

-57-

Note 3 – Income Per Share

A reconciliation of the shares used in the computation of net income per share for the years ended April 30
follows (in thousands):

Weighted Average Shares Outstanding
Less: Unearned Deferred Compensation Shares

Shares Used for Basic Income Per Share

2008

58,193

(272)

57,921

Dilutive Effect of Stock Option and Other Stock Awards

1,402

Shares Used for Diluted Income Per Share

59,323

2007

57,191

(259)

56,932

1,355

58,287

2006

58,405

(334)

58,071

1,721

59,792

For the years ended April 30, 2008, 2007, and 2006, options to purchase Class A Common Stock of 1,591,593, 2,587,569 and 1,007,000
shares, respectively, have been excluded from the shares used for diluted income per share as their inclusion would have been antidilutive.
In addition, for the year ended April 30, 2008, unearned restricted shares of 19,000 have been excluded as their inclusion would have been
antidilutive. No unearned restricted shares were excluded for the years ending April 30, 2007 and 2006.

Note 4 – Acquisitions

Fiscal Year 2008:

The Company entered into a contract with Microsoft to develop, publish, and deliver Microsoft Official Academic
Curriculum (MOAC) textbooks and e-learning tools to the higher education markets. The Company recorded
amounts due under the Microsoft agreement which were primarily allocated to acquired publication rights and
are being amortized over the life of the contract.

On June 21, 2007, the Company extended its rights to publish three chemical and environmental engineering
journals. The cost of acquired publishing rights is amortized over a 9-year period.

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Fiscal Year 2007:

Blackwell Acquisition:

On February 2, 2007 the Company acquired all the outstanding shares of Blackwell Publishing (Holdings) Ltd.
(“Blackwell”) for $1.1 billion (£572 million) of cash plus liabilities assumed less cash acquired. Blackwell
publishes journals and books for the academic, research and professional markets focused on science,
technology, medicine and social sciences and humanities.

The Company accounted for the acquisition using the purchase method of accounting in accordance with the
provisions of SFAS No. 141, “Business Combinations” (“SFAS 141”). The purchase price was allocated to
Blackwell’s tangible and identifiable intangible assets and liabilities based on their fair values as of February 2,
2007 as set forth below (in thousands):

Current Assets

Intangible Assets

Goodwill

Other Noncurrent Assets

Total Assets Acquired

Deferred Revenue

Other Current Liabilities

Noncurrent Deferred Tax Liabilities

Other Noncurrent Liabilities

Total Liabilities Assumed

Net Assets Acquired

$ 345,200

830,400

493,500

43,700

$ 1,712,800

$ 172,300

130,900

252,400

36,200

$ 591,800

$ 1,121,000

Included in current assets above is $188.9 million of cash acquired. All valuations and plans related to the
integration of the Blackwell acquisition have been finalized along with the final purchase price allocation, as
reflected in the above schedule. Since the preliminary purchase price allocation, adjustments made to finalize
the allocation principally included an increase to income tax receivables of $13.3 million with a corresponding
decrease in Goodwill, and a decrease to intangible assets of $13.1 million as a result of the finalization of the
asset valuations with a corresponding increase to Goodwill, net of taxes. In addition, approximately $6.0 million
of additional incremental acquisition related costs were accrued during fiscal year 2008 along with a tax
adjustment of approximately $5.6 million, both of which increased Goodwill. The incremental acquisition costs
consisted primarily of systems and facilities consolidations.

Unaudited Pro Forma Financial Information

The following unaudited pro forma statement of operations information gives effect to the Blackwell acquisition
and related financing as if it had occurred at the beginning of each of the fiscal years presented. The pro forma
information is presented for informational purposes only and is not indicative of the results of operations that
would have been achieved if the acquisition and the $1.35 billion Credit Agreement had taken place at the
beginning of each of the periods presented nor is it indicative of future financial performance. The pro forma
financial information for each of the periods presented includes the recurring effect from the amortization of

-59-

acquired intangible assets and the increase in interest expense associated with the Credit Agreement. Cost
savings from future synergies are not reflected in the pro forma financial information.

Blackwell Acquisition (cont’d):

The unaudited pro forma statement of operations for the year ended April 30, 2007 combines the historical
results of Wiley for the year ended April 30, 2007, which includes post-acquisition Blackwell results for the
period from February 2, 2007 to April 30, 2007, and the historical results of pre-acquisition Blackwell for the
period from April 1, 2006 to December 31, 2006. The unaudited pro forma statement of operations for the year
ended April 30, 2006 combines the historical results of Wiley for the year ended April 30, 2006 and, due to
differences in our reporting periods, the historical results of Blackwell, for the twelve months ended March 31,
2006.

For the Years
Ended April 30,

In thousands, except per share data

2007

2006

Revenue

Net Income

$1,558,887

$1,431,958

$108,301

$116,777

Net Income Per Common Share - Basic

$1.90

$2.01

Net Income Per Common Share - Diluted

$1.86

$1.95

Goodwill and Acquisition Related Intangible Assets

Goodwill resulting from the acquisition of $493.5 million was recorded within the Blackwell segment as reported
in footnote 17 of these financial statements. None of the goodwill is deductible for tax purposes. The
acquisition value and weighted average amortization period assigned to each intangible asset class as of
February 2, 2007 were as follows:

Cost of Blackwell

Weighted Average Acquisition Related
Intangible Assets
Amortization Period
(in thousands)
(in years)

Acquired Publication Rights

Trademarks and Trade Names

Indefinite

$617,800

142,600

Customer Relationships

70,000

Total

$830,400

The total amortization expense for Blackwell acquisition related intangible assets was $22.3 million and $5.5
million for the fiscal years ended April 30, 2008 and 2007, respectfully, and is included in the caption
“Amortization of intangibles” on the Company’s Consolidated Statements of Income. Estimated future
amortization expense related to acquisition for the next five years is $22.0 million per year.

Identifiable intangible assets – Acquired publication rights represent the rights to publish current and new
editions of journal and book titles. Acquired journal publishing rights are segregated into owned, non-owned and
joint owned titles. The right to publish a joint or non-owned journal is determined based upon individual
negotiated contractual arrangements, typically with membership organizations referred to as “Societies” which
specialize in the particular field or discipline. Owned journal publishing rights of approximately $476.3 million are
expected to have an estimated useful life of 40 years. Joint and non-owned journal publishing rights are
-60-

expected to have estimated useful lives of 40 and 30 years, respectively. Trademarks and trade names are
expected to have an indefinite life due to the fact that the Blackwell name will be used by the Company on an
ongoing basis, the name is important to the Company’s business and it is long established and well recognized.
Customer relationships are expected to have an estimated useful life of approximately 20 years. Book
publishing rights are expected to have estimated useful lives of 10 to 15 years.

The fair value of intangible assets was based on a valuation conducted by a third party specialist on behalf of
Wiley’s management using income approach methodologies. The discount rates used to determine present
value of net cashflows ranged from 9.5% to 15%. These discount rates were determined after consideration of
Blackwell’s estimated weighted average cost of capital and the estimated internal rate of return specific to the
acquisition.

As part of the strategic acquisition plan, the Company plans to reorganize certain functions, cancel certain
contractual obligations and close duplicate facilities. The plan encompasses the termination and relocation of
certain employees. Estimated costs associated with employee severance and relocation is approximately $7.9
million. These costs were included as a component of net assets acquired. As of April 30, 2008 approximately
$4.6 million of the severance costs were paid.

Other Fiscal Year 2007 Acquisitions:

Excluding the Blackwell acquisition, in fiscal year 2007 the Company acquired certain other businesses, assets
and rights for $19.7 million, including acquisition costs plus liabilities assumed. Approximately $14.1 million of
brands, trademarks and acquired publishing rights and $6.6 million of goodwill were recorded in the aggregate.
The brands, trademarks and acquired publishing rights are being amortized over a weighted average period of
approximately 11 years. The acquisitions consist primarily of the following:

On July 20, 2006, the Company acquired the assets of a publisher of two medical journals. The cost of
acquisition was principally allocated to acquired publication rights and is being amortized over a 15-year period.

On October 18, 2006, the Company acquired an on-line provider of travel-related content, technology, and
services. The acquisition cost was allocated to goodwill, branded trademarks and the net tangible assets
acquired consisting primarily of computer software. The branded trademarks are being amortized over a 10-
year period.

On January 24, 2007, the Company acquired the assets of a publisher of three advertising based journals. The
cost of acquisition was primarily allocated to acquired publication rights and is being amortized over a 10-year
period.

On March 20, 2007, the Company acquired the assets of a publisher of books and periodicals for faculty and
administrators in higher education. The cost of the acquisition was mainly recorded as acquired publication
rights and is being amortized over a 10-year period.

Fiscal Year 2006:

During fiscal year 2006, the Company acquired certain businesses, assets and rights in multiple transactions
aggregating $31.4 million, including related acquisition costs plus liabilities assumed. Approximately $26.3
million of the aggregate purchase price was allocated to brands and trademarks and acquired publishing rights

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and $4.9 million to goodwill. The brands, trademarks and acquired publishing rights will be amortized over a
weighted average period of approximately 10 years. The acquisitions consisted primarily of the following:

(cid:131) The Company acquired substantially all the assets of a global publisher of books and software,
specializing in information technology business certification materials. The acquisition cost was
allocated to brands and trademarks, goodwill and tangible net assets, which consisted of accounts
receivable, inventory, accrued royalties, accounts payable and other accrued liabilities. The brands and
trademarks are being amortized over a 15-year period.

