RESULTS OF OPERATIONS - FIRST QUARTER ENDED JULY 31, 2012

Throughout this report, references to amounts "excluding foreign exchange", "currency neutral basis" and "performance basis" exclude both foreign currency translation effects and transactional gains and losses. Foreign currency translation effects are based on the change in average exchange rates for each reporting period multiplied by the current period's volume of activity in local currency for each non-U.S. location. For the first quarters of fiscal years 2013 and 2012, the quarterly average exchange rates to convert British pounds sterling to U.S. dollars were 1.57 and 1.63, respectively. The quarterly average exchange rates to convert euros into U.S. dollars for the same periods were 1.26 and 1.44, respectively. Unless otherwise noted, all variance explanations below are on a currency neutral basis.

Revenue and Gross Profit:

Revenue for the first quarter of fiscal year 2013 declined 4% to $410.7 million, or 2% excluding the unfavorable impact of foreign exchange. Declines in Scientific, Technical, Medical and Scholarly ("STMS") and Global Education ("GEd") were partially offset by growth in Professional/Trade ("P/T").

Gross profit margin for the first quarter of fiscal year 2013 of 69.0% was 80 basis points lower than prior year mainly due to lower STMS journal subscription revenue, higher royalty rates on new STMS society journals and an increase in composition spending to support the GEd front list.

Operating and Administrative Expenses:

Operating and administrative expenses for the first quarter of fiscal year 2013 of $230.0 million were 1% lower than prior year, or 2% higher excluding the favorable impact of foreign exchange. The increase was driven by higher employment costs and higher technology costs to support investments in digital products and infrastructure, partially offset by cost containment initiatives.

In the first quarter of fiscal year 2013, the Company recorded a restructuring charge of $4.8 million ($0.06 per share) related to certain activities that will be discontinued, outsourced, or relocated to a lower cost region due to the Company's ongoing transition and transformation to digital products and services. Approximately $3.0 million, $1.3 million and $0.2 million of the restructuring charge was recorded within STMS, P/T and GEd, respectively, with the remainder recognized in shared services and administrative costs. The charge is expected to be fully recovered within 18 months.

Operating Income:

Operating income for the first quarter of fiscal year 2013 decreased 35% to $39.0 million, or 25% excluding the unfavorable impact of foreign exchange and the current year restructuring charge mainly due to the top-line results and higher operating and administrative expenses.

Interest Expense/Income, Foreign Exchange and Other:

Interest expense for the first quarter of fiscal year 2013 increased $1.1 million to $2.8 million mainly due to higher interest rates. The Company's average cost of borrowing during the current quarter was approximately 2.1% compared with 1.2% in the prior year period. In the first quarters of fiscal years 2013 and 2012, the Company recognized foreign exchange transaction gains (losses) of $1.0 million and ($0.2) million, respectively. Interest income and other for the first quarter of fiscal year 2013 was flat with the prior year.

Provision for Income Taxes:

The effective tax rate for the first quarter of fiscal year 2013 was 4.2% compared to 13.6% in the prior year. During the first quarters of fiscal years 2013 and 2012, the Company recorded non-cash deferred tax benefits of $8.4 million ($0.14 per share) and $8.8 million ($0.14 per share), respectively, principally associated with new tax legislation enacted in the U.K. that reduced the U.K. statutory income tax rates by 2% in each period. The benefits recognized by the Company reflect the remeasurement of all applicable U.K. deferred tax balances to the new income tax rates. The U.K. deferred tax balances are reflected at 23% as of July 31, 2012. Excluding the tax benefits described above, the Company's effective tax rate decreased from 28.5% to 26.5% principally due to higher tax benefits on non-U.S. earnings in the first quarter of fiscal year 2013.

Earnings Per Share:

Earnings per diluted share for the first quarter of fiscal year 2013 decreased 27% to $0.60, including and excluding the impact of foreign exchange. Excluding the effects of the current year restructuring charge ($0.06 per share) and the current and prior year deferred tax benefits associated with changes in U.K. corporate income tax rates ($0.14 per share each period), earnings per diluted share decreased 24% or $0.16 per share.

First Quarter Segment Results

As of May 1, 2012, the Company changed its internal reporting of segment measures for the purposes of assessing performance and making resource allocation decisions. Accordingly, the Company will now report on segment performance after the allocation of certain direct Shared Services and Administrative Costs, identified as Contribution to Profit. Shared Services and Administrative costs were previously reported as independent functional activities and not reflected in each segment's operating results. We will continue to report total shared services and administrative costs by function as management believes they are useful in understanding the Company's overall performance. In addition, management responsibility and reporting of certain P/T and GEd product lines were realigned as of May 1, 2012. Prior year results have been restated for comparative purposes for each of the changes described above.

