Complementary Capabilities will Enhance Business Information Platform

NEW YORK, March 7 /PRNewswire-FirstCall/ -- The McGraw-Hill Companies (NYSE: MHP) today announced it has signed an agreement to acquire J.D. Power and Associates, a leading global marketing information services organization. The transaction, which is subject to Hart-Scott-Rodino regulatory review, is expected to close in April. Terms were not disclosed.

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J.D. Power and Associates, founded in 1968 by J.D. Power III, provides an independent source of marketing information to consumers and businesses worldwide. It is the leading provider of marketing information services for the global automotive industry and has established a strong and growing presence in several other important industries including finance and insurance, healthcare, home building, telecommunications and energy. Its customer satisfaction ratings and market research are recognized worldwide as benchmarks for quality.

"J.D. Power and Associates is an excellent fit with The McGraw-Hill Companies, and will enhance our growth prospects for our business information platforms," said Harold McGraw III, Chairman, President and Chief Executive Officer of The McGraw-Hill Companies. "Both organizations share a long history and deep commitment to providing independent industry ratings and benchmarks that help businesses and consumers make effective decisions. J.D. Power and Associates will benefit from our broad global presence and our detailed knowledge of major industries, including financial services, construction, energy, aviation and healthcare," added Mr. McGraw.

"In The McGraw-Hill Companies, we have found an ideal partner that will provide our firm with the best opportunity to extend J.D. Power and Associates' reach globally and into new vertical markets," said J.D. Power III. "I am personally delighted to have found a partner that shares our heritage of integrity and independence, and our unyielding commitment to providing objective research and analysis. There will be a smooth transition for our customers and employees, and we look forward to working closely with our new colleagues on a host of exciting growth opportunities."

"The addition of J.D. Power and Associates will significantly strengthen our core business information platform by providing a new direct link to consumers, while also providing new collaborative opportunities with our leading franchises including BusinessWeek, Platts, McGraw-Hill Construction, Aviation Week and our healthcare group," said Scott Marden, president of The McGraw-Hill Companies' Information and Media Services.

J.D. Power III, the founder, will remain actively involved in the strategic direction of the operation, and Stephen Goodall will continue to serve as J.D. Power and Associates president, with responsibility for day-to-day operations. The company, which includes the Power Information Network, LLC, has 787 employees, operates globally in 12 locations, and will maintain its Westlake Village, California, headquarters as well as its other regional offices.

About J.D. Power and Associates

Headquartered in Westlake Village, California, J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies is a leading 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 280 offices in 37 countries. Sales in 2004 were $5.3 billion. Additional information is available at http://www.mcgraw-hill.com.

SOURCE  McGraw-Hill Companies
    -0-                             03/07/2005
    /CONTACT: The McGraw-Hill Companies
              Media Relations Contacts:
              Steven H. Weiss
              Vice President, Corporate Communications
              (212) 512-2247 (office)
              (917) 699-9389 (mobile)
              weissh@mcgraw-hill.com

              Tom DiPiazza
              Senior Director, Corporate Communications
              (212) 512-4145 (office)
              (917) 328-7582 (mobile)
              tom_dipiazza@mcgraw-hill.com

              Investor Relations Contact:
              Donald S. Rubin
              Senior Vice President, Investor Relations
              (212) 512-4321 (office)
              (212) 512-3840 (fax)
              donald_rubin@mcgraw-hill.com

              J.D. Power and Associates
              Media Relations Contacts:
              Tom Shaver
              J.D. Power and Associates
              (805) 418-8818 (office)
              (805) 418-8900 (fax)
              Tom.Shaver@jdpa.comPeter Marlow
              J.D. Power and Associates
              (805) 418-8834 (office)
              (805) 797-8745 (mobile)
              Peter.Marlow@JDPA.com /
    /Photo:  http://www.newscom.com/cgi-bin/prnh/20050307/NYM162LOGO-a
             AP Archive:  http://photoarchive.ap.org
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    /Web site:  http://www.mcgraw-hill.com /
    (MHP)

CO:  McGraw-Hill Companies; J.D. Power and Associates
ST:  New York, California
IN:  PUB FIN
SU:  TNM

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