----

----

|   |   |                                                                                                |
|--------|--------|-----------------------------------------------------------------------------------------------------|
| o      |   | REGISTRATION      STATEMENT PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF      1934 |

|   |   |                                                                                              |
|--------|--------|---------------------------------------------------------------------------------------------------|
| þ |   | ANNUAL      REPORT PURSUANT TO SECTION 13(a) OR 15(d) OF THE SECURITIES EXCHANGE ACT      OF 1934 |
|   |   | For      the fiscal year ended December 31,2008                                              |

|   |   |                                                                                                          |
|--------|--------|---------------------------------------------------------------------------------------------------------------|
| o      |   | REGISTRATION      STATEMENT PURSUANT TO SECTION 12(b) or (g) OF THE SECURITIES EXCHANGE      ACT OF 1934 |

|   |   |                                                                                           |
|--------|--------|------------------------------------------------------------------------------------------------|
| þ |   | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|   |   | For      the fiscal year ended December 31,2008                                           |

|   |   |                                                                                               |
|--------|--------|----------------------------------------------------------------------------------------------------|
| o      |   | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |

|   |   |                                                                                                  |
|--------|--------|-------------------------------------------------------------------------------------------------------|
| o      |   | SHELL      COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE      ACT OF 1934 |

| Form 40-F                  |   |                                                                   |   | Form      20-F          |
|---------------------------------|--------|------------------------------------------------------------------------|--------|-------------------------|
| THOMSON      REUTERSCORPORATION |   | (Exact      name of Registrant as specified in its charter)            |   | THOMSON      REUTERSPLC |
| Ontario,      Canada            |   | (Province      or other jurisdiction of incorporation or organization) |   | England      and Wales  |
| 2741                            |   | (Primary      Standard Industrial Classification Code Number)          |   | 2741                    |
| 98-0176673                      |   | (I.R.S.      Employer Identification No. (if applicable))              |   | Not      Applicable     |

----

----

----

|                     |   |                                           |
|--------------------------|--------|------------------------------------------------|
| Title      of each class |   | Name      of each exchange on which registered |
| Common      Shares       |   | New      York Stock Exchange                   |

| þ Annual      information form | þ Audited annual      financial statements |
|------------------------------------------|-------------------------------------------------|

| Yes    o |   | 82- |   | No    þ |
|------------------------------|--------|-----|--------|----------------------------------|

| Yes    þ |   |   |   | No    o |
|-----------------------------------|--------|--------|--------|-----------------------------|

|                                                                                                       |   |                                           |
|------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|
| Title      of each class                                                                                   |   | Name      of each exchange on which registered |
| American      Depositary Shares, each representing six ordinary shares, £0.25 nominal      value each |   | The      Nasdaq Stock Market LLC               |
|                                                                                                       |   |                                           |
| Ordinary      shares, £0.25 nominal value each*                                                       |   |                                           |

----

| U.S.      GAAP o | International      Financial Reporting Standards as issued by the International Accounting      Standards Board o | Other      þ |
|------------------|-------------------------------------------------------------------------------------------------------------------|-------------------|

----

----

| MARCH      26, 2009  |  |
|---------------------------|--|

----

| · | “Common      shares” refers to common shares of Thomson Reuters      Corporation; |
|--------|-----------------------------------------------------------------------------------------------|

| · | “DLC      structure” refers to the dual listed company structure under which Thomson      Reuters Corporation, Thomson Reuters PLC and their respective consolidated      subsidiaries operate as a unifiedgroup; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | “Ordinary      shares” refers to ordinary shares of Thomson Reuters PLC and references      also include American Depositary Shares (ADSs), each of which represents      six ordinary shares; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | “Reuters”      refers to Reuters Group PLC before its acquisition by Thomson on April 17,      2008; |
|--------|------------------------------------------------------------------------------------------------------------------|

| · | Thomson”      refers to The Thomson Corporation (now Thomson Reuters Corporation) before      its acquisition of Reuters on April 17,2008; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Thomson      Reuters,” “we,” “us” and “our” each refers collectively to Thomson Reuters      Corporation, Thomson Reuters PLC and their respective consolidated      subsidiaries operating as a unified group pursuant to the DLC      structure; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Thomson      Reuters board” or “board” refers to the board of directors of each of      Thomson Reuters Corporation and Thomson Reuters  PLC; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Woodbridge”      refers to The Woodbridge Company Limited and other companies affiliated      with it; and |
|--------|------------------------------------------------------------------------------------------------------------------------|

| · | “$”,      “US$” or “dollars” are to U.S.dollars. |
|--------|--------------------------------------------------------------------------------------|

| 1 | Business |
|---|----------|

| 12 | Risk      Factors |
|----|-------------------|

| 18 | Management      s Discussion and Analysis |
|----|-------------------------------------------|

| 60 | Financial      Statements |
|----|---------------------------|

| 110 | Senior      Management and Directors |
|-----|--------------------------------------|

| 117 | Additional      Information |
|-----|-----------------------------|

| 137 | Cross      Reference Tables |
|-----|-----------------------------|

| 141 | Corporate      Information |
|-----|----------------------------|

----

| · | Markets, which consists      of our financial and media businesses;and |
|--------|------------------------------------------------------------------------|

| · | Professional,      which consists of our legal, tax and accounting, healthcare and science      businesses. |
|--------|-------------------------------------------------------------------------------------------------------------|

| 2008      and 2009 Priorities                                                                             |   | 2008      Progress                                                                                                                                                                                                                                                                                                                             |
|-----------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Integrate      Thomson and Reuters businesses to drive long-term growth and capture      synergies        |   | As      we progressed with integrating Reuters, we identified significant      additional opportunities for cost savings. We currently expect $1.0      billion in annualized cost savings from integration programs by the end of      2011. Our overall savings target (including legacy efficiency programs) is      currently $1.4 billion |
|                                                                                                      |   | The      Markets division sales organization was integrated in the first 90 days      after closing and product roadmaps were delivered to    customers                                                                                                                                                                                        |
|                                                                                                      |   | Real      estate moves were completed in 39 locations (over 10,000 employees      worldwide)                                                                                                                                                                                                                                                   |
|                                                                                                      |   | We      made significant progress developing a common platform and product      roadmap                                                                                                                                                                                                                                                        |
|                                                                                                      |   | We      introduced cross-divisional products that position us to grow our      businesses, such as the inclusion of Reuters News in Thomson ONE and      Professional division products, and StreetEvents in Reuters      3000Xtra                                                                                                             |
| Capitalize      on a global brand and presence to drive international    growth                           |   | Westlaw      expanded in China and Japan and we launched a smaller-scale, lower-cost      Westlaw platform that can be used globally, eliminating the need to create      a new online platform for each country or region                                                                                                                     |
|                                                                                                      |   | We      began working on an important cross-divisional initiative, Islamic      Finance                                                                                                                                                                                                                                                        |
|                                                                                                      |   | The      new Thomson Reuters brand was ranked #44 in Business Week’s 100 Best Global Brands      for 2008 – higher than either Thomson or Reuters had ever achieved on its      own                                                                                                                                                |
|                                                                                                      |   | We      reorganized our Legal and Tax & Accounting businesses on a global      basis to facilitate the creation of more international solutions for our      customers and to follow the expansion of our customers around the      world                                                                                             |
| Achieve      scale economics and make the whole of Thomson Reuters greater than the sum      of its parts |   | Our      business units have been collaborating to offer new services, grow      revenues and achieve cost efficiencies                                                                                                                                                                                                                        |
|                                                                                                      |   | We      refinanced $3 billion of debt financing at favorable interest rates and we      fully repaid our bridge credit facility used to finance the Reuters      acquisition                                                                                                                                                                   |

| No.      1Invest      to drive long-term growth and returns |   | No.      2Focus      on free cash flow                         |   | No.      3Support      business objectives with a robust capital strategy |
|-------------------------------------------------------------|--------|----------------------------------------------------------------|--------|---------------------------------------------------------------------------|
| Capital      expenditure management process                 |   | Disciplined      capital spending                              |   | Target      net debt/EBITDA ratio of 2.0x                                 |
| Acquisition      process and metrics                        |   | Working      capital management                                |   | Access      to capital markets                                            |
| Portfolio      optimization process                         |   | Performance      improvement included in management incentives |   | Focus      on balancing investments andreturns                            |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| Major      Brands                       |   | Type      of Product/Service Target                                                                                           |   | Customers                                                                              |
|-----------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|
| Reuters      3000 Xtra                  |   | Premium      desktop product providing pre-trade decision-making tools, news, real-time      pricing and trading connectivity |   | Trading      professionals, salespeople, brokers and financial  analysts               |
| Dealing      on Reuters                 |   | Peer-to-peer      conversational trading product primarily related to foreign exchange      (FX) and money markets       |   | FX      and money market traders, sales desks, hedge funds and voice      brokers |
| Matching      on Reuters                |   | Electronic      FX trade matching system                                                                                      |   | FX      traders, sales desks and hedge funds                                           |
| Reuters      Messaging                  |   | Collaboration/messaging      service                                                                                          |   | Financial      professionals                                                           |
| Tradeweb                                |   | Online      multi-dealer marketplace for fixed income securities and      derivatives                                         |   | Institutional      traders                                                             |
| AutEx      and Tradeweb Routing Network |   | Electronic      database and real-time network for trade order indications and trade      executions                          |   | Equity      traders                                                                    |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| Major      Brands and Product Categories                |   | Type      of Product/Service                                                                                                                                                                   |   | Target      Customers                                                                                           |
|---------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------|
| ThomsonONE.com      Investment Banking                  |   | Market      prices, Reuters News and comprehensive reference data on companies,      industries and events                                                                                     |   | Investment      bankers, consultants, lawyers and private equity    professionals                               |
| SDC      Platinum                                       |   | Database      for analyzing investment banking and deal trends                                                                                                                                 |   | Investment      bankers, consultants, lawyers and private equity    professionals                               |
| Thomson ONE Investment      Management        |   | Timely      and accurate fundamental information with real-time pre-trade analytics to      help understand a firm’s relative valuation and times market entry      and exit points |   | Portfolio      managers, portfolio analysts, buy-side traders and research      analysts                        |
| Investor      Relations (IR) solutions                  |   | Online      desktop solution advisory services and online communications      tools                                                                                                            |   | Investor      relations professionals and corporate financial  executives                                       |
| Business      Intelligence solutions                    |   | Institutional      quality information and analytics for company and market valuation      analysis                                                                                            |   | Corporate      clients including strategy and research professionals, treasurers and      finance professionals |
| Corporate      Communications services                  |   | Webcasting      solutions                                                                                                                                                                      |   | Corporate      communications, employee communications, marketing and PR      professionals                     |
| Thomson ONE      Wealth Management                 |   | Wealth      management tools, real-time market data and back-office data      processing                                                                                                       |   | Wealth      management professionals and high net worth  professionals                                          |
| Reuters      Knowledge Direct API for Wealth Management |   | Premium      content including exchange data, news, company fundamentals, broker      research and consensus reports                                                                           |   | Wealth      management professionals and individual investors                                                   |
| eXimius                                                 |   | Client      relationship system with portfolio management capabilities                                                                                                                         |   | Ultra      high net worth professionals                                                                         |
| BETA      Systems                                       |   | Brokerage      processing system                                                                                                                                                               |   | Retail      and institutional wealth management professionals                                                   |
| Lipper                                                  |   | Mutual      fund information, benchmarking data, performance information and      analysis                                                                                                     |   | Asset      managers, financial intermediaries and individual  investors                                         |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| Major      Brands                     |   | Type      of Product/Service                                                                                                                                         |   | Target      Customers                                                                                                                          |
|---------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|
| Reuters DataScope      Real-Time |   | Real-time      market information targeting programmatic/automated trading, market/credit      risk, instrument pricing and portfolio management and      valuations |   | Traders,      hedge funds, brokers, asset managers, program traders, quantitative      analysts, global custodians and credit and riskmanagers |
| Reuters      Data Feed Direct         |   | Ultra      high-speed datafeeds, direct from exchanges to thecustomer                                                                                                |   | Algorithmic      traders, program traders and quantitative funds                                                                     |
| Reuters NewsScope                |   | Reuters      News for use in trading applications                                                                                                                    |   | Algorithmic      traders, program traders and quantitative funds                                                                               |
| Reuters      Market Data System       |   | Software      platform for integrating and distributing real-time and historical      financial information                                                          |   | Financial      institutions requiring a data integration platform                                                                              |
| Kondor+                               |   | Position      keeping and risk management applications                                                                                                               |   | Banks,      broker-dealers and hedge funds                                                                                                     |
| PORTIA                                |   | Portfolio      accounting and reporting application                                                                                                                  |   | Money      managers, hedge funds, insurance companies, bank trusts, plan sponsors and      corporate treasury departments                      |
| Omgeo*                                |   | Post-trade      processing, portfolio reconciliation and collateral    management                                                                                    |   | Investment      managers, hedge funds, broker/dealers, custodian banks and investment      managementoutsourcers                               |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| Major      Product Categories                                |   | Type      of Product/Service                                                                                                                      |   | Target      Customers                                                               |
|--------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------|
| Text      newswires                                          |   | Instant      coverage of global news and events plus feature stories, analyses and      essential news planning tools                             |   | Newspapers,      television and cable networks, radio stations and      websites    |
| Video                                                        |   | Video      relating to breaking news, sports, financial and general      news                                                                     |   | Newspapers,      television and cable networks and websites                         |
| Pictures      and graphics                                   |   | Up-to-the-minute      news photographs and an online photo archive                                                                                |   | Newspapers,      websites, advertising agencies, television and cable      networks |
| Digital      multimedia                                      |   | Prioritized,      ready-to-publish online reports, online video and online      pictures                                                          |   | Websites                                                                            |
| Reuters.com                                                  |   | Direct-to-consumer      publishing and network of regional sites, online video and electronic      out-of-home display                            |   | Business      professionals                                                         |
| Real-time      financial marketscommentary      and analysis |   | IFR      Markets, Dealwatch                                                                                                                       |   | Trading      professionals, research analysts and portfolio    managers             |
| Magazines      and onlinepublications                        |   | International      Financing Review (IFR), Project Finance International, Buyouts, PE Week,      Acquisitions Monthly and Venture Capital Journal |   | Investment      bankers, corporate finance and private equity      professionals    |
| Conferences      and events                                  |   | Annual      awards, editorially-driven conferences and    roundtables                                                                             |   | Advisors,      companies and investors                                              |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| · | We      created an intellectual property (IP) business, which became part of the      Legal segment, by combining all of our Professional division-wide assets      and capabilities related to patents, trademarks and standards. This      includes products such as the Derwent World Patents Index, CompuMark and      Thomson Innovation. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | We      created a new strategic business unit, Healthcare and Science, which      manages all of the businesses of the previous individual Healthcare and      Scientific segments. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | We      reorganized our Legal and Tax & Accounting businesses on a global      basis to facilitate the creation of more international solutions for our      customers and to follow the expansion of our customers around the      world. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Westlaw      includes KeyCite, an online citation research service that traces the      history of a case, statute, administrative decision or regulation to      determine if it is stillauthoritative. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Westlaw      Litigator assists attorneys with all phases of litigation by combining      relevant case law research materials with practical tools for case      evaluation, pre-trial investigation, settlement negotiation and trial      preparation and presentation. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Through Westlaw Business, we      provide corporate and transactional lawyers with value-added services for      preparing and completing commercial transactions, such as securities      offerings, mergers and acquisitions and investment management. Westlaw      Business includes LIVEDGAR securities filing    content. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Major      Brands                                                                                                                                                                                     |   | Type      of Product/Service                                                                             |   | Target      Customers                                                                                                           |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|
| WestWestlawWestlaw      LitigatorWestlaw      Business                                                                                                                                                |   | Legal,      regulatory and compliance information-based products and      services                       |   | Lawyers,      law students, law librarians and other legal      professionals                                                   |
| Foundation      PressWest Law School      PublishingBAR/BRIWest      LegalEdcenterLegalworks                                                                                                |   | Textbooks,      study aids, bar review courses, continuing education materials and      seminars         |   | Law      students, lawyers and legal professionals                                                                              |
| Sweet      & Maxwell (U.K., Asia)IDS      (U.K.)Aranzadi      (Spain)Karnov      (Denmark and Sweden)Lawbook      (Australia)Brookers      (New Zealand)La      Ley (Argentina)Lawtel      (U.K.) |   | Legal      information-based products and services                                                       |   | Lawyers,      law students, law librarians, corporate legal professionals, government      agencies and trademark professionals |
| Carswell      (Canada)                                                                                                                                                                                |   | Legal,      regulatory and compliance information-based products and      services                       |   | Lawyers,      law students, law librarians and other legal      professionals                                                   |
| Thomson CompuMarkSAEGIS      (North America, EMEA)                                                                                                                                               |   | Trademark      search and protection information services                                                |   | Business,      legal and trademark professionals                                                                                |
| EliteElite      3E                                                                                                                                                                                    |   | Law      firm operations and financial management software, business      intelligence                   |   | Lawyers,      law firm finance and operations                                                                                   |
| FindLawHubbardOne                                                                                                                                                                                     |   | Online      legal directory, website creation and hosting services and law firm      marketing solutions |   | Lawyers      and legal professionals                                                                                            |
| LiveNote                                                                                                                                                                                              |   | Deposition,      transcript and court reporting software and services                                    |   | Lawyers,      courts and court reporters and investigators                                                                      |
| Hildebrandt      InternationalBaker      Robbins                                                                                                                                                      |   | Strategic,      technology, operations and information consulting advisory      services                 |   | Lawyers,      law firm finance, operations and business development      professionals                                          |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| Major      Brands                                                                                              |   | Type      of Product/Service                                                                                                                                |   | Target      Customers                                                                                             |
|----------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|
| Research      & Guidance:RIAPPCCheckpointAuditWatchQuickfinderWarren Gorham      & Lamont Paisley |   | Integrated      information-based solutions, expert guidance, workflow tools and      continuing professional education (CPE)                               |   | Professional      accounting firms, corporate, finance and accounting departments, law firms      and governments |
| Professional      Software & Services:CS      Professional SuiteEnterprise      SuitemyPay      Solutions  |   | Software      and online products and services that provide business automation      solutions for tax compliance, firm management and client      services |   | Professional      accounting firms                                                                                |
| Corporate      Software & Services:ONESOURCE                                                               |   | Integrated      online software and managed services that help automate various areas of      taxation and corporate compliance                             |   | Corporate,      legal, bank and trustmarket                                                                       |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| Major      Brands                |   | Type      of Product/Service                                                                                                                                                                                             |   | Target      Customers                                                                                             |
|----------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|
| ISI      Web of Knowledge        |   | Comprehensive      and integrated platform that includes the Web of Science as well as      third-party-hosted content, editorially selected websites, and tools to      access, analyze and manage research information |   | Research      scientists and scholars, government agencies, research libraries and      universities and colleges |
| Web      of Science              |   | Comprehensive      database providing a source for journal article-cited references and      access to abstracted and indexed journals                                                                                   |   | Research      scientists and scholars, government agencies, research libraries and      universities and colleges |
| Thomson Pharma              |   | Integrated      online platform that delivers scientific literature, patents, commercial      and regulatory information, company news communications, professional      meeting reports and other relevant content      |   | Pharmaceutical      and biotechnology companies                                                                   |
| Thomson      Innovation          |   | Integrated      online platform providing a global collection of IP content, scientific      literature, analytical and visualization tools and document      services                                                   |   | IP      professionals, R&D professionals, lawyers and business intelligence      staff                        |
| Derwent      World Patents Index |   | Comprehensive      database of English language patent abstracts from patent authorities      around the world                                                                                                           |   | IP      professionals, R&D professionals, lawyers and business intelligence      staff                        |
| Prous      Integrity             |   | Integrated      online platform delivering drug discovery content and analytic      functionality for biologists and chemists                                                                                            |   | Pharmaceutical      and biotechnology companies, academic centers and research      institutes                    |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| Major      Brands     |   | Type      of Product/Service                                                                                                                                                                                                                |   | Target      Customers                                                                                                                                                                  |
|-----------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Micromedex            |   | Comprehensive      database set of drugs, disease information, medical emergency and poison      control procedures, patient education and other relevant clinical,      toxicological and environmental health and safety      information |   | Physicians,      pharmacists, health professionals, pharmaceutical companies, hospitals,      poison control centers, corporations, government agencies and insurance      companies   |
| MedstatAdvantageSuite |   | Decision      support products integrating benchmarks and analytics, designed for      managing healthcare costs and quality and employee wellness and      productivity                                                                    |   | Large      and mid-size employers, governmental healthcare purchasers, managed care      and insurance companies, pharmaceutical companies and health services      research providers |
| Solucient             |   | Benchmark,      comparative and market databases, integrated with analytics to support      marketing and planning, operational improvement and clinical performance      improvement                                                       |   | Hospitals,      researchers, service planners, patient safety and quality managers and      financial and administrativestaff                                                          |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| • | licensing      and registration; |
|---------|----------------------------------|

| • | disclosure/reporting,      conduct and recordkeepingrequirements; |
|---------|-------------------------------------------------------------------|

| • | maintaining      any applicable minimum financial/capital  requirements; |
|---------|--------------------------------------------------------------------------|

| • | operating      appropriate systems and controls related to antimony laundering and      prevention of other financial crimes;and |
|---------|----------------------------------------------------------------------------------------------------------------------------------|

| • | cooperating      with any periodic reviews oraudits. |
|---------|------------------------------------------------------|

|                                          |   |   | As      of December 31 |   |
|-----------------------------------------------|--------|--------|------------------------|--------|
|                                          |   | 2008   |                   |   | 2007 |   |   | 2006 |   |
| Thomson Reuters                          |   |   | 53,700                 |   |   |   | 32,900 |   |   |   | 32,400 |   |
| Americas                                      |   |   | 28,400                 |   |   |   | 22,800 |   |   |   | 23,200 |   |
| Europe,      Middle East and Africa      |   |   | 12,200                 |   |   |   | 4,500 |   |   |   | 4,900 |   |
| Asia                                          |   |   | 13,100                 |   |   |   | 5,600 |   |   |   | 4,300 |   |
| Markets      division                         |   |   | 27,200                 |   |   |   | 8,600 |   |   |   | 9,300 |   |
| Professional      division                    |   |   | 23,100                 |   |   |   | 21,200 |   |   |   | 22,600 |   |
| Legal                                         |   |   | 14,300                 |   |   |   | 12,900 |   |   |   | 14,600 |   |
| Tax      & Accounting                     |   |   | 4,100                  |   |   |   | 3,800 |   |   |   | 3,000 |   |
| Scientific                                    |   |   | 2,800                  |   |   |   | 2,700 |   |   |   | 2,400 |   |
| Healthcare                                    |   |   | 1,900                  |   |   |   | 1,800 |   |   |   | 2,600 |   |
| Corporate      headquarters                   |   |   | 3,400                  |   |   |   | 3,100 |   |   |   | 475 |   |
| Total      number of countries with employees |   |   | 93                     |   |   |   | 44 |   |   |   | 37 |   |

| Facility                                                 |               | Approx.      sq.      ft. | Owned/      leased |   | Principal      use                                                                              |
|----------------------------------------------------------|--------------------|---------------------------|--------------------|--------|-------------------------------------------------------------------------------------------------|
| 610      Opperman Drive, Eagan, Minnesota                |          | 2,792,000                 | Owned              |   | Legal      headquarters and West      operating facilities                                      |
| 3      Times Square, New      York, New York             |               | 692,000                   | Owned/leased2      |   | Thomson Reuters      headquarters      and Markets      division operating      facilities |
| 195      Broadway, New      York, New York               |          | 435,200                   | Leased             |   | Markets      division and Tax &      Accounting offices                                     |
| 2395      Midway Road, Carrollton, Texas                 |     | 409,150                   | Owned              |   | Tax      & Accounting operating      facilities                                             |
| Boston,      Massachusetts1                              |               | 370,000                   | Leased             |   | Markets      division operating      facilities                                                 |
| Canary Wharf,      London,      United      Kingdom |               | 281,000                   | Leased             |   | Markets      division operating      facilities                                                 |
| RMZ      Infinity, Bangalore,      India                 |          | 247,500                   | Leased             |   | Markets      division operating      facilities                                                 |

| 1 | Consists      of three addresses. |
|---|-----------------------------------|

| 2 | In      connection with the acquisition of Reuters, we assumed a lease agreement      with 3XSQ Associates, an entity now owned by our company and Rudin Times      Square Associates LLC that was formed to build and operate the 3 Times      Square property and building in New York, New York that now serves as our      corporate headquarters. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| • | the      emergence of proprietary data feeds from other  markets; |
|---------|-------------------------------------------------------------------|

| • | high      market volatility; |
|---------|------------------------------|

| • | decimalization; |
|---------|-----------------|

| • | reductions      in trade sizes resulting in moretransactions; |
|---------|---------------------------------------------------------------|

| • | new      derivative instruments; |
|---------|----------------------------------|

| • | increased      automatically-generated algorithmic and program  trading; |
|---------|--------------------------------------------------------------------------|

| • | market      fragmentation resulting in an increased number of trading venues;      and |
|---------|----------------------------------------------------------------------------------------|

| • | multiple      listings of options and othersecurities. |
|---------|--------------------------------------------------------|

