The McGraw-Hill Companies Announces Redemption of Convertible Preferred Stock; Board Declares Final Convertible Preferred Dividend

Business Wire, June 26, 2002

Business Editors

The Board of Directors of The McGraw-Hill Companies announced today that the Corporation will redeem on August 31, 2002 all of the outstanding shares of $1.20 convertible preferred stock. The redemption price is $40 per share, as provided by the terms set at the issuance of the preferred stock.

Holders of these convertible preferred shares have the option, at any time prior to the close of business on August 27, 2002, to convert some or all of their shares into the Corporation's common stock at a conversion rate of 13.2 shares for each share of convertible preferred.

Redemption is being initiated to eliminate a small number of shares unconverted from a 1966 original issue. At the end of 2001, there were 1,328 convertible preferred shares outstanding.

The Board of Directors also announced a dividend of $.20 per share of convertible preferred stock to shareholders of record on July 18, 2002. The dividend, for the period July 1, 2002 through August 31, 2002, is payable September 1, 2002.

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 350 offices in 33 countries. Sales in 2001 were $4.6 billion. Additional information is available at http://www.mcgraw-hill.com.