(cid:131) The Company acquired the publishing rights to a newsletter division of a leading publisher of mental
health and addiction information. The majority of the acquisition was recorded as acquired publication
rights and is being amortized over a 10-year period.

(cid:131) The Company acquired a leading provider of evidence-based medicine content. The acquisition cost
was allocated to goodwill, brands and trademarks, customer relationships and other assets and
liabilities which consisted of accounts receivable, capitalized software and deferred subscription
revenues. The brands, trademarks and customer relationships are amortized over a 10-year period.

(cid:131) The Company acquired the publishing rights to the journal Dialysis & Transplantation, a source of
nephrology and renal transplantation information to nephrologists, surgeons, internists and other
physicians and healthcare professionals. The majority of the acquisition was recorded as acquired
publication rights and is being amortized over a 10-year period.

Note 5 - Marketable Securities

The Company accounts for these securities as available-for-sale in accordance with SFAS No. 115 “Accounting
for Certain Investments in Debt and Equity Securities.” As part of the Blackwell acquisition on February 2, 2007,
the Company acquired $42.3 million in marketable securities which were all sold by the Company during the
fourth quarter of fiscal year 2007. There were no securities outstanding as of April 30, 2008, 2007 and 2006.

Note 6 – Inventories

Inventories at April 30 were as follows (in thousands):

Finished Goods

Work-in-Process

Paper, Cloth, and Other

LIFO Reserve

Total Inventories

2008

2007

$103,138

$99,958

11,074

8,303

9,949

7,094

122,515

117,001

(4,306)

(4,138)

$118,209

$112,863

-62-

Note 7 – Product Development Assets

Product development assets consisted of the following at April 30 (in thousands):

Composition Costs

Royalty Advances

Total

2008

2007

$49,054

$42,976

46,072

43,065

$95,126

$86,041

Composition costs are net of accumulated amortization of $122.8 million and $113.7 million as of April 30, 2008 and 2007, respectively.

Note 8 - Property, Equipment and Technology

Property, equipment and technology consisted of the following at April 30 (in thousands):

2008

2007

Land and Land Improvements

$5,105

$4,992

Buildings and Leasehold Improvements

Furniture, Fixtures and Warehouse Equipment

96,302

72,763

88,138

71,368

Computer Equipment and Capitalized Software

233,682

196,128

Accumulated Depreciation

Total

407,852

360,626

(262,143)

(233,914)

$145,709

$126,712

The net book value of capitalized software costs was $30.4 million and $22.3 million as of April 30, 2008 and
2007, respectively. Depreciation expense recognized in 2008, 2007, and 2006 for capitalized software costs
was approximately $11.9 million, $12.0 million, and $14.4 million, respectively.

Note 9 - Goodwill and Other Intangible Assets

The following table summarizes the activity in goodwill by segment (in thousands):

As of April
30, 2007

Acquisitions and
Dispositions

Foreign Translation and
Other Adjustments

As of April
30, 2008

P/T

STM

European

Blackwell

Other

Total

$153,713

28,072

23,318

496,674

2,366

$704,143

$(168)

720

3,350

188

$4,090

$153,545

28,072

24,038

500,024

2,554

$708,233

-63-

Identified intangible assets as of April 30, 2008 and 2007 were as follows (in thousands):

2008

2007

Cost

Accumulated
Amortization

Cost

Accumulated
Amortization

Intangible Assets with Determinable Lives

Acquired Publishing Rights

$834,556

$(121,924)

$842,182

$(88,289)

Brands & Trademarks

Covenants not to Compete

17,209

3,382

(3,436)

(2,342)

17,224

(2,126)

3,383

(1,549)

Customer Relationships

70,937

(4,472)

71,503

(883)

926,084

(132,174)

934,292

(92,847)

Intangible Assets with Indefinite Lives

Acquired Publishing Rights

123,963

120,295

Brands & Trademarks

202,525

204,549

$1,252,572

$(132,174)

$1,259,136

$(92,847)

Based on the current amount of intangible assets subject to amortization, the estimated amortization expense
for each of the succeeding 5 fiscal years are as follows: 2009 - $38.5 million; 2010 - $36.2 million; 2011 - $34.9
million; 2012 - $34.1 million; and 2013 - $32.3 million.

Note 10 - Other Accrued Liabilities

Other accrued liabilities as of April 30 consisted of the following (in thousands):

2008

2007

Accrued Compensation and Benefits

$59,046

$52,869

Accrued Interest

Other Accrued Operating Expenses

Total

7,409

70,412

14,327

66,466

$136,867

$133,662

Note 11 - Income Taxes

The provision for income taxes for the years ending April 30 were as follows (in thousands):

2008

2007

2006

Current Provision(Benefit)

US – Federal

International

State and Local

$9,397

10,088

2,386

$23,684

$15,663

9,872

10,809

2,723

2,035

Total Current Provision

$21,871

$36,279

$28,507

Deferred Provision(Benefit)

US – Federal

International

$5,183

$(2,409)

$(62)

(13,414)

6,265

5,054

State and Local

352

(252)

Total Deferred Provision

$(7,879)

$3,604

$5,009

Total Provision

$13,992

$39,883

$33,516

-64-

International and United States pretax income for the year ended April 30 was as follows (in thousands):

International

United States

Total

2008

2007

2006

$122,369

$58,165

$51,444

39,159

81,337

92,400

$161,528

$139,502

$143,844

The Company’s effective income tax rate as a percentage of pretax income differed from the U.S. federal
statutory rate as shown below:

2008

2007

2006

U.S. Federal Statutory Rate

35.0%

State Income Taxes, Net of U.S.

Federal Tax Benefit

1.2

1.1

0.9

Taxes on Foreign Income

(14.2)

(3.0)

(1.5)

Deferred Tax Benefit From Tax Rate

Change

(11.6)

Tax Credit on Repatriated Foreign

Dividends

Tax Adjustments

Other, Net

(5.2)

(1.9)

(3.9)

(4.7)

0.2

(0.6)

(1.2)

Effective Income Tax Rate

8.7%

28.6%

23.3%

Tax Credit on Repatriated Foreign Dividends: During the fourth quarter of fiscal year 2005, the Company
elected to repatriate approximately $94 million of dividends from foreign subsidiaries under the American Jobs
Creation Act (AJCA) of 2004. The law provides for a favorable one-time tax rate on dividends from foreign
subsidiaries. The tax accrued on these dividends in fiscal year 2005 was approximately $7.5 million. Pursuant
to guidance issued by the Internal Revenue Service in May 2005, the Company recorded a tax benefit in the first
quarter of fiscal year 2006 reversing the accrued tax recorded in the previous year. Neither the first quarter
fiscal year 2006 tax benefit nor the corresponding fourth quarter fiscal year 2005 tax accrual had a cash impact
on the Company.

Tax Adjustments: In fiscal years 2008, 2007 and 2006 the Company reported tax benefits of $3.9 million, $5.5
million and $6.8 million, respectively, related to the favorable resolution of certain federal, state and foreign tax
matters with tax authorities.

Deferred Tax Benefit from Statutory Tax Rate Change: During 2008 the Company recognized tax benefits in
the amount of $18.7 million associated with new tax laws enacted in the United Kingdom and Germany that
reduced the corporate income tax rate from 30% to 28% and from 39% to 29%, respectively. The benefit
recognized by the Company reflected the adjustment to record the U.K. and Germany related deferred tax
balances at the new tax rates.

FASB Interpretation No. 48 (“FIN 48”) Accounting for Uncertainty In Income Taxes:

On May 1, 2007, the Company adopted the provisions of FIN 48, an interpretation of FASB Statement No. 109,
which prescribes a recognition threshold and measurement attributes for financial statement recognition of
income taxes.

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Upon adoption, the Company recognized a $0.4 million increase to reserves for income taxes, with a
corresponding decrease of $0.4 million in retained earnings. As of April 30, 2008 and May 1, 2007, the total
amount of unrecognized tax benefits were $32.4 million and $30.4 million, respectively, of which $4.7 million and
$4.9 million represented accruals for interest and penalties that were recorded as additional tax expense in
accordance with the Company’s accounting policy. Interest and penalties charged to tax expense in fiscal year
2008 was $0.2 million. Out of the balance at April 30, 2008, if recognized, the Company’s income taxes would
be reduced by approximately $21.8 million.

The Company files income tax returns in the U.S. and various states and foreign tax jurisdictions. The
Company’s major taxing jurisdictions include the United States, the United Kingdom and Germany. Other than
the Company’s German subsidiaries, the Company is no longer subject to income tax examinations by tax
jurisdictions for years prior to its 2005 fiscal year. With respect to Germany, all years including fiscal year 2003
forward remain subject to an income tax examination. All U.S. federal tax years prior to fiscal year 2004 have
been audited by the Internal Revenue Service and closed. The statute of limitations for fiscal year 2004 expired
during January 2008. Various state and foreign tax jurisdictions are in the process of examining tax returns for
years ranging from fiscal years 2003 to 2007. We reasonably expect reductions in the liability for unrecognized
tax benefits of approximately $3 million within the next twelve months as a result of finalizing agreements with
tax authorities.