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| • | unexpected      issues, higher than expected costs and an overall process that takes      longer than originally anticipated; |
|---------|-------------------------------------------------------------------------------------------------------------------------------|

| • | our      inability to successfully integrate operations, technologies, products and      services; |
|---------|----------------------------------------------------------------------------------------------------|

| • | loss      of key employees; |
|---------|-----------------------------|

| • | modification      or termination of existing agreements with customers and suppliers and      delayed entry into new agreements with prospective customers and      suppliers; and |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | the      diversion of management’s attention from day-to-day business or developing      longer-term strategy as a result of the need to deal with integration and      savings program issues. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| · | Overview      – a brief discussion of our business and how we earn revenues,      together with information on key factors and trends affecting our      business; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Results      of Operations – a discussion that compares our results from year to      year, both on a consolidated and a segment  basis; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Liquidity      and Capital Resources – a discussion of changes in our cash flow,      together with information about our outstanding debt and resources      available to us to finance existing and future  commitments; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Outlook      – our business outlook for2009; |
|--------|----------------------------------------------------|

| · | Related      Party Transactions – a discussion of transactions that we have      entered into with our principal shareholder and others;  and |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Accounting      Policies – a discussion of changes in our accounting policies, as      well as important accounting policies that require critical judgments and      estimates by our management. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Markets,      which consists of our financial and media businesses;  and |
|--------|--------------------------------------------------------------------------|

| · | Professional,      which in 2008 consisted of our legal, tax and accounting, scientific and      healthcare businesses. |
|--------|-------------------------------------------------------------------------------------------------------------------------|

| · | We      created an intellectual property (IP) business, which became part of the      Legal segment, by combining all of our Professional division-wide assets      and capabilities related to patents, trademarks and    standards. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | We      created a new strategic business unit, Healthcare and Science, which      manages all of the businesses of the previous individual Healthcare and      Scientific segments. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | We      reorganized our Legal and Tax & Accounting businesses on a global      basis to facilitate the creation of more international solutions for our      customers and to follow the expansion of our customers around the      world. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| · | Integrate      the acquired Reuters businesses to drive long-term growth and capture      synergies; |
|--------|------------------------------------------------------------------------------------------------------|

| · | Capitalize      on a global brand and presence to drive international growth;      and |
|--------|----------------------------------------------------------------------------------------|

| · | Achieve      scale economics and make the whole of Thomson Reuters greater that      the sum of its parts. |
|--------|-----------------------------------------------------------------------------------------------------------------|

| · | Invest      to drive long-term growth andreturns; |
|--------|---------------------------------------------------|

| · | Focus      on free cash flow; and |
|--------|-----------------------------------|

| · | Support      business objectives with a robust capital  strategy. |
|--------|-------------------------------------------------------------------|

| · | Thomson      Reuters Corporation, an Ontario, Canada corporation;  and |
|--------|------------------------------------------------------------------------|

| · | Thomson      Reuters PLC, a UK company. |
|--------|-----------------------------------------|

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| REVENUE BY MEDIA1 Electronic.....................90%Print..............................10% |    |   |   |
|-------------------------------------------------------------------------------------------------|--------------|--------|--------|

| REVENUE BY TYPE1 Recurring.....................86%Non-recurring.............14% |    |   |  |
|--------------------------------------------------------------------------------------|--------------|--------|--|

| REVENUE BY GEOGRAPHY1 Americas......................58%EMEA...........................32%Asia .............................10% |     |   |  |
|------------------------------------------------------------------------------------------------------------------------------------------|--------------------|--------|--|

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|   |   |                        |   |   |                                                         |   |
|--------|--------|-----------------------------|--------|--------|--------------------------------------------------------------|--------|
| Year   |   | Number      of acquisitions |   |   | Net      aggregate cash cost (millions of U.S. dollars) |   |
| 2008   |   |                        | 23     |   |                                                         |   | 8,5021 |   |
| 2007   |   |                        | 33     |   |                                                         |   | 488 |   |
| 2006   |   |                        | 25     |   |                                                         |   | 744 |   |

| · | All      of the issued and outstanding Reuters ordinary shares were      cancelled; |
|--------|-------------------------------------------------------------------------------------|

| · | Reuters      shareholders received, for each Reuters ordinary share    held: |
|--------|------------------------------------------------------------------------------|

|  | ° | 352.5      pence in cash; and |
|--|--------|-------------------------------|

|  | ° | 0.16      Thomson Reuters PLC ordinaryshares; |
|--|--------|-----------------------------------------------|

| · | One      Thomson Reuters PLC ordinary share is equivalent to one Thomson Reuters      Corporation common share under the DLC structure;  and |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

| · | Thomson      shareholders continued to hold their shares of Thomson, renamed as Thomson      Reuters Corporation. |
|--------|-------------------------------------------------------------------------------------------------------------------|

| (millions      of U.S. dollars)                                                      |   |   |   |
|--------------------------------------------------------------------------------------|--------|--------|--------|
| Cash      (paid on May 1, 2008)                                                      |   |   | 8,450  |   |
| Thomson      Reuters PLC ordinary shares (194,107,278 issued on April 17,      2008) |   |   | 8,226  |   |
| Reuters      Group PLC options                                                       |   |   | 195    |   |
| Transaction      costs                                                               |   |   | 138    |   |
| Total      purchase consideration                                                    |   |   | 17,009 |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| ● | Revenue      and operating profit from ongoing businesses. We believe our revenue and profits are best      measured based on our ability to grow our ongoing businesses over the long      term. Accordingly, we evaluate our revenue and operating profit excluding      results from disposals, which are defined as businesses sold or held for      sale that do not qualify for discontinued operations      classification. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Net      debt. We define our net debt as our total indebtedness, including      associated fair value hedging instruments (swaps) on our debt, less cash      and cash equivalents. Given that we hedge some of our debt to reduce risk,      we include hedging instruments as we believe it provides a better measure      of the total obligation associated with our outstanding debt. However,      because we intend to hold our debt and related hedges to maturity, we do      not consider the associated fair market value of cash flow hedges in our      measurements. We reduce gross indebtedness by cash and cash equivalents on      the basis that they could be used to pay down debt. See the reconciliation      of this measure to the most directly comparable Canadian GAAP measure in      the “Liquidity and Capital Resources” section of this management’s      discussion and analysis. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Free      cash flow. We evaluate our operating performance based on free cash      flow, which we define as net cash provided by operating activities less      capital expenditures, other investing activities and dividends paid on our      preference shares. We use free cash flow as a performance measure because      it represents cash available to repay debt, pay common and ordinary      dividends and fund share repurchases and new acquisitions. See the      reconciliation of this measure to the most directly comparable Canadian      GAAP measure in the “Liquidity and Capital Resources” section of this      management’s discussion andanalysis. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Underlying      free cash flow. We define underlying free cash flow as free cash      flow excluding one-time cash costs related to the Reuters acquisition and      costs associated with integration and synergy programs. We use underlying      free cash flow as a performance measure because it represents free cash      flow generated by our operations excluding certain unusual items. See the      analysis of this measure compared to free cash flow in the “Liquidity and      Capital Resources” section of this management’s discussion and      analysis. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                                                               |   | For      the year ended December 31 |   |
|------------------------------------------------------------------------------------|--------|------------------------------------------|--------|
| (millions      of U.S. dollars, except per share amounts)                          |   | 2008                                     |   |   | 2007 |   |
| Pro      forma results (unaudited)                                                 |   |                                     |   |   |   |   |
| Pro      forma revenues                                                            |   |                                     | 13,441 |   |   |   | 12,442 |   |
| Pro      forma operating profit                                                    |   |                                     | 1,936  |   |   |   | 1,571 |   |
| Pro      forma revenues from ongoing businesses                                    |   |                                     | 13,399 |   |   |   | 12,442 |   |
| Pro      forma underlying operating profit                                         |   |                                     | 2,773  |   |   |   | 2,337 |   |
| Pro      forma underlying operating profit margin                                  |   |                                     | 20.7   | % |   |   | 18.8 | % |
| Pro      forma adjusted diluted earnings per share from continuing      operations |   | $                                        | 1.91   |   |   |   | n/a |   |

| • | has      not been audited; |
|---------|----------------------------|

| • | has      been prepared for informational purposes only, and because of its nature,      addresses a hypothetical situation and, therefore, does not represent our      actual financial position orresults; |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | does      not purport to represent what our consolidated results of operations      actually would have been if the acquisition had occurred on January 1,      2007 or what those results will be for any future periods. The pro forma      adjustments are based on current information;  and |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | has not been adjusted to reflect      any matters not directly attributable to the acquisition. No adjustment,      therefore, has been made to periods prior to the closing date (April 17,      2008) for actions which have or may be taken upon      completion of the acquisition, such as any of our integration      plans. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                  |   |                            |   |   |     |   |   | Percentage      change due to: |   |   |                  |   |
|---------------------------------------|--------|---------------------------------|--------|--------|----------|--------|--------|--------------------------------|--------|--------|-----------------------|--------|
|                                  |   | Year      endedDecember      31 |   |   | Existing |   |   | Acquired                       |   |   | Foreign currency |   |   |   |   |
| (millions      of U.S. dollars)       |   | 2008                            |   |   | 2007     |   |   | businesses                     |   |   | businesses            |   |   | translation |   |   | Total |   |
| Revenues      from ongoing businesses |   |                            | 13,399 |   |     |   | 12,442 |                           |   |   | 6                     | %      |   |   | 2 | % |   |   | 0 | % |   |   | 8 | % |

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                              |   | Year      ended December 31 |    |
|---------------------------------------------------|--------|-----------------------------|---------|
| (millions      of U.S. dollars)                   |   | 2008                        |    |   | 2007 |   |
| Pro      forma operating profit                   |   |                        | 1,936   |   |   |   | 1,571 |   |
| Adjustments:                                      |   |                        |    |   |   |   |   |   |
| Amortization                                      |   |                        | 511     |   |   |   | 524 |   |
| Purchase      accounting difference               |   |                        | – |   |   |   | 86 |   |
| Disposals                                         |   |                        | (5      | ) |   |   | (11 | ) |
| Impairment      of assets held for sale           |   |                        | 72      |   |   |   | – |   |
| Fair      value adjustments                       |   |                        | (103    | ) |   |   | 48 |   |
| Integration      and synergy program costs        |   |                        | 362     |   |   |   | 153 |   |
| Pension      settlement                           |   |                        | – |   |   |   | (34 | ) |
| Pro      forma underlying operating profit        |   |                        | 2,773   |   |   |   | 2,337 |   |
| Pro      forma underlying operating profit margin |   |                        | 20.7    | % |   |   | 18.8 | % |

| (millions      of U.S. dollars,                                                    |   | Year      ended December 31 |   |
|------------------------------------------------------------------------------------|--------|---------------------------------------|--------|
| except      per share amounts)                                                     |   | 2008                                  |   |
| Pro      forma underlying operating profit                                         |   |                                  | 2,773  |   |
| Adjustments:                                                                       |   |                                  |   |   |
| Integration      and synergy program costs                                         |   |                                  | (362   | ) |
| Net      interest expense                                                          |   |                                  | (434   | ) |
| Income      taxes                                                                  |   |                                  | (367   | ) |
| Tradeweb      ownership interests                                                  |   |                                  | (17    | ) |
| Dividends      declared on preference shares                                       |   |                                  | (5     | ) |
| Pro      forma adjusted earnings from continuing operations                        |   |                                  | 1,588  |   |
| Pro      forma adjusted earnings per share from continuing    operations           |   | $                                     | 1.92   |   |
| Pro      forma adjusted diluted earnings per share from continuing      operations |   | $                                     | 1.91   |   |

|                                                       |   | Year      ended December 31 |   |
|------------------------------------------------------------|--------|-----------------------------|--------|
| (millions      of U.S. dollars, except per share amounts)  |   | 2008                        |   |   | 2007 |   |   | 2006 |   |
| Revenues                                                   |   |                        | 11,707 |   |   |   | 7,296 |   |   |   | 6,591 |   |
| Operating      profit                                      |   |                        | 1,693  |   |   |   | 1,297 |   |   |   | 1,248 |   |
| Earnings      from continuing operations                   |   |                        | 1,405  |   |   |   | 1,096 |   |   |   | 912 |   |
| Net      earnings                                          |   |                        | 1,405  |   |   |   | 4,004 |   |   |   | 1,120 |   |
| Diluted      earnings per share from continuing operations |   | $                           | 1.81   |   |   | $ | 1.69 |   |   | $ | 1.41 |   |
| Diluted      earnings per share                            |   | $                           | 1.81   |   |   | $ | 6.20 |   |   | $ | 1.73 |   |

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| • | In      2008, income taxes included an $80 million benefit associated with      currency and exchange gains taxable at rates lower than those in Canada.      This item reduced our 2008 effective tax rate by approximately      5%. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | In      2007, our provision included benefits of $60 million resulting primarily      from the recognition of Canadian tax losses, but also reflecting a change      in Australian tax law. These benefits reduced our 2007 effective tax rate      by approximately 5%. The Canadian tax losses were recognized in      anticipation of using them against taxable income from the sale of Thomson      Learning’s Canadian education operations, which was completed in July      2007. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| • | In      2006, we increased valuation allowances against deferred tax assets which      increased our tax rate by 4%. The net change in the valuation allowance      included benefits associated with our Thomson Learning segment which,      under the requirements of discontinued operations accounting, were not      allowed to be reclassified to discontinued operations along with the other      results for the business. The impact of including the benefits related to      the Thomson Learning segment in our continuing operations tax charge      reduced our effective tax rate by 3% in2006. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                           |   |                        |   |   |     |   |   | Percentage      change due to: |   |   |       |   |
|------------------------------------------------|--------|-----------------------------|--------|--------|----------|--------|--------|--------------------------------|--------|--------|------------|--------|
|                                           |   |                        |   |   |     |   |   |                           |   |   | Foreign    |   |   |   |   |
|                                           |   | Year      ended December 31 |   |   | Existing |   |   | Acquired                       |   |   | currency   |   |   |   |   |
| (millions      of U.S. dollars)                |   | 2008                        |   |   | 2007     |   |   | businesses                     |   |   | businesses |   |   | translation |   |   | Total |   |
| Pro      forma revenues                        |   |                        |   |   |     |   |   |                           |   |   |       |   |   |   |   |   |   |   |
| Sales      & Trading                       |   |                        | 3,828  |   |     |   | 3,640  |                           |   |   | 4          | %      |   |   | 0 | % |   |   | 1 | % |   |   | 5 | % |
| Investment      & Advisory                 |   |                        | 2,371  |   |     |   | 2,207  |                           |   |   | 7          | %      |   |   | 1 | % |   |   | (1 | %) |   |   | 7 | % |
| Enterprise                                |   |                        | 1,295  |   |     |   | 1,139  |                           |   |   | 13         | %      |   |   | 0 | % |   |   | 1 | % |   |   | 14 | % |
| Media                                          |   |                        | 450    |   |     |   | 432    |                           |   |   | 0          | %      |   |   | 0 | % |   |   | 4 | % |   |   | 4 | % |
| Markets      division total                    |   |                        | 7,944  |   |     |   | 7,418  |                           |   |   | 6          | %      |   |   | 0 | % |   |   | 1 | % |   |   | 7 | % |
| Pro      forma segment operating profit        |   |                        | 1,406  |   |     |   | 1,117  |                           |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pro      forma segment operating profit margin |   |                        | 17.7   | %      |     |   | 15.1   | %                              |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| • | Sales      & Trading pro forma revenues increased before the effects of      foreign currency primarily due to contributions from our Treasury,      Tradeweb and Commodities & Energy businesses. The increase in Treasury      revenues were a result of foreign exchange volatility and higher      transaction volumes, particularly in the first nine months of the year.      Volatility in the mortgage backed securities market resulted in increased      transaction revenue in our Tradeweb business. Commodities & Energy      revenues increased due to higher demand for our information products      resulting from sectoractivity. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Investment      & Advisory pro forma revenues from existing businesses      increased across multiple customer groups including Investment Management,      Retail Wealth Management and Corporate. Higher revenues from Investment      Management were due to demand for datafeeds and analytics products, such      as QAI and Starmine. Retail Wealth Management benefited from Thomson ONE      and higher revenues from our BETA software and services as a result of      increased volumes. Higher Corporate revenues reflected greater      international activity relative to web cast services. Revenues from our      Investment Banking customers were comparable to the prior year as      increases from the first nine months of the year were offset by a decrease      in the fourth quarter of 2008. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Enterprise pro      forma revenues increased before the effects of foreign currency reflecting      higher data feed revenues and higher demand for information and risk      management systems as customers continue to seek ways to reduce risk,      drive efficiencies and increase returns. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Media      pro forma revenues were comparable to the prior year before the      effects of foreign currency. Revenues from agency services increased due      to higher demand, particularly in the first nine months of the year.      However, these increases were offset by decreases in our professional      publishing and consumer businesses in the fourth quarter of      2008. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 |   | Year      ended December 31 |   |
|--------------------------------------|--------|----------------------------------|--------|
| (millions      of U.S. dollars)      |   | 2008                             |   |   | 2007 |   |   | 2006 |   |
| Revenues                             |   |                             | 6,210  |   |   |   | 2,186 |   |   |   | 2,025 |   |
| Segment      operating profit        |   |                             | 1,104  |   |   |   | 454 |   |   |   | 380 |   |
| Segment      operating profit margin |   |                             | 17.8   | % |   |   | 20.8 | % |   |   | 18.8 | % |

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| (millions      of U.S. dollars) |   |                             | 2008      percentage change |   |   | 2007      percentage change |   |
|---------------------------------|--------|----------------------------------|-----------------------------|--------|--------|-----------------------------|--------|
|                            |   | Year      ended December 31 |                        |   |   |                        |   |   |   |   | Foreign |   |   |   |   |   |   |   |   |   |   |   | Foreign |   |   |   |   |
|                            |   |                             |                        |   |   |                        |   |   |   |   | Existing |   |   | Acquired |   |   | currency |   |   |   |   |   | Existing |   |   | Acquired |   |   | currency |   |   |   |   |
| Revenues                        |   | 2008                             |                        |   | 2007   |                        |   | 2006 |   |   | businesses |   |   | businesses |   |   | translation |   |   | Total |   |   | businesses |   |   | businesses |   |   | translation |   |   | Total |   |
| Ongoing                         |   |                             | 5,464                       |   |   |                        | 5,040  |   |   |   | 4,489 |   |   |   | 6 | % |   |   | 2 | % |   |   | – |   |   |   | 8 | % |   |   | 7 | % |   |   | 4 | % |   |   | 1 | % |   |   | 12 | % |
| Disposals                       |   |                             | 42                          |   |   |                        | 86     |   |   |   | 93 |   |   |   | n/m |   |   |   | n/m |   |   |   | n/m |   |   |   | n/m |   |   |   | n/m |   |   |   | n/m |   |   |   | n/m |   |   |   | n/m |   |
| Total                           |   |                             | 5,506                       |   |   |                        | 5,126  |   |   |   | 4,582 |   |   |   | n/m |   |   |   | n/m |   |   |   | n/m |   |   |   | 7 | % |   |   | n/m |   |   |   | n/m |   |   |   | n/m |   |   |   | 12 | % |

|                                                |   | Year      ended December 31 |   |
|-----------------------------------------------------|--------|----------------------------------|--------|
| (millions      of U.S. dollars)                     |   | 2008                             |   |   | 2007 |   |   | 2006 |   |
| Operating      profit from                          |   |                             |   |   |   |   |   |   |   |
| ongoing      businesses                             |   |                             | 1,610  |   |   |   | 1,477 |   |   |   | 1,340 |   |
| Operating      profit from disposals                |   |                             | 5      |   |   |   | 11 |   |   |   | 3 |   |
| Operating      profit                               |   |                             | 1,615  |   |   |   | 1,488 |   |   |   | 1,343 |   |
| Operating      profit margin for ongoing businesses |   |                             | 29.5   | % |   |   | 29.3 | % |   |   | 29.9 | % |
| Operating      profit margin                        |   |                             | 29.3   | % |   |   | 29.0 | % |   |   | 29.3 | % |

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| (millions      of U.S. dollars) |   |                             | 2008      percentage change |   |     | 2007      percentage change |   |
|---------------------------------|--------|----------------------------------|-----------------------------|--------|----------|-----------------------------|--------|
|                            |   | Year      ended December 31 |                        |   | Existing |                        |   | Acquired |   |   | Foreign      currency |   |   |   |   |   | Existing |   |   | Acquired |   |   | Foreign      currency |   |   |   |   |
|                            |   | 2008                             |                        |   | 2007     |                        |   | 2006 |   |   | businesses |   |   | businesses |   |   | translation |   |   | Total |   |   | businesses |   |   | businesses |   |   | translation |   |   | Total |   |
| Revenues                        |   |                             | 3,531                       |   |     |                        | 3,318  |   |   |   | 3,008 |   |   |   | 6 | % |   |   | – |   |   |   | – |   |   |   | 6 | % |   |   | 7 | % |   |   | 1 | % |   |   | 2 | % |   |   | 10 | % |

|                                 |   | Year      ended December 31 |   |
|--------------------------------------|--------|----------------------------------|--------|
| (millions      of U.S. dollars)      |   | 2008                             |   |   | 2007 |   |   | 2006 |   |
| Segment      operating profit        |   |                             | 1,135  |   |   |   | 1,044 |   |   |   | 943 |   |
| Segment      operating profit margin |   |                             | 32.1   | % |   |   | 31.5 | % |   |   | 31.3 | % |

