N@N

CORRECTION FROM SOURCE: McGraw-Hill Ryerson Reports Third Quarter Results

WHITBY, ONTARIO--(Marketwire - Oct. 30, 2009) - McGraw-Hill Ryerson Limited (TSX:MHR) -

Attention: Business/Financial Editors

A correction from source is being issued with respect to the release sent out this afternoon at 4:00 PM EDT. Two headings were incorrectly dated September 30, 2008 when they should have been dated September 30, 2009. The complete and corrected version follows.

Three Months to September 30, 2009 ($000) This Year Year Ago
----------------------------------

Sales, less returns $37,775 $40,600
Other 445 477
 ------- -------
Total revenue $38,220 $41,077

Net Income 7,296 8,491
Net Income per share $ 3.65 $ 4.25


Nine Months to September 30, 2009 ($000)
---------------------------------

Sales, less returns $63,651 $67,716
Other 1,177 1,570
 ------- -------
Total revenue $64,828 $69,286

Net Income 5,652 7,043
Net Income per share $ 2.83 $ 3.53

Summary

Our revenues are typically more heavily weighted towards the second half of the calendar year. In the third quarter, McGraw-Hill Ryerson's revenues generally exceed the total of the first two quarters combined. This year's sales in the third quarter were slightly below prior year.

Three Months Ended September 30, 2009

The net revenue of $38.2 million in 2009 was lower than the $41.1 million in the third quarter of 2008. This was the result of a decrease in School Division sales for the quarter.

The Higher Education Division reported sales of $26.3 million, an increase of 5.9% compared to the prior year's $24.9 million. The increase was evenly split between sales of imported titles and sales of locally-produced titles.

The School Division reported sales of $8.7 million, a 31.5% decrease from the $12.7 million reported in 2008. This was mainly caused by significant sales in 2008 of several mathematics titles in Ontario and social studies titles in Alberta that were not replicated in 2009. Industry-wide spending was down 13% in the third quarter (according to Canadian Educational Resources Council) reflecting funding uncertainties in several provinces.

The Professional Division sales of $2.4 million were down slightly compared to the prior year's $2.6 million in the third quarter results. This was a result of lower sales to a major account.

Income before tax was $10.8 million compared to $12.8 million in the third quarter last year. This variance was mainly the result of the lower sales.

Nine Months Ended September 30, 2009

Net revenue of $64.8 million decreased by 6.4% compared to the prior year revenue of $69.3 million. The decrease was mainly the result of the decrease in the School Division.

The Higher Education Division sales of $38.7 million increased 4.4% compared with the $37.1 million in 2008. This sales increase was in both imported products as well as locally-produced products.

School Division sales decreased 20.7% to $18.8 million compared to $23.8 million in 2008. In 2008 several provinces purchased resources in subject areas that were not repeated in 2009, including Ontario Math and Alberta Social Studies. The overall weakened financial outlook has resulted in decreased funding in several provinces this year.

Professional sales decreased to $5.5 million from $6.2 million. This was the result of the termination of an agency contract in 2008 as well as lower sales with a major national distributor.

For the first nine months of the year, editorial, selling, general and administrative expenses decreased 5.0% over prior year. This decrease was a result of the continuing implementation of productivity improvements across the Company, as well as the timing of certain expenses that are weighted more to the last quarter of 2009 than was the case in 2008.

Year to date income before tax was $8.3 million, compared to $10.8 million last year. This decrease in income is caused by the decrease in sales in the School and Professional Divisions.

Notice to Reader

The attached financial statements have been prepared by management of McGraw-Hill Ryerson Limited. The financial statements for the three and nine month periods ended September 30, 2009 and 2008 have not been reviewed by the auditors of McGraw-Hill Ryerson Limited.

In business since 1944, McGraw-Hill Ryerson Limited is a leading Canadian publisher of educational resources, and information products and services for lifelong learning and enjoyment. Revenue in 2008 was $95 million. Additional information is available at [ http://www.mcgrawhill.ca ].

McGRAW-HILL RYERSON LIMITED

 BALANCE SHEETS
 --------------


(In thousands of dollars)
As of September December September
(unaudited) 30, 2009 31, 2008 30, 2008
----------------------------------------------------------------------------

ASSETS
Current
 Cash and cash equivalents $22,128 $43,856 $26,299
 Accounts receivable 21,973 14,285 26,936
 Due from parent and affiliated companies 1,686 1,827 1,576
 Inventories 7,620 7,082 8,637
 Prepaid expenses and other assets 353 296 327
 Income taxes recoverable 2,184 - -
 Future tax assets 2,186 2,263 2,248
----------------------------------------------------------------------------

 Total current assets 58,130 69,609 66,023

----------------------------------------------------------------------------

 Capital assets, net 15,246 16,048 16,299
 Other assets, net 17,651 16,540 14,298
 Future tax assets - 623 956
----------------------------------------------------------------------------

 Total assets $91,027 $102,820 $97,576

----------------------------------------------------------------------------
----------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current
 Accounts payable and accrued charges $ 9,401 $10,721 $8,951
 Dividends payable - 13,976 -
 Income taxes payable - 359 477
 Due to parent and affiliated companies 4,888 5,669 5,025