A reconciliation of the beginning and ending amount of unrecognized tax benefit is, as follows (in 000’s $):

Balance April 30, 2007

Additions for Current Year Tax Positions

Additions for Prior Year Tax Positions

Reductions for Prior Year Tax Positions

Acquisitions

Settlements with Tax Authorities

Reductions for lapse of statute of limitations

Balance April 30, 2008

$30,406

524

373

(4,228)

5,624

(267)

$32,432

Deferred taxes result from temporary differences in the recognition of revenue and expense for tax and financial
reporting purposes. It is more likely than not that the results of future operations will generate sufficient taxable
income to realize the deferred tax assets. The significant components of deferred tax assets and liabilities at
April 30 were as follows (in thousands):

Net Operating Loss

Reserve for Sales Returns and Doubtful Accounts

Inventory

Accrued Expenses

Retirement and Post-Employment Benefits

Intangible and Fixed Assets

2008

2007

$1,480

10,081

$1,035

16,638

(6,090)

(3,840)

24,218

17,611

18,795

29,224

(248,690)

(301,572)

Net Deferred Tax Assets (Liabilities)

$(200,206)

$(240,904)

-66-

The Company intends to continue to reinvest earnings outside the U.S. for the foreseeable future and, therefore,
has not recognized any U.S. tax expense on foreign earnings. At April 30, 2008, the undistributed earnings of
international subsidiaries approximated $109 million and, if remitted currently, the related tax cost can not be
reasonably determined.

Tax benefits related to the exercise of stock options and vesting of restricted stock held by employees amounted
to $11.2 million, $4.5 million, and $5.8 million for fiscal years 2008, 2007, and 2006, respectively, which reduce
current income taxes payable.

Note 12 - Debt and Available Credit Facilities

At April 30,

Revolving Credit Facility – Due 2012

Term Loan – Due 2008 - 2013

Other Notes Payable

Total Debt

Less: Current Portion

Total Long-Term Debt

2008

2007

$191,318

$323,000

651,000

675,000

2,221

842,318

1,000,221

(45,000)

(22,500)

$797,318

$977,721

In connection with the Blackwell acquisition, the Company entered into a new Credit Agreement with Bank of
America and Royal Bank of Scotland as Co-Lead Arrangers in the aggregate amount of $1.35 billion. The
financing is comprised of a six-year Term Loan (Term Loan) in the amount of $675 million and a $675 million
five-year revolving credit facility (Revolver) which can be drawn in multiple currencies. The agreement provides
financing to complete the acquisition, refinance the existing revolving debt of the Company, as well as meet
future seasonal operating cash requirements. The Company has the option of borrowing at the following floating
interest rates: (i) at the rate as announced from time to time by Bank of America as its prime rate or (ii) at a rate
based on the London Bank Interbank Offered Rate (LIBOR) plus an applicable margin ranging from .37% to
1.05% for the Revolver and .45% to 1.25% for the Term Loan depending on the Company’s consolidated
leverage ratio, as defined. In addition, the Company will pay a facility fee ranging from .08% to .20% on the
Revolver depending on the Company’s consolidated leverage ratio, as defined. The total of the applicable
margin and facility fee at April 30, 2008 and 2007 was .63% and .85%, respectively. The Term loan has
quarterly mandatory principle payments ranging from zero to $33.8 million. For the fiscal years ending April 30,
2008 and 2007, these payments were $24.0 million and zero, respectively. The final amount due at maturity in
2013 is $236.3 million. The Company has the option to request an increase of up to $250 million in the size of
the Revolver in minimum amounts of $50 million. The Term Loan matures on February 2, 2013 and the
Revolver will terminate on February 2, 2012.

Simultaneous with the execution of the new Credit Agreement, the Company terminated all of its previous credit
agreements and paid in full amounts outstanding under those agreements by utilizing funds from the new Credit
facility. In connection with the early termination of the previous credit agreements, the Company wrote off
approximately $0.5 million of unamortized debt origination fees in the fiscal year 2007.

The credit agreements contain certain restrictive covenants related to Leverage Ratio, Fixed Charge coverage
ratio, property, equipment and technology expenditures, and restricted payments, including a limitation for
dividends paid and share repurchases. Under the most restrictive covenant, approximately $115 million was
available for such restricted payments as of April 30, 2008.

-67-

The Company and its subsidiaries have other short-term lines of credit aggregating $38 million at various
interest rates. No borrowings under the credit lines were outstanding at April 30, 2008 or 2007.

The Company’s total available lines of credit as of April 30, 2008 were approximately $1.364 billion, of which
approximately $522 million was unused. The weighted average interest rates on long term debt outstanding
during fiscal years 2008 and 2007 were 6.01% and 6.13%, respectively. As of April 30, 2008 and 2007, the
weighted average interest rates for the long-term debt were 5.74% and 6.36% respectively. Based on estimates
of interest rates currently available to the Company for loans with similar terms and maturities, the fair value of
notes payable and long-term debt approximate the carrying value.

Total debt maturing in each of the next five years are: 2009 – $45.0 million; 2010 – $67.5 million; 2011 – $90.0
million; 2012 – $303.8 million and 2013 – $336.0 million.

HEDGING ACTIVITY:

On February 16, 2007, the Company entered into an interest rate swap agreement, designated as a cash flow
hedge as defined under SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities”. The
hedge will fix a portion of the variable interest due on a portion of the new Term Loan. Under the terms of the
interest rate swap, the Company will pay a fixed rate of 5.076% and will receive a variable rate of interest based
on three month LIBOR (as defined) from the counter party which will be reset every three months for a four-year
period ending February 8, 2011. The notional amount of the rate swap was initially $660 million which will
decline through February 8, 2011, based on the expected amortization of the Term Loan. As of April 30, 2008
and 2007 the notional amount of this rate swap was $615 million and $660 million, respectively.

On October 19, 2007, the Company entered into an additional interest rate swap agreement, designated by the
Company as a cash flow hedge that will fix a portion of the variable interest due on the Revolving Credit Facility.
Under the terms of this interest rate swap, the Company will pay a fixed rate of 4.60% and will receive a variable
rate of interest based on three month LIBOR (as defined) from the counterpart which will be reset every three
months for a three-year period ending August 8, 2010. The notional amount of the rate swap is $100 million.

It is management’s intention that the notional amount of interest rate swaps be less than the Term Loan and the
Revolving Credit Facility outstanding during the life of the derivatives.

For the fiscal year ending April 30, 2008, the Company recognized a loss on the hedge contracts of
approximately $2.2 million. For the fiscal year ending April 30, 2007 the Company recognized a gain on the
hedge contract of approximately $ 0.4 million. All amounts are reflected in interest expense. At April 30, 2008
and 2007, the aggregate fair value of all interest rate swaps is a liability of $27.1 million and $2.5 million,
respectively, is accrued in Other Long Term Liabilities in the Consolidated Statements of Financial Position with
a corresponding charge, net of income taxes, in Accumulated Other Comprehensive Income. In the event of a
change of control, as defined, the banks have the option to terminate the agreements and require repayment of
any amounts outstanding.

The fair value of the interest rate swaps is an estimate at a point in time based on the terms of the agreements
and the current interest rate environment. The amount that will ultimately be recognized in net income is
uncertain and will be impacted by changes in the future interest rate environment. Based on the amount in
Accumulated Other Comprehensive Income at April 30, 2008, approximately $11.0 million would be reclassified
into net income in the next twelve months.

-68-

Note 13 - Commitments and Contingencies

The following schedule shows the composition of rent expense for operating leases (in thousands):

2008

2007

2006

Minimum Rental

$31,397

$31,142

$27,180

Less: Sublease Rentals

(1,624)

(1,754)

(1,563)

Total

$29,773

$29,388

$25,617

Future minimum payments under operating leases were $272.7 million at April 30, 2008. Annual minimum
payments under these leases for fiscal year 2009 through 2013 are approximately $35.8 million, $33.6 million,
and $30.4 million, $29.2 million, and $27.7 million, respectively. Rent expense associated with operating leases
that include scheduled rent increases and tenant incentives, such as rent holidays, are recorded on a straight-
line basis over the term of the lease. Future aggregate minimum rentals to be received under non-cancelable
subleases were $4.0 million at April 30, 2008.

Note 14 - Retirement Plans

The Company and its principal subsidiaries have contributory and noncontributory retirement plans that cover
substantially all employees. The plans generally provide for employee retirement between the ages of 60 and
65, and benefits based on length of service and compensation, as defined.

Effective April 30, 2007, the Company adopted the recognition and disclosure provisions of Statement No. 158
which requires employers to recognize in their balance sheets the overfunded or underfunded status of defined
benefit postretirement plans, measured as the difference between the fair value of plan assets and the projected
benefit obligation. Accordingly, the Company recognized the change in the funded status of the plan in
accumulated other comprehensive income. Statement No. 158 also requires plan assets and obligations to be
measured as of the employers’ balance sheet date. The measurement provision of Statement No. 158 did not
impact the Company, as its current measurement date is April 30.

The amounts in accumulated other comprehensive income that are expected to be recognized as components
of net periodic benefit cost during the next fiscal year are as follows (in thousands):

Actuarial Loss

Prior Service Cost

Total

Funded

Unfunded

Total

$1,888

$573

$2,461

482

141

623

$2,370

$714

$3,084

The adoption of Statement No. 158 had no effect on the Company’s consolidated statement of operations for
the year ended April 30, 2008, or for any prior period presented and does not have a material impact to any of
the Company’s debt covenants under its various credit agreements.

-69-

The Company has agreements with certain officers and senior management that provide for the payment of
supplemental retirement benefits during each of the 10 years after the termination of employment. Under certain
circumstances, including a change of control as defined, the payment of such amounts could be accelerated on
a present value basis.