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| (millions      of U.S. dollars) |   |                             | 2008      percentage change |   |     | 2007      percentage change |   |
|---------------------------------|--------|----------------------------------|-----------------------------|--------|----------|-----------------------------|--------|
|                            |   | Year      ended December 31 |                        |   | Existing |                        |   | Acquired |   |   | Foreign      currency |   |   |   |   |   | Existing |   |   | Acquired |   |   | Foreign      currency |   |   |   |   |
|                            |   | 2008                             |                        |   | 2007     |                        |   | 2006 |   |   | businesses |   |   | businesses |   |   | translation |   |   | Total |   |   | businesses |   |   | businesses |   |   | translation |   |   | Total |   |
| Revenues                        |   |                             | 861                         |   |     |                        | 705    |   |   |   | 598 |   |   |   | 10 | % |   |   | 12 | % |   |   | – |   |   |   | 22 | % |   |   | 10 | % |   |   | 8 | % |   |   | – |   |   |   | 18 | % |

|                                 |   | Year      ended December 31 |   |
|--------------------------------------|--------|----------------------------------|--------|
| (millions      of U.S. dollars)      |   | 2008                             |   |   | 2007 |   |   | 2006 |   |
| Segment      operating profit        |   |                             | 219    |   |   |   | 184 |   |   |   | 168 |   |
| Segment      operating profit margin |   |                             | 25.4   | % |   |   | 26.1 | % |   |   | 28.1 | % |

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| (millions      of U.S. dollars) |   |                             | 2008      percentage change |   |     | 2007      percentage change |   |
|---------------------------------|--------|----------------------------------|-----------------------------|--------|----------|-----------------------------|--------|
|                            |   | Year      ended December 31 |                        |   | Existing |                        |   | Acquired |   |   | Foreign      currency |   |   |   |   |   | Existing |   |   | Acquired |   |   | Foreign      currency |   |   |   |   |
| Revenues                        |   | 2008                             |                        |   | 2007     |                        |   | 2006 |   |   | businesses |   |   | businesses |   |   | translation |   |   | Total |   |   | businesses |   |   | businesses |   |   | translation |   |   | Total |   |
| Ongoing                         |   |                             | 604                         |   |     |                        | 565    |   |   |   | 509 |   |   |   | 4 | % |   |   | 4 | % |   |   | (1 | %) |   |   | 7 | % |   |   | 5 | % |   |   | 3 | % |   |   | 3 | % |   |   | 11 | % |
| Disposals                       |   |                             | 42                          |   |     |                        | 86     |   |   |   | 93 |   |   |   | n/m |   |   |   | n/m |   |   |   | n/m |   |   |   | n/m |   |   |   | n/m |   |   |   | n/m |   |   |   | n/m |   |   |   | n/m |   |
| Total                           |   |                             | 646                         |   |     |                        | 651    |   |   |   | 602 |   |   |   | n/m |   |   |   | n/m |   |   |   | n/m |   |   |   | (1 | %) |   |   | n/m |   |   |   | n/m |   |   |   | n/m |   |   |   | 8 | % |

|                                                |   | Year      ended December 31 |   |
|-----------------------------------------------------|--------|----------------------------------|--------|
| (millions      of U.S. dollars)                     |   | 2008                             |   |   | 2007 |   |   | 2006 |   |
| Operating      profit from ongoing businesses       |   |                             | 171    |   |   |   | 164 |   |   |   | 148 |   |
| Operating      profit from disposals                |   |                             | 5      |   |   |   | 11 |   |   |   | 3 |   |
| Operating      profit                               |   |                             | 176    |   |   |   | 175 |   |   |   | 151 |   |
|                                                |   |                             |   |   |   |   |   |   |   |   |   |   |
| Operating      profit margin for ongoing businesses |   |                             | 28.3   | % |   |   | 29.0 | % |   |   | 29.1 | % |
| Operating      profit margin                        |   |                             | 27.2   | % |   |   | 26.9 | % |   |   | 25.1 | % |

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| (millions      of U.S. dollars) |   |                        |   |   |     |   |   |     |   |   | 2008      percentage change |   |   | 2007      percentage change |   |
|---------------------------------|--------|-----------------------------|--------|--------|----------|--------|--------|----------|--------|--------|-----------------------------|--------|--------|-----------------------------|--------|
|                            |   | Year      ended December 31 |   |   | Existing |   |   | Acquired |   |   | Foreign      currency       |   |   |                        |   |   | Existing |   |   | Acquired |   |   | Foreign      currency |   |   |   |   |
| Revenues                        |   | 2008                        |   |   | 2007     |   |   | 2006     |   |   | businesses                  |   |   | businesses                  |   |   | translation |   |   | Total |   |   | businesses |   |   | businesses |   |   | translation |   |   | Total |   |
| Revenues                        |   |                        | 468    |   |     |   | 452    |     |   |   | 374                         |   |   |                        | 4      | % |   |   | – |   |   |   | – |   |   |   | 4 | % |   |   | – |   |   |   | 21 | % |   |   | – |   |   |   | 21 | % |

|                                 |   | Year      ended December 31 |   |
|--------------------------------------|--------|----------------------------------|--------|
| (millions      of U.S. dollars)      |   | 2008                             |   |   | 2007 |   |   | 2006 |   |
| Segment      operating profit        |   |                             | 85     |   |   |   | 85 |   |   |   | 81 |   |
| Segment      operating profit margin |   |                             | 18.2   | % |   |   | 18.8 | % |   |   | 21.7 | % |

|                               |   | Year      ended December 31 |    |
|------------------------------------|--------|----------------------------------|---------|
| (millions      of U.S. dollars)    |   | 2008                             |    |   | 2007 |   |
| Corporate      expenses            |   |                             | 243     |   |   |   | 257 |   |
| Integration      and synergy costs |   |                             | 362     |   |   |   | 153 |   |
| Fair      value adjustments        |   |                             | (103    | ) |   |   | 48 |   |
| Pension      settlement            |   |                             | – |   |   |   | (34 | ) |
| Total                              |   |                             | 502     |   |   |   | 424 |   |

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                               |   | Year      ended December 31 |    |
|------------------------------------|--------|----------------------------------|---------|
| (millions      of U.S. dollars)    |   | 2008                             |    |   | 2007 |   |   | 2006 |   |
| Corporate      expenses            |   |                             | 218     |   |   |   | 194 |   |   |   | 175 |   |
| Integration      and synergy costs |   |                             | 362     |   |   |   | 153 |   |   |   | 60 |   |
| Reuters      transaction costs     |   |                             | 68      |   |   |   | 76 |   |   |   | – |   |
| Fair      value adjustments        |   |                             | (105    | ) |   |   | – |   |   |   | – |   |
| Pension      settlement            |   |                             | – |   |   |   | (34 | ) |   |   | – |   |
| Total                              |   |                             | 543     |   |   |   | 389 |   |   |   | 235 |   |

|                                                                               |   | Three      months ended December 31 |   |
|------------------------------------------------------------------------------------|--------|------------------------------------------|--------|
| (millions      of U.S. dollars, except per share amounts)                          |   | 2008                                     |   |   | 2007 |   |
| Pro      forma results (unaudited):                                                |   |                                     |   |   |   |   |
| Pro      forma revenues                                                            |   |                                     | 3,412  |   |   |   | 3,422 |   |
| Pro      forma operating profit                                                    |   |                                     | 610    |   |   |   | 574 |   |
| Pro      forma revenues from ongoing businesses                                    |   |                                     | 3,412  |   |   |   | 3,401 |   |
| Pro      forma underlying operating profit                                         |   |                                     | 833    |   |   |   | 736 |   |
| Pro      forma underlying operating profit margin                                  |   |                                     | 24.4   | % |   |   | 21.6 | % |
| Pro      forma adjusted diluted earnings per share from continuing      operations |   | $                                        | 0.57   |   |   |   |   |   |

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                                  |   |                    |   |   |     |   |   | 2008      percentage change |   |
|-------------------------------------------------------|--------|-------------------------|--------|--------|----------|--------|--------|-----------------------------|--------|
|                                                  |   | Three      months ended |   |   |     |   |   |                        |   |   | Foreign |   |   |   |   |
|                                                  |   | December      31        |   |   | Existing |   |   | Acquired                    |   |   | currency |   |   |   |   |
| (millions      of U.S. dollars)                       |   | 2008                    |   |   | 2007     |   |   | businesses                  |   |   | businesses |   |   | translation |   |   | Total |   |
| Sales      & Trading                              |   |                    | 888    |   |     |   | 927    |                        |   |   | 2 | % |   |   | 0 | % |   |   | (6 | %) |   |   | (4 | %) |
| Investment      & Advisory                        |   |                    | 582    |   |     |   | 585    |                        |   |   | 4 | % |   |   | 1 | % |   |   | (6 | %) |   |   | (1 | %) |
| Enterprise                                            |   |                    | 350    |   |     |   | 333    |                        |   |   | 13 | % |   |   | 0 | % |   |   | (8 | %) |   |   | 5 | % |
| Media                                                 |   |                    | 106    |   |     |   | 119    |                        |   |   | (5 | %) |   |   | 0 | % |   |   | (6 | %) |   |   | (11 | %) |
| Markets      division                                 |   |                    | 1,926  |   |     |   | 1,964  |                        |   |   | 4 | % |   |   | 0 | % |   |   | (6 | %) |   |   | (2 | %) |
| Legal                                                 |   |                    | 887    |   |     |   | 875    |                        |   |   | 5 | % |   |   | 1 | % |   |   | (5 | %) |   |   | 1 | % |
| Tax      & Accounting                             |   |                    | 281    |   |     |   | 248    |                        |   |   | 11 | % |   |   | 2 | % |   |   | 0 | % |   |   | 13 | % |
| Scientific                                            |   |                    | 159    |   |     |   | 159    |                        |   |   | 6 | % |   |   | 0 | % |   |   | (6 | %) |   |   | 0 | % |
| Healthcare                                            |   |                    | 160    |   |     |   | 158    |                        |   |   | 1 | % |   |   | 0 | % |   |   | 0 | % |   |   | 1 | % |
| Professional      division                            |   |                    | 1,487  |   |     |   | 1,440  |                        |   |   | 6 | % |   |   | 0 | % |   |   | (3 | %) |   |   | 3 | % |
| Eliminations                                          |   |                    | (1     | )      |     |   | (3     | )                           |   |   | n/m |   |   |   | n/m |   |   |   | n/m |   |   |   | n/m |   |
| Total      pro forma revenues from ongoing businesses |   |                    | 3,412  |   |     |   | 3,401  |                        |   |   | 5 | % |   |   | 0 | % |   |   | (5 | %) |   |   | 0 | % |

|                                              |   | Three      months      |    |
|---------------------------------------------------|--------|------------------------|---------|
|                                              |   | ended      December 31 |    |
| (millions      of U.S. dollars)                   |   | 2008                   |    |   | 2007 |   |
| Pro      forma operating profit                   |   |                   | 610     |   |   |   | 574 |   |
| Adjustments:                                      |   |                   |    |   |   |   |   |   |
| Amortization                                      |   |                   | 126     |   |   |   | 134 |   |
| Disposals                                         |   |                   | – |   |   |   | (2 | ) |
| Fair      value adjustments                       |   |                   | (26     | ) |   |   | (4 | ) |
| Integration      and synergy program costs        |   |                   | 123     |   |   |   | 68 |   |
| Pension      settlement                           |   |                   | – |   |   |   | (34 | ) |
| Pro      forma underlying operating profit        |   |                   | 833     |   |   |   | 736 |   |
| Pro      forma underlying operating profit margin |   |                   | 24.4    | % |   |   | 21.6 | % |

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                                                               |   | Three      months      |   |
|------------------------------------------------------------------------------------|--------|------------------------|--------|
| (millions      on U.S. dollars,                                                    |   | ended      December 31 |   |
| except      per share amounts)                                                     |   | 2008                   |   |
| Pro      forma underlying operating profit                                         |   |                   | 833    |   |
| Adjustments:                                                                       |   |                   |   |   |
| Integration      and synergy program costs                                         |   |                   | (123   | ) |
| Net      interest expense                                                          |   |                   | (102   | ) |
| Income      taxes                                                                  |   |                   | (121   | ) |
| Tradeweb      ownership interests                                                  |   |                   | (8     | ) |
| Dividends      declared on preference shares                                       |   |                   | (1     | ) |
| Pro      forma adjusted earnings from continuing operations                        |   |                   | 478    |   |
| Pro      forma adjusted earnings per share from continuing    operations           |   | $                      | 0.58   |   |
| Pro      forma adjusted diluted earnings per share from continuing      operations |   | $                      | 0.57   |   |

|                                                |   | Three      months      |   |
|-----------------------------------------------------|--------|------------------------|--------|
| (millions      on U.S. dollars,                     |   | ended      December 31 |   |
| except      per share amounts)                      |   | 2008                   |   |   | 2007 |   |
| Revenues                                            |   |                   | 3,412  |   |   |   | 2,033 |   |
| Operating      profit                               |   |                   | 689    |   |   |   | 410 |   |
| Operating      profit margin                        |   |                   | 20.2   | % |   |   | 20.2 | % |
| Net      earnings                                   |   |                   | 657    |   |   |   | 434 |   |
| Diluted      earnings per common and ordinary share |   | $                      | 0.79   |   |   | $ | 0.67 |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                            |   | As      of December 31 |   |
|---------------------------------|--------|------------------------|--------|
| (millions      of U.S. dollars) |   | 2008                   |   |   | 2007 |   |
| Markets      division           |   |                   | 23,844 |   |   |   | 3,618 |   |
|                            |   |                   |   |   |   |   |   |   |
| Legal                           |   |                   | 6,481  |   |   |   | 6,562 |   |
| Tax      & Accounting       |   |                   | 1,684  |   |   |   | 1,440 |   |
| Scientific                      |   |                   | 1,258  |   |   |   | 1,419 |   |
| Healthcare                      |   |                   | 755    |   |   |   | 772 |   |
| Professional      division      |   |                   | 10,178 |   |   |   | 10,193 |   |
| Segment      totals             |   |                   | 34,022 |   |   |   | 13,811 |   |
| Corporate      and Other        |   |                   | 1,992  |   |   |   | 9,010 |   |
| Discontinued      operations    |   |                   | 6      |   |   |   | 10 |   |
| Total      assets               |   |                   | 36,020 |   |   |   | 22,831 |   |

|                                                  |   | As      of December 31 |   |
|-------------------------------------------------------|--------|------------------------|--------|
| (millions      of U.S. dollars)                       |   | 2008                   |   |   | 2007 |   |
| Short-term      indebtedness                          |   |                   | 13     |   |   |   | 183 |   |
| Current      portion of long-term debt                |   |                   | 672    |   |   |   | 412 |   |
| Long-term      debt                                   |   |                   | 6,834  |   |   |   | 4,264 |   |
| Total      debt                                       |   |                   | 7,519  |   |   |   | 4,859 |   |
| Swaps                                                 |   |                   | 68     |   |   |   | (424 | ) |
| Total      debt after swaps                           |   |                   | 7,587  |   |   |   | 4,435 |   |
| Remove      fair value adjustment of cash flow hedges |   |                   | 14     |   |   |   | 14 |   |
| Less:      Cash and cash equivalents                  |   |                   | (841   | ) |   |   | (7,497 | ) |
| Net      debt                                         |   |                   | 6,760  |   |   |   | (3,048 | ) |
| Total      shareholders’ equity                 |   |                   | 20,126 |   |   |   | 13,571 |   |
| Net      debt/equity ratio                            |   | 0.34:1                 |   |   | (0.22:1) |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| Notes      offered                                  | Principal      amount |
|-----------------------------------------------------|-----------------------|
| U.S.      offering                                  |                  |
| 5.95%      notes due 2013                           | US$750,000,000        |
| 6.50%      notes due 2018                           | US$1,000,000,000      |
| Total      U.S. dollar-denominated notes issued     | US$1,750,000,000      |
| Canadian      offering                              |                  |
| 5.25%      notes due 2011                           | C$600,000,000         |
| 5.70%      notes due 2015                           | C$600,000,000         |
| Total      Canadian dollar-denominated notes issued | C$1,200,000,000       |

| – | A      revolving credit facility with £312 million outstanding, which was repaid      in April 2008; |
|---------|-----------------------------------------------------------------------------------------------------------|

| – | £63      million of commercial paper outstanding, which was repaid in the second      quarter of 2008; |
|---------|-------------------------------------------------------------------------------------------------------------|

| – | 500      million Euro principal amount of debentures due 2010, for which we      subsequently entered into cross-currency interest rate swap agreements      whereby these debentures will ultimately pay a floating rate based on      LIBOR on US$762 million; |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| – | 250      million Euro principal amount of floating rate notes which matured and      were repaid in November 2008. We entered into a cross-currency interest      rate swap agreement whereby these notes were redeemed for US$398 million      on maturity; |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| – | 1      billion Japanese yen principal amount of bonds, which were repaid in June      2008; and |
|---------|-------------------------------------------------------------------------------------------------|

| – | Certain      derivative instruments used by Reuters to hedge the above-mentioned      debentures and notes, which were settled in April  2008. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------|

| (millions      of U.S. dollars)                                                                     |   | 2008   |    |   | 2007   |   |
|-----------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Balance      at end of prior year                                                                   |   |   | 13,571  |   |   |   | 10,481 |   |
| Effect of accounting change for      income taxes 1                                                 |   |   | – |   |   |   | (33 | ) |
| Restated      opening balance                                                                       |   |   | 13,571  |   |   |   | 10,448 |   |
| Earnings      attributable to common shares and ordinary shares for the year ended      December 31 |   |   | 1,400   |   |   |   | 3,998 |   |
| Common      and ordinary share issuances                                                            |   |   | 236     |   |   |   | 102 |   |
| Issuance      of Thomson Reuters PLC ordinary shares to acquire Reuters                             |   |   | 8,226   |   |   |   |   |   |
| Additions to paid in capital      related to stock compensation plans2                              |   |   | 263     |   |   |   | 48 |   |
| Repurchases      of shares                                                                          |   |   | (522    | )      |   |   | (168 | ) |
| Common      and ordinary share dividends declared                                                   |   |   | (786    | )      |   |   | (628 | ) |
| Net unrealized gains/(losses) on      derivatives that qualify as cash flow hedges3                 |   |   | 4       |   |   |   | (55 | ) |
| Change      in translation adjustment                                                               |   |   | (2,266  | )      |   |   | (174 | ) |
| Balance      at December 31                                                                         |   |   | 20,126  |   |   |   | 13,571 |   |

| 1 | Effective      January 1, 2007, we voluntarily adopted a new accounting policy for      uncertain tax positions and recorded a non-cash charge to opening retained      earnings with an offsetting increase to non-current liabilities. See the      section entitled “Accounting Changes” for further    discussion. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | Includes      $173 million for the assumption on April 17, 2008 of certain equity-based      compensation awards granted by Reuters prior to the closing of the      acquisition. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Effective      January 1, 2006, the unrealized gains and losses on certain derivatives      that qualify as cash flow hedges are recorded as a component of      accumulated other comprehensive income within shareholders’ equity in our      consolidated balance sheet. See the section entitled “Accounting Changes”      for further discussion. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                  |          | Standard      & | DBRS           |     |
|-----------------------|---------------|---------------------|----------------|----------|
|                  | Moody’s | Poor’s        | Limited        | Fitch    |
| Long-term      debt   | Baa1          | A–            | A      (low)   | A– |
| Commercial      paper | –       | –             | R-1      (low) | F2       |
| Trend/outlook         | Stable        | Negative            | Stable         | Stable   |

|                             |   | Shares      |      |   | Average      price |   |
|----------------------------------|--------|-------------|-----------|--------|--------------------|--------|
| Three-month      period ended    |   | repurchased |      |   | per      share     |   |
| Thomson      Reuters Corporation |   |        |      |   |               |   |
| March      31, 2006              |   |        | 4,570,000 |   |               | $      | 36.83 |   |
| June      30, 2006               |   |        | 3,110,000 |   |               | $      | 39.58 |   |
| September      30, 2006          |   |        | 1,710,600 |   |               | $      | 39.27 |   |
| December      31, 2006           |   |        | 1,289,400 |   |               | $      | 41.41 |   |
| March      31, 2007              |   |        | 1,305,000 |   |               | $      | 41.74 |   |
| June      30, 2007               |   |        | 495,000   |   |               | $      | 42.68 |   |
| September      30, 2007          |   |        | –   |   |               |   | – |   |
| December      31, 2007           |   |        | 2,370,500 |   |               | $      | 38.76 |   |

|                     |   | Shares      |      |   | Average      price |   |
|--------------------------|--------|-------------|-----------|--------|--------------------|--------|
| Month      ended         |   | repurchased |      |   | per      share     |   |
| Thomson      Reuters PLC |   |        |      |   |               |   |
| April      30, 2008      |   |        | 3,297,827 |   |               | $      | 31.13 |   |
| May      31, 2008        |   |        | 6,298,500 |   |               | $      | 31.59 |   |
| June      30, 2008       |   |        | 6,049,208 |   |               | $      | 29.25 |   |
| July      31, 2008       |   |        | 825,000   |   |               | $      | 25.93 |   |
| August      31, 2008     |   |        | –   |   |               |   | – |   |
| September      30, 2008  |   |        | 912,350   |   |               | $      | 23.55 |   |
| October      31, 2008    |   |        | –   |   |               |   | – |   |
| November      30, 2008   |   |        | –   |   |               |   | – |   |
| December      31, 2008   |   |        | –   |   |               |   | – |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                            |   | Year      ended December 31 |   |
|---------------------------------|--------|-----------------------------|--------|
| (millions      of U.S. dollars) |   | 2008                        |   |   | 2007 |   |   | 2006 |   |
| Dividends      declared         |   |                        | 786    |   |   |   | 628 |   |   |   | 567 |   |
| Dividends      reinvested       |   |                        | (190   | ) |   |   | (16 | ) |   |   | (14 | ) |
| Dividends      paid             |   |                        | 596    |   |   |   | 612 |   |   |   | 553 |   |

|                                                                |   | Year      ended December 31 |    |
|---------------------------------------------------------------------|--------|-----------------------------|---------|
| (millions      of U.S. dollars)                                     |   | 2008                        |    |   | 2007 |   |   | 2006 |   |
| Net      cash provided by operating activities                      |   |                        | 2,761   |   |   |   | 1,816 |   |   |   | 2,125 |   |
| Capital      expenditures                                           |   |                        | (906    | ) |   |   | (608 | ) |   |   | (452 | ) |
| Additions      to property and equipment of discontinued operations |   |                        | – |   |   |   | (97 | ) |   |   | (185 | ) |
| Other      investing activities                                     |   |                        | (26     | ) |   |   | (37 | ) |   |   | (26 | ) |
| Dividends      paid on preference shares                            |   |                        | (5      | ) |   |   | (6 | ) |   |   | (5 | ) |
| Other      investing activities of discontinued operations          |   |                        | (7      | ) |   |   | (2 | ) |   |   | (17 | ) |
| Free      cash flow                                                 |   |                        | 1,817   |   |   |   | 1,066 |   |   |   | 1,440 |   |

