9th Mar 2005 07:02
Reed Elsevier PLC09 March 2005 News Release Issued on behalf of Reed Elsevier PLC and Reed Elsevier NV 9 March 2005 LexisNexis investigates compromised customer IDs and passwords to Seisint US consumer data Reed Elsevier today announced that LexisNexis, its global legal and businessinformation business, has identified a number of incidents of potentiallyfraudulent access to information about US individuals at its recently acquiredSeisint unit. The incidents arose from the misappropriation by third parties ofIDs and passwords from legitimate customers. LexisNexis has notified lawenforcement authorities and is proactively assisting in law enforcementinvestigations of these incidents. LexisNexis is also working with customers toenhance security procedures. These incidents were identified as part of an ongoing extensive review of theverification, authorization and security procedures and policies across the riskmanagement businesses. LexisNexis has accelerated this review to determine theextent of any other incidents. Information on approximately 32,000 individuals may have been fraudulentlyaccessed in these incidents. LexisNexis very much regrets this and will benotifying all the individuals concerned and providing them with ongoing creditmonitoring and practical support to ensure that any identity theft is quicklydetected and addressed. Any further instances that emerge from the ongoingreview will likewise be handled as quickly and as sensitively as possible. Theinformation accessed includes names, addresses, social security and drivers'license numbers, but not credit history, medical records or financialinformation. LexisNexis has already taken, or will take actions to enhance security to enableit to maintain its position as an industry leader in the responsible use of dataand the protection of individual privacy. These actions include: enhancing IDand password administration procedures and requirements for customers;dedicating additional resources to protection of consumer privacy; working withcustomers to reinforce the importance of consumers' privacy; and working withlaw enforcement for further insight and assistance on new practices andtechniques for thwarting criminal activities. The financial implications are expected to be manageable within the context ofLexisNexis' overall growth. The demand for risk management solutions isexpected to remain strong and the outlook for Seisint and the LexisNexis riskmanagement business remains very positive. In relation to this, Reed Elseviertoday reaffirmed its 2005 and longer term financial targets of at least 5%organic revenue growth and double digit adjusted earnings per share growth atconstant rates of exchange. LexisNexis products that use US public and non-public records provide criticalfraud detection and identity authentication solutions to law enforcement,homeland security, commercial and legal customers that help to safeguardcitizens and reduce consumers' financial losses, such as credit card andinsurance fraud. In addition, these services provide benefits for consumers infacilitating the conduct of transactions for goods and services. As a leader in the information services industry for over 30 years, LexisNexisis fully committed to safeguarding public and non-public information aboutindividuals and consumers with effective verification, authorization andsecurity processes and policies, both by its businesses and customers.LexisNexis will continue its long-time efforts to support effective data privacypolicy and practices that benefit consumers, the government agencies that serveand protect them and the organizations they do business with. Forward looking statements This announcement contains forward-looking statements within the meaning ofSection 27A of the US Securities Act of 1933, as amended, and Section 21E of theSecurities Exchange Act of 1934, as amended. These statements concern futurematters, such as the features and functions of, and markets for, products andservices offered by Reed Elsevier, and Reed Elsevier's business plans andstrategies. Forward-looking statements are based on the current expectations ofthe management of Reed Elsevier and are subject to risks and uncertainties.Actual results and events could differ materially from the results discussed inthe forward-looking statements. Factors which could cause or contribute todifferences in results include, but are not limited to, general economicconditions and business conditions in Reed Elsevier's markets, customers'acceptance of its products and services, the actions of competitors,legislative, fiscal and regulatory developments, changes in law and legalinterpretation affecting Reed Elsevier's intellectual property rights, and theimpact of technological change. Reed Elsevier is not under any obligation (andexpressly disclaims any such obligation) to update or alter its forward-lookingstatements whether as a result of new information, future events or otherwise. Notes to Editors LexisNexis is a global leader in comprehensive and authoritative legal, news andbusiness information and tailored applications. A member of the Reed ElsevierGroup plc, the company does business in 100 countries with 13,500 employeesworldwide. In addition to its flagship web-based Lexis(R) and Nexis(R) researchservices, the company includes some of the world's most respected legalpublishers such as Martindale-Hubbell, Matthew Bender, Butterworths,JurisClasseur, Abeledo-Perrot and Orac. Reed Elsevier Group plc is a world leading publisher and information provider.It is owned equally by its two parent companies, Reed Elsevier PLC and ReedElsevier NV. The parent companies are listed on the London, Amsterdam and NewYork Stock Exchanges, under the following ticker symbols: London: REL;Amsterdam: REN; New York: RUK and ENL. In 2004, Reed Elsevier made adjustedprofit before taxation of £1,027 million/€1,510 million on turnover of £4,812million/€7,074 million. The group employs 35,600 people, includingapproximately 22,000 in North America. Operating in the scientific, legal,educational and business-to-business sectors, Reed Elsevier provides high valueand flexible information solutions to professional end users, with increasingemphasis on internet delivery. -Ends- For further information please contact : Catherine May : +44 (0)20 7166 5657 (European media)Sean McCabe : + 1 703 683 5004 ext. 110 (north American media)Sybella Stanley: +44 (0)20 7166 5630 (investors) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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