Net pension expense included below for international plans amounted to approximately $13.2 million, $10.2
million and $7.1 million for fiscal years 2008, 2007 and 2006, respectively. The components of net pension
expense for the defined benefit plans were as follows (in thousands):

Service Cost

Interest Cost

2008

2007

2006

$19,639

$13,210

$10,998

22,030

15,408

11,590

Expected Return on Plan Assets

(22,443)

(14,850)

(10,988)

Net Amortization of Prior Service
Cost and Transition Asset

608

742

625

Curtailments/Settlements

123

Recognized Net Actuarial Loss

2,937

2,200

3,244

Net Pension Expense

$22,894

$16,710

$15,469

The weighted-average assumptions used to determine net pension expense for the years ended April 30 were
as follows:

Discount Rate

Rate of Compensation Increase

Expected Return on Plan Assets

2008

2007

2006

5.7%

4.6%

7.6%

5.8%

4.1%

8.2%

5.6%

3.8%

8.4%

The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the retirement
plans with accumulated benefit obligations in excess of plan assets were $279.9 million, $256.2 million, and
$195.8 million, respectively, as of April 30, 2008, and $267.3 million, $248.7 million and $170.3 million,
respectively, as of April 30, 2007.

-70-

The following table sets forth the changes in and the status of the plans’ assets and benefit obligations. The
unfunded plans relate primarily to a non-U.S. subsidiary, which is governed by local statutory requirements, and
the domestic supplemental retirement plans for certain officers and senior management personnel.

Dollars in thousands

CHANGE IN PLAN ASSETS

2008

2007

Funded

Unfunded

Funded

Unfunded

Fair Value of Plan Assets, Beginning of Year

$ 273,346

$ -

$ 154,149

$ -

Actual Return on Plan Assets

Blackwell Acquisition

Curtailments/Settlements

Employer Contributions

Employees’ Contributions

Benefits Paid

Foreign Currency Rate Changes

1,052

(1,403)

57,218

2,891

(10,180)

(1,211)

2,142

(2,142)

16,727

89,639

6,484

1,491

(5,781)

10,637

1,854

(1,854)

Fair Value, End of Year

$ 321,713

$ -

$ 273,346

$ -

CHANGE IN PROJECTED BENEFIT OBLIGATION

Benefit Obligation, Beginning of Year

$ (336,457)

$ (51,041)

$ (190,565)

$ (41,974)

Service Cost

Interest Cost

Employees’ Contributions

Amendments and Other

Actuarial Gain (Loss)

Benefits Paid

Blackwell Acquisition

Curtailments/Settlements

(17,429)

(19,095)

(2,891)

23,706

10,180

1,403

(2,210)

(2,935)

(514)

(252)

2,142

297

(11,077)

(2,133)

(12,957)

(1,491)

3,039

5,781

(2,451)

(1,634)

(2,639)

1,854

(114,284)

Foreign Currency Rate Changes

1,057

(3,008)

(14,903)

(2,064)

Benefit Obligation, End of Year

$ (339,526)

$ (57,521)

$ (336,457)

$ (51,041)

Funded Status

$ (17,813)

$ (57,521)

$ (63,111)

$ (51,041)

Amounts Recognized in the Statement of Financial Position:

Deferred Pension Asset

Current Pension Liability

Noncurrent Pension Liability

$ 9,920

$ -

$ 257

$ -

(2,499)

(2,139)

(27,733)

(55,022)

(63,369)

(48,902)

Net Amount Recognized in Statement of Financial Position

$ (17,813)

$ (57,521)

$ (63,112)

$ (51,041)

AMOUNTS RECOGNIZED IN ACCUMULATED OTHER
COMPREHENSIVE INCOME CONSIST OF (before tax)

Net Actuarial Loss

Prior Service Cost

$ (32,340)

$ (6,017)

$ (36,846)

$ (6,493)

(2,373)

(1,528)

(2,808)

(1,719)

Total Accumulated Other Comprehensive Loss

$ (34,713)

$ (7,545)

$ (39,654)

$ (8,212)

(Decrease)/Increase in Accumulated other Comprehensive

$ 4,941

$ 667

$ (14,095)

$ (6,919)

Income

WEIGHTED AVERAGE ASSUMPTIONS USED IN
DETERMINING ASSETS AND LIABILITIES

Discount Rate

Rate of Compensation Increase

6.4%

4.4%

6.1%

4.0%

5.7%

4.7%

5.6%

3 8%

Accumulated Benefit Obligations

$ (306,011)

$ (49,600)

$ (291,460)

$ (44,982)

-71-

Basis for determining discount rate:

The discount rates for the United States and Canadian pension plans were based on the derivation of a single-
equivalent discount rate using a standard spot rate curve and the timing of plan liabilities as of April 30, 2008.
The spot rate curve used is based upon a portfolio of Moody’s-rated Aa3 (or higher) corporate bonds. The
discount rates for the other international plans were based on similar published indices with durations
comparable to that of each plan’s liabilities.

Basis for determining the expected asset return:

The expected long-term rates of return were estimated using market benchmarks for equities, real estate, and
bonds applied to each plan’s target asset allocation. Expected returns are estimated by asset class and
represent the sum of expected rates of return plus anticipated inflation. The expected long-term rates are then
compared to actual historic investment performance of the plan assets as well as future expectations and
evaluated through consultation with investment advisors and actuaries.

The table below represents the asset mix of the investment portfolio of the post-retirement benefit plan as of
April 30:

Percentage of
Plan Assets

Asset Category

2008

2007

Equities

Debt Securities and Cash

Real Estate

Other

Total

51%

46%

61%

33%

100%

The investment guidelines for the defined benefit pension plans are established based upon an evaluation of
market conditions and tolerance for risk. The investment objective is to ensure that funds are available to meet
the plan’s benefit obligations when they are due. The investment strategy is to prudently invest in high quality
diversified securities to achieve our long-term expectation. The plans’ risk management practices provide
guidance to the investment managers, including guidelines for asset concentration, credit rating and liquidity.
Asset allocation favors a balanced portfolio, with a target allocation of approximately 49% equity securities, 45%
fixed income securities and cash, and 6% real estate. Due to volatility in the market, the target allocation is not
always desirable and asset allocations will fluctuate between acceptable ranges.

Expected employer contributions in fiscal year 2009 to the defined benefit pension plans will be approximately
$10.0 million, including $8.7 million of minimum amounts required for the Company’s international plans. From
time to time, the Company may elect to make voluntary contributions to its defined benefit plans to improve their
funded status.

Expected benefit payments from all plans are expected to approximate $11.8 million in fiscal year 2009, $12.6
million in fiscal year 2010, $13.6 million in fiscal year 2011, $14.3 million in fiscal year 2012, $15.6 million in
fiscal year 2013, and $109.1 million for fiscal years 2014 through 2018.

The Company provides contributory life insurance and health care benefits, subject to certain dollar limitations
for substantially all of its retired U.S. employees. The cost of such benefits is expensed over the years the

-72-

employee renders service and is not funded in advance. The accumulated post-retirement benefit obligation
recognized in the Statement of Financial Position as of April 30, 2008 and 2007 was $2.5 million and $2.1
million, respectively. Annual expenses for these plans for the fiscal years ending April 30, 2008, 2007 and 2006
were $0.3 million.

The Company has defined contribution savings plans. The Company contribution is based on employee
contributions and the level of Company match. The expense for these plans amounted to approximately $6.3
million, $5.4 million, and $4.8 million in 2008, 2007, and 2006, respectively.

Note 15 – Share-Based Compensation

All equity compensation plans have been approved by security holders. Under the Key Employee Stock Plan
(“the Plan”), qualified employees are eligible to receive awards that may include stock options, performance-
based stock awards, and restricted stock awards. Under the Plan, a maximum number of 8,000,000 shares of
Company Class A stock may be issued. As of April 30, 2008 there were 4,373,388 securities remaining
available for future issuance under the Plan. The Company issues treasury shares to fund stock options and
performance-based and restricted stock awards.

Stock Option Activity:

Under the terms of the Company’s stock option plan the exercise price of stock options granted may not be less
than 100% of the fair market value of the stock at the date of grant. Options are exercisable over a maximum
period of 10 years from the date of grant and generally vest 50% on the fourth and fifth anniversary date after
the award is granted. Under certain circumstances relating to a change of control, as defined, the right to
exercise options outstanding could be accelerated.

The following table provides the estimated weighted average fair value, under the Black-Scholes option-pricing
model, for each option granted during the periods and the significant weighted average assumptions used in
their determination. The expected life represents an estimate of the period of time stock options are outstanding
based on the historical exercise behavior of the employees. The risk-free interest rate is based on the
corresponding U.S. Treasury yield curve in effect at the time of the grant. Similarly, the volatility is estimated
based on the expected volatility over the estimated life, while the dividend yield is based on expected dividend
payments to be made by the Company.

Expected Life of Options (years)

Risk-Free Interest Rate

Expected Volatility

Expected Dividend Yield

7.7

5.1%

27.3%

0.9%

For the Twelve Months
Ending April 30,

2008

2007

2006

8.0

3.9%

7.8

5.2%

29.1%

27.1%

1.2%

0.9%

Per Share Fair Value of Options Granted

$18.42

$12.65

$13.61

-73-

A summary of the activity and status of the Company’s stock option plans was as follows:

Stock Options

Options
(in thousands)

2008

2007

2006

Weighted
Average
Remaining
Contractual
Term
(in years)

Weighted
Average
Exercise
Price

Average
Intrinsic
Value
(in millions)

Options
(in thousands)

Weighted
Average
Exercise
Price

Options
(in thousands)

Weighted
Average
Exercise
Price

Outstanding at Beginning of Year

6,216

$27.37

6,084

$25.95

5,563

$22.77

Granted

Exercised

Expired or Forfeited

627

$48.46

(1,001)

$17.89

(112)

$30.45

Outstanding at End of Year

5,730

$31.27

Exercisable at End of Year

2,657

$24.40

Vested and Expected to Vest in
the Future at April 30, 2008

5,668

$31.27

5.7

3.8

5.7

$86.2

$57.5

$85.3

640

$33.05

1,014

$38.55

(462)

$16.30

(449)

$14.70

(46)

$30.52

(44)

$28.14

6,216

$27.37

6,084

$25.95

2,801

$21.20

2,460

$19.09

The intrinsic value is the difference between the Company’s common stock price and the option exercise price.
Total intrinsic value of options exercised during the twelve months ended April 30, 2008, 2007 and 2006 were
$25.3 million, $10.0 million and $11.2 million, respectively. The Average Intrinsic Value in the table above
represents the value to option holders on all options outstanding as of April 30, 2008.