|                                                             |   | Year      ended  |   |
|------------------------------------------------------------------|--------|------------------|--------|
|                                                             |   | December      31 |   |
| (millions      of U.S. dollars)                                  |   | 2008             |   |
| Free      cash flow                                              |   |             | 1,817  |   |
| One-time      Reuters acquisition, integration and synergy costs |   |             | 518    |   |
| Underlying      free cash flow                                   |   |             | 2,335  |   |
| Adjustments for certain items      1                             |   |             | (450   | ) |
|                                                             |   |             | 1,885  |   |

| 1 | To      provide a more normalized 2008 underlying free cash flow number, we adjust      for two timing related items: |
|---|-----------------------------------------------------------------------------------------------------------------------|

|   | • | Interest      costs which were substantially lower in 2008 since we benefited from      having interest income and only a partial year of interest expense related      to the Reuters acquisition debt. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | The      2008 amount does not include what is traditionally negative free cash flow      from the Reuters business in the first quarter of the year, which will be      reflected in 2009. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| (millions of U.S. dollars) |   | 2009   |   |   | 2010   |   |    | 2011   |   |   | 2012    |   |   | 2013   |    |   | Thereafter |   |    | Total  |   |
|-------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|------------|--------|---------|--------|--------|
| Long-term debt 1                          |   |   | 1,051  |   |   |   | 1,405   |   |   |   | 1,131   |   |   |   | 946     |   |       |   | 1,220   |   |   |   | 4,070 |   |   |   | 9,823 |   |
| Debt-related hedges outflows      2       |   |   | 575    |   |   |   | 894     |   |   |   | 933     |   |   |   | 58      |   |       |   | 58      |   |   |   | 1,163 |   |   |   | 3,681 |   |
| Debt-related hedges inflows 2             |   |   | (599   | )      |   |   | (839    | )      |   |   | (900    | )      |   |   | (54     | )      |       |   | (53     | )      |   |   | (1,049 | ) |   |   | (3,494 | ) |
| Capital      lease payments               |   |   | 18     |   |   |   | 13      |   |   |   | 4       |   |   |   | – |   |       |   | – |   |   |   | – |   |   |   | 35 |   |
| Operating      lease payments             |   |   | 351    |   |   |   | 279     |   |   |   | 226     |   |   |   | 186     |   |       |   | 164     |   |   |   | 612 |   |   |   | 1,818 |   |
| Unconditional      purchase obligations   |   |   | 765    |   |   |   | 512     |   |   |   | 431     |   |   |   | 382     |   |       |   | 340     |   |   |   | 502 |   |   |   | 2,932 |   |
| Pension contributions3                    |   |   | 49     |   |   |   | – |   |   |   | – |   |   |   | – |   |       |   | – |   |   |   | – |   |   |   | 49 |   |
| Total                                     |   |   | 2,210  |   |   |   | 2,264   |   |   |   | 1,825   |   |   |   | 1,518   |   |       |   | 1,729   |   |   |   | 5,298 |   |   |   | 14,844 |   |

| 1 | Represents      our contractual principal and interest payments to holders of our debt      securities. |
|---|---------------------------------------------------------------------------------------------------------|

| 2 | Substantially      all of our non-U.S. dollar-denominated debt has been hedged into U.S.      dollars. Debt-related hedges outflows represent our projected payments to      counterparties. Debt-related hedges inflows represent our projected cash      receipts from counterparties. We present our projected inflows along with      outflows in order to reflect the net cash flow we anticipate from our      debt-related hedging instruments in order to satisfy principal and      interest payments to our long-term debt securities  holders. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Represents      expected contributions to our pension plans, primarily in      the United Kingdom, in accordance with normal funding      policy. These amounts do not include voluntary contributions we may      elect to make from time to time. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| • | First,      we determine whether it is more likely than not that a tax position will      be sustained upon examination, including resolution of any related appeals      or litigation processes, based on the technical merits of the position. In      evaluating whether a tax position has met the more likely than not      recognition threshold, we presume that the position will be examined by      the appropriate taxing authority that has full knowledge of all relevant      information. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Second,      a tax position that meets the more likely than not recognition threshold      is measured to determine the amount of benefit to recognize in the      financial statements. The tax position is measured at the largest amount      of benefit that is greater than 50% likely of being realized upon ultimate      settlement. If the tax position does not meet the more-likely-than-not      recognition threshold, no benefit from the tax position is recorded. We      were not able to retroactively apply this new policy as the data to      determine the amounts and probabilities of the possible outcomes of the      various tax positions that could be realized upon ultimate settlement was      not collected in prior periods. Further, significant judgments are      involved in assessing these tax positions and we concluded that it is not      possible to estimate the effects of adopting the policy at an earlier      date. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | an      increase of $53 million to “Other non-current assets” and “Accumulated      other comprehensive income” in the consolidated balance sheet relative to      derivative instruments that consisted primarily of interest rate      contracts, which convert floating rate debt to fixed rate debt and qualify      as cash flow hedges; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | a      reclassification of $5 million from “Other current assets” and $3 million      from “Other current liabilities” to “Accumulated other comprehensive      income” in the consolidated balance sheet related primarily to previously      deferred gains and losses on settled cash flow  hedges; |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | an      increase of $16 million to “Other non-current assets” and “Long-term debt”      in the consolidated balance sheet related to derivative instruments and      their related hedged items. These derivative instruments consist primarily      of interest rate contracts to convert fixed rate debt to floating and      qualify as fair value hedges; and |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | a      presentational reclassification of amounts previously recorded in      “Cumulative translation adjustment” to “Accumulated other comprehensive      income.” |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| • | In      the first step, we determine the fair value of each reporting unit. If the      fair value of a reporting unit is less than its carrying value, this is an      indicator that the goodwill assigned to that reporting unit might be      impaired, which requires performance of the second  step. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | In      the second step, we allocate the fair value of the reporting unit to the      assets and liabilities of the reporting unit as if it had just been      acquired in a business combination, and as if the purchase price was      equivalent to the fair value of the reporting unit. The excess of the fair      value of the reporting unit over the amounts assigned to its assets and      liabilities is referred to as the implied fair value of goodwill. We then      compare that implied fair value of the reporting unit’s goodwill to the      carrying value of that goodwill. If the implied fair value is less than      the carrying value, we recognize an impairment loss for that      excess. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| CALCULATION      OF UNAUDITED PRO FORMA INFORMATION                                                                                |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                               |   |
| The      tables below show the calculation of unaudited pro forma information for      the years ended December 31, 2008 and 2007: |   |
|                                                                                                                               |   |
| (millions      of U.S. dollars)                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   | Pro      forma |   |
|                                                                                                                               |   | Thomson |   |   | Pro      forma adjustments |   |   | Adjustment |   |   | Thomson |   |
| Year      ended December 31, 2008                                                                                                  |   | Reuters |   |   | Reuters1 |   |   | Other |   |   | note |   |   | Reuters |   |
| Revenues                                                                                                                           |   |   | 11,707 |   |   |   | 1,699 |   |   |   | 35 |   |   |   | a | ) |   |   | 13,441 |   |
| Cost      of sales, selling, marketing, general      and administrative      expenses                                              |   |   | (8,700 | ) |   |   | (1,364 | ) |   |   | 106 |   |   |   | b),      c), d), e) |   |   |   | (9,958 | ) |
| Depreciation                                                                                                                       |   |   | (831 | ) |   |   | (86 | ) |   |   | (47 | ) |   |   | d | ) |   |   | (964 | ) |
| Amortization                                                                                                                       |   |   | (411 | ) |   |   | (8 | ) |   |   | (92 | ) |   |   | d | ) |   |   | (511 | ) |
| Impairment      of assets held for sale                                                                                            |   |   | (72 | ) |   |   | - |   |   |   | - |   |   |   |   |   |   |   | (72 | ) |
| Operating      profit                                                                                                              |   |   | 1,693 |   |   |   | 241 |   |   |   | 2 |   |   |   |   |   |   |   | 1,936 |   |
|                                                                                                                               |   |
|                                                                                                                               |   |
| (millions      of U.S. dollars)                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Pro      forma |   |
|                                                                                                                               |   | Thomson |   |   | Pro      forma adjustments |   |   | Adjustment |   |   | Thomson |   |
| Year      ended December 31, 2007                                                                                                  |   | Reuters |   |   | Reuters1 |   |   | Other |   |   | note |   |   | Reuters |   |
| Revenues                                                                                                                           |   |   | 7,296 |   |   |   | 5,232 |   |   |   | (86 | ) |   |   | a | ) |   |   | 12,442 |   |
| Cost      of sales, selling, marketing, general      and administrative      expenses                                              |   |   | (5,275 | ) |   |   | (4,678 | ) |   |   | 528 |   |   |   | b),      c), d), e) |   |   |   | (9,425 | ) |
| Depreciation                                                                                                                       |   |   | (468 | ) |   |   | (280 | ) |   |   | (174 | ) |   |   | d | ) |   |   | (922 | ) |
| Amortization                                                                                                                       |   |   | (256 | ) |   |   | (88 | ) |   |   | (180 | ) |   |   | d | ) |   |   | (524 | ) |
| Operating      profit                                                                                                              |   |   | 1,297 |   |   |   | 186 |   |   |   | 88 |   |   |   |   |   |   |   | 1,571 |   |

| a) | To      adjust the carrying value of Reuters deferred revenue obligation as      of January 1, 2007 to its estimated fair value, revenues were reduced      by $86 million for the three months ended March 31, 2007, which      carried through to the year ended December 31, 2007. Because of      Reuters contractual quarterly billing cycle, this adjustment was      reflected in its entirety in the quarter ended March 31,      2007. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b) | Thomson      and Reuters expensed integration planning and other transaction      related costs incurred prior to the acquisition closing. For purposes      of the pro forma results, $238 million and $166 million of these      expenses incurred in the years ended December 31, 2008 and 2007,      respectively, were reversed because the pro forma results have been      prepared as if the acquisition had occurred on January 1, 2007, and      these expenses would have been incurred prior to the closing      date. Additionally, these expenses are non-recurring in      nature and are not expected to have a continuing impact on      the consolidated results. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| c) | For      the year ended December 31, 2008, cost of sales, selling, marketing,      general and administrative expenses were increased by $140 million      (December 31, 2007 – decrease of $322 million) to eliminate      amortization related to past service costs and net actuarial gains      and losses in connection with Reuters pension and other      post-retirement benefit plans. These expenses were eliminated as      retirement plan assets and obligations would have been reflected at      their fair values on January 1,2007. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d) | Amortization      and depreciation: |
|----|-------------------------------------|

|  | • | Adjustments      of $92 million and $180 million were recorded in the years ended      December 31, 2008 and 2007, respectively, to reflect additional      amortization attributable to the fair value increment allocated to      identifiable intangibleassets. |
|--|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | • | Adjustments      of $47 million and $174 million were recorded in the years ended      December 31, 2008 and 2007, respectively, to reflect additional      depreciation attributable to the fair value increment allocated to      computer hardware and other property, and internal use      software. |
|--|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | • | Adjustments      of $17 million and $12 million were recorded in the years ended      December 31, 2008 and 2007, respectively, to decrease cost of sales,      selling, marketing, general and administrative expenses to reflect      amortization attributable to the fair value increment allocated to      capitalized software to be soldexternally. |
|--|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e) | Adjustments      of $9 million to increase expense and $28 million to decrease expense      recorded in the years ended December 31, 2008 and 2007, respectively,      attributable to amortization of the fair value increment allocated to      favorable and unfavorable leases and other operating      assets. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Pro      Forma Depreciation by Segment                                                                                                                                          |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| The      following table details pro forma depreciation expense by segment and      disposals for the three month period ended and years endedDecember      31, 2008 and 2007:  |   |
|                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                 |   | Three      months ended December 31 |   |   | Year      ended December 31 |   |
| (millions      of U.S. dollars)                                                                                                                                                      |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
| Markets      division1                                                                                                                                                               |   |   | (157 | ) |   |   | (149 | ) |   |   | (617 | ) |   |   | (626 | ) |
| Professional      division                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Legal                                                                                                                                                                                |   |   | (59 | ) |   |   | (52 | ) |   |   | (235 | ) |   |   | (205 | ) |
| Tax      & Accounting                                                                                                                                                            |   |   | (8 | ) |   |   | (6 | ) |   |   | (30 | ) |   |   | (21 | ) |
| Scientific                                                                                                                                                                           |   |   | (10 | ) |   |   | (7 | ) |   |   | (35 | ) |   |   | (28 | ) |
| Healthcare                                                                                                                                                                           |   |   | (6 | ) |   |   | (7 | ) |   |   | (25 | ) |   |   | (24 | ) |
| Corporate      and Other                                                                                                                                                             |   |   | (13 | ) |   |   | (4 | ) |   |   | (21 | ) |   |   | (14 | ) |
| Disposals                                                                                                                                                                            |   |   | - |   |   |   | (2 | ) |   |   | (1 | ) |   |   | (4 | ) |
| Total      pro forma depreciation                                                                                                                                                    |   |   | (253 | ) |   |   | (227 | ) |   |   | (964 | ) |   |   | (922 | ) |

| 1 | In      the fourth quarter of 2008, we completed our valuation of acquired Reuters      net assets. In arriving at our three-month and year ended December 31,      2008 and 2007 pro forma results, we have recast our previously reported      pro forma results to reflect the finalized assumptions. Compared to our      previously reported pro forma results, the finalization of the valuation      resulted in the followingchanges: |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | Markets      pro forma depreciation for the three month period ended March 31, six      month period ended June 30, and nine month period ended September 30, 2008      are ($155) million, ($305) million and ($460) million,      respectively. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Markets      pro forma depreciation for the three month period ended March 31, six      month period ended June 30, and nine month period ended September 30, 2007      are ($157) million, ($312) million and ($477) million,      respectively. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| CALCULATION      OF RETURN ON INVESTED CAPITAL                          |   |
|------------------------------------------------------------------------------|--------|
| The      following is a calculation of our return on invested capital.  |   |
|                                                                         |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                                         |   | Pro      forma1 |   |   | (excluding |   |   | (as      reported) |   |
| (unaudited)                                                                  |   |   |   |   | discontinued |   |   |   |   |
| (millions      of U.S. dollars)                                              |   |   |   |   | operations)2 |   |   |   |   |
| Calculation      of adjusted operating profit after taxes                    |   |   |   |   |   |   |   |   |   |
| Operating      profit                                                        |   |   | 1,936 |   |   |   | 1,297 |   |   |   | 1,248 |   |
| Add/(Deduct):                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization                                                                 |   |   | 511 |   |   |   | 256 |   |   |   | 240 |   |
| Impairment      of assets held for sale                                      |   |   | 72 |   |   |   | - |   |   |   | - |   |
| Fair      value adjustments3                                                 |   |   | (103 | ) |   |   | - |   |   |   | - |   |
| Reduce      amount by Thomson Learning adjustments4                          |   |   | - |   |   |   | - |   |   |   | (19 | ) |
| Segment      operating profit of discontinued operations                     |   |   | - |   |   |   | - |   |   |   | 398 |   |
| Adjusted      operating profit                                               |   |   | 2,416 |   |   |   | 1,553 |   |   |   | 1,867 |   |
| Taxes      paid on operations5                                               |   |   | (267 | ) |   |   | (315 | ) |   |   | (311 | ) |
| Post-tax      adjusted operating profit                                      |   |   | (2,149 | ) |   |   | 1,238 |   |   |   | 1,556 |   |
| Calculation      of adjusted invested capital                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity                                                                       |   |   | 20,126 |   |   |   | 13,571 |   |   |   | 10,481 |   |
| Total      debt5                                                             |   |   | 7,519 |   |   |   | 4,859 |   |   |   | 4,321 |   |
| Invested      capital                                                        |   |   | 27,645 |   |   |   | 18,430 |   |   |   | 14,802 |   |
| Adjustments:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      and other investments6                                             |   |   | (841 | ) |   |   | (7,497 | ) |   |   | (334 | ) |
| Debt      swaps7                                                             |   |   | 68 |   |   |   | (424 | ) |   |   | (257 | ) |
| Fair      value adjustments3                                                 |   |   | (103 | ) |   |   | - |   |   |   | - |   |
| Current      and long-term deferred taxes5,6                                 |   |   | 2,510 |   |   |   | 846 |   |   |   | 1,122 |   |
| Accumulated      amortization and non-cash goodwill5,8                       |   |   | (80 | ) |   |   | 1,844 |   |   |   | 2,390 |   |
| Present      value of operating leases5,9                                    |   |   | 1,423 |   |   |   | 604 |   |   |   | 783 |   |
| Historical      intangible asset and equity investment write-downs10         |   |   | 87 |   |   |   | 124 |   |   |   | 162 |   |
| Other5,6                                                                     |   |   | 1,485 |   |   |   | 778 |   |   |   | 798 |   |
| Adjusted      invested capital                                               |   |   | 32,194 |   |   |   | 14,705 |   |   |   | 19,466 |   |
| Average      invested capital                                                |   |   | 33,461 |   |   |   | 14,288 |   |   |   | 19,014 |   |
| Return      on invested capital                                              |   |   | 6.4 | % |   |   | 8.7 | % |   |   | 8.2 | % |

| 1 | For      2008, we calculated ROIC based on pro forma operating profit. See the      section entitled "Results of Operations" for additional information.      Average invested capital was calculated assuming the Reuters acquisition      purchase price and obligations assumed were included in the invested      capital base as of the beginning of theperiod. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | For      2007, we calculated ROIC based on reported results from continuing      operations. No adjustment was made to add back the results of discontinued      operations given that numerous disposals occurred during the year and      partial year adjustments in these circumstances distort annualized      results. In particular, our largest disposal, Thomson Learning, had a      significant impact due to the fact that it was a highly seasonal business      which was disposed of mid-year. Accordingly, the 2007 ROIC calculation      excludes all impacts from businesses classified as discontinued      operations. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Remove      impact of change in fair value associated with foreign currency embedded      derivatives of customer contracts. |
|---|------------------------------------------------------------------------------------------------------------------------------|

| 4 | This      adjustment reflects the actual results of Thomson Learning's higher      education, careers and library reference, NETg and Prometric businesses in      Thomson Learning as if they had been part of continuing operations for the      periods presented. Specifically, this amount reflects depreciation expense      which is excluded from GAAP results under the accounting requirements for      discontinued operations. Costs incurred in connection with the disposal of      the businesses have been excluded. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | For      2006 (as reported) amounts include discontinued  operations. |
|---|-----------------------------------------------------------------------|

| 6 | Items      excluded as not deemed components of invested capital; "Other" primarily      consists of non-currentliabilities. |
|---|------------------------------------------------------------------------------------------------------------------------------|

| 7 | Excludes      debt swaps as balances are financing rather than      operating-related. |
|---|----------------------------------------------------------------------------------------|

| 8 | Excludes      accumulated amortization as only gross identifiable intangible assets and      goodwill cost are considered components of invested capital. Excludes      goodwill arising from adoption of CICA 3465. This goodwill was created via      deferred tax liability instead of cash purchase  price. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9 | Present      value of operating leases deemed component of invested      capital. |
|---|-----------------------------------------------------------------------------------|

| 10 | Adds      back write-downs that were not cash  transactions. |
|----|--------------------------------------------------------------|

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| • | Unrecognized      actuarial gains or losses are netted with the difference between      market-related value and fair value of plan  assets. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | To      the extent this net amount exceeds 10% of the greater of the      projected benefit obligation or market-related value of plan assets,      it is amortized into pension expense on a straight-line basis over      the expected average service life of active participants      (approximately eight years at December 31, 2008 for the TRGP plan and      thirteen years for the RPF). |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Unrecognized      actuarial gains and losses below the 10% corridor are      deferred. |
|---------|---------------------------------------------------------------------------------------------|