Scientific, Technical, Medical and Scholarly (STMS):

                                                       For the Three Months
                                                           Ended July 31,               % change
    Dollars in thousands                                 2012           2011 % change w/o FX (a)

    Journal Subscriptions                             $155,603      $163,296      -5%        -2%
    Books                                               37,107        37,743      -2%         1%
    Other Publishing Income                             43,236        51,676     -16%       -13%
    TOTAL REVENUE                                     $235,946      $252,715      -7%        -4%

    GROSS PROFIT                                       170,842       184,098      -7%        -4%
    Gross Profit Margin                                  72.4%         72.8%

    Direct Expenses & Amortization                    (79,579)      (77,941)       2%         2%

    DIRECT CONTRIBUTION TO PROFIT                      $91,263      $106,157     -14%        -9%
    Direct Contribution Margin                           38.7%         42.0%

    Allocated Shared Services and Administrative
    Costs:
    Distribution                                      (11,559)      (12,391)      -7%        -3%
    Technology Services                               (16,462)      (15,391)       7%         9%
    Occupancy and Other                                (5,719)       (5,570)       3%         6%
    CONTRIBUTION TO PROFIT                             $57,523       $72,805     -21%       -15%
    Contribution Margin                                  24.4%         28.8%

(a) Adjusted to exclude a fiscal year 2013 restructuring charge of $3.0 million related to activities that will be discontinued, outsourced, or relocated to a lower cost region.

Revenue:

STMS revenue for the first quarter of fiscal year 2013 decreased 7% to $235.9 million, or 4% excluding the unfavorable impact of foreign exchange. The decline was driven by journal subscriptions and other publishing income.

Journal Subscriptions

Journal subscription revenue for the first quarter of fiscal year 2013 decreased 5% to $155.6 million, or 2% excluding the unfavorable impact of foreign exchange principally due to publication timing.

Books

Book revenue for the first quarter of fiscal year 2013 decreased 2% to $37.1 million, but increased 1% excluding the unfavorable impact of foreign exchange. Growth in digital book sales ($2 million) was partially offset by a decline in print books ($2 million). Digital book revenue as a percentage of total book sales increased to 23%, up from 15% in the prior year.

Other Publishing Income

Other publishing income for the first quarter of fiscal year 2013 declined 16% to $43.2 million, or 13% excluding the unfavorable impact of foreign exchange. The decrease was driven by lower sales of journal reprints ($3 million), backfiles ($2 million) and content rights ($1 million).

Total STMS Revenue by Region (on a currency neutral basis)

ˇ Americas fell 5% to $90.9 million

ˇ EMEA declined 3% to $130.6 million

ˇ Asia-Pacific decreased 1% to $14.4 million

Gross Profit:

Gross profit margin for the first quarter of fiscal year 2013 was 72.4% as compared to 72.8% in the prior year. The decline was driven by lower journal subscription revenue and higher royalty rates on society journals (50 basis points) and lower backfile sales (80 basis points) partially offset by increased sales of higher margin digital books (90 basis points).

Direct Expenses and Amortization:

Direct expenses and amortization of $79.6 million increased 2% from prior year, including and excluding favorable foreign exchange and the impact of the current year restructuring charge, mainly driven by higher employment costs due to merit increases and higher pension costs. The restructuring charge included in the first quarter fiscal year 2013 results was $3.0 million and related to activities that will be discontinued, outsourced, or relocated to a lower cost region.

Contribution to Profit:

Contribution to profit decreased 21% to $57.5 million, or 15% excluding the unfavorable impact of foreign exchange and the current year restructuring charge. Contribution margin in the first quarter of fiscal year 2013 was 24.4% compared to 28.8% in the prior year. Excluding the impact of the current year restructuring charge, contribution margin decreased 320 basis points to 25.6% mainly driven by lower gross profit margins and higher operating expenses as a percentage of revenue growth.