As of April 30, 2008, there was $16.7 million of unrecognized share-based compensation expense related to
stock options, which is expected to be recognized over a period up to 5 years, or 2.2 years on a weighted
average basis.

The following table summarizes information about stock options outstanding and exercisable at April 30, 2008:

Options Outstanding

Options Exercisable

Range of
Exercise Prices

Number of
Options
(in thousands)

Weighted
Average
Remaining Term

Weighted
Average
Exercise Price

Number of
Options
(in thousands)

Weighted
Average
Exercise Price

$13.75 to $14.59

0.4 years

$14.55

$17.25 to $20.54

3.1 years

$19.39

$20.56 to $23.40

610

2.4 years

$22.30

610

$23.56 to $25.32

1,798

4.2 years

$24.87

1,613

$31.89 to $38.78

2,523

7.0 years

$34.73

$48.46 to $48.46

627

9.2 years

$48.46

262

Total

5,730

5.7 years

$31.27

2,657

$14.55

$19.39

$22.30

$24.82

$31.89

$24.40

Performance-Based and Other Restricted Stock Activity:

Under the terms of the Company’s long-term incentive plans, upon the achievement of certain three-year
financial performance-based targets, awards are payable in restricted shares of the Company’s Class A
common stock. During each three-year period the Company adjusts compensation expense based upon its best
estimate of expected performance. The restricted performance shares vest 50% on the first and second
anniversary date after the award is earned.

-74-

The Company may also grant restricted shares of the Company’s Class A Common Stock to key employees in
connection with their employment. The restricted shares generally vest 50% at the end of the fourth and fifth
years following the date of the grant.

Under certain circumstances relating to a change of control or termination, as defined, the restrictions would
lapse and shares would vest earlier.

Activity for restricted stock awards during the fiscal years ended April 30, 2008, 2007 and 2006 was as follows
(shares in thousands):

2008

2007

2006

Restricted
Shares

Weighted Average
Grant Date Value

Restricted
Shares

Nonvested Shares at

Beginning of Year

Granted

Vested

Forfeited

Nonvested Shares at
End of Year

814

518

$32.56

$43.09

609

372

524

213

(224)

$28.72

(161)

(124)

(12)

$38.77

(6)

(4)

1,096

$38.25

814

609

As of April 30, 2008, there was $20.4 million of unrecognized share-based compensation cost related to
restricted stock awards, which is expected to be recognized over a period up to 5 years, or 2.7 years on a
weighted average basis. Compensation expense for restricted stock awards is computed using the closing
market price of the Company’s Class A Common Stock at the date of grant. Total grant date value of shares
vested during the fiscal years ended April 30, 2008, 2007 and 2006 was $6.4 million, $4.1 million and $3.1
million, respectively.

Director Stock Awards:

Under the terms of the Company’s Director Stock Plan (the “Director Plan”), each non-employee director
receives an annual award of Class A Common Stock equal in value to 100% of the annual director fee, based
on the stock price on the date of grant. The granted shares may not be sold or transferred during the time the
non-employee director remains a director. There were 7,680, 6,642 and 7,608 shares awarded under the
Director Plan for the fiscal years ending April 30, 2008, 2007 and 2006, respectively.

Note 16 - Capital Stock and Changes in Capital Accounts

Each share of the Company’s Class B Common Stock is convertible into one share of Class A Common Stock.
The holders of Class A stock are entitled to elect 30% of the entire Board of Directors and the holders of Class B
stock are entitled to elect the remainder. On all other matters, each share of Class A stock is entitled to one
tenth of one vote and each share of Class B stock is entitled to one vote.

Under the Company’s current stock repurchase program, up to four million shares of its Class A Common Stock
may be purchased from time to time in the open market and through privately negotiated transactions. During
fiscal year 2008, the Company repurchased 100,000 shares at an average price of $36.79 per share. As of
April 30, 2008, the Company has authorization from its Board of Directors to purchase up to approximately
1,805,030 additional shares.

-75-

Note 17 - Segment Information

The Company is a global publisher of print and electronic products, providing content and services to customers
worldwide. Core businesses include professional and consumer books and subscription services; scientific,
technical and medical journals, encyclopedias, books, and online products and services; and educational
materials for advanced placement, undergraduate, and graduate students, teachers and lifelong learners. The
Company has publishing, marketing, and distribution centers in the United States, Canada, Europe, Asia, and
Australia. The Company’s reportable segments are based on the management reporting structure, which is also
used to evaluate performance. Other segments include the Company’s businesses in Asia, Australia and
Canada.

In connection with the integration of Wiley and Blackwell, the Company realigned the reporting of certain
accounts within its segment reporting as follows: Journal distribution and fulfillment costs were moved from
Direct Contribution to Profit to Shared Services – Distribution and certain operation incentive compensation
costs were moved from Shared Services – Other Administrative to Direct Contribution to Profit. In addition, the
management responsibility and reporting of certain P/T and STM product lines were realigned as of May 1,
2007. Prior year results have been restated for comparative purposes.

Segment information is as follows (in millions):

U.S. Segments

2008

(a)

P/T

STM

Higher
Education

Total
U.S.

European
Segment

Blackwell
Segment

Other
Segments

Eliminations
& Corporate
Items

Revenue

External Customers

$352.3

Inter-Segment Sales

42.9

Total Revenue

$395.2

$225.3

9.8

$235.1

$135.8

28.9

$164.7

$713.4

$322.6

$485.2

$152.5

81.6

25.7

$795.0

$348.3

$485.2

2.5

$155.0

(109.8)

Total

$1,673.7

Direct Contribution

to Profit

$110.9

$114.2

$44.3

$269.4

$121.9

$170.2

$34.5

$596.0

Shared Services
and Admin. Costs

Operating Income

Interest Expense and

Other, Net

Income Before Taxes

(373.0)

223.0

(61.5)

$161.5

Total Assets

$468.7

$100.8

$112.6

$682.1

$442.2

$1,420.1

$90.2

$(45.8)

$2,588.8

Expenditures for Other
Long-Lived Assets

$37.8

$12.9

$63.6

$19.9

$57.4

$9.0

$20.3

$170.2

Depreciation and

Amortization

$22.5

$6.6

$14.9

$44.0

$19.5

$29.1

$5.3

$18.0

$115.9

-76-

2007

U.S. Segments

P/T

STM

Higher
Education

Total
U.S.

European
Segment

(a)
Blackwell
Segment

Other
Segments

Eliminations
& Corporate
Items

Total

Revenue

External Customers

$349.5

$221.6

41.0

$390.5

9.3

$230.9

$134.9

27.6

$162.5

$706.0

77.9

$783.9

$292.2

$105.8

$130.6

$1,234.6

23.8

2.2

(103.9)

$316.0

$105.8

$132.8

$(103.9)

$1234.6

Inter-Segment Sales

Total Revenue

Direct Contribution

to Profit

Shared Services
and Admin.

Costs

Operating Income

Interest Expense

and

Other, Net

Income Before
Taxes

Total Assets

Expenditures for
Other Long-
Lived Assets

Depreciation and
Amortization

$106.5

$115.2

$42.6

$264.3

$109.8

$28.9

$28.1

$431.1

(269.8)

161.3

(21.8)

$139.5

$442.7

$77.7

$95.1

$615.5

$207.3

$1,485.0

$70.4

$152.9

$2,531.1

$38.2

$14.2

$11.3

$63.7

$22.0

$948.5

$5.6

$34.1

$1,073.9

$21.6

$6.0

$13.6

$41.2

$18.2

$6.8

$4.8

$17.3

$88.3

U.S. Segments

P/T

STM

Higher
Education

Total
U.S.

2006

European
Segment

Blackwell
Segment

Other
Segments

Eliminations
& Corporate
Items

Total

Revenue

External Customers

$327.9

Inter-Segment Sales

44.0

Total Revenue

$371.9

$203.9

10.2

$214.1

$126.5

29.7

$156.2

$658.3

83.9

$742.2

$263.4

29.0

$292.4

$105.8

$108.8

$41.7

$256.3

$96.8

Direct Contribution
to Profit

Shared Services
and Admin.
Costs

Operating Income

Interest Expense
and Other, Net

Income Before
Taxes

Total Assets

$421.4

$77.3

$95.4

$594.1

$259.5

Expenditures for
Other Long-
Lived Assets

Depreciation and
Amortization

$35.8

$14.0

$10.0

$59.8

$17.7

$19.2

$5.3

$15.1

$39.6

$16.5

$122.2

$1,043.9

1.8

(114.7)

$124.0

$ (114.7)

$1,043.9

$27.2

$380.3

(227.6)

152.7

(8.9)

$143.8

$63.7

$108.7

$1,026.0

$6.1

$40.0

$123.6

$3.9

$22.0

$82.0

(a) In fiscal year 2007, the Company added a new segment “Blackwell” which includes the results of the

Blackwell business acquired on February 2, 2007 (See Note 4).

