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The McGraw-Hill Companies' Standard & Poor's Division to Sell Corporate Value Consulting Business

Company Release - 9/19/2005 10:00 AM ET
        Corporate Value Consulting (CVC) to Combine with Duff & Phelps

NEW YORK, Sept. 19 /PRNewswire/ -- Standard & Poor's, a division of The McGraw-Hill Companies (NYSE: MHP) and a leading provider of independent investment research, indices, ratings and data, today announced that it has signed an agreement to sell its Corporate Value Consulting (CVC) business, the valuation services unit of Standard & Poor's. Under the transaction, the CVC practice will be combined with Duff & Phelps, a financial advisory and investment banking firm. The transaction, subject to standard closing conditions, is expected to close in late September. Terms were not disclosed.

"The divestiture of CVC will enable Standard & Poor's to focus on its core business of providing independent research, ratings, data, indices and portfolio services," said Kathleen A. Corbet, president of Standard & Poor's. "At the same time, the transaction provides an excellent opportunity for the CVC business to continue its global expansion and serve new markets by joining forces with Duff & Phelps."

Following the closing, the CVC and Duff & Phelps businesses will be combined in an independent entity that will operate under the Duff & Phelps name. Under the terms of the transaction, an investor group and the management of CVC will acquire the business from The McGraw-Hill Companies concurrent with the combination of CVC and Duff & Phelps. Financial backing for the transaction is being provided by Vestar Capital Partners and Lovell Minnick Partners. GE Capital is also providing debt financing.

About Standard & Poor's:

Standard & Poor's is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research and data. With approximately 6,700 employees located in 21 countries, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit www.standardandpoors.com.

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 300 offices in 40 countries. Sales in 2004 were $5.3 billion. Additional information is available at www.mcgraw-hill.com.

About Duff & Phelps:

Duff & Phelps is a financial advisory and investment banking firm focused on providing merger & acquisition, private placement, valuation, financial opinion and ESOP/ERISA services. Since 1932, Duff & Phelps has been committed to delivering independent advice and service of exceptional quality to a broad range of public and private companies. Further information can be found at www.duffandphelps.com.

SOURCE  The McGraw-Hill Companies
    -0-                             09/19/2005
    /CONTACT:  Standard & Poor's
               Michael Privitera
               Vice President, Public Affairs
               (212) 438- 6679 (office)
               (518) 755-3278 (cell)
               michael_privitera@standardandpoors.com

               The McGraw-Hill Companies
               Steven H. Weiss
               Vice President, Corporate Communications
               (212) 512-2247 (office)
               (917) 374-2024 (cell)
               weissh@mcgraw-hill.com /
    /Web site:  http://www.mcgraw-hill.comhttp://www.standardandpoors.comhttp://www.duffandphelps.com /
    (MHP)

CO:  The McGraw-Hill Companies; Standard & Poor's; Duff & Phelps
ST:  New York
IN:  PUB FIN
SU:  TNM

MC
-- NYM157 --
5086 09/19/200510:00 EDThttp://www.prnewswire.com