Society Partnerships
ˇ 7 new society journals were signed with combined annual revenue of approximately $2 million

ˇ 8 renewals/extensions were signed with approximately $8 million in combined annual revenue

ˇ 2 journal society contracts were lost with combined annual revenue of approximately $6 million

New Society Contracts
ˇ Journal of Brewing and Distilling and Brewer & Distiller International for the Institute of Brewing and Distilling (IBD)

ˇ Journal of Engineering Education for the American Society for Engineering Education (ASEE)

ˇ The Journal of the Experimental Analysis of Behavior (JEAB) and the Journal of Applied Behavior Analysis (JABA) for the Society for Experimental Analysis of Behavior (SEAB)

ˇ Psychoanalytic Quarterly

ˇ Journal of Hepato-Pancreatic-Biliary Sciences, for the Society of Hepato-Pancreatic-Biliary Surgery (Japan)

ˇ Cell Biology International, the official journal of the International Federation for Cell Biology as well as the open access spin off journal Cell Biology International Reports

ˇ Asia and the Pacific Policy Studies. This is a new-start, society-funded open access journal, co-owned with the Crawford School of Public Policy at the Australian National University

ˇ In August, seventeen journals for the American Geophysical Union, the world's leading society of Earth and space science.

Acquisitions
ˇ In May, Wiley acquired Harlan Davidson Inc. (HDI), a small family owned publishing company in Wheeling, IL, for approximately $1.4 million. The acquisition builds on Wiley's existing high quality American History portfolio, and strengthens growing curriculum areas such as World History, Atlantic History and State History.

Open Access Initiatives
ˇ In July, Wiley announced that its open access option for individual journal articles, OnlineOpen, will be available to authors in 81% of the journals it publishes. For a publication service charge, OnlineOpen gives authors the option to publish an open access paper in their journal of choice where it will benefit from maximum impact. OnlineOpen, Wiley's hybrid open access model for subscription journals launched in 2004, is available to authors of primary research articles who wish to make their article available to non-subscribers on publication, or whose funding agency requires grantees to archive the final version of their article. As of July 2012, OnlineOpen is available in over 1200 subscription journals.

ˇ In June, Wiley announced the creation of a new role, the Vice President and Director of Open Access, to lead the Company's open access initiatives. Working with colleagues, societies, funders, and academic institutions, the role will facilitate the identification of open access opportunities and lead the development of products, policy, technology, processes, sales, and marketing initiatives necessary to provide first class support to authors.

Impact Factors
ˇ In July, the Thomson ISIŽ 2011 Journal Citation Reports (JCR) showed that Wiley continues to increase both the number and proportion of its journal titles with an impact factor, with 1,156 titles (76% of our total) included. This is up from 73% in the 2010 report. Impact factors are a metric that reflect the frequency that peer-reviewed journals are cited by researchers, making them an important tool for evaluating a journal's quality.

ˇ 34% of JCR Subject Categories have a Wiley Journal ranked in the top three

Professional/ Trade (P/T):

                                                      For the Three Months
                                                          Ended July 31,               % change
    Dollars in thousands                                 2012          2011 % change w/o FX (a)

    Books                                             $84,135       $86,050      -2%        -1%
    Other Publishing Income                            17,838        12,975      37%        39%
    TOTAL REVENUE                                    $101,973       $99,025       3%         4%

    GROSS PROFIT                                       64,456        62,899       2%         4%
    Gross Profit Margin                                 63.2%         63.5%

    Direct Expenses & Amortization                   (43,250)      (40,939)       6%         4%

    DIRECT CONTRIBUTION TO PROFIT                     $21,206       $21,960      -3%         4%
    Direct Contribution Margin                          20.8%         22.2%

    Allocated Shared Services and Administrative
    Costs:
    Distribution                                     (10,374)      (11,428)      -9%        -7%
    Technology Services                               (7,179)       (5,966)      20%        20%
    Occupancy and Other                               (3,336)       (3,755)     -11%       -11%
    CONTRIBUTION TO PROFIT                               $317          $811     -61%       106%
    Contribution Margin                                  0.3%          0.8%

(a) Adjusted to exclude a fiscal year 2013 restructuring charge of $1.3 million related to activities that will be discontinued, outsourced, or relocated to a lower cost region.

Revenue:

P/T revenue for the first quarter of fiscal year 2013 increased 3% to $102.0 million, or 4% excluding the unfavorable impact of foreign exchange. On a currency neutral basis, other publishing income grew 39%, while books revenue declined 1%. The growth in other publishing income was mainly driven by incremental revenue from the Inscape assessment and training business acquired in the fourth quarter of fiscal year 2012 ($6 million), partially offset by lower sales of rights ($1 million). The decline in book revenue was driven by lower print book sales. Digital book revenue of $9.8 million was flat to the prior year.