-77-

Shared Services and Administrative Costs (in thousands):

2008

2007

2006

Distribution

$110,834

$82,975

$70,086

Information Technology

Finance

Other Administration

95,185

62,596

104,376

71,799

37,989

77,025

63,836

32,242

61,495

Total

$372,991

$269,788

$227,659

Intersegment sales are generally made at a fixed discount from list price. Corporate assets primarily consist of
cash and marketable securities, deferred tax benefits, and certain property and equipment. Export sales from
the United States to unaffiliated customers amounted to approximately $95.2 million, $88.0 million, and $79.6
million in fiscal years 2008, 2007, and 2006, respectively. The pretax income for consolidated operations outside
the United States was approximately $122.4 million, $58.2 million, and $51.4 million in 2008, 2007, and 2006,
respectively.

Worldwide revenue for the Company’s core businesses was as follows (in thousands):

2008

2007

2006

Professional/Trade

$468,804

Scientific, Technical, and Medical

978,322

Higher Education

226,608

$456,191

563,305

215,145

$435,934

404,807

203,191

Total

$1,673,734

$1,234,641

$1,043,932

Revenue from external customers based on the location of the customer and long-lived assets by geographic
area was as follows (in thousands):

Revenue

Long-Lived Assets

2008

2007

2006

2008

2007

2006

United States

$856,438

$711,665

$614,969

$500,968

$491,488

$472,505

United Kingdom

131,642

Germany

91,130

94,556

66,333

72,543

1,440,538

1,456,956

69,978

61,776

149,403

142,477

137,921

Asia

Australia

Canada

209,436

111,910

101,207

2,789

2,054

76,530

68,609

51,068

51,280

44,660

13,327

10,055

46,612

5,073

4,522

4,935

1,717

8,836

Other Countries

239,949

147,829

102,165

1,558

Total

$1,673,734

$1,234,641

$1,043,932

$2,112,098

$2,109,110

$695,892

-78-

JOHN WILEY & SONS, INC., AND SUBSIDIARIES
VALUATION AND QUALIFYING ACCOUNTS
FOR THE YEARS ENDED APRIL 30, 2008, 2007, AND 2006

Schedule II

(Dollars in thousands)

Description

Year Ended April 30, 2008

Additions/(Deductions)

Balance at
Beginning
of Period

Charged to
Cost &
Expenses

From
Acquisitions

Deductions
From
Reserves

Balance at
End of
Period

Allowance for Sales Returns (1)

$56,148

$93,909

Allowance for Doubtful Accounts

$11,206

$(638)

$94,574

$55,483

$2,543(2)

$8,025

Allowance for Inventory Obsolescence

$32,244

$22,156

$18,980

$35,420

Year Ended April 30, 2007

Allowance for Sales Returns (1)

$55,805

$102,293

$2,069

$104,019

$56,148

Allowance for Doubtful Accounts

$6,615

$6,421

$1,577

$3,407(2)

$11,206

Allowance for Inventory Obsolescence

$30,716

$20,555

$5,843

$24,870

$32,244

Year Ended April 30, 2006

Allowance for Sales Returns (1)

$56,661

$106,779

$1,750

$109,385

$55,805

Allowance for Doubtful Accounts

$7,280

$1,698

$241

$2,604(2)

$6,615

Allowance for Inventory Obsolescence

$24,169

$21,739

$1,700

$16,892

$30,716

(1)

(2)

Allowance for sales returns represents anticipated returns net of inventory and royalty costs. The provision is reported as a
reduction of gross sales to arrive at revenue and the reserve balance is reported as a deduction of accounts receivable.

Accounts written off, less recoveries.

-79-

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial

Disclosure

None

Item 9A. Controls and Procedures

Disclosure Controls and Procedures: As of the end of the period covered by this report, an evaluation was
performed under the supervision and with the participation of the Company’s management, including the
Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the
Company’s disclosure controls and procedures as such term is defined in Rule 13a-15(e) of the Exchange
Act. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the
Company’s disclosure controls and procedures were effective in alerting them on a timely basis to
information required to be included in our submissions and filings with the SEC.

Management’s Report on Internal Control over Financial Reporting: Our Management is responsible for
establishing and maintaining adequate internal control over financial reporting, as such term is defined in
Rule 13a-15(f) of the Exchange Act. Under the supervision and with the participation of our management,
including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the
effectiveness of our internal control over financial reporting based upon the framework in Internal Control –
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Based on that evaluation, our management concluded that our internal control over financial reporting is
effective as of April 30, 2008.

KPMG LLP, an independent registered public accounting firm, has audited the consolidated financial
statements included in this Annual Report on Form 10-K and, as part of their audit, has issued their report,
included herein, on the effectiveness of our internal control over financial reporting.

Changes in Internal Control over Financial Reporting: Except as described below, there were no changes in
our internal control over financial reporting that have materially affected, or are reasonably likely to materially
affect, our internal control over financial reporting during fiscal year 2008.

As part of the acquisition of Blackwell Publishing we are integrating Blackwell finance functions and
processes into Wiley’s processes. This integration has and will result in business process changes. We
have enhanced the design and documentation of our internal control processes to ensure suitable controls
over financial reporting.

Item 9B. Other Information

Information on the Audit Committee Charter is contained in the Company’s Proxy Statement for the 2008
Annual Meeting of Shareholders under the caption “Certain Information Concerning the Board” and is
incorporated herein by reference.

Information with respect to the Company’s corporate governance principles is contained in the Proxy
Statement for the 2008 Annual Meeting of Shareholders under the caption “Corporate Governance
Principles” and is incorporated herein by reference.

-80-

PART III

Item 10. Directors and Executive Officers of the Registrant

The name, age and background of each of the directors nominated for election are contained under the
caption “Election of Directors” in the Proxy Statement for our 2008 Annual Meeting of Shareholders and are
incorporated herein by reference.

Information on the beneficial ownership reporting for the directors and executive officers is contained under
the caption “Section 16(a) Beneficial Ownership Reporting Compliance” in the Proxy Statement for the 2008
Annual Meeting of Shareholders and is incorporated herein by reference.

Information on the audit committee financial experts is contained in the Proxy Statement for the 2008 Annual
Meeting of Shareholders under the caption “Report of the Audit Committee” and is incorporated herein by
reference.

Executive Officers

Set forth below as of April 30, 2008 are the names and ages of all executive officers of the Company, the
period during which they have been officers, and the offices presently held by each of them.

Name and Age

Officer
Since

Present Office

Peter Booth Wiley
65

William J. Pesce
57

Ellis E. Cousens
56

Stephen A. Kippur
61

William Arlington
59

Timothy B. King
68

Bonnie E. Lieberman
60

2002

Chairman of the Board since September 2002 and a Director since

1984.

1989

President and Chief Executive Officer and a Director since May 1998.

2001

Executive Vice President and Chief Financial and Operations Officer,

since March 2001.

1986

Executive Vice President; and President, Professional and Trade

Publishing, since July 1998.

1990

Senior Vice President, Human Resources, since June 1996.

1996

Senior Vice President, Planning and Development, since 1996.

1990

Senior Vice President, Higher Education, since 1996.

Gary M. Rinck
56

2004

Senior Vice President, General Counsel, since March 2004 (previously
Group General Counsel of Pearson PLC, from 2000, Managing Partner
of the London office of Morrison & Foerster from 1995).

-81-

Stephen M. Smith
53

1995

Senior Vice President, Wiley Europe, Asia and Australia (previously

Chief Operating Officer, Wiley Europe, since May 2006).

Eric A. Swanson
60

1989

Senior Vice President, Wiley-Blackwell since January 2007 (previously
Senior Vice President, Scientific Technical and Medical, since 1996).

Deborah E. Wiley
62

Vincent Marzano
45

Edward J. Melando
52

Josephine Bacchi
61

1982

Senior Vice President, Corporate Communications, since June 1996.

2007

Vice President, Treasurer, since September 2006 (previously Vice

President, Treasurer of Scholastic Corporation from 2000).

2002

Vice President, Corporate Controller and Chief Accounting Officer,

since April 2002.

1992

Vice President and Corporate Secretary, since January 2007

(previously Corporate Secretary since 1992).

Each of the other officers listed above will serve until the next organizational meetings of the Board of
Directors of the Company and until each of the respective successors are duly elected and qualified.
Deborah E. Wiley is the sister of Peter Booth Wiley. There is no other family relationship among any of the
aforementioned individuals.

Item 11. Executive Compensation

Information on compensation of the directors and executive officers is contained in the Proxy Statement for
the 2008 Annual Meeting of Shareholders under the captions “Directors’ Compensation” and “Executive
Compensation,” respectively, and is incorporated herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Information required by this item is contained in the Company’s Proxy Statement for the 2008 Annual
Meeting of Shareholders under the caption “Beneficial Ownership of Directors and Management” and is
incorporated herein by reference.

Item 13. Certain Relationships and Related Transactions

None.

Item 14. Principal Accountant Fees and Services

Information required by this item is contained in the Company’s Proxy Statement for the 2008 Annual
Meeting of Shareholders under the caption “Report of the Audit Committee” and is incorporated herein by
reference.

-82-

PART IV

Item 15. Exhibits, Financial Statement Schedules and Reports on Form 8-K

(a)

Financial Statements and Schedules

Financial Statements and Schedules are listed in the attached index on page 10 and are filed as part of
this Report.

