The McGraw-Hill Companies Revises Earnings Forecast for 2001; Conference Call Scheduled for October 2, 2001 at 8:00 A.M. Eastern Time

Business Wire, Oct 1, 2001

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 1, 2001

In the face of rapidly deteriorating economic conditions, The McGraw-Hill Companies (NYSE: MHP) today announced that earnings per share growth for the third quarter and the year ending December 31st will not meet its prior expectations.

"The growing economic weakness, exacerbated by the terrorist attack on the World Trade Center and the Pentagon, has influenced all three operating segments in varying degrees," said Harold McGraw III, chairman, president and chief executive officer of The McGraw-Hill Companies. "Even with the severity of the downturn, we are very confident in the longer term prospects of our markets and our business portfolio."

The McGraw-Hill Companies now estimates that third quarter revenue will grow by 8-to-10% with earnings per share increasing by 13-to-15%, excluding dilution from recent acquisitions and the direct loss of revenue and profits from the September 11th terrorist attack. Earnings per share for the third quarter of 2000 were $1.10.

For 2001, The McGraw-Hill Companies estimates revenue will grow 8-to-10% and earnings per share will increase by 6-to-8%, excluding dilution and the direct loss of revenue and profits from the terrorist attack. The Corporation reported earnings per share of $2.36 for 2000 before the cumulative effect of SAB 101 and a gain on the sale of Tower Group International.

"As the economy recovers, we fully expect to get back to our normal growth rate," said Mr. McGraw.

The Corporation plans to announce third quarter results on October 24th.

Conference call scheduled: The Corporation's senior management will review the revised earnings outlook on a conference call scheduled for 8:00 A.M. Eastern Time, Tuesday, October 2, 2001. This call is open to all interested parties. Discussions may include forward-looking information.

Access Instructions for Live Call with Senior Management
8:00 A.M. Eastern Time, October 2, 2001
----------------------------------------------------------------------
Step 1: Select your listening option

A. By Telephone;

Please dial-in by 7:45 A.M. (Eastern Time) to register for the call.
Domestic participants may call (888) 677-1823; international
participants may call (712) 271-1151 (long distance charges will
apply). The passcode is McGraw-Hill and the conference leader is
Harold McGraw III.

B.  By Internet;

Go to www.mcgraw-hill.com/investor_relations and click on the
(WEBCAST-LIVE) button. Please register through the Guest Book and then
proceed. You will need Windows Media Player.

Step 2 (optional): View slides online during the call

Please select your listening option before viewing the slides online
via the Internet.

Go to Web address: http://net2.worldcom.com and click on the Net
Conference button. The Conference ID/Name is: 9297436 and the
Conference passcode is: MCGRAW HILL (case sensitive). Click on the
Proceed button. You will need Windows Media Player. For assistance,
call the WorldCom Help Desk at (800) 475-5000, select option #3, and
then option #2.

Replay Options Available from October 2 through October 9, 2001
----------------------------------------------------------------------

A. By Telephone;

A recorded replay will be available beginning about two hours after
the meeting concludes and will remain available until 11:59 P.M.
Eastern Time on Tuesday, October 9, 2001. Domestic participants may
call (888) 568-0349; international participants may call (402)
530-7892 (long distance charges will apply). No passcode is required.

B. By Internet--Audio-Only or Audio & Slides: To listen to the
presentation through the Internet, follow these steps:

Audio-only: Go to www.mcgraw-hill.com/investor_relations and click on
the (WEBCAST-REPLAY) button. Please register through the Guest Book
and then proceed. You will need Windows Media Player.

Audio & Slides: Go to http://net2.worldcom.com and click on the Net
Replay button. The Conference ID/Name is 9297436 and the Conference
Passcode is: MCGRAW HILL (case sensitive). Click on the Proceed
button. You will need Windows Media Player. For assistance during the
replay, call the WorldCom Help Desk at (800) 475-5000, select option
#3, and then option #2.

The forward-looking statements in this news release involve risks and uncertainties and are subject to change based on various important factors, including worldwide economic and political conditions, the health of capital and equity markets, including future interest rate cuts, strength in advertising in the second half of 2001, strength in the education market, the successful marketing of new products and the effect of competitive products and pricing.

Founded in 1888, The McGraw-Hill Companies is a global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, BusinessWeek and McGraw-Hill Education. The Corporation has more than 300 offices in 33 countries. Sales in 2000 were $4.3 billion. Additional information is available at http://www.mcgraw-hill.com.