Total P/T Revenue by Region (on a currency neutral basis)
ˇ Americas grew 6% to $82.9 million

ˇ EMEA decreased 6% to $11.8 million

ˇ Asia-Pacific increased 1% to $7.3 million

Total P/T Revenue by Major Category (on a currency neutral basis)
ˇ Business rose 23% to $39.3 million, with solid growth from Inscape and the Certified Financial Analyst Institute (CFA) product launch

ˇ Consumer fell 6% to $23.2 million

ˇ Technology fell 5% to $19.2 million

ˇ Professional Education grew 7% to $8.7 million

ˇ Architecture fell 5% to $6.1 million

ˇ Psychology was up 2% to $3.5 million

Gross Profit:

Gross profit margin for the first quarter of fiscal year 2013 was 63.2% compared to 63.5% in the prior year. The decline was mainly driven by higher royalty costs.

Direct Expenses and Amortization:

Direct expenses and amortization for the first quarter of fiscal year 2013 increased 6% to $43.3 million, or 4% excluding the favorable impact of foreign exchange and the current year restructuring charge. The increase was mainly driven by incremental employment costs ($2 million) and amortization expense ($1 million) related to the Inscape acquisition, partially offset by lower travel, marketing and advertising costs ($2 million) due to cost containment initiatives. The restructuring charge included in the first quarter fiscal year 2013 results was $1.3 million and related to activities that will be discontinued, outsourced, or relocated to a lower cost region.

Contribution to Profit:

Contribution to profit was $0.3 million in the first quarter of fiscal year 2013, compared to $0.8 million in the prior year. On a currency neutral basis and excluding the impact of the current year restructuring charge, contribution to profit increased $0.8 million to $1.6 million. Contribution margin declined 50 basis points to 0.3% in the first quarter of fiscal year 2013, but improved 80 basis points on a currency neutral basis and excluding the current year restructuring charge mainly driven by higher margin revenue from the Inscape acquisition and cost containment initiatives, partially offset by higher royalty costs and lower print book revenue.

Sale of Travel Business
ˇ On August 10, 2012, the Company signed an agreement with Google for the sale of key assets of its travel publishing program, including the Frommer's, Unofficial Guides and WhatsonWhen brands for approximately $22 million in cash. The effective date of the transaction was August 31, 2012. The Company expects to record a gain on the sale of approximately $6.6 million in the second quarter of fiscal year 2013. The Company continues to explore opportunities to sell a number of its other consumer print and digital publishing assets including culinary, general interest, nautical, pets, crafts, Webster's New World and CliffsNotes.

Acquisitions and Alliances
ˇ In August, the Company acquired the assets of Trader's Library for approximately $1.5 million, assuming sales for 154 products, mostly videos. Traders' Library is a book publishing and distribution company targeting the full spectrum of the investment arena - from individual investors and financial advisors to professional traders. Anticipated annual revenue is approximately $1 million.

Digital Update
ˇ Digital revenue increased 43% over prior year due to assessment revenue from the Inscape acquisition. Revenue from digital products and services now accounts for 21% of total P/T revenue, as compared to only 14% in the prior year.

ˇ The new WileyCPA.com website was launched in July 2012. The new site marries a test bank with our new ecommerce functionality. Candidates for the CPA certification can use the test bank to test their readiness for the exam in one of the following modes: practice, quizzes, or exam.

Global Education (GEd):

                                                       For the Three Months
                                                           Ended July 31,               % change
    Dollars in thousands                                 2012           2011 % change w/o FX (a)

    Print Books                                       $48,267        $56,510     -15%       -12%
    Non-Traditional & Digital Content                  20,941         18,203      15%        15%
    Other Publishing Income                             3,607          3,616       0%         5%
    TOTAL REVENUE                                     $72,815        $78,329      -7%        -5%

    GROSS PROFIT                                       48,192         53,398     -10%        -8%
    Gross Profit Margin                                 66.2%          68.2%

    Direct Expenses & Amortization                   (26,289)       (25,653)       2%         3%

    DIRECT CONTRIBUTION TO PROFIT                     $21,903        $27,745     -21%       -18%
    Direct Contribution Margin                          30.1%          35.4%

    Allocated Shared Services and Administrative
    Costs:
    Distribution                                      (3,793)        (3,710)       2%         5%
    Technology Services                               (7,358)        (6,169)      19%        21%
    Occupancy and Other                               (1,884)        (1,770)       6%         6%
    CONTRIBUTION TO PROFIT                             $8,868        $16,096     -45%       -41%
    Contribution Margin                                 12.2%          20.5%

(a) Adjusted to exclude a fiscal year 2013 restructuring charge of $0.2 million related to activities that will be discontinued, outsourced, or relocated to a lower cost region.

Revenue:

GEd revenue for the first quarter of fiscal year 2013 decreased 7% to $72.8 million, or 5% excluding the unfavorable impact of foreign exchange. The decline reflects lower revenue from print books, partially offset by growth in non-traditional and digital content revenue and other publishing income.

Print Books

Print book revenue for the first quarter of fiscal year 2013 declined 15% to $48.3 million, or 12% excluding the unfavorable impact of foreign exchange. The decline was mainly driven by cautious ordering on the part of book stores as they anticipate changes in students behavior and the impact of online ordering, used books and rentals.

Non-Traditional & Digital Content

Non-traditional and digital content revenue, which includes WileyPLUS, eBooks, digital content sold directly to institutions, binder editions and custom publishing, increased 15% to $20.9 million in the first quarter of fiscal year 2013. The growth was principally driven by increased revenue from custom textbooks and binder editions. Non-traditional and digital content revenue accounted for 29% of total GEd revenue, as compared to only 23% in the prior year.

Total GEd Revenue by Region (on a currency neutral basis)
ˇ Americas fell 6% to $55.1 million

ˇ EMEA fell 6% to $4.8 million

ˇ Asia-Pacific fell 3% to $12.9 million

Total GEd Revenue by Major Subject (on a currency neutral basis)
ˇ Engineering and Computer Science grew 2% to $10.6 million

ˇ Science fell 9% to $19.7 million

ˇ Business and Accounting declined 10% to $18.8 million

ˇ Social Science grew 3% to $13.1 million

ˇ Math fell 20% to $6.3 million

ˇ Microsoft Official Academic Course (MOAC) grew 16% to $2.4 million

Gross Profit:

Gross profit margin for the first quarter of fiscal year 2013 declined 200 basis points to 66.2%. The decline was mainly driven by higher composition costs to support the GEd frontlist (150 basis points) and lower print textbook revenue (50 basis points).

Direct Expenses and Amortization:

Direct expenses and amortization increased 2% to $26.3 million in the first quarter of fiscal year 2013, or 3% excluding the favorable impact of foreign exchange and the current year restructuring charge. The increase was mainly driven by higher employment costs. The restructuring charge included in the first quarter fiscal year 2013 results was $0.2 million and related to activities that will be discontinued, outsourced, or relocated to a lower cost region.

Contribution to Profit:

Contribution to profit for the first quarter of fiscal year 2013 decreased $7.2 million to $8.9 million. Contribution margin for the first quarter of fiscal year 2013 was 12.2% as compared to 20.5% in the prior year. The decline was principally driven by lower gross profit margins, higher employment costs and higher allocated technology costs due to investments in digital products and infrastructure.

WileyPLUS and Other Digital Initiatives
ˇ Billings of WileyPLUS grew 18%

ˇ The Company released the integration of WileyPLUS with Blackboard successfully in June. Over 150 university campuses have implemented the Blackboard/WileyPLUS "Building Block" in the first two months since release.

ˇ Digital revenue (WileyPlus, eBooks, digital content sold to institutions, etc.) grew 8% to approximately $5 million

Alliances

In May, Wiley announced a partnership with Quantum Simulations, Inc., a developer of artificial intelligence-based education products and services, to offer intelligent adaptive learning and assessment software with Wiley's print and digital accounting textbooks, starting with Introductory Accounting through Intermediate Accounting. Wiley and Quantum will combine advanced artificial intelligence technology, proven pedagogical techniques and content expertise to create individualized learning paths for every student.

Shared Services and Administrative Costs

                            For the Three Months
                                 Ended July 31,              % change
  Dollars in thousands         2012          2011 % change w/o FX (a)

  Distribution              $25,894       $27,556      -6%        -4%
  Technology Services        35,969        33,614       7%         8%
  Finance                    10,991        10,911       1%         3%
  Other Administration       22,523        23,629      -5%        -2%
  Total                     $95,377       $95,710       0%         1%

(a) Adjusted to exclude a fiscal year 2013 restructuring charge of $0.5 million related to activities that will be discontinued, outsourced, or relocated to a lower cost region.

Shared services and administrative costs for the first quarter of fiscal year 2013 were flat with the prior year, but increased 1% excluding the favorable impact of foreign exchange and the current year restructuring charge. The restructuring charge included in the first quarter fiscal year 2013 results was $0.5 million and related to activities that will be discontinued, outsourced, or . . .