(b)

Reports on Form 8-K

Earnings release on the third quarter fiscal 2008 results issued on Form 8-K dated March 10, 2008, which
included certain condensed financial statements of the Company.

Earnings release on the fiscal year 2008 results issued on Form 8-K dated June 19, 2008, which included
certain condensed financial statements of the Company.

Exhibits

Agreement and Plan of Merger dated as of August 12, 2001, among the Company, HMI Acquisition Corp.
and Hungry Minds, Inc. (incorporated by reference to the Company’s Report on Form 8-K dated as of
August 12, 2001).

Scheme of Arrangement dated as of November 21, 2006, among the Company, Wiley Europe Investment
Holdings Limited and Blackwell Publishing (Holdings) Limited (incorporated by reference to the Company’s
Report on Form 8-K dated as of November 21, 2006).

Restated Certificate of Incorporation (incorporated by reference to the Company’s Report on Form 10-K
for the year ended April 30, 1992).

Certificate of Amendment of the Certificate of Incorporation dated October 13, 1995 (incorporated by
reference to the Company’s Report on Form 10-K for the year ended April 30, 1997).

Certificate of Amendment of the Certificate of Incorporation dated as of September 1998 (incorporated by
reference to the Company’s Report on Form 10-Q for the quarterly period ended October 31, 1998).

Certificate of Amendment of the Certificate of Incorporation dated as of September 1999 (incorporated by
reference to the Company’s Report on Form 10-Q for the quarterly period ended October 31, 1999).

By-Laws as Amended and Restated dated as of September 2007 (incorporated by reference to the
Company’s Report on Form 10-K for the year ended April 30, 2008).

$300,000,000 Credit Agreement dated November 9, 2005. Form 10Q for the quarterly period ended
October 31, 2005 (incorporated by reference to the Company’s Report on Form 10-Q for the quarterly
period ended October 31, 2005).

Credit Agreement dated as of February 2, 2007, among the Company and Bank of America, N.A., as
Administrative Agent and Swing Line Lender and the Other Lenders Party Hereto (incorporated by
reference to the Company’s Report on Form 8-K dated as of February 8, 2007).

Agreement of the Lease dated as of June 7, 2006 between One Wiley Drive, LLC, an independent third
party, as landlord and John Wiley and Sons, Inc., as Tenant (incorporated by reference to the Company’s
Report on Form 10-K for the year ended April 30, 2006).

Agreement of Lease dated as of August 4, 2000, between, Block A South Waterfront Development L.L.C.,
as Landlord, and the Company, as Tenant (incorporated by reference to the Company’s Report on Form
10-Q for the quarterly period ended July 31, 2000).

Summary of Lease Agreement dated as of March 4, 2005, between, Investa Properties Limited L.L.C. as
Landlord, and the Company, as Tenant (incorporated by reference to the Company’s Report on Form 10-K
for the year ended April 30, 2005).

Director Stock Plan (incorporated by reference to the Company’s Definitive Proxy Statement date August,
2004).

(c)

2.1

2.2

3.1

3.2

3.3

3.4

3.5

10.1

10.2

10.3

10.4

10.5

10.6

-83-

10.7

10.8

10.9

10.10

10.12

10.13

10.14

10.15

10.16

10.17

10.18

10.19

10.20

10.21

10.22

10.23

10.24

10.25

10.26

10.27

10.28

Executive Annual Incentive Plan (incorporated by reference to the Company’s Definitive Proxy Statement
dated August 5, 2004).

2004 Key Employee Stock Plan (incorporated by reference to the Company’s Definitive Proxy Statement
dated August 5, 2004).

Senior executive employment Agreement to Arbitrate dated as of April 29, 2003 (incorporated by reference
to the Company’s Report on Form 10-K for the year ended April 30, 2003).

Senior executive Non-competition and Non-disclosure Agreement dated as of April 29, 2003 (incorporated
by reference to the Company’s Report on Form 10-K for the year ended April 30, 2003).

2005 Supplemental Executive Retirement Plan (incorporated by reference to the Company’s Report on
Form 10-K for the year ended April 30, 2008).

Form of the Fiscal Year 2009 Qualified Executive Long Term Incentive Plan (incorporated by reference to
the Company’s Report on Form 10-K for the year ended April 30, 2008).

Form of the Fiscal Year 2009 Qualified Executive Annual Incentive Plan (incorporated by reference to the
Company’s Report on Form 10-K for the year ended April 30, 2008).

Form of the Fiscal Year 2009 Executive Annual Strategic Milestones Incentive Plan (incorporated by
reference to the Company’s Report on Form 10-K for the year ended April 30, 2008).

Form of the Fiscal Year 2008 Qualified Executive Long Term Incentive Plan (incorporated by reference to
the Company’s Report on Form 10-K for the year ended April 30, 2007).

Form of the Fiscal Year 2008 Qualified Executive Annual Incentive Plan (incorporated by reference to the
Company’s Report on Form 10-K for the year ended April 30, 2007).

Form of the Fiscal Year 2008 Executive Annual Strategic Milestones Incentive Plan (incorporated by
reference to the Company’s Report on Form 10-K for the year ended April 30, 2007).

Form of the Fiscal Year 2007 Qualified Executive Long Term Incentive Plan (incorporated by reference to
the Company’s first quarter fiscal year 2007 report on Form 10-Q).

Form of the Fiscal Year 2007 Qualified Executive Annual Incentive Plan (incorporated by reference to the
Company’s first quarter fiscal year 2007 report on Form 10-Q).

Form of the Fiscal Year 2007 Executive Annual Strategic Milestones Incentive Plan (incorporated by
reference to the Company’s first quarter fiscal year 2007 report on Form 10-Q).

Senior executive Employment Agreement dated as of March 1, 2003, between William J. Pesce and the
Company (incorporated by reference to the Company’s Report on Form 10-K for the year ended April 30,
2003).

Senior executive Employment Agreement dated as of March 1, 2003, between Stephen A. Kippur and the
Company (incorporated by reference to the Company’s Report on Form 10-K for the year ended April 30,
2003).

Senior executive Employment Agreement dated as of March 1, 2003, between Ellis E. Cousens and the
Company (incorporated by reference to the Company’s Report on Form 10-K for the year ended April 30,
2003).

Senior executive Employment Agreement letter dated as of March 1, 2003, between Eric A Swanson and
the Company (incorporated by reference to the Company’s Report on Form 10-K for the year ended April
30, 2008).

Senior executive Employment Agreement letter dated as of March 1, 2003, between Bonnie E. Lieberman
and the Company (incorporated by reference to the Company’s Report on Form 10-K for the year ended
April 30, 2008).

Deferred Compensation Plan dated as of March 1, 1995 (incorporated by reference to the Company’s
Report on Form 10-K for the year ended April 30, 2008).

Deferred Compensation Plan for Directors’ 2005 & After Compensation (incorporated by reference to the
report on Form 8-K, filed December 21, 2005).

-84-

21*

23*

31.1*

31.2*

32.1*

32.2*

List of Subsidiaries of the Company

Consent of KPMG LLP.

Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.

Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
906 of the Sarbanes-Oxley Act of 2002.

Filed herewith

-85-

SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Company has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

JOHN WILEY & SONS, INC.

(Company)

By:

/s/ William J. Pesce

William J. Pesce
President and Chief Executive Officer

By:

/s/ Ellis E. Cousens

Ellis E. Cousens
Executive Vice President and
Chief Financial and Operations Officer

By:

/s/ Edward J. Melando

Edward J. Melando
Vice President, Controller and
Chief Accounting Officer

Dated: June 26, 2008

-86-

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the
following persons constituting directors of the Company on June 25, 2008.

/s/

Warren J. Baker
Warren J. Baker

/s/

Eduardo R. Menascé
Eduardo R. Menascé

/s/

Richard M. Hochhauser
Richard M. Hochhauser

/s/

William J. Pesce
William J. Pesce

/s/

Kim Jones
Kim Jones

/s/

William B. Plummer
William B. Plummer

/s/
Mathew S. Kissner
Mathew S. Kissner

/s/

Bradford Wiley II
Bradford Wiley II

/s/

Raymond McDaniel, Jr.
Raymond McDaniel, Jr.

/s/

Peter Booth Wiley
Peter Booth Wiley

-87-

SUBSIDIARIES OF JOHN WILEY & SONS, INC.(1)

Exhibit 21

John Wiley & Sons International Rights, Inc.
JWS HQ, LLC
JWS DCM, LLC
Wiley-Liss, Inc.
Wiley Publishing Services, Inc.
Wiley Periodicals, Inc.
Wiley Subscription Services, Inc.
WWL Corp.
John Wiley & Sons (Asia) Pte. Ltd.
John Wiley & Sons Australia, Ltd.
John Wiley & Sons Canada Limited
John Wiley & Sons (HK) Limited
Wiley HMI Holdings, Inc.
Wiley Europe Investment Holdings, Ltd.

Wiley U.K. (Unlimited Co.)
Wiley Europe Ltd.

John Wiley & Sons, Ltd.
Wiley Heyden Ltd.
Wiley Distribution Services Ltd.
Blackwell Publishing (Holdings) Ltd.
Blackwell Publishing Ltd.
Wiley Services Singapore Pte. Limited
Blackwell Science Ltd.

Blackwell Science (Overseas Holdings)

Munksgaard Als
Blackwell – Verlag GmbH
Blackwell Pub. Asia Put. Ltd.
Blackwell Science KK
Blackwell Science (HK) Ltd.

HMI Investment , Inc.

Wiley Publishing Inc.

