NEW YORK, May 20 /PRNewswire-FirstCall/ -- The McGraw-Hill Companies (NYSE: MHP) today announced that it is restructuring a limited number of business operations in its Financial Services and Education segments to more efficiently serve its markets and strengthen its long-term growth prospects.

"We are taking actions to further streamline our operations and lower our costs in the areas most affected by current market challenges," said Harold McGraw III, chairman, president and chief executive officer of The McGraw-Hill Companies. "The decision to reduce staff is always difficult, but we believe these actions will help improve efficiency while enabling us to focus our resources on those parts of our business that are experiencing the strongest growth."

In connection with these actions, the Corporation will incur a restructuring charge in the second quarter of 2008 of $23.7 million, pre-tax, consisting mostly of employee severance costs related to a workforce reduction of 395 positions in its Financial Services and McGraw-Hill Education segments. This reduction represents approximately 2 percent of the Corporation's global workforce. The total restructuring charge after tax is $14.8 million, or $0.05 per diluted share of second quarter 2008 earnings.

"With the seasonality of our business concentrating earnings in the second half of the year and despite continued uncertainty about the pace of recovery in the capital markets, we are not changing our previous 2008 earnings per share guidance of $2.65 to $2.75, which excludes the restructuring charge and associated benefits," said Mr. McGraw.

The impact of restructuring within the Financial Services segment was $15.2 million, pre-tax, and was driven by the current credit market environment as well as the consolidation of several support functions.

McGraw-Hill Education accounts for $8.5 million, pre-tax, of the restructuring charge. The majority of restructuring actions in this segment are in the assessment business, where the Corporation is taking steps to consolidate its resources, better leverage its partnerships with key strategic suppliers, and facilitate a strategic shift toward increased investments in its digital and custom offerings. Across other parts of the segment, the company also is taking steps to enable greater efficiencies, better address new and existing revenue streams, and shift investments toward digital products.

    The following table summarizes the Corporation's restructuring activities:

                          2008 Restructuring Summary
                     (in millions, except for positions)

                                                          Pre-Tax
                                       # of             Restructuring
                                     Positions             Charge
                                     ---------          -------------
          Financial Services               246                  $15.2
          McGraw-Hill Education            149                    8.5
                                     ---------          -------------
              Total Company                395                  $23.7
                                     =========          =============

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, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2007 were $6.8 billion. Additional information is available at http://www.mcgraw-hill.com.

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Release issued: May 20, 2008

SOURCE The McGraw-Hill Companies

Contact: Media Relations Contacts: Steven H. Weiss Vice President, Corporate Communications (212) 512-2247 (office) (917) 699-9389 (mobile) weissh@mcgraw-hill.com or Frank Briamonte Senior Director, Corporate Communications (212) 512-4145 (office) (201) 725-6133 (mobile) frank_briamonte@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