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| 1.  | Business      combinations – IFRS 3, Business      Combinations, may be applied retrospectively or prospectively. The      retrospective basis would require restatement of all business combinations      that occurred prior to the transition date. We will not elect to      retrospectively apply IFRS 3 to business combinations that occurred prior      to the Transition Date and such business combinations will not be      restated. Any goodwill arising on such business combinations before the      Transition Date will not be adjusted from the carrying value previously      determined under Canadian GAAP as a result of applying these exemptions      except as required under IFRS 1. Further, we will not early adopt IFRS 3      Revised, and instead will adopt that standard upon its effective date      which, for us, will be January 1,2010. |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Fair      value as deemed cost – IFRS 1 provides a choice between measuring      property, plant and equipment at its fair value at the date of transition      and using those amounts as deemed cost or using the historical valuation      under the prior GAAP. We will continue to apply the cost model for      property, plant & equipment and will not restate property, plant &      equipment to fair value under IFRS. We will use the historical bases under      Canadian GAAP as deemed cost under IFRS at Transition  Date. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Employee      benefits – IAS 19, Employee      Benefits, allows certain actuarial gains and losses to be either      deferred and amortized, subject to certain provisions (corridor approach),      or immediately recognized through equity. Retrospective application of the      corridor approach for recognition of actuarial gains and losses in      accordance with IAS 19 would require us to determine actuarial gains and      losses from the date benefit plans were established. We will elect to      recognize all cumulative actuarial gains and losses that existed at the      Transition Date in opening retained earnings for all of its employee      benefit plans. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Cumulative      translation differences – Retrospective application of IFRS would      require us to determine cumulative currency translation differences in      accordance with IAS 21, The      Effects of Changes in Foreign Exchange Rates, from the date a      subsidiary or associate was formed or acquired. IFRS 1 permits cumulative      translation gains and losses to be reset to zero at the Transition Date.      We will elect to reset all cumulative translation gains and losses to zero      in opening retained earnings at the Transition  Date. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Share-based      payments – IFRS 2, Share      Based Payments, encourages application of its provisions to equity      instruments granted on or before November 7, 2002, but permits the      application only to equity instruments granted after November 7, 2002 that      had not vested by the Transition Date. We will elect to avail itself of      the exemption provided under IFRS 1 and will apply IFRS 2 for all equity      instruments granted after November 7, 2002 that had not vested by January      1, 2008. Further, we will apply IFRS 2 for all liabilities arising from      share-based payment transactions that existed at January 1,      2008. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Changes      in existing decommissioning, restoration and similar liabilities included      in the cost of property, plant and equipment – IFRS 1 allows for      either the retroactive adoption or prospective adoption from the      transition date of IFRIC 1, Changes      in Existing Decommissioning, Restoration and Similar Liabilities.      We will elect not to retrospectively recognize changes to liabilities      under IFRIC 1 which may have occurred before the Transition      Date. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1. | Hedge      accounting – Hedge accounting can only be applied prospectively      from the Transition Date to transactions that satisfy the hedge accounting      criteria in IAS 39 at that date. Hedging relationships cannot be      designated retrospectively and the supporting documentation cannot be      created retrospectively. As a result, only hedging relationships that      satisfied the hedge accounting criteria as of the Transition Date will be      reflected in our IFRS results. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Estimates      – Hindsight is not used to create or revise estimates. The      estimates we previously made under Canadian GAAP cannot be revised for      application of IFRS except where necessary to reflect any difference in      accounting policies. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                                                |   | Year      ended December 31 |   |
|---------------------------------------------------------------------|--------|-----------------------------|--------|
| (millions of U.S. dollars, except per share      amounts)           |   | 2008                        |   |   | 2007 |   |   | 2006 |   |
| Net      earnings under Canadian GAAP                               |   |                        | 1,405  |   |   |   | 4,004 |   |   |   | 1,120 |   |
| Differences      in GAAP increasing (decreasing) reported earnings: |   |                        |   |   |   |   |   |   |   |   |   |   |
| 1.      Business combinations                                       |   |                        | (117   | ) |   |   | (2 | ) |   |   | – |   |
| 2.      Employee benefits                                           |   |                        | 37     |   |   |   | (5 | ) |   |   | 67 |   |
| 3.      Stock-based compensation                                    |   |                        | (23    | ) |   |   | 3 |   |   |   | 15 |   |
| 4.      Impairments                                                 |   |                        | (8     | ) |   |   | 31 |   |   |   | (31 | ) |
| 5.      Derivative instruments and hedging activities               |   |                        | 1      |   |   |   | (3 | ) |   |   | 3 |   |
| 6.      Cumulative translation adjustment                           |   |                        | (3     | ) |   |   | – |   |   |   | – |   |
| 7.      Minority interest in equity of consolidated subsidiary      |   |                        | 17     |   |   |   | – |   |   |   | – |   |
| 8. Income taxes                                                     |   |                        | 23     |   |   |   | (39 | ) |   |   | (18 | ) |
| Net earnings under IFRS                                             |   |                        | 1,332  |   |   |   | 3,989 |   |   |   | 1,156 |   |
| Basic earnings per share                                            |   | $                           | 1.70   |   |   | $ | 6.21 |   |   | $ | 1.79 |   |
| Diluted earnings per share                                          |   | $                           | 1.69   |   |   | $ | 6.18 |   |   | $ | 1.78 |   |

|                                                                          |   | As      at December 31 |    |
|-------------------------------------------------------------------------------|--------|------------------------|---------|
| (millions of U.S. dollars)                                                    |   | 2008                   |    |   | 2007 |   |   | 2006 |   |
| Shareholders’      equity under Canadian GAAP                           |   |                   | 20,126  |   |   |   | 13,571 |   |   |   | 10,481 |   |
| Differences      increasing (decreasing) reported shareholders’ equity: |   |                   |    |   |   |   |   |   |   |   |   |   |
| 1.      Business combinations                                                 |   |                   | (1,159  | ) |   |   | (42 | ) |   |   | (40 | ) |
| 2.      Employee benefits                                                     |   |                   | (763    | ) |   |   | (319 | ) |   |   | (487 | ) |
| 3.      Stock-based compensation                                              |   |                   | (49     | ) |   |   | (18 | ) |   |   | (12 | ) |
| 4.      Impairments                                                           |   |                   | 1       |   |   |   | – |   |   |   | (31 | ) |
| 5.      Derivative instruments and hedging activities                         |   |                   | 10      |   |   |   | (2 | ) |   |   | 1 |   |
| 6.      Minority interest in equity of consolidated subsidiary                |   |                   | 72      |   |   |   | – |   |   |   |   |   |
| 7.      Sale of minority interest in a consolidated subsidiary                |   |                   | 96      |   |   |   | – |   |   |   | – |   |
| 8.      Share repurchase obligation                                           |   |                   | – |   |   |   | – |   |   |   | (24 | ) |
| 9. Income taxes                                                               |   |                   | 223     |   |   |   | 94 |   |   |   | 175 |   |
| Shareholders’ equity under    IFRS                                      |   |                   | 18,557  |   |   |   | 13,284 |   |   |   | 10,063 |   |

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                                     |   | Quarter      ended |   |   | Quarter      ended |   |   | Quarter      ended |   |   | Quarter      ended |   |
|----------------------------------------------------------|--------|--------------------|--------|--------|--------------------|--------|--------|--------------------|--------|--------|--------------------|--------|
| (millions of U.S. dollars,                |   | March      31      |   |   | June      30       |   |   | September      30  |   |   | December      31   |   |
| except per share amounts)                 |   | 2008               |   |   | 2007               |   |   | 2006               |   |   | 2008               |   |   | 2007 |   |   | 2006 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Revenues                                                 |   |               | 1,834  |   |               |   | 1,662  |               |   |   | 1,500              |   |   |   | 3,128 |   |   |   | 1,805 |   |   |   | 1,624 |   |   |   | 3,333 |   |   |   | 1,796 |   |   |   | 1,617 |   |   |   | 3,412 |   |   |   | 2,033 |   |   |   | 1,850 |   |
| Operating      profit                                    |   |               | 216    |   |               |   | 225    |               |   |   | 208                |   |   |   | 295 |   |   |   | 352 |   |   |   | 306 |   |   |   | 493 |   |   |   | 310 |   |   |   | 312 |   |   |   | 689 |   |   |   | 410 |   |   |   | 422 |   |
| Earnings      from continuing operations                 |   |               | 193    |   |               |   | 209    |               |   |   | 204                |   |   |   | 179 |   |   |   | 262 |   |   |   | 197 |   |   |   | 392 |   |   |   | 314 |   |   |   | 206 |   |   |   | 641 |   |   |   | 311 |   |   |   | 305 |   |
| Discontinued operations, net of      tax                 |   |               | 1      |   |               |   | 15     |               |   |   | (67                | )      |   |   | (6 | ) |   |   | 115 |   |   |   | (24 | ) |   |   | (11 | ) |   |   | 2,655 |   |   |   | 213 |   |   |   | 16 |   |   |   | 123 |   |   |   | 86 |   |
| Net      earnings                                        |   |               | 194    |   |               |   | 224    |               |   |   | 137                |   |   |   | 173 |   |   |   | 377 |   |   |   | 173 |   |   |   | 381 |   |   |   | 2,969 |   |   |   | 419 |   |   |   | 657 |   |   |   | 434 |   |   |   | 391 |   |
| Dividends declared on preference      shares             |   |               | (2     | )      |               |   | (1     | )                  |   |   | (1                 | )      |   |   | (1 | ) |   |   | (2 | ) |   |   | (2 | ) |   |   | (1 | ) |   |   | (1 | ) |   |   | (1 | ) |   |   | (1 | ) |   |   | (2 | ) |   |   | (1 | ) |
| Earnings attributable to common and ordinary      shares |   |               | 192    |   |               |   | 223    |               |   |   | 136                |   |   |   | 172 |   |   |   | 375 |   |   |   | 171 |   |   |   | 380 |   |   |   | 2,968 |   |   |   | 418 |   |   |   | 656 |   |   |   | 432 |   |   |   | 390 |   |
| Basic      earnings per share                            |   |               |   |   |               |   |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| From      continuing operations                          |   | $                  | 0.30   |   |               | $      | 0.32   |               |   | $      | 0.31               |   |   | $ | 0.22 |   |   | $ | 0.41 |   |   | $ | 0.30 |   |   | $ | 0.47 |   |   | $ | 0.49 |   |   | $ | 0.32 |   |   | $ | 0.77 |   |   | $ | 0.48 |   |   | $ | 0.47 |   |
| From discontinuedoperations                              |   |               | 0.00   |   |               |   | 0.03   |               |   |   | (0.10              | )      |   |   | (0.00 | ) |   |   | 0.18 |   |   |   | (0.03 | ) |   |   | (0.01 | ) |   |   | 4.14 |   |   |   | 0.33 |   |   |   | 0.02 |   |   |   | 0.19 |   |   |   | 0.14 |   |
|                                                     |   | $                  | 0.30   |   |               | $      | 0.35   |               |   | $      | 0.21               |   |   | $ | 0.22 |   |   | $ | 0.59 |   |   | $ | 0.27 |   |   | $ | 0.46 |   |   | $ | 4.63 |   |   | $ | 0.65 |   |   | $ | 0.79 |   |   | $ | 0.67 |   |   | $ | 0.61 |   |
| Diluted      earnings per share                          |   |               |   |   |               |   |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| From      continuing operations                          |   | $                  | 0.30   |   |               | $      | 0.33   |               |   | $      | 0.31               |   |   | $ | 0.22 |   |   | $ | 0.40 |   |   | $ | 0.30 |   |   | $ | 0.47 |   |   | $ | 0.49 |   |   | $ | 0.32 |   |   | $ | 0.77 |   |   | $ | 0.48 |   |   | $ | 0.47 |   |
| From discontinuedoperations                              |   |               | 0.00   |   |               |   | 0.02   |               |   |   | (0.10              | )      |   |   | (0.00 | ) |   |   | 0.18 |   |   |   | (0.04 | ) |   |   | (0.01 | ) |   |   | 4.12 |   |   |   | 0.33 |   |   |   | 0.02 |   |   |   | 0.19 |   |   |   | 0.14 |   |
|                                                     |   | $                  | 0.30   |   |               | $      | 0.35   |               |   | $      | 0.21               |   |   | $ | 0.22 |   |   | $ | 0.58 |   |   | $ | 0.26 |   |   | $ | 0.46 |   |   | $ | 4.61 |   |   | $ | 0.65 |   |   | $ | 0.79 |   |   | $ | 0.67 |   |   | $ | 0.61 |   |

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                                                                                                 |   | Year      ended December 31 |    |
|----------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|
| (millions of U.S. dollars, except per share      amounts)                                                            |   | 2008                        |    |   | 2007 |   |   | 2006 |   |
| Revenues                                                                                                             |   |                        | 11,707  |   |   |   | 7,296 |   |   |   | 6,591 |   |
| Cost      of sales, selling, marketing, general and administrative      expenses                                     |   |                        | (8,700  | ) |   |   | (5,275 | ) |   |   | (4,665 | ) |
| Depreciation      (notes 12 and 13)                                                                                  |   |                        | (831    | ) |   |   | (468 | ) |   |   | (438 | ) |
| Amortization      (note 14)                                                                                          |   |                        | (411    | ) |   |   | (256 | ) |   |   | (240 | ) |
| Impairment of assets held for sale (note      4)                                                                     |   |                        | (72     | ) |   |   | – |   |   |   | – |   |
| Operating      profit                                                                                                |   |                        | 1,693   |   |   |   | 1,297 |   |   |   | 1,248 |   |
| Net      other income (expense) (note 6)                                                                             |   |                        | 304     |   |   |   | (34 | ) |   |   | 1 |   |
| Net      interest expense and other financing costs (note 7)                                                         |   |                        | (224    | ) |   |   | (12 | ) |   |   | (221 | ) |
| Income      taxes (note 8)                                                                                           |   |                        | (351    | ) |   |   | (155 | ) |   |   | (116 | ) |
| Tradeweb ownership interests, net of tax (note      21)                                                              |   |                        | (17     | ) |   |   | – |   |   |   | – |   |
| Earnings      from continuing operations                                                                             |   |                        | 1,405   |   |   |   | 1,096 |   |   |   | 912 |   |
| Earnings from discontinued operations, net of tax      (note 9)                                                      |   |                        | – |   |   |   | 2,908 |   |   |   | 208 |   |
| Net      earnings                                                                                                    |   |                        | 1,405   |   |   |   | 4,004 |   |   |   | 1,120 |   |
| Dividends declared on preference shares (note      17)                                                               |   |                        | (5      | ) |   |   | (6 | ) |   |   | (5 | ) |
| Earnings attributable to Thomson Reuters      Corporation common shares and Thomson Reuters PLC ordinary      shares |   |                        | 1,400   |   |   |   | 3,998 |   |   |   | 1,115 |   |
| Earnings per share (note      10)                                                                                    |   |                        |    |   |   |   |   |   |   |   |   |   |
| Basic      earnings per share:                                                                                       |   |                        |    |   |   |   |   |   |   |   |   |   |
| From      continuing operations                                                                                      |   | $                           | 1.82    |   |   | $ | 1.70 |   |   | $ | 1.41 |   |
| From discontinuedoperations                                                                                          |   |                        | – |   |   | $ | 4.54 |   |   | $ | 0.32 |   |
| Basic earnings per share                                                                                             |   | $                           | 1.82    |   |   | $ | 6.24 |   |   | $ | 1.73 |   |
| Diluted      earnings per share:                                                                                     |   |                        |    |   |   |   |   |   |   |   |   |   |
| From      continuing operations                                                                                      |   | $                           | 1.81    |   |   | $ | 1.69 |   |   | $ | 1.41 |   |
| From discontinuedoperations                                                                                          |   |                        | – |   |   | $ | 4.51 |   |   | $ | 0.32 |   |
| Diluted earnings per share                                                                                           |   | $                           | 1.81    |   |   | $ | 6.20 |   |   | $ | 1.73 |   |

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                                                                                  |   | December      31 |     |
|-------------------------------------------------------------------------------------------------------|--------|------------------|----------|
| (millions      of U.S. dollars)                                                                       |   | 2008             |     |   | 2007 |   |
| ASSETS                                                                                                |   |             |     |   |   |   |
| Cash      and cash equivalents                                                                        |   |             | 841      |   |   |   | 7,497 |   |
| Accounts      receivable, net of allowances of $124 million (2007 – $81 million) (note      11) |   |             | 1,780    |   |   |   | 1,565 |   |
| Prepaid      expenses and other current assets                                                        |   |             | 952      |   |   |   | 512 |   |
| Deferred income taxes (note    8)                                                                     |   |             | 100      |   |   |   | 104 |   |
| Current      assets                                                                                   |   |             | 3,673    |   |   |   | 9,678 |   |
| Computer      hardware and other property, net (note 12)                                              |   |             | 1,555    |   |   |   | 731 |   |
| Computer      software, net (note 13)                                                                 |   |             | 1,298    |   |   |   | 721 |   |
| Identifiable      intangible assets, net (note 14)                                                    |   |             | 8,596    |   |   |   | 3,438 |   |
| Goodwill      (note 15)                                                                               |   |             | 19,348   |   |   |   | 6,935 |   |
| Other non-current assets                                                                              |   |             | 1,550    |   |   |   | 1,328 |   |
| Total assets                                                                                          |   |             | 36,020   |   |   |   | 22,831 |   |
| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                                       |   |             |     |   |   |   |   |   |
| Liabilities                                                                                           |   |             |     |   |   |   |   |   |
| Short-term      indebtedness (note 16)                                                                |   |             | 13       |   |   |   | 183 |   |
| Accounts      payable and accruals                                                                    |   |             | 2,710    |   |   |   | 1,536 |   |
| Deferred      revenue                                                                                 |   |             | 1,196    |   |   |   | 1,108 |   |
| Current portion of long-term debt and finance      lease obligations (note 16)                        |   |             | 672      |   |   |   | 412 |   |
| Current      liabilities                                                                              |   |             | 4,591    |   |   |   | 3,239 |   |
| Long-term      debt and finance lease obligations (note 16)                                           |   |             | 6,834    |   |   |   | 4,264 |   |
| Other      non-current liabilities                                                                    |   |             | 1,723    |   |   |   | 783 |   |
| Deferred      income taxes (note 8)                                                                   |   |             | 2,674    |   |   |   | 974 |   |
|                                                                                                  |   |             |     |   |   |   |   |   |
| Minority      interest in equity of consolidated affiliate (note 21)                                  |   |             |  72 |   |   |   |  - |   |
|                                                                                                  |   |             |     |   |   |   |   |   |
| Shareholders’      equity                                                                       |   |             |     |   |   |   |   |   |
| Capital      (note 17)                                                                                |   |             | 11,135   |   |   |   | 2,932 |   |
| Retained      earnings                                                                                |   |             | 10,969   |   |   |   | 10,355 |   |
| Accumulated other comprehensive (loss)      income                                                    |   |             | (1,978   | ) |   |   | 284 |   |
| Total shareholders’ equity                                                                      |   |             | 20,126   |   |   |   | 13,571 |   |
| Total liabilities and shareholders’      equity                                                 |   |             | 36,020   |   |   |   | 22,831 |   |
| Contingencies      (note 19)                                                                          |   |             |     |   |   |   |   |   |

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                                                                                                           |   | Year      ended December 31 |    |
|--------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|
| (millions of U.S. dollars)                                                                                                     |   | 2008                        |    |   | 2007 |   |   | 2006 |   |
| Cash provided by (used in):                                                                                                    |   |                        |    |   |   |   |   |   |   |
| OPERATING      ACTIVITIES                                                                                                      |   |                        |    |   |   |   |   |   |   |
| Net      earnings                                                                                                              |   |                        | 1,405   |   |   |   | 4,004 |   |   |   | 1,120 |   |
| Remove      earnings from discontinued operations                                                                              |   |                        | – |   |   |   | (2,908 | ) |   |   | (208 | ) |
| Add      back (deduct) items not involving cash:                                                                               |   |                        |    |   |   |   |   |   |   |   |   |   |
| Depreciation      (notes 12 and 13)                                                                                            |   |                        | 831     |   |   |   | 468 |   |   |   | 438 |   |
| Amortization      (note 14)                                                                                                    |   |                        | 411     |   |   |   | 256 |   |   |   | 240 |   |
| Net      gains on disposals of businesses and investments (note 6)                                                             |   |                        | (35     | ) |   |   | (8 | ) |   |   | (47 | ) |
| Impairment      of assets held for sale (note 4)                                                                               |   |                        | 72      |   |   |   | – |   |   |   | – |   |
| Deferred      income taxes (note 8)                                                                                            |   |                        | 32      |   |   |   | (124 | )  |   |   | (121 | ) |
| Other,      net                                                                                                                |   |                        | (125    | ) |   |   | 258 |   |   |   | 204 |   |
| Changes      in working capital and other items (note 23)                                                                      |   |                        | 192     |   |   |   | (136 | ) |   |   | (73 | ) |
| Cash      (used in) provided by operating activities – discontinued operations (note      9)                             |   |                        | (22     | ) |   |   | 6 |   |   |   | 572 |   |
| Net cash provided by operating      activities                                                                                 |   |                        | 2,761   |   |   |   | 1,816 |   |   |   | 2,125 |   |
| INVESTING ACTIVITIES                                                                                                           |   |                        |    |   |   |   |   |   |   |   |   |   |
| Acquisitions,      less cash acquired of $473 million (2007 – $19 million, 2006 – $11      million) (note 20)      |   |                        | (8,502  | ) |   |   | (488 | ) |   |   | (744 | ) |
| (Payments      for) proceeds from disposals of discontinued operations, net of income      taxes paid (note 9)                 |   |                        | (65     | ) |   |   | 7,151 |   |   |   | 81 |   |
| Proceeds      from other disposals, net of income taxes paid                                                                   |   |                        | 244     |   |   |   | 18 |   |   |   | 88 |   |
| Capital      expenditures, less proceeds from disposals of $36 million (2007 – $3      million, 2006 – $3 million) |   |                        | (906    | ) |   |   | (608 | ) |   |   | (452 | ) |
| Other      investing activities                                                                                                |   |                        | (26     | ) |   |   | (37 | ) |   |   | (26 | ) |
| Capital      expenditures of discontinued operations (note 9)                                                                  |   |                        | – |   |   |   | (97 | ) |   |   | (185 | ) |
| Other      investing activities of discontinued operations                                                                     |   |                        | (7      | ) |   |   | (2 | ) |   |   | (17 | ) |
| Acquisitions by discontinued      operations                                                                                   |   |                        | – |   |   |   | (54 | ) |   |   | (35 | ) |
| Net cash (used in) provided by investing      activities                                                                       |   |                        | (9,262  | ) |   |   | 5,883 |   |   |   | (1,290 | ) |
| FINANCING      ACTIVITIES                                                                                                      |   |                        |    |   |   |   |   |   |   |   |   |   |
| Proceeds      from debt (note 16)                                                                                              |   |                        | 7,600   |   |   |   | 794 |   |   |   | – |   |
| Repayments      of debt (note 16)                                                                                              |   |                        | (5,487  | ) |   |   | (249 | ) |   |   | (88 | ) |
| Net      (repayments) borrowings under short-term loan facilities                                                              |   |                        | (1,065  | ) |   |   | (180 | ) |   |   | 108 |   |
| Purchase      of sterling call options (note 16)                                                                               |   |                        | – |   |   |   | (76 | ) |   |   | – |   |
| Repurchase      of common and ordinary shares (note 17)                                                                        |   |                        | (522    | ) |   |   | (168 | ) |   |   | (412 | ) |
| Dividends      paid on preference shares (note 17)                                                                             |   |                        | (5      | ) |   |   | (6 | ) |   |   | (5 | ) |
| Dividends      paid on common and ordinary shares (note 17)                                                                    |   |                        | (596    | ) |   |   | (612 | ) |   |   | (553 | ) |
| Dividend      payable assumed from Reuters Group PLC (note 17)                                                                 |   |                        | (246    | ) |   |   | – |   |   |   | – |   |
| Other financing activities,    net                                                                                             |   |                        | 207     |   |   |   | 33 |   |   |   | 38 |   |
| Net cash used in financing      activities                                                                                     |   |                        | (114    | ) |   |   | (464 | ) |   |   | (912 | ) |
| Translation adjustments                                                                                                        |   |                        | (41     | ) |   |   | (72 | ) |   |   | 4 |   |
| (Decrease)      increase in cash and cash equivalents                                                                          |   |                        | (6,656  | ) |   |   | 7,163 |   |   |   | (73 | ) |
| Cash and cash equivalents at beginning of      period                                                                          |   |                        | 7,497   |   |   |   | 334 |   |   |   | 407 |   |
| Cash and cash equivalents at end of      period                                                                                |   |                        | 841     |   |   |   | 7,497 |   |   |   | 334 |   |