Wiley India Private Ltd.
Wiley Publishing Australia Pty Ltd.

John Wiley & Sons GmbH

Wiley-VCH Verlag GmbH & Co. KGaA
GIT Verlag GmbH & Co. KG

Jurisdiction
In Which
Incorporated

Delaware
New Jersey
New Jersey
Delaware
Delaware
Delaware
Delaware
Delaware
Singapore
Australia
Canada
Hong Kong
Delaware
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
Singapore
United Kingdom
United Kingdom
Denmark
Germany
Australia
Japan
China
Delaware
Delaware
India
Australia
Germany
Germany
Germany

(1) The names of other subsidiaries that would not constitute a significant subsidiary in the aggregate have been

omitted.

-88-

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Exhibit 23

The Board of Directors and Stockholders
John Wiley & Sons, Inc.:

We consent to the incorporation by reference in the Registration Statement Nos. 333-123359, 333-93591, 33-60268
and 33-62605 of John Wiley & Sons, Inc. (the “Company”) of our reports dated June 26, 2008, with respect to the
consolidated statements of financial position of John Wiley & Sons, Inc. as of April 30, 2008 and 2007, and the related
consolidated statements of income, shareholders’ equity and comprehensive income, and cash flows, for each of the
years in the three-year period ended April 30, 2008, and the related financial statement schedule, and the
effectiveness of internal control over financial reporting as of April 30, 2008, which reports appear in the April 30, 2008
annual report on Form 10-K of John Wiley & Sons, Inc. Our report on the consolidated financial statements refers to
the Company’s adoption of Statement of Financial Accounting Standards No. 123R, “Share-Based Payment,” as of
May 1, 2006.

/s/ KPMG LLP
New York, New York

June 26 , 2008

-89-

CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, William J. Pesce, President and Chief Executive Officer of John Wiley & Sons, Inc. (the “Company”), hereby certify
that:

Exhibit 31.1

I have reviewed this annual report on Form 10-K of the Company;

1.
2. Based on my knowledge, this annual report does not contain any untrue statements of a material fact or omit
to state a material fact necessary to make the statements made, in light of the circumstances under which
such statements were made, not misleading with respect to the period covered by this annual report;
3. Based on my knowledge, the financial statements, and other financial information included in this annual

report, fairly present in all material respects the financial condition, results of operations and cash flows of the
Company as of, and for, the periods presented in this report;

4. The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure

controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over
financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and

procedures to be designed under our supervision, to ensure that material information relating to the
Company, including its consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in

this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the
end of the period covered by this report, based on such evaluation; and

d. Disclosed in this report any change in the Company’s internal control over financial reporting that

occurred during the Company’s most recent fiscal quarter (the Company’s fourth quarter in the case of
an annual report) that has materially affected, or is reasonably likely to materially affect, the
Company’s internal control over financial reporting; and

5. The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal
control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of
directors (or persons performing the equivalent function):

a. all significant deficiencies and material weaknesses in the design or operation of internal controls over

financial reporting that are reasonably likely to adversely affect the Company’s ability to record,
process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a

significant role in the Company’s internal control over financial reporting.

By: /s/ William J. Pesce
William J. Pesce
President and Chief Executive Officer

Dated: June 26, 2008

-90-

CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Ellis E. Cousens, Executive Vice President and Chief Financial and Operations Officer of John Wiley & Sons, Inc.
(the “Company”), hereby certify that:

Exhibit 31.2

I have reviewed this annual report on Form 10-K of the Company;

3. Based on my knowledge, the financial statements, and other financial information included in this annual
report, fairly present in all material respects the financial condition, results of operations and cash flows of the
Company as of, and for, the periods presented in this report;

4. The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over
financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material information relating to the
Company, including its consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;

c. Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in
this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the
end of the period covered by this report, based on such evaluation; and

d. Disclosed in this report any change in the Company’s internal control over financial reporting that
occurred during the Company’s most recent fiscal quarter (the Company’s fourth quarter in the case of
an annual report) that has materially affected, or is reasonably likely to materially affect, the
Company’s internal control over financial reporting; and

a. all significant deficiencies and material weaknesses in the design or operation of internal controls over
financial reporting that are reasonably likely to adversely affect the Company’s ability to record,
process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a

significant role in the Company’s internal control over financial reporting.

By: /s/

Ellis E. Cousens
Ellis E. Cousens
Executive Vice President and
Chief Financial and Operations Officer

Dated: June 26, 2008

-91-

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Exhibit 32.1

In connection with the Annual Report of John Wiley & Sons, Inc. (the “Company”) on Form 10-K for the year ended
April 30, 2008 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, William J.
Pesce, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of

1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and

results of operations of the Company.

/s/ William J. Pesce
William J. Pesce
President and Chief Executive Officer

Dated: June 26, 2008

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Exhibit 32.2

In connection with the Annual Report of John Wiley & Sons, Inc. (the “Company”) on Form 10-K for the year ended
April 30, 2008 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Ellis E.
Cousens, Executive Vice President and Chief Financial and Operations Officer of the Company, certify, pursuant to 18
U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my
knowledge:

(1) the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of

1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and

results of operations of the Company.

/s/ Ellis E. Cousens
Ellis E. Cousens
Executive Vice President and
Chief Financial & Operations Officer

Dated: June 26, 2008

-92-

w i l e y
l e a d e rs h i p t e a m

From left to right: William J. Pesce, William J. Arlington, Ellis E. Cousens, Warren C. Fristensky

From left to right: Timothy B. King, Stephen A. Kippur, Clifford Kline, Bonnie Lieberman

From left to right: Gary M. Rinck, Stephen Smith, Eric A. Swanson, Deborah E. Wiley

c o r p o ra t e g ove r n a n c e
p r i n c i p l e s

To promote the best corporate governance practices, John Wiley & Sons, Inc., adheres to the Corporate Governance
Principles set forth at the Corporate Governance section on wiley.com and in the Company’s Proxy (online at
http://www.wiley.com/go/communications). The Board of Directors and management believe that these Principles,
which are consistent with the requirements of the Securities and Exchange Commission and the New York Stock
Exchange, are in the best interests of the Company, its shareholders, and other stakeholders, including colleagues,
authors, customers, and suppliers. The Board is responsible for ensuring that the Company has a management team

capable of representing these interests and of achieving superior business performance.

B O A R D O F D I R E C T O R S

Peter Booth Wiley
Chairman of the Board

Warren J. Baker3
President
California Polytechnic State
University at San Luis Obispo

Richard M. Hochhauser2
Retired President and Chief
Executive Ofﬁ cer
Harte-Hanks, Inc.

Kim Jones4
President and Managing
Director
UK and Ireland
Sun Microsystems, Inc.

Matthew S. Kissner1,3
President and Chief Executive
Ofﬁ cer
The Kissner Group LLC

Raymond W. McDaniel, Jr.2
Chairman and Chief Executive
Ofﬁ cer
Moody’s Corporation

Eduardo Menascé3,4
Retired President,
Enterprise Solutions Group
Verizon Communications, Inc.

William J. Pesce1
President and Chief Executive
Ofﬁ cer

William B. Plummer1,2
Private Investor

Bradford Wiley II4

1 Executive Committee
2 Audit Committee
3 Compensation Committee
4 Governance Committee

W I L E Y

L E A D E R S H I P T E A M

William J. Pesce
President and Chief Executive
Ofﬁ cer

William J. Arlington
Senior Vice President
Human Resources

Ellis E. Cousens
Executive Vice President
Chief Financial and Operations
Ofﬁ cer

Warren C. Fristensky
Senior Vice President
Information Technology
Chief Information Ofﬁ cer

Timothy B. King
Senior Vice President
Planning and Development

Stephen A. Kippur
Executive Vice President and
President
Professional/Trade

Clifford Kline
Senior Vice President
Customer and Product
Support Operations

Bonnie Lieberman
Senior Vice President
and General Manager
Higher Education

Gary M. Rinck
Senior Vice President and
General Counsel

Stephen M. Smith
Senior Vice President
Europe, Middle East, & Asia
and International Development

Eric A. Swanson
Senior Vice President
Scientiﬁ c, Technical, Medical,
and Scholarly

Deborah E. Wiley
Senior Vice President
Corporate Communications

C O R P O R A T E A N D

B U S I N E S S O F F I C E R S

Mark Allin
Vice President
Wiley Asia-Paciﬁ c

Josephine Bacchi-Mourtziou
Vice President and Corporate
Secretary

Peter C. Donoughue*
Managing Director
John Wiley & Sons Australia, Ltd.

Vincent Marzano
Vice President and Treasurer

Edward J. Melando
Vice President
Corporate Controller
Chief Accounting Ofﬁ cer

Bill Zerter
Chief Operating Ofﬁ cer
John Wiley & Sons Canada, Ltd.

* Retiring end of August 2008.

C O R P O R A T E

I N F O R M A T I O N

Transfer Agent

Registrar and Transfer Company
10 Commerce Drive
Cranford, NJ 07016
Telephone: 800.368.5948
Email: info@rtco.com
Web site: www.rtco.com

Independent Public
Accountants

KPMG LLP
345 Park Avenue
New York, NY 10154

Annual Meeting

to be held on Thursday,
September 18, 2008,
at 9:30 a.m. local time,
at Company Headquarters,
111 River Street, Hoboken, NJ
07030-5774

Form 10K

Available from
J. Bacchi-Mourtziou
Vice President and Corporate
Secretary
John Wiley & Sons, Inc.
111 River Street
Hoboken, NJ 07030-5774
Email: invest@wiley.com