: notes to the accounts :

13. Associates

Note : Principal associates are listed in Principal subsidaries and associates. The valuations of unlisted partnerships and other associates are at directors’ valuations as at 31 December 1999. If realised at these values there would be an estimated liability for taxation, at year end rates, of £161m. The Group had no capital commitments to subscribe for further capital and loan stock.

The aggregate of Pearson’s share in its associates, excluding the interest in Lazard Partners Limited Partnership and the three Lazard Houses, is shown below.

Pearson’s interest in Lazard Partners Limited Partnership and the three Lazard Houses for the year ended

31 December 1999 is shown below. On 3 March 2000, Pearson sold its interests in Lazard Partners Limited Partnership and the three Lazard Houses (see note 31).

Note : Pearson’s indirect general partnership interest in Lazard Frères et Cie and Maison Lazard et Cie held directly and indirectly through Lazard Partners Limited Partnership was an unlimited liability interest. Pearson held these partnership interests through a subsidiary undertaking registered in England, with no other material assets. The aggregate liabilities of these partnerships included above are £511m (1998: £851m). Pearson also held direct interests in Lazard Frères & Co., a New York Limited Liability Company.

Limited Liability Company.

Note : The beneficial percentages held for the investment banking partnership interests are interests in partnership profits.