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| (millions      of U.S. dollars)                                              |   | Stated      share capital      1       |   |   | Contributed      surplus |   |    | Total      capital |   |   | Retained      earnings |   |   | Accumulated      other      comprehensive income (loss) (“AOCI”) |    |   | Total      retained earnings and AOCI |   |    | Total  |   |
|------------------------------------------------------------------------------|--------|----------------------------------------|--------|--------|--------------------------|--------|---------|--------------------|--------|--------|------------------------|--------|--------|-----------------------------------------------------------------------------------|---------|--------|---------------------------------------|--------|---------|--------|--------|
| Balance,      December 31, 2007                                              |   |                                   | 2,727  |   |                     |   | 205     |               |   |   | 2,932                  |   |   |                                                                              | 10,355  |   |                                  |   | 284     |   |   |   | 10,639 |   |   |   | 13,571 |   |
| Comprehensive      income (loss):                                            |   |                                   |   |   |                     |   |    |               |   |   |                   |   |   |                                                                              |    |   |                                  |   |    |   |   |   |   |   |   |   |   |   |
| Net      earnings                                                            |   |                                   |   |   |                     |   |    |               |   |   |                   |   |   |                                                                              | 1,405   |   |                                  |   | – |   |   |   | 1,405 |   |   |   | 1,405 |   |
| Unrecognized      net gain on cash flow hedges                               |   |                                   |   |   |                     |   |    |               |   |   |                   |   |   |                                                                              | – |   |                                  |   | 4       |   |   |   | 4 |   |   |   | 4 |   |
| Foreign      currency translation adjustments                                |   |                                   |   |   |                     |   |    |               |   |   |                   |   |   |                                                                              | – |   |                                  |   | (2,103  | )      |   |   | (2,103 | ) |   |   | (2,103 | ) |
| Net      gain reclassified to income                                         |   |                                   |   |   |                     |   |    |               |   |   |                   |   |   |                                                                              |    |   |                                  |   | (163    | )      |   |   | (163 | ) |   |   | (163 | ) |
| Comprehensive      income (loss)                                             |   |                                   |   |   |                     |   |    |               |   |   |                   |   |   |                                                                              | 1,405   |   |                                  |   | (2,262  | )      |   |   | (857 | ) |   |   | (857 | ) |
| Issuance      of Thomson Reuters PLC shares                                  |   |                                   | 96     |   |                     |   | 8,130   |               |   |   | 8,226                  |   |   |                                                                              |    |   |                                  |   |    |   |   |   |   |   |   |   | 8,226 |   |
| Dividends      declared on preference shares                                 |   |                                   |   |   |                     |   |    |               |   |   |                   |   |   |                                                                              | (5      | )      |                                  |   | – |   |   |   | (5 | ) |   |   | (5 | ) |
| Dividends      declared on common shares and ordinary shares                 |   |                                   |   |   |                     |   |    |               |   |   |                   |   |   |                                                                              | (786    | )      |                                  |   | – |   |   |   | (786 | ) |   |   | (786 | ) |
| Shares      issued under Dividend Reinvestment Plan (“DRIP”)     |   |                                   | 190    |   |                     |   | – |               |   |   | 190                    |   |   |                                                                              |    |   |                                  |   |    |   |   |   |   |   |   |   | 190 |   |
| Repurchases      of shares (note 17)                                         |   |                                   | (9     | )      |                     |   | (513    | )                  |   |   | (522                   | )      |   |                                                                              |    |   |                                  |   |    |   |   |   |   |   |   |   | (522 | ) |
| Effect      of stock compensation plans                                      |   |                                   | 46     |   |                     |   | 263     |               |   |   | 309                    |   |   |                                                                              |    |   |                                  |   |    |   |   |   |   |   |   |   | 309 |   |
| Balance,      December 31, 2008                                              |   |                                   | 3,050  |   |                     |   | 8,085   |               |   |   | 11,135                 |   |   |                                                                              | 10,969  |   |                                  |   | (1,978  | )      |   |   | 8,991 |   |   |   | 20,126 |   |
|                                                                         |   |                                   |   |   |                     |   |    |               |   |   |                   |   |   |                                                                              |    |   |                                  |   |    |   |   |   |   |   |   |   |   |   |
|                                                                         |   |                                   |   |   |                     |   |    |               |   |   |                   |   |   |                                                                              |    |   |                                  |   |    |   |   |   |   |   |   |   |   |   |
| (millions      of U.S. dollars)                                              |   | Stated      share capital      1  |   |   | Contributed      surplus |   |    | Total      capital |   |   | Retained      earnings |   |   | AOCI                                                                              |    |   | Total      retained earnings and AOCI |   |    | Total  |   |
| Balance,      December 31, 2006                                              |   |                                   | 2,642  |   |                     |   | 157     |               |   |   | 2,799                  |   |   |                                                                              | 7,169   |   |                                  |   | 513     |   |   |   | 7,682 |   |   |   | 10,481 |   |
| Opening      balance adjustment for income tax accounting change (note    2) |   |                                   |   |   |                     |   |    |               |   |   |                   |   |   |                                                                              | (33     | )      |                                  |   | – |   |   |   | (33 | ) |   |   | (33 | ) |
| Balance,      January 1, 2007                                                |   |                                   | 2,642  |   |                     |   | 157     |               |   |   | 2,799                  |   |   |                                                                              | 7,136   |   |                                  |   | 513     |   |   |   | 7,649 |   |   |   | 10,448 |   |
| Comprehensive      income:                                                   |   |                                   |   |   |                     |   |    |               |   |   |                   |   |   |                                                                              |    |   |                                  |   |    |   |   |   |   |   |   |   |   |   |
| Net      earnings                                                            |   |                                   |   |   |                     |   |    |               |   |   |                   |   |   |                                                                              | 4,004   |   |                                  |   | – |   |   |   | 4,004 |   |   |   | 4,004 |   |
| Unrecognized      net loss on cash flow hedges                               |   |                                   |   |   |                     |   |    |               |   |   |                   |   |   |                                                                              | – |   |                                  |   | (63     | )      |   |   | (63 | ) |   |   | (63 | ) |
| Foreign      currency translation adjustments                                |   |                                   |   |   |                     |   |    |               |   |   |                   |   |   |                                                                              | – |   |                                  |   | 89      |   |   |   | 89 |   |   |   | 89 |   |
| Net      gain reclassified to income                                         |   |                                   |   |   |                     |   |    |               |   |   |                   |   |   |                                                                              | – |   |                                  |   | (255    | )      |   |   | (255 | ) |   |   | (255 | ) |
| Comprehensive      income                                                    |   |                                   |   |   |                     |   |    |               |   |   |                   |   |   |                                                                              | 4,004   |   |                                  |   | (229    | )      |   |   | 3,775 |   |   |   | 3,775 |   |
| Dividends      declared on preference shares                                 |   |                                   |   |   |                     |   |    |               |   |   |                   |   |   |                                                                              | (6      | )      |                                  |   | – |   |   |   | (6 | ) |   |   | (6 | ) |
| Dividends      declared on common shares                                     |   |                                   |   |   |                     |   |    |               |   |   |                   |   |   |                                                                              | (628    | )      |                                  |   | – |   |   |   | (628 | ) |   |   | (628 | ) |
|                                                                         |   |                                   |   |   |                     |   |    |               |   |   |                   |   |   |                                                                              |    |   |                                  |   |    |   |   |   |   |   |   |   |   |   |
| Common      shares issued under DRIP                                         |   |                                   | 16     |   |                     |   | – |               |   |   | 16                     |   |   |                                                                              |    |   |                                  |   |    |   |   |   |   |   |   |   | 16 |   |
| Repurchase      of common shares (note 17)                                   |   |                                   | (17    | )      |                     |   | – |               |   |   | (17                    | )      |   |                                                                              | (151    | )      |                                  |   | – |   |   |   | (151 | ) |   |   | (168 | ) |
| Effect      of stock compensation plans                                      |   |                                   | 86     |   |                     |   | 48      |               |   |   | 134                    |   |   |                                                                              |    |   |                                  |   |    |   |   |   |   |   |   |   | 134 |   |
| Balance,      December 31, 2007                                              |   |                                   | 2,727  |   |                     |   | 205     |               |   |   | 2,932                  |   |   |                                                                              | 10,355  |   |                                  |   | 284     |   |   |   | 10,639 |   |   |   | 13,571 |   |

| 1 | Includes      common, ordinary and preference share capital (note  17). |
|---|-------------------------------------------------------------------------|

| THOMSON REUTERS  | ANNUAL      REPORT 2008 |
|----------------------------|-------------------------|

----

| (millions      of U.S. dollars)                                                         |   | Stated      share capital      1 |   |   | Contributed      surplus |   |    | Total      capital |   |   | Retained      earnings |   |   | AOCI   |    |   | Total      retained earnings and AOCI |   |    | Total  |   |
|-----------------------------------------------------------------------------------------|--------|----------------------------------|--------|--------|--------------------------|--------|---------|--------------------|--------|--------|------------------------|--------|--------|--------|---------|--------|---------------------------------------|--------|---------|--------|--------|
| Balance,      December 31, 2005                                                         |   |                             | 2,599  |   |                     |   | 127     |               |   |   | 2,726                  |   |   |   | 6,992   |   |                                  |   | 245     |   |   |   | 7,237 |   |   |   | 9,963 |   |
| Comprehensive      income:                                                              |   |                             |   |   |                     |   |    |               |   |   |                   |   |   |   |    |   |                                  |   |    |   |   |   |   |   |   |   |   |   |
| Opening      balance adjustment for net deferred gain on cash flow hedges (note      2) |   |                             |   |   |                     |   |    |               |   |   |                   |   |   |   | – |   |                                  |   | 51      |   |   |   | 51 |   |   |   | 51 |   |
| Balance,      January 1, 2006                                                           |   |                             | 2,599  |   |                     |   | 127     |               |   |   | 2,726                  |   |   |   | 6,992   |   |                                  |   | 296     |   |   |   | 7,288 |   |   |   | 10,014 |   |
| Net      earnings                                                                       |   |                             |   |   |                     |   |    |               |   |   |                   |   |   |   | 1,120   |   |                                  |   | – |   |   |   | 1,120 |   |   |   | 1,120 |   |
| Unrecognized      net gain on cash flow hedges                                          |   |                             |   |   |                     |   |    |               |   |   |                   |   |   |   | – |   |                                  |   | 8       |   |   |   | 8 |   |   |   | 8 |   |
| Foreign      currency translation adjustments                                           |   |                             |   |   |                     |   |    |               |   |   |                   |   |   |   | – |   |                                  |   | 230     |   |   |   | 230 |   |   |   | 230 |   |
| Net      gain reclassified to income                                                    |   |                             |   |   |                     |   |    |               |   |   |                   |   |   |   | – |   |                                  |   | (21     | )      |   |   | (21 | ) |   |   | (21 | ) |
| Comprehensive      income                                                               |   |                             |   |   |                     |   |    |               |   |   |                   |   |   |   | 1,120   |   |                                  |   | 217     |   |   |   | 1,337 |   |   |   | 1,337 |   |
| Dividends      declared on preference shares                                            |   |                             |   |   |                     |   |    |               |   |   |                   |   |   |   | (5      | )      |                                  |   | – |   |   |   | (5 | ) |   |   | (5 | ) |
| Dividends      declared on common shares                                                |   |                             |   |   |                     |   |    |               |   |   |                   |   |   |   | (567    | )      |                                  |   | – |   |   |   | (567 | ) |   |   | (567 | ) |
| Common      shares issued under DRIP                                                    |   |                             | 14     |   |                     |   | – |               |   |   | 14                     |   |   |   |    |   |                                  |   |    |   |   |   |   |   |   |   | 14 |   |
| Repurchase      of common shares (note 17)                                              |   |                             | (41    | )      |                     |   | – |               |   |   | (41                    | )      |   |   | (371    | )      |                                  |   | – |   |   |   | (371 | ) |   |   | (412 | ) |
| Effect      of stock compensation plans                                                 |   |                             | 70     |   |                     |   | 30      |               |   |   | 100                    |   |   |   |    |   |                                  |   |    |   |   |   |   |   |   |   | 100 |   |
| Balance,      December 31, 2006                                                         |   |                             | 2,642  |   |                     |   | 157     |               |   |   | 2,799                  |   |   |   | 7,169   |   |                                  |   | 513     |   |   |   | 7,682 |   |   |   | 10,481 |   |

| 1 | Includes      common, ordinary and preference share capital (note  17). |
|---|-------------------------------------------------------------------------|

| THOMSON REUTERS  | ANNUAL      REPORT 2008 |
|----------------------------|-------------------------|

----

| • | persuasive      evidence of an arrangement exists; |
|---------|----------------------------------------------------|

| • | delivery      has occurred; |
|---------|-----------------------------|

| • | the      fee is fixed or determinable; and |
|---------|--------------------------------------------|

| • | collectability      is probable. |
|---------|----------------------------------|

| THOMSON REUTERS  | ANNUAL      REPORT 2008 |
|----------------------------|-------------------------|

----

| Computer      hardware                   | 3–5      years  |
|------------------------------------------|-----------------------|
| Buildings      and building improvements | 5–40      years |
| Furniture,      fixtures and equipment   | 3–10      years |

| THOMSON REUTERS  | ANNUAL      REPORT 2008 |
|----------------------------|-------------------------|

----

| Trade      names            | 2–27      years |
|-----------------------------|-----------------------|
| Customer      relationships | 2–32      years |
| Databases      and content  | 2–25      years |
| Publishing      rights      | 30      years         |
| Other                       | 2–27      years |

| • | In      the first step, the fair value of each reporting unit is determined. If      the fair value of a reporting unit is less than its carrying value, this      is an indicator that the goodwill assigned to that reporting unit might be      impaired, which requires performance of the second  step. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | In      the second step, the fair value of the reporting unit is allocated to the      assets and liabilities of the reporting unit as if it had just been      acquired in a business combination, and as if the purchase price was      equivalent to the fair value of the reporting unit. The excess of the fair      value of the reporting unit over the amounts assigned to its assets and      liabilities is referred to as the implied fair value of goodwill. The      implied fair value of the reporting unit’s goodwill is then compared to      the actual carrying value of goodwill. If the implied fair value is less      than the carrying value, an impairment loss is recognized for that      excess. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON REUTERS  | ANNUAL      REPORT 2008 |
|----------------------------|-------------------------|

----

| • | assets      and liabilities accounted for at cost, or amortized cost, which include      accounts receivable, notes receivable, short-term indebtedness and      accounts payable and accruals; and |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | assets      and liabilities accounted for at fair value, which include cash and cash      equivalents, available-for-sale investments, derivative instruments and      associated debt instruments. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | cross-currency      swap agreements to hedge foreign currency exposures on non-U.S.      dollar-denominated debt; |
|---------|-------------------------------------------------------------------------------------------------------------------|

| • | foreign      currency contracts to hedge forecasted cash flows denominated in      currencies other than the functional currency of a particular Thomson      Reuters subsidiary; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | interest      rate swap agreements to manage the fixed versus floating interest rate mix      of debt. Such contracts require periodic exchange of payments without the      exchange of the notional principal amount upon which the payments are      based; and |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | treasury lock      agreements to hedge against changes in interest rates for anticipated debt      offerings. |
|---------|---------------------------------------------------------------------------------------------------------------|

| THOMSON REUTERS  | ANNUAL      REPORT 2008 |
|----------------------------|-------------------------|

----

| • | First,      the Company determines whether it is more likely than not that a tax      position will be sustained upon examination, including resolution of any      related appeals or litigation processes, based on the technical merits of      the position. In evaluating whether a tax position has met the      more-likely-than-not recognition threshold, the Company presumes that the      position will be examined by the appropriate taxing authority that has      full knowledge of all relevantinformation. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Second,      a tax position that meets the more-likely-than-not recognition threshold      is measured to determine the amount of benefit to recognize in the      financial statements. The tax position is measured at the largest amount      of benefit that is greater than 50% likely of being realized upon ultimate      settlement. If the tax position does not meet the more-likely-than-not      recognition threshold, no benefit from the tax position is      recorded. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON REUTERS  | ANNUAL      REPORT 2008 |
|----------------------------|-------------------------|

----

| • | an      increase of $53 million to “Other non-current assets” and “Accumulated      other comprehensive income” in the consolidated balance sheet relative to      derivative instruments that consisted primarily of interest rate      contracts, which convert floating rate debt to fixed rate debt and qualify      as cash flow hedges; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | a      reclassification of $5 million from “Other current assets” and $3 million      from “Other current liabilities” to “Accumulated other comprehensive      income” in the consolidated balance sheet related primarily to previously      deferred gains and losses on settled cash flow  hedges; |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | an      increase of $16 million to “Other non-current assets” and “Long-term debt”      in the consolidated balance sheet related to derivative instruments and      their related hedged items. These derivative instruments consist primarily      of interest rate contracts to convert fixed rate debt to floating and      qualify as fair value hedges; and |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | a      presentational reclassification of amounts previously recorded in      “Cumulative translation adjustment” to “Accumulated other comprehensive      income.” |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON REUTERS  | ANNUAL      REPORT 2008 |
|----------------------------|-------------------------|

----

| • | The      two parent companies have identical boards and executive management      teams; |
|---------|------------------------------------------------------------------------------------------|

| • | Shareholders      of each parent company have comparable rights and benefits as if they held      shares in one company carrying on the Thomson Reuters business;      and |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | The      operations of Reuters were combined with the former Thomson Financial      segment to create a global leader in electronic information services,      trading systems andnews. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | All      of the issued and outstanding Reuters ordinary shares were cancelled;      and |
|---------|-----------------------------------------------------------------------------------------|

| • | Reuters      shareholders received, for each Reuters ordinary share  held |
|---------|---------------------------------------------------------------------------|

|  | ° | 352.5      pence in cash (a total of $8,450 million paid on May 1, 2008);      and |
|--|--------|------------------------------------------------------------------------------------|

|  | ° | 0.16      Thomson Reuters PLC ordinary shares (a total of 194,107,278 issued on      closing, April 17, 2008). |
|--|--------|----------------------------------------------------------------------------------------------------------------|

| The      purchase consideration was as follows: |   |
|-------------------------------------------------|--------|
|                                            |   |
| (millions      of U.S. dollars)                 |   |
| Cash                                            |   |   | 8,450 |   |
| Ordinary      shares, Thomson Reuters PLC       |   |   | 8,226 |   |
| Reuters      Group PLC options                  |   |   | 195 |   |
| Transaction      costs                          |   |   | 138 |   |
| Total      purchase consideration               |   |   | 17,009 |   |

| THOMSON REUTERS  | ANNUAL      REPORT 2008 |
|----------------------------|-------------------------|

----

|                                                                 |   | Purchase      price allocation |   |
|----------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                 |   | Original                       |   |   |   |   |   |   |   |
| (millions      of U.S. dollars)                                      |   | estimate                       |   |   | Change |   |   | Final |   |
| Assets                                                               |   |                           |   |   |   |   |   |   |   |
| Cash      and cash equivalents                                       |   |                           | 465    |   |   |   | – |   |   |   | 465 |   |
| Accounts      receivable, net of allowances                          |   |                           | 1,460  |   |   |   | (13 | ) |   |   | 1,447 |   |
| Prepaid      expenses and other current assets                       |   |                           | 391    |   |   |   | (31 | ) |   |   | 360 |   |
| Deferred      income taxes                                           |   |                           | 93     |   |   |   | (35 | ) |   |   | 58 |   |
| Current      assets                                                  |   |                           | 2,409  |   |   |   | (79 | ) |   |   | 2,330 |   |
| Computer      hardware and other property, net                       |   |                           | 1,042  |   |   |   | (45 | ) |   |   | 997 |   |
| Computer      software, net                                          |   |                           | 1,100  |   |   |   | (568 | ) |   |   | 532 |   |
| Identifiable      intangible assets, net                             |   |                           | 5,400  |   |   |   | 1,183 |   |   |   | 6,583 |   |
| Goodwill                                                             |   |                           | 12,950 |   |   |   | 469 |   |   |   | 13,419 |   |
| Other      non-current assets                                        |   |                           | 918    |   |   |   | (229 | ) |   |   | 689 |   |
| Total      assets                                                    |   |                           | 23,819 |   |   |   | 731 |   |   |   | 24,550 |   |
| Liabilities                                                          |   |                           |   |   |   |   |   |   |   |   |   |   |
| Short-term      indebtedness                                         |   |                           | 895    |   |   |   | – |   |   |   | 895 |   |
| Accounts      payable and accruals                                   |   |                           | 1,497  |   |   |   | 141 |   |   |   | 1,638 |   |
| Deferred      revenue                                                |   |                           | 926    |   |   |   | (5 | ) |   |   | 921 |   |
| Current      portion of long-term debt and finance lease obligations |   |                           | 409    |   |   |   | 47 |   |   |   | 456 |   |
| Current      liabilities                                             |   |                           | 3,727  |   |   |   | 183 |   |   |   | 3,910 |   |
| Long-term      debt and finance lease obligations                    |   |                           | 851    |   |   |   | (36 | ) |   |   | 815 |   |
| Other      non-current liabilities                                   |   |                           | 458    |   |   |   | 332 |   |   |   | 790 |   |
| Deferred      income taxes                                           |   |                           | 1,774  |   |   |   | 252 |   |   |   | 2,026 |   |
| Total      liabilities                                               |   |                           | 6,810  |   |   |   | 731 |   |   |   | 7,541 |   |
| Total                                                                |   |                           | 17,009 |   |   |   | – |   |   |   | 17,009 |   |

| (millions      of U.S. dollars)     |   | Fair      value |   | Useful      life |
|-------------------------------------|--------|-----------------|--------|------------------|
| Trade      names                    |   |            | 2,397  |             | Indefinite |
| Customer      relationships         |   |            | 4,171  |             | 14–16      years |
| Other                               |   |            | 15     |             | 3      years |
| Identifiable      intangible assets |   |            | 6,583  |             |   |
| Developed      technology           |   |            | 532    |             | 3–10      years |

| THOMSON REUTERS  | ANNUAL      REPORT 2008 |
|----------------------------|-------------------------|

----

|                    |   | Balance      at      |   |   | Additions            |   |   |     |   |   |        |   |   | Balance      at |   |
|-------------------------|--------|----------------------|--------|--------|----------------------|--------|--------|----------|--------|--------|-------------|--------|--------|-----------------|--------|
| Type      of Cost       |   | January      1, 2008 |   |   | Acquisition-related1 |   |   | Charges2 |   |   | Utilization |   |   | Translation     |   |   | December 31,      2008 |   |
| Severance               |   |                 | 12     |   |                 |   | 120    |     |   |   | 69          |   |   |            | (109   | ) |   |   | (17 | ) |   |   | 75 |   |
| Lease      cancellation |   |                 | -      |   |                 |   | 11     |     |   |   | -           |   |   |            | -      |   |   |   | - |   |   |   | 11 |   |
| Total                   |   |                 | 12     |   |                 |   | 131    |     |   |   | 69          |   |   |            | (109   | ) |   |   | (17 | ) |   |   | 86 |   |

| 1 | Included      in goodwill |
|---|---------------------------|

| 2 | Included      in cost of sales, selling, marketing, general and administrative      expenses. |
|---|-----------------------------------------------------------------------------------------------|

|                                                             |   | Year      ended December 31 |   |
|------------------------------------------------------------------|--------|-----------------------------|--------|
|                                                             |   | 2008                        |   |   | 2007 |   |   | 2006 |   |
| Net      gains due to changes in foreign currency exchange rates |   |                        | 230    |   |   |   | –– |   |   |   | –– |   |
| Net      losses on freestanding derivative instruments           |   |                        | (7     | ) |   |   | (49 | ) |   |   | – |   |
| Net      gains on disposals of businesses and investments        |   |                        | 35     |   |   |   | 8 |   |   |   | 47 |   |
| Equity      in (losses)/earnings of unconsolidated affiliates    |   |                        | (1     | ) |   |   | 4 |   |   |   | – |   |
| Other      income (expense), net                                 |   |                        | 47     |   |   |   | 3 |   |   |   | (46 | ) |
| Net      other income (expense)                                  |   |                        | 304    |   |   |   | (34 | ) |   |   | 1 |   |