----------------------------------------------------------------------------

 Total current liabilities 14,289 30,725 14,453

----------------------------------------------------------------------------

 Employee future benefits 2,101 2,026 2,058
 Future tax liabilities 414 - -

----------------------------------------------------------------------------

Total liabilities 16,804 32,751 16,511

----------------------------------------------------------------------------

Shareholders' equity
Share capital
 Authorized - 5,000,000 common shares
 Issued and outstanding - 1,996,638 common
 shares 1,997 1,997 1,997
Retained earnings 72,226 68,072 79,068
----------------------------------------------------------------------------

Total shareholders' equity 74,223 70,069 81,065

----------------------------------------------------------------------------

Total liabilities and shareholders' equity $91,027 $102,820 $97,576

----------------------------------------------------------------------------
----------------------------------------------------------------------------



McGRAW-HILL RYERSON LIMITED

 STATEMENTS OF INCOME, COMPREHENSIVE INCOME AND RETAINED EARNINGS
 ----------------------------------------------------------------
 (unaudited)


(In thousands of dollars except per share data)


 Three months Nine months
 ended ended
 September 30 September 30
 2009 2008 2009 2008
-----------------------------------------------------------------------

Revenue
 Sales, less returns $37,775 $40,600 $63,651 $67,716
 Other 445 477 1,177 1,570

-----------------------------------------------------------------------

Total revenue 38,220 41,077 64,828 69,286

-----------------------------------------------------------------------

Expenses
 Cost of Product and Royalties 15,541 15,694 25,763 26,366
 Editorial, selling, general, and
 administrative 8,340 8,544 24,094 25,169
 Amortization - prepublication
 costs 3,214 3,399 5,530 5,409
 Amortization - capital assets 237 335 892 1,010

 Employee future benefits 25 25 75 75
 Foreign exchange loss 81 241 131 455

-----------------------------------------------------------------------

Total expenses 27,438 28,238 56,485 58,484

-----------------------------------------------------------------------

Income before income taxes 10,782 12,839 8,343 10,802

-----------------------------------------------------------------------

Provision for/(recovery of) income
 taxes
 Current 4,691 5,874 1,577 3,991
 Future (1,205) (1,526) 1,114 (232)

-----------------------------------------------------------------------

 3,486 4,348 2,691 3,759

-----------------------------------------------------------------------

Net income and comprehensive
 income for the period 7,296 8,491 5,652 7,043

Retained earnings, beginning of
 period 65,439 71,057 68,072 73,433
Dividends declared to shareholders
 to date ($0.75 per share; 2008
 - $0.705 per share) (509) (480) (1,498) (1,408)

-----------------------------------------------------------------------

Retained earnings, end of period $72,226 $79,068 $72,226 $79,068

-----------------------------------------------------------------------
-----------------------------------------------------------------------
Earnings per share

 Basic - net earnings for the
 period $3.65 $4.25 $2.83 $3.53

 Diluted - net earnings for the
 period $3.65 $4.25 $2.83 $3.53

-----------------------------------------------------------------------
-----------------------------------------------------------------------
Weighted average number of shares for basic and diluted earnings per
share for 2009 and 2008 is 1,996,638.



McGRAW-HILL RYERSON LIMITED

 STATEMENTS OF CASH FLOW
 -----------------------
 (unaudited)


(In thousands of dollars)

 Three months Nine months
 ended ended
 September 30 September 30
 2009 2008 2009 2008
----------------------------------------------------------------------------

OPERATING ACTIVITIES
 Net income for the period $7,296 $8,491 $5,652 $ 7,043
 Add/deduct charges to income not
 affecting cash:
 Amortization - prepublication costs 3,214 3,399 5,530 5,409
 Amortization - capital assets 237 335 892 1,010
 Employee future benefits 25 25 75 75
 Future income taxes (1,205) (1,526) 1,114 (232)
 Net change in non-cash working capital
 balances related to operations 2,112 (3,131) (12,779) (15,819)
----------------------------------------------------------------------------

Cash provided by (used in) operating
 activities 11,679 7,593 484 (2,514)

----------------------------------------------------------------------------

INVESTING ACTIVITIES
 Prepublication costs (2,933) (1,892) (6,648) (5,363)
 Additions to capital assets (21) - (90) (62)

----------------------------------------------------------------------------

Cash used in investing activities (2,954) (1,892) (6,738) (5,425)

----------------------------------------------------------------------------

FINANCING ACTIVITIES
 Dividends paid to shareholders (509) (480) (15,474) (1,408)
----------------------------------------------------------------------------

Cash used in financing activities (509) (480) (15,474) (1,408)

----------------------------------------------------------------------------

Net increase (decrease) in cash and
 cash equivalents during the period 8,216 5,221 (21,728) (9,347)
Cash and cash equivalents, beginning
 of period 13,912 21,078 43,856 35,646

----------------------------------------------------------------------------

Cash and cash equivalents, end of
 period $22,128 $26,299 $22,128 $26,299

----------------------------------------------------------------------------
----------------------------------------------------------------------------

Supplemental cash flow information
 Income taxes refunded $6 $56
 Income taxes paid $1,234 $ 1,270 $4,183 $ 4,556
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash and cash equivalents consists of: cash and term deposits.