We continue to move ahead aggressively in building our European professional publishing program.

Soros on Soros, one of our top 1996 books in the business category, was published in New York and launched in London, and is selling well in Asia, Australia, North America, and Europe. With the publication of The Ernst & Young Tax Saver's Companion in the United Kingdom, we have extended our long-standing and highly successful publishing alliance with Ernst & Young outside the United States for the first time.

We are increasing our presence in local language publishing, primarily with partners. We are copublishing in Korean, Japanese, and Chinese and are exploring opportunities for local language publishing in Europe.

This sampling of new products highlights some of our major subject areas in professional/trade publishing, including computer programming, business, psychology, and biography.

WE had another year of excellent growth in professional/trade publishing, with worldwide revenues increasing 10%, led by robust sales of computer, business, and psychology books. This segment includes a variety of products for professionals and businesspeople, sold by subscription or through bookstores, as well as nonfiction trade books for general readers. Virtually all our books, no matter where they are published, are marketed globally. Soros on Soros: Staying Ahead of the Curve, one of our top 1996 sellers in the business category, describes the life and philosophy of financier and philanthropist George Soros. Although the book was published in the United States, Soros is perhaps best known in Europe. The book was therefore launched in London, coordinated by Wiley staff in the U.K. and U.S., and has sold well worldwide.

International Professional Programs

In addition to our professional publishing program in the United States, we are moving ahead rapidly in developing a professional program in Europe. We published about 100 titles in Europe during fiscal 1996, in subject areas such as business, law, and psychology, complementing the European distribution of U.S. product. Our European titles included The Ernst & Young Tax Saver's Companion, building on Wiley's publishing alliance with Ernst & Young in the U.S. and developed especially for the U.K. market; Interpreting Evidence, by Bernard Robertson and G.A. Viganux; and Psychological Disorders, by Michael Rutter. In November, Wiley Europe launched a direct marketing unit, primarily for professional books, augmenting existing distribution through the book trade. We anticipate continued rapid growth in our European professional publishing program.

We also publish professional/trade books in Asia and have a young and growing program in Canada focused on such topics as personal finance and management. We are leveraging our Canadian titles by distributing key products internationally. An example is The Right Mountain: Lessons from Everest on the Real Meaning of Success, by Jim Hayhurst, Sr., an inspirational business book based on the true story of a man and his son climbing Mount Everest. With its appeal to both the business and general trade markets, The Right Mountain has sold well not only in Canada, but also in the United States, Australia, and elsewhere. What Customers Value Most, by Stanley Brown, is another new Canadian title with global distribution. To improve the global coordination and marketing of our professional/trade books and journals, Wiley editors from around the world meet several times a year to plan editorial, marketing, and sales strategies.

Computer Books

Computer book sales have been exceptionally strong durng the past two years, increasing 42% in fiscal 1996 on top of similar growth in fiscal 1995. Technology trends continue to change rapidly, creating demand for timely information. We have a strong group of editors, marketers, and authors who are able to meet the changing needs of the marketplace by producing authoritative, up-to-date books. Our computer book program is focused on emerging technologies in fast-moving areas such as the Internet and client server technology. The Java Sourcebook, by Ed Anuff, was one of our successful new titles in 1996. Java is a new programming language used primarily for the development of Web sites on the Internet. Our editors were able to spot the emerging importance of this programming language and bring a definitive book to market ahead of the competition. The New Internet Navigator, by Paul Gilster, examines the various tools to surf the Net and explains, in nontechnical language, how to use them, updating an earlier top-seller. HTML Sourcebook, second edition, by Ian Graham, covers the latest changes in HTML language, critical for those creating the Web sites.

Psychology Books

We had a superb year in publishing for psychology professionals. New products included several to help mental health professionals meet the stringent treatment and reporting requirements of Medicare, HMOs, insurance companies, and other third-party payers. The Complete Psychotherapy Treatment Planner, by Arthur E. Jongsma, Jr., and L. Mark Peterson, provides assistance in writing consistent, well-documented patient treatment plans with measurable objectives. A related product, TheraScribe for Windows, by Arthur E. Jongsma, Jr., L. Mark Peterson, and Kenneth Jongsma, is a software program that assists psychotherapists in creating detailed, customized treatment plans in minutes. In fiscal 1996, we acquired Clinical Psychology Publishing Company and its six scholarly journals and a backlist of approximately 25 books in the fields of child development and clinical psychology. The acquisition included The Journal of Clinical Psychology, one of the leading periodicals in its field.

Alliances and Acquisitions

Part of our strategy in professional/trade publishing is to form alliances that combine our publishing expertise with the brand-name identity and information content of our alliance partner. In March, we signed an agreement with The New York Public Library to publish reference books that capitalize on the library's extensive collections and research expertise. Included will be two children's books, The Incredible Earth and The Mysteries of Space, and The New York Public Library Office Desk Reference, a comprehensive one-volume reference for businesspeople. We joined with net.Genesis Corporation of Cambridge, Massachusetts, to collaborate on a series of books about the Internet. We are working with Autodesk, the nation's fourth-largest personal-computer software company, to pursue joint electronic publishing opportunities in the architecture, engineering, and construction marketplace. With IndustryWeek, we are publishing a series of books about manufacturing and management. These alliances are the latest in a series of collaborations with high-profile partners, including Forbes, the Gallup Organization, Adweek Magazines, Ernst & Young, America Online, Entrepreneur Magazine, National Business Employment Weekly, and the National Association of Manufacturers.