| THOMSON REUTERS  | ANNUAL      REPORT 2008 |
|----------------------------|-------------------------|

----

|                                             |   | Year      ended December 31 |   |
|--------------------------------------------------|--------|----------------------------------|--------|
|                                             |   | 2008                             |   |   | 2007 |   |   | 2006 |   |
| Interest      income                             |   |                             | 164    |   |   |   | 230 |   |   |   | 24 |   |
| Interest      expense on short-term indebtedness |   |                             | (9     | ) |   |   | (19 | ) |   |   | (26 | ) |
| Interest      expense on long-term debt          |   |                             | (379   | ) |   |   | (223 | ) |   |   | (219 | ) |
|                                             |   |                             | (224   | ) |   |   | (12 | ) |   |   | (221 | ) |

|                              |   | Year      ended December 31 |   |
|-----------------------------------|--------|----------------------------------|--------|
|                              |   | 2008                             |   |   | 2007 |   |   | 2006 |   |
| Canada                            |   |                             | (436   | ) |   |   | (206 | ) |   |   | (242 | ) |
| U.S.      and other jurisdictions |   |                             | 2,209  |   |   |   | 1,457 |   |   |   | 1,270 |   |
| Total      earnings before taxes  |   |                             | 1,773  |   |   |   | 1,251 |   |   |   | 1,028 |   |

|                                    |   | Year      ended December 31 |    |
|-----------------------------------------|--------|----------------------------------|---------|
|                                    |   | 2008                             |    |   | 2007 |   |   | 2006 |   |
| Canada:                                 |   |                             |    |   |   |   |   |   |   |
| Current                                 |   |                             | 8       |   |   |   | 1 |   |   |  1 |   |
| Deferred                                |   |                             | – |   |   |   | (46 | ) |   |   | (20 | ) |
| Total      Canadian                     |   |                             | 8       |   |   |   | (45 | ) |   |   | (19 | ) |
| U.S.      and other jurisdictions:      |   |                             |    |   |   |   |   |   |   |   |   |   |
| Current                                 |   |                             | 311     |   |   |   | 278 |   |   |   | 236 |   |
| Deferred                                |   |                             | 32      |   |   |   | (78 | ) |   |   | (101 | ) |
| Total      U.S. and other jurisdictions |   |                             | 343     |   |   |   | 200 |   |   |   | 135 |   |
| Total      worldwide                    |   |                             | 351     |   |   |   | 155 |   |   |   | 116 |   |

|                                       |   |   |   |   |   |   |
|--------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                       |   | 2008   |   |   | 2007   |   |
| Accrued      expenses                      |   |   | 153    |   |   |   | 182 |   |
| Deferred      and stock-based compensation |   |   | 153    |   |   |   | 136 |   |
| Accounts      receivable allowances        |   |   | 45     |   |   |   | 27 |   |
| Tax      losses and credits                |   |   | 1,756  |   |   |   | 1,013 |   |
| Other                                      |   |   | 208    |   |   |   | 81 |   |
| Total      deferred tax asset              |   |   | 2,315  |   |   |   | 1,439 |   |
| Valuation      allowance                   |   |   | (1,395 | )      |   |   | (395 | ) |
| Net      deferred tax asset                |   |   | 920    |   |   |   | 1,044 |   |
| Intangible      assets                     |   |   | (2,942 | )      |   |   | (1,184 | ) |
| Other      long-lived assets1              |   |   | (276   | )      |   |   | (36 | ) |
| Financial      instruments                 |   |   | (130   | )      |   |   | (539 | ) |
| Pension                                    |   |   | (45    | )      |   |   | (130 | ) |
| Other                                      |   |   | (38    | )      |   |   | – |   |
| Total      deferred tax liability          |   |   | (3,431 | )      |   |   | (1,889 | ) |
| Net      deferred tax liability            |   |   | (2,511 | )      |   |   | (845 | ) |

| 1 | Other      long-lived assets include computer hardware and other property and      computer software. |
|---|-------------------------------------------------------------------------------------------------------|

| THOMSON REUTERS  | ANNUAL      REPORT 2008 |
|----------------------------|-------------------------|

----

|                                                                                           |   |   |    |   |   |   |
|------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                                           |   | 2008   |    |   | 2007   |   |
| Balance      at beginning of year                                                              |   |   | 395     |   |   |   | 441 |   |
| Additions      due to losses with no benefit                                                   |   |   | 151     |   |   |   | 7 |   |
| Prior year Canadian net operating      losses with no benefit1                                 |   |   | – |   |   |   | 107 |   |
| Releases      of valuation allowances to income                                                |   |   | (18     | )      |   |   | (21 | ) |
| Increase (reduction) due to      change in deferred tax liability related to debt instruments2 |   |   | 250     |   |   |   | (244 | ) |
| Acquisitions                                                                                   |   |   | 1,034   |   |   |   | – |   |
| Translation                                                                                    |   |   | (370    | )      |   |   | 113 |   |
| Other      items                                                                               |   |   | (47     | )      |   |   | (8 | ) |
| Balance      at end of year                                                                    |   |   | 1,395   |   |   |   | 395 |   |

| 1 | Recognition      results from a 2007 change in taxlaw. |
|---|--------------------------------------------------------|

| 2 | Canadian      tax losses are first offset by deferred tax liabilities not related to      indefinite lived intangible assets before computing the required valuation      allowance. The deferred tax liability decreased in 2008 (increased in      2007) from the revaluation of debt and currency swaps. As the deferred tax      liability decreased, the requirement for the valuation allowance increased      by the same amount |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                             |   |   |          |   |   |   |   |   |   |
|--------------------------------------------------------------------------------------------------|--------|--------|---------------|--------|--------|--------|--------|--------|--------|
|                                                                                             |   | 2008   |          |   | 2007   |   |   | 2006   |   |
| Earnings      before taxes                                                                       |   |   | 1,773         |   |   |   | 1,251  |   |   |   | 1,028 |   |
| Income      taxes at the Canadian corporate tax rate of 32.8% (2007 and 2006 –      35.4%) |   |   | 582           |   |   |   | 443    |   |   |   | 364 |   |
| Differences      attributable to:                                                                |   |   |          |   |   |   |   |   |   |   |   |   |
| Effect      of income taxes recorded at rates different from the Canadian tax      rate          |   |   | (416          | )      |   |   | (302   | )      |   |   | (276 | ) |
| Additions      to valuation allowance due to losses with no benefit                              |   |   | 151           |   |   |   | 7      |   |   |   | 68 |   |
| Releases      of valuation allowances to income                                                  |   |   | (18           | )      |   |   | (21    | )      |   |   | (26 | ) |
| Tax      on debt instruments 1                                                                   |   |   |  – |   |   |   | 42     |   |   |   | – |   |
| Impact      of tax law changes                                                                   |   |   | (3            | )      |   |   | (14    | )      |   |   | – |   |
| Net      change to contingent tax liabilities                                                    |   |   | 53            |   |   |   | 14     |   |   |   | (5 | ) |
| Other,      net                                                                                  |   |   | 2             |   |   |   | (14    | )      |   |   | (9 | ) |
| Income      tax provision on continuing operations                                               |   |   | 351           |   |   |   | 155    |   |   |   | 116 |   |

| 1 | Represents      tax on settlement of certain debt instruments for which there is no      corresponding pre-tax income statementgain. |
|---|--------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                                                  |   | 2008   |   |   | 2007   |   |
|-----------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Balance      at beginning of year                                     |   |   | 150    |   |   |   | 205 |   |
| Additions      based upon tax provision related to current year       |   |   | 57     |   |   |   | 14 |   |
| Additions      for tax positions of prior years                       |   |   | 1      |   |   |   | 6 |   |
| Reductions      for tax positions of prior years                      |   |   | (5     | )      |   |   | (16 | ) |
| Acquisitions                                                          |   |   | 194    |   |   |   | - |   |
| Settlements                                                           |   |   | (10    | )      |   |   | (11 | ) |
| Reductions      due to translation, disposal of businesses, and other |   |   | (21    | )      |   |   | (48 | ) |
| Balance      at end of year                                           |   |   | 366    |   |   |   | 150 |   |

|                                               |              |
|----------------------------------------------------|-------------------|
| Jurisdiction                                       | Tax      years    |
| Canada      – Federal and Ontario provincial | 1997      to 2008 |
| United      States – Federal                 | 2003      to 2008 |
| United      Kingdom                                | 2006      to2008  |

| Ÿ | Thomson      Learning’s higher education, careers and library reference businesses for      gross proceeds of approximately $7.6 billion and a post-tax gain of $2.7      billion; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ÿ | NETg,      a leading provider of continuing corporate education and training, for      approximately $270 million and a post-tax loss of $10 million;      and |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ÿ | Prometric,      a provider of assessment services, for $310 million in cash and a 6%      promissory note for approximately $79 million due in 2014. The promissory      note was reflected in the financial statements at its estimated fair value      of approximately $60 million to account for the difference between the      market and stated rates of interest. The Company recognized a post-tax      gain of $18 million related to thistransaction. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| Ÿ | GEE,      a regulatory information business in the United Kingdom within the Legal      segment; |
|--------|--------------------------------------------------------------------------------------------------|

| Ÿ | Fakta,      a regulatory information business in Sweden within the Legal      segment; |
|--------|----------------------------------------------------------------------------------------|

| Ÿ | New      England Institutional Review Board, an ethical review board that monitors      clinical research involving human subjects within the Healthcare      segment; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ÿ | CenterWatch,      a provider of clinical research information within the Healthcare      segment; |
|--------|---------------------------------------------------------------------------------------------------|

| Ÿ | The      business information and news operations within the Legal segment, which      included the Company’s Market Research and NewsEdge      businesses; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ÿ | IOB,      a Brazilian regulatory business within the Legal  segment; |
|--------|----------------------------------------------------------------------|

| Ÿ | Thomson      Medical Education, a provider of sponsored medical education within the      Healthcare segment; and |
|--------|-------------------------------------------------------------------------------------------------------------------|

| Ÿ | The      North American operations of Thomson Education Direct, a consumer-based      distance learning career school. |
|--------|------------------------------------------------------------------------------------------------------------------------|

| Ÿ | Lawpoint      Pty Limited, an Australian provider of print and online regulatory      information services; and Law Manager, Inc., a software and services      provider, which were both within the Legal  segment; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ÿ | Peterson’s,      a college preparatory guide, and K.G. Saur, a German publisher of      biographical and bibliographical reference titles serving the library and      academic communities; and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ÿ | American      Health Consultants, a medical newsletter publisher and medical education      provider within the Healthcaresegment. |
|--------|------------------------------------------------------------------------------------------------------------------------------------|

|                                                                  |   |                              |    |   |     |   |   |       |   |   |   |   |   |   |    |
|-----------------------------------------------------------------------|--------|-----------------------------------|---------|--------|----------|--------|--------|------------|--------|--------|--------|--------|--------|--------|---------|
|                                                                  |   | Year      ended December 31, 2007 |    |
|                                                                  |   | Legal                             |    |   | Learning |   |   | Healthcare |   |   | Other  |   |   | Total  |    |
| Revenues      from discontinued operations                            |   |                              | 66      |   |     |   | 968    |       |   |   | 43     |   |   |   | – |   |   |   | 1,077 |   |
| Earnings      (loss) from discontinued operations before income taxes |   |                              | (13     | )      |     |   | 25     |       |   |   | (3     | )      |   |   | (1      | ) |   |   | 8 |   |
| Gain      (loss) on sale of discontinued operations                   |   |                              | (5      | )      |     |   | 3,699  |       |   |   | 138    |   |   |   | – |   |   |   | 3,832 |   |
| Income      taxes                                                     |   |                              | 18      |   |     |   | (949   | )          |   |   | (11    | )      |   |   | 10      |   |   |   | (932 | ) |
| Earnings      from discontinued operations                            |   |                              | – |   |     |   | 2,775  |       |   |   | 124    |   |   |   | 9       |   |   |   | 2,908 |   |

|                                                                  |   |                              |   |
|-----------------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                                  |   | Year      ended December 31, 2006 |   |
|                                                                  |   | Legal                             |   |   | Learning |   |   | Healthcare |   |   | Other |   |   | Total |   |
| Revenues      from discontinued operations                            |   |                              | 131    |   |   |   | 2,393 |   |   |   | 129 |   |   |   | – |   |   |   | 2,653 |   |
| Earnings      (loss) from discontinued operations before income taxes |   |                              | (17    | ) |   |   | 237 |   |   |   | 27 |   |   |   | – |   |   |   | 247 |   |
| Gain      on sale of discontinued operations                          |   |                              | 4      |   |   |   | 3 |   |   |   | 40 |   |   |   | 5 |   |   |   | 52 |   |
| Income      taxes                                                     |   |                              | 10     |   |   |   | (84 | ) |   |   | (24 | ) |   |   | 7 |   |   |   | (91 | ) |
| Earnings      (loss) from discontinued operations                     |   |                              | (3     | ) |   |   | 156 |   |   |   | 43 |   |   |   | 12 |   |   |   | 208 |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                                                                     |   |   |   |   |   |   |   |   |   |
|------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                     |   | 2008   |   |   | 2007   |   |   | 2006   |   |
| Earnings      from continuing operations                                                 |   |   | 1,405  |   |   |   | 1,096  |   |   |   | 912 |   |
| Dividends      declared on preference shares                                             |   |   | (5     | )      |   |   | (6     | )      |   |   | (5 | ) |
| Earnings      from continuing operations attributable to common and ordinary      shares |   |   | 1,400  |   |   |   | 1,090  |   |   |   | 907 |   |

|                                                                   |   |   |        |   |   |   |        |   |   |
|------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|--------|
|                                                                   |   | 2008   |        |   | 2007   |   |        | 2006   |   |
| Weighted-average      number of common and ordinary shares outstanding |   |   | 769,920,781 |   |   |   | 640,304,221 |   |   |   | 643,454,420 |   |
| Vested      deferred share units                                       |   |   | 916,831     |   |   |   | 853,497     |   |   |   | 677,104 |   |
| Basic                                                                  |   |   | 770,837,612 |   |   |   | 641,157,718 |   |   |   | 644,131,524 |   |
| Effect      of stock and other incentive plans                         |   |   | 4,341,415   |   |   |   | 3,273,078   |   |   |   | 1,894,821 |   |
| Diluted                                                                |   |   | 775,179,027 |   |   |   | 644,430,796 |   |   |   | 646,026,345 |   |

|                            |   |   |   |   |   |   |
|---------------------------------|--------|--------|--------|--------|--------|--------|
|                            |   | 2008   |   |   | 2007   |   |
| Current                         |   |   | 1,350  |   |   |   | 1,252 |   |
| Past      due 0–30 days   |   |   | 192    |   |   |   | 144 |   |
| Past      due 31–60 days  |   |   | 167    |   |   |   | 93 |   |
| Past      due 61–90 days  |   |   | 60     |   |   |   | 55 |   |
| Past      due 91–180 days |   |   | 70     |   |   |   | 64 |   |
| Past      due >181 days      |   |   | 65     |   |   |   | 38 |   |
| Balance      at end of year     |   |   | 1,904  |   |   |   | 1,646 |   |

|                              |   |   |   |   |   |   |
|-----------------------------------|--------|--------|--------|--------|--------|--------|
|                              |   | 2008   |   |   | 2007   |   |
| Balance      at beginning of year |   |   | 81     |   |   |   | 97 |   |
| Charges                           |   |   | 187    |   |   |   | 164 |   |
| Write-offs                        |   |   | (157   | )      |   |   | (180 | ) |
| Other                             |   |   | 13     |   |   |   | – |   |
| Balance      at end of year       |   |   | 124    |   |   |   | 81 |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                           |   |   |   |   |         |   |   |              |   |
|------------------------------------------------|--------|--------|--------|--------|--------------|--------|--------|-------------------|--------|
|                                           |   |   |   |   |         |   |   | Net      computer |   |
|                                           |   |   |   |   |         |   |   | hardware          |   |
|                                           |   |   |   |   | Accumulated  |   |   | and      other    |   |
| As of December 31, 2008                        |   | Cost   |   |   | depreciation |   |   | property          |   |
| Computer      hardware                         |   |   | 1,541  |   |         |   | (921   | )                 |   |   | 620 |   |
| Land,      buildings and building improvements |   |   | 982    |   |         |   | (262   | )                 |   |   | 720 |   |
| Furniture,      fixtures and equipment         |   |   | 475    |   |         |   | (260   | )                 |   |   | 215 |   |
|                                           |   |   | 2,998  |   |         |   | (1,443 | )                 |   |   | 1,555 |   |

|                                           |   |   |   |   |         |   |   |              |   |
|------------------------------------------------|--------|--------|--------|--------|--------------|--------|--------|-------------------|--------|
|                                           |   |   |   |   |         |   |   | Net      computer |   |
|                                           |   |   |   |   |         |   |   | hardware          |   |
|                                           |   |   |   |   | Accumulated  |   |   | and      other    |   |
| As of December 31, 2007                        |   | Cost   |   |   | depreciation |   |   | property          |   |
| Computer      hardware                         |   |   | 1,018  |   |         |   | (697   | )                 |   |   | 321 |   |
| Land,      buildings and building improvements |   |   | 523    |   |         |   | (234   | )                 |   |   | 289 |   |
| Furniture,      fixtures and equipment         |   |   | 331    |   |         |   | (210   | )                 |   |   | 121 |   |
|                                           |   |   | 1,872  |   |         |   | (1,141 | )                 |   |   | 731 |   |

|                                       |   |   |   |   |         |   |   |              |   |
|--------------------------------------------|--------|--------|--------|--------|--------------|--------|--------|-------------------|--------|
|                                       |   |   |   |   | Accumulated  |   |   | Net      computer |   |
| As      of December 31, 2008               |   | Cost   |   |   | depreciation |   |   | software          |   |
| Capitalized      software for internal use |   |   | 2,972  |   |         |   | (1,798 | )                 |   |   | 1,174 |   |
| Capitalized      software to be marketed   |   |   | 348    |   |         |   | (224   | )                 |   |   | 124 |   |
|                                       |   |   | 3,320  |   |         |   | (2,022 | )                 |   |   | 1,298 |   |

|                                       |   |   |   |   |         |   |   |              |   |
|--------------------------------------------|--------|--------|--------|--------|--------------|--------|--------|-------------------|--------|
|                                       |   |   |   |   | Accumulated  |   |   | Net      computer |   |
| As      of December 31, 2007               |   | Cost   |   |   | depreciation |   |   | software          |   |
| Capitalized      software for internal use |   |   | 2,040  |   |         |   | (1,419 | )                 |   |   | 621 |   |
| Capitalized      software to be marketed   |   |   | 266    |   |         |   | (166   | )                 |   |   | 100 |   |
|                                       |   |   | 2,306  |   |         |   | (1,585 | )                 |   |   | 721 |   |

|                          |   |         |   |   |         |   |    |         |   |
|-------------------------------|--------|--------------|--------|--------|--------------|--------|---------|--------------|--------|
|                          |   | Gross        |   |   |         |   |    | Net          |   |
|                          |   | Identifiable |   |   |         |   |    | identifiable |   |
|                          |   | intangible   |   |   | Accumulated  |   |    | intangible   |   |
| As of December 31, 2008       |   | assets       |   |   | amortization |   |    | assets       |   |
| Finite      useful lives:     |   |         |   |   |         |   |    |         |   |
| Trade      names              |   |         | 264    |   |         |   | (129    | )            |   |   | 135 |   |
| Customer      relationships   |   |         | 6,023  |   |         |   | (990    | )            |   |   | 5,033 |   |
| Databases      and content    |   |         | 841    |   |         |   | (458    | )            |   |   | 383 |   |
| Publishing      rights        |   |         | 1,192  |   |         |   | (645    | )            |   |   | 547 |   |
| Other                         |   |         | 108    |   |         |   | (68     | )            |   |   | 40 |   |
|                          |   |         | 8,428  |   |         |   | (2,290  | )            |   |   | 6,138 |   |
| Indefinite      useful lives: |   |         |   |   |         |   |    |         |   |   |   |   |
| Trade names                   |   |         | 2,458  |   |         |   | – |         |   |   | 2,458 |   |
|                          |   |         | 10,886 |   |         |   | (2,290  | )            |   |   | 8,596 |   |

|                          |   |         |   |   |         |   |    |         |   |
|-------------------------------|--------|--------------|--------|--------|--------------|--------|---------|--------------|--------|
|                          |   | Gross        |   |   |         |   |    | Net          |   |
|                          |   | identifiable |   |   |         |   |    | identifiable |   |
|                          |   | intangible   |   |   | Accumulated  |   |    | intangible   |   |
| As of December 31, 2007       |   | assets       |   |   | amortization |   |    | assets       |   |
| Finite      useful lives:     |   |         |   |   |         |   |    |         |   |
| Trade      names              |   |         | 250    |   |         |   | (121    | )            |   |   | 129 |   |
| Customer      relationships   |   |         | 2,238  |   |         |   | (804    | )            |   |   | 1,434 |   |
| Databases      and content    |   |         | 882    |   |         |   | (465    | )            |   |   | 417 |   |
| Publishing      rights        |   |         | 1,275  |   |         |   | (637    | )            |   |   | 638 |   |
| Other                         |   |         | 106    |   |         |   | (61     | )            |   |   | 45 |   |
|                          |   |         | 4,751  |   |         |   | (2,088  | )            |   |   | 2,663 |   |
| Indefinite      useful lives: |   |         |   |   |         |   |    |         |   |   |   |   |
| Trade names                   |   |         | 775    |   |         |   | – |         |   |   | 775 |   |
|                          |   |         | 5,526  |   |         |   | (2,088  | )            |   |   | 3,438 |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                     |   |   |    |   |           |   |    |       |   |   |       |   |   |           |    |   |   |   |
|------------------------------------------|--------|--------|---------|--------|----------------|--------|---------|------------|--------|--------|------------|--------|--------|----------------|---------|--------|--------|--------|
|                                     |   |   |    |   | Tax      & |   |    |       |   |   |       |   |   |           |    |   |   |   |
|                                     |   | Legal  |    |   | Accounting     |   |    | Scientific |   |   | Healthcare |   |   | Markets      1 |    |   | Total  |   |
| Balance at December 31,2006              |   |   | 2,932   |   |           |   | 536     |       |   |   | 655        |   |   |           | 357     |   |   |   | 2,058 |   |   |   | 6,538 |   |
| Acquisitions                             |   |   | 24      |   |           |   | 193     |       |   |   | 37         |   |   |           | – |   |   |   | 14 |   |   |   | 268 |   |
| Adjusted      purchase price allocations |   |   | 8       |   |           |   | – |       |   |   | (2         | )      |   |           | 23      |   |   |   | (2 | ) |   |   | 27 |   |
| Translation and other, net               |   |   | 10      |   |           |   | 1       |       |   |   | 15         |   |   |           | – |   |   |   | 76 |   |   |   | 102 |   |
| Balance at December 31,2007              |   |   | 2,974   |   |           |   | 730     |       |   |   | 705        |   |   |           | 380     |   |   |   | 2,146 |   |   |   | 6,935 |   |
| Reuters      acquisition                 |   |   | – |   |           |   | – |       |   |   | –    |   |   |           | – |   |   |   | 13,419 |   |   |   | 13,419 |   |
| All      other acquisitions              |   |   | 31      |   |           |   | 129     |       |   |   | –    |   |   |           | – |   |   |   | 5 |   |   |   | 165 |   |
| Adjusted      purchase price allocations |   |   | – |   |           |   | (20     | )          |   |   | 12         |   |   |           | (1      | )      |   |   | (1 | ) |   |   | (10 | ) |
| Translation and other, net               |   |   | (51     | )      |           |   | – |       |   |   | (44        | )      |   |           | – |   |   |   | (1,066 | ) |   |   | (1,161 | ) |
| Balance at December 31,2008              |   |   | 2,954   |   |           |   | 839     |       |   |   | 673        |   |   |           | 379     |   |   |   | 14,503 |   |   |   | 19,348 |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                            |   | Cash          |    |   | Trade          |   |    | Other      financial |   |   | Financial            |   |   |   |    |
|-------------------------------------------------|--------|---------------|---------|--------|----------------|--------|---------|----------------------|--------|--------|----------------------|--------|--------|--------|---------|
|                                            |   | and      cash |    |   | and      other |   |    | assets      and      |   |   | liabilities      and |   |   |   |    |
| At December      31, 2008                       |   | equivalents   |    |   | receivables    |   |    | derivatives          |   |   | derivatives          |   |   | Total  |    |
| Loans      and receivables                      |   |          | – |   |           |   | 1,974   |                 |   |   | –              |   |   |   | – |   |   |   | 1,974 |   |
| Assets      at fair value through earnings      |   |          | 841     |   |           |   | – |                 |   |   | 153                  |   |   |   | – |   |   |   | 994 |   |
| Liabilities      at fair value through earnings |   |          | – |   |           |   | – |                 |   |   | –              |   |   |   | (28     | ) |   |   | (28 | ) |
| Derivatives      used for hedging               |   |          | – |   |           |   | – |                 |   |   | 170                  |   |   |   | (241    | ) |   |   | (71 | ) |
| Available      for sale                         |   |          | – |   |           |   | – |                 |   |   | 18                   |   |   |   | – |   |   |   | 18 |   |
| Other financial liabilities                     |   |          | – |   |           |   | – |                 |   |   | –              |   |   |   | (10,363 | ) |   |   | (10,363 | ) |
| Total                                           |   |          | 841     |   |           |   | 1,974   |                 |   |   | 341                  |   |   |   | (10,632 | ) |   |   | (7,476 | ) |

|                                            |   | Cash          |    |   | Trade          |   |    | Other      financial |   |   | Financial            |   |   |   |    |
|-------------------------------------------------|--------|---------------|---------|--------|----------------|--------|---------|----------------------|--------|--------|----------------------|--------|--------|--------|---------|
|                                            |   | and      cash |    |   | and      other |   |    | assets      and      |   |   | liabilities      and |   |   |   |    |
| At December      31, 2007                       |   | equivalents   |    |   | receivables    |   |    | derivatives          |   |   | derivatives          |   |   | Total  |    |
| Loans      and receivables                      |   |          | – |   |           |   | 1,686   |                 |   |   | –              |   |   |   | – |   |   |   | 1,686 |   |
| Assets      at fair value through earnings      |   |          | 7,497   |   |           |   | – |                 |   |   | 27                   |   |   |   | – |   |   |   | 7,524 |   |
| Liabilities      at fair value through earnings |   |          | – |   |           |   | – |                 |   |   | –              |   |   |   | – |   |   |   | – |   |
| Derivatives      used for hedging               |   |          | – |   |           |   | – |                 |   |   | 427                  |   |   |   | (12     | ) |   |   | 415 |   |
| Available      for sale                         |   |          | – |   |           |   | – |                 |   |   | 3                    |   |   |   | – |   |   |   | 3 |   |
| Other financial liabilities                     |   |          | – |   |           |   | – |                 |   |   | –              |   |   |   | (6,565  | ) |   | (6,565 | ) |
| Total                                           |   |          | 7,497   |   |           |   | 1,686   |                 |   |   | 457                  |   |   |   | (6,577  | ) |   |   | 3,063 |   |

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                        |   | Carrying      amount |   |   | Fair      value |   |
|---------------------------------------------|--------|----------------------|--------|--------|-----------------|--------|
|                                        |   | Primary      debt    |   |   | Derivative      |   |   | Primary      debt |   |   | Derivative |   |
| As of December 31, 2008                     |   | instruments          |   |   | instruments     |   |   | instruments |   |   | instruments |   |
| Bank      and other                         |   |                 | 41     |   |            |   | – |   |   |   | 41 |   |   |   | – |   |
| 4.35% Notes,      due 2009             |   |                 | 246    |   |            |   | – |   |   |   | 248 |   |   |   | – |   |
| 4.50% Notes,      due 2009             |   |                 | 205    |   |            |   | (22 | ) |   |   | 205 |   |   |   | (22 | ) |
| 5.20% Notes,      due 2014             |   |                 | 514    |   |            |   | (44 | ) |   |   | 468 |   |   |   | (44 | ) |
| 5.25% Notes,      due 2011             |   |                 | 522    |   |            |   | 70 |   |   |   | 489 |   |   |   | 70 |   |
| 5.70% Notes,      due 2015             |   |                 | 491    |   |            |   | 124 |   |   |   | 473 |   |   |   | 124 |   |
| 6.85% Medium-term      notes, due 2011 |   |                 | 327    |   |            |   | (86 | ) |   |   | 338 |   |   |   | (86 | ) |
| 4.625% Notes,      due 2010            |   |                 | 735    |   |            |   | 26 |   |   |   | 698 |   |   |   | 26 |   |
| 4.25% Notes,      due 2009             |   |                 | 200    |   |            |   | – |   |   |   | 198 |   |   |   | – |   |
| 4.75% Notes,      due 2010             |   |                 | 250    |   |            |   | – |   |   |   | 243 |   |   |   | – |   |
| 6.20% Notes,      due 2012             |   |                 | 700    |   |            |   | – |   |   |   | 681 |   |   |   | – |   |
| 5.25% Notes,      due 2013             |   |                 | 250    |   |            |   | – |   |   |   | 228 |   |   |   | – |   |
| 5.95% Notes,      due 2013             |   |                 | 750    |   |            |   | – |   |   |   | 708 |   |   |   | – |   |
| 5.70% Notes,      due 2014             |   |                 | 800    |   |            |   | – |   |   |   | 728 |   |   |   | – |   |
| 6.50% Notes,      due 2018             |   |                 | 1,000  |   |            |   | – |   |   |   | 912 |   |   |   | – |   |
| 5.50% Debentures,      due 2035        |   |                 | 400    |   |            |   | – |   |   |   | 289 |   |   |   | – |   |
| 7.74% Private placement, due      2010      |   |                 | 75     |   |            |   | – |   |   |   | 76 |   |   |   | – |   |
|                                        |   |                 | 7,506  |   |            |   | 68 |   |   |   | 7,023 |   |   |   | 68 |   |
| Current portion                             |   |                 | (672   | )      |            |   | 22 |   |   |   |   |   |   |   |   |   |
|                                        |   |                 | 6,834  |   |            |   | 90 |   |   |   |   |   |   |   |   |   |

|                                   |   | Carrying      amount |   |   | Fair      value |   |
|----------------------------------------|--------|----------------------|--------|--------|-----------------|--------|
|                                   |   | Primary      debt    |   |   | Derivative      |   |   | Primary      debt |   |   | Derivative |   |
| As of December 31, 2007                |   | instruments          |   |   | instruments     |   |   | instruments |   |   | instruments |   |
| Bank      and other                    |   |                 | 16     |   |            |   | – |   |   |   | 16 |   |   |   | – |   |
| 4.35%      Notes, due 2009             |   |                 | 306    |   |            |   | (60 | ) |   |   | 302 |   |   |   | (60 | ) |
| 4.50%      Notes, due 2009             |   |                 | 255    |   |            |   | (70 | ) |   |   | 255 |   |   |   | (70 | ) |
| 5.20%      Notes, due 2014             |   |                 | 616    |   |            |   | (131 | ) |   |   | 604 |   |   |   | (131 | ) |
| 6.85%      Medium-term notes, due 2011 |   |                 | 408    |   |            |   | (161 | ) |   |   | 427 |   |   |   | (161 | ) |
| 5.75%      Notes, due 2008             |   |                 | 400    |   |            |   | – |   |   |   | 400 |   |   |   | – |   |
| 4.25%      Notes, due 2009             |   |                 | 200    |   |            |   | – |   |   |   | 199 |   |   |   | – |   |
| 4.75%      Notes, due 2010             |   |                 | 250    |   |            |   | – |   |   |   | 251 |   |   |   | – |   |
| 6.20%      Notes, due 2012             |   |                 | 700    |   |            |   | – |   |   |   | 729 |   |   |   | – |   |
| 5.25%      Notes, due 2013             |   |                 | 250    |   |            |   | – |   |   |   | 248 |   |   |   | – |   |
| 5.70%      Notes, due 2014             |   |                 | 800    |   |            |   | – |   |   |   | 808 |   |   |   | – |   |
| 5.50%      Debentures, due 2035        |   |                 | 400    |   |            |   | – |   |   |   | 356 |   |   |   | – |   |
| 7.74% Private placement, due      2010 |   |                 | 75     |   |            |   | – |   |   |   | 81 |   |   |   | – |   |
|                                   |   |                 | 4,676  |   |            |   | (422 | ) |   |   | 4,676 |   |   |   | (422 | ) |
| Current      portion                   |   |                 | (412   | )      |            |   | – |   |   |   |   |   |   |   |   |   |
|                                   |   |                 | 4,264  |   |            |   | (422 | ) |   |   |   |   |   |   |   |   |

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                         |                      |                                    | Year      of |   | Principal |   |
|------------------------------|---------------------------|-----------------------------------------|--------------|--------|-----------|--------|
| Received                     | Paid                      | Hedged risk                             | maturity     |   | amount    |   |
| 2008      fair value hedges: |                      |                                    |         |   |      |   |
| Canadian      dollar fixed   | U.S.      dollar floating | Interest      rate and foreign exchange | 2011         |   |      | 593    |   |
| Canadian      dollar fixed   | U.S.      dollar floating | Interest      rate and foreign exchange | 2009         |   |      | 184    |   |
| Canadian      dollar fixed   | U.S.      dollar floating | Interest      rate and foreign exchange | 2014         |   |      | 123    |   |
| Euro      fixed              | U.S.      dollar floating | Interest      rate and foreign exchange | 2010         |   |      | 762    |   |
|                         |                      |                                    |         |   |      |   |   |
| 2007      fair value hedges: |                      |                                    |         |   |      |   |   |
| Canadian      dollar fixed   | U.S.      dollar floating | Interest      rate and foreign exchange | 2009         |   |      | 184    |   |
| Canadian dollar fixed        | U.S. dollar floating      | Interest rate and foreign      exchange | 2014         |   |      | 123    |   |

|                        |                   |                  | Year      of |   | Principal |   |
|-----------------------------|------------------------|-----------------------|--------------|--------|-----------|--------|
| Received                    | Paid                   | Hedged risk           | maturity     |   | amount    |   |
| 2008      cash flow hedges: |                   |                  |         |   |      |   |
| Canadian      dollar fixed  | U.S.      dollar fixed | Foreign      exchange | 2015         |   |      | 593    |   |
| Canadian      dollar fixed  | U.S.      dollar fixed | Foreign      exchange | 2011         |   |      | 254    |   |
| Canadian      dollar fixed  | U.S.      dollar fixed | Foreign      exchange | 2014         |   |      | 246    |   |
| Canadian      dollar fixed  | U.S.      dollar fixed | Foreign      exchange | 2009         |   |      | 246    |   |
| Canadian      dollar fixed  | U.S.      dollar fixed | Foreign      exchange | 2014         |   |      | 123    |   |
|                        |                   |                  |         |   |      |   |   |
| 2007      cash flow hedges: |                   |                  |         |   |      |   |   |
| Canadian      dollar fixed  | U.S.      dollar fixed | Foreign      exchange | 2011         |   |      | 254    |   |
| Canadian      dollar fixed  | U.S.      dollar fixed | Foreign      exchange | 2014         |   |      | 246    |   |
| Canadian      dollar fixed  | U.S.      dollar fixed | Foreign      exchange | 2009         |   |      | 246    |   |
| Canadian dollar fixed       | U.S. dollar fixed      | Foreign exchange      | 2014         |   |      | 123    |   |

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                 |   | Before      currency hedging |   |   | After      currency hedging |
|----------------------|--------|------------------------------|--------|--------|-----------------------------|
|                 |   | arrangements                 |   |   | arrangements 1              |
|                 |   | 2008                         |   |   | 2007                        |   |   | 2008 |   |   | 2007 |   |
| Canadian      dollar |   |                         | 2,306  |   |                        |   | 1,584 |   |   |   | – |   |   |   | – |   |
| U.S.      dollar     |   |                         | 4,437  |   |                        |   | 3,077 |   |   |   | 7,560 |   |   |   | 4,253 |   |
| Euro                 |   |                         | 735    |   |                        |   | – |   |   |   | – |   |   |   | – |   |
| Other currencies     |   |                         | 28     |   |                        |   | 15 |   |   |   | 28 |   |   |   | 15 |   |
|                 |   |                         | 7,506  |   |                        |   | 4,676 |   |   |   | 7,588 |   |   |   | 4,268 |   |

| 1 | Represents      net cash outflow upon maturity and, therefore, excludes fair value      adjustment of $14 million and $14 million at December 31, 2008      and 2007, respectively. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                       |   | 2009   |   |   | 2010   |   |   | 2011   |   |   | 2012 |   |   | 2013   |   |   | Thereafter |   |   | Total  |   |
|--------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------|--------|--------|--------|--------|--------|------------|--------|--------|--------|--------|
| Before      currency hedging arrangements  |   |   | 674    |   |   |   | 1,074  |   |   |   | 853  |   |   |   | 700    |   |       |   | 1,000  |   |   |   | 3,205 |   |   |   | 7,506 |   |
| After currency      hedging arrangements 1 |   |   | 653    |   |   |   | 1,101  |   |   |   | 850  |   |   |   | 700    |   |       |   | 1,000  |   |   |   | 3,284 |   |   |   | 7,588 |   |

| 1 | Represents      net cash outflow upon maturity and, therefore, excludes fair value      adjustment of $14 million and $14 million at December 31, 2008 and 2007,      respectively. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|             |   |   |   |   | Average  |   |   |   |   |   |   |   |   | Average  |   |   |   |   |
|------------------|--------|--------|--------|--------|----------|--------|--------|--------|--------|--------|--------|--------|--------|----------|--------|--------|--------|--------|
|             |   |   |   |   | interest |   |   | %      |   |   |   |   |   | interest |   |   | %      |   |
|             |   | 2008   |   |   | rate     |   |   | share  |   |   | 2007   |   |   | rate     |   |   | share  |   |
| Total      fixed |   |   | 5,923  |   |     |   | 5.8    | %      |   |   | 78     | %      |   |     | 3,951  |   |   |   | 5.5 | % |   |   | 93 | % |
| Total floating   |   |   | 1,665  |   |     |   | 4.0    | %      |   |   | 22     | %      |   |     | 317    |   |   |   | 5.2 | % |   |   | 7 | % |
|             |   |   | 7,588  |   |     |   | 5.4    | %      |   |   | 100    | %      |   |     | 4,268  |   |   |   | 5.5 | % |   |   | 100 | % |

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                                |   | Principal         |    |
|-----------------------------------------------------|--------|-------------------|---------|
|                                                |   | amount            |    |
|                                                |   | (millions      of |    |
| Notes offered                                       |   | dollars)          |    |
| U.S.      offering                                  |   |              |    |
| 5.95%      notes due 2013                           |   | US$750            |    |
| 6.50% notes due 2018                                |   | US$1,000          |    |
| Total U.S. dollar-denominated notes      issued     |   | US$1,750          |    |
| Canadian      offering                              |   |              |    |
| 5.25%      notes due 2011                           |   |              | C$600   |   |
| 5.70% notes due 2015                                |   |              | C$600   |   |
| Total Canadian dollar-denominated notes      issued |   |              | C$1,200 |   |

| • | a      revolving credit facility with £312 million outstanding, which was repaid      in April 2008; |
|---------|-----------------------------------------------------------------------------------------------------------|

| • | £63      million of commercial paper outstanding, which was repaid in the second      quarter of 2008; |
|---------|-------------------------------------------------------------------------------------------------------------|

| • | 500      million Euro principal amount of debentures due 2010, for which the      Company subsequently entered into cross-currency interest rate swap      agreements whereby these debentures will ultimately pay a floating rate      based on LIBOR on US$762 million; |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | 250      million Euro principal amount of floating rate notes which matured in      November 2008. The Company entered into a cross-currency interest rate      swap agreement whereby these notes were redeemed for US$398 million on      maturity; |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | 1      billion Japanese yen principal amount of bonds, which were repaid in June      2008; and |
|---------|-------------------------------------------------------------------------------------------------|

| • | certain      derivative instruments used by Reuters to hedge the above-mentioned      debentures and notes, which were settled in April  2008. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                                           |   |   | 10%      weakening in the US$ v. |   |
|----------------------------------------------------------------|--------|--------|----------------------------------|--------|
|                                                           |   |   |                             |   |   |   |   | Other |   |   |   |   |
| Increase/(decrease)      to earnings                           |   | £ |                             |   | € |   |   | currencies |   |   | Total |   |
| Impact      on earnings from financial assets and liabilities1 |   |   | (3                               | )      |   |   | (29 | ) |   |   | – |   |   |   | (32 | ) |
| Impact      on earnings from non-permanent intercompany loans  |   |   | 11                               |   |   |   | 58 |   |   |   | (46 | ) |   |   | 23 |   |
| Total      impact on earnings                                  |   |   | 8                                |   |   |   | 29 |   |   |   | (46 | ) |   |   | (9 | ) |

| 1 | Excludes      long-term debt which has been swapped into U.S. dollar      obligations. |
|---|----------------------------------------------------------------------------------------|

| • | Cash      investments are placed with high-quality financial institutions with      limited exposure to any one institution. At December 31, 2008, nearly      all cash and cash equivalents were held by institutions that were      rated at least AA–; |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Counterparties      to derivative contracts are major investment-grade international      financial institutions; and |
|---------|----------------------------------------------------------------------------------------------------------------------------|

| • | Credit      limits minimize exposure to any onecustomer. |
|---------|----------------------------------------------------------|

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                                                         |   | Thomson Reuters      Corporation common share capital |        |   | Thomson      Reuters PLC ordinary share capital |   |    | Series      II,cumulative    |   |   |                |   |   |                                   |    |
|------------------------------------------------------------------------------|--------|------------------------------------------------------------|-------------|--------|-----------------------------------------------------------|--------|---------|------------------------------|--------|--------|---------------------|--------|--------|----------------------------------------|---------|
|                                                                         |   | Number      ofcommon      shares                           |        |   | Statedcapital                                             |   |    | Number      ofordinaryshares |   |   | Stated      capital |   |   | redeemablepreferenceshare capital |    |   | Contributedsurplus |   |   | Totalcapital |   |
| Balance,      December 31, 2005                                         |   |                                                       | 648,948,992 |   |                                                      |   | 2,489   |                         |   |   | –             |   |   |                                   | – |   |   |   | 110 |   |   |   | 127 |   |   |   | 2,726 |   |
| Shares      issued under the Dividend Reinvestment Plan (“DRIP”) |   |                                                       | 347,840     |   |                                                      |   | 14      |                         |   |   | –             |   |   |                                   | – |   |   |   | – |   |   |   | – |   |   |   | 14 |   |
| Effect      of stock compensation plans                                      |   |                                                       | 1,820,781   |   |                                                      |   | 70      |                         |   |   | –             |   |   |                                   | – |   |   |   | – |   |   |   | 30 |   |   |   | 100 |   |
| Repurchases      of shares                                                   |   |                                                       | (10,680,600 | )      |                                                      |   | (41     | )                            |   |   | –             |   |   |                                   | – |   |   |   | – |   |   |   | – |   |   |   | (41 | ) |
| Balance,      December 31, 2006                                              |   |                                                       | 640,437,013 |   |                                                      |   | 2,532   |                         |   |   | –             |   |   |                                   | – |   |   |   | 110 |   |   |   | 157 |   |   |   | 2,799 |   |
| Shares      issued under DRIP                                                |   |                                                       | 385,233     |   |                                                      |   | 16      |                         |   |   | –             |   |   |                                   | – |   |   |   | – |   |   |   | – |   |   |   | 16 |   |
| Effect      of stock compensation plans                                      |   |                                                       | 2,031,207   |   |                                                      |   | 86      |                         |   |   | –             |   |   |                                   | – |   |   |   | – |   |   |   | 48 |   |   |   | 134 |   |
| Repurchases      of shares                                                   |   |                                                       | (4,170,500  | )      |                                                      |   | (17     | )                            |   |   | –             |   |   |                                   | – |   |   |   | – |   |   |   | – |   |   |   | (17 | ) |
| Balance,      December 31, 2007                                         |   |                                                       | 638,682,953 |   |                                                      |   | 2,617   |                         |   |   | –             |   |   |                                   | – |   |   |   | 110 |   |   |   | 205 |   |   |   | 2,932 |   |
| Issuance      of Thomson Reuters PLC shares                             |   |                                                       | –     |   |                                                      |   | – |                         |   |   | 194,107,278         |   |   |                                   | 96      |   |   |   | – |   |   |   | 8,130 |   |   |   | 8,226 |   |
| Shares      issued under DRIP                                                |   |                                                       | 6,106,899   |   |                                                      |   | 190     |                         |   |   | –             |   |   |                                   | – |   |   |   | – |   |   |   | – |   |   |   | 190 |   |
| Effect      of stock compensation plans                                      |   |                                                       | 1,256,455   |   |                                                      |   | 44      |                         |   |   | 4,504,848           |   |   |                                   | 2       |   |   |   | – |   |   |   | 263 |   |   |   | 309 |   |
| Repurchases      of shares                                                   |   |                                                       | –     |   |                                                      |   | – |                         |   |   | (17,382,885         | )      |   |                                   | (9      | ) |   |   | – |   |   |   | (513 | ) |   |   | (522 | ) |
| Balance,      December 31, 2008                                              |   |                                                       | 646,046,307 |   |                                                      |   | 2,851   |                         |   |   | 181,229,241         |   |   |                                   | 89      |   |   |   | 110 |   |   |   | 8,085 |   |   |   | 11,135 |   |

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| Three-month      period ended    |   | Shares      repurchased |      |   | Average price      per share      |   |
|----------------------------------|--------|-------------------------|-----------|--------|----------------------------------------|--------|
| Thomson      Reuters Corporation |   |                    |      |   |                                   |   |
| March      31, 2006         |   |                    | 4,570,000 |   |                                   | $      | 36.83 |   |
| June      30, 2006          |   |                    | 3,110,000 |   |                                   | $      | 39.58 |   |
| September      30, 2006     |   |                    | 1,710,600 |   |                                   | $      | 39.27 |   |
| December      31, 2006      |   |                    | 1,289,400 |   |                                   | $      | 41.41 |   |
| March      31, 2007         |   |                    | 1,305,000 |   |                                   | $      | 41.74 |   |
| June      30, 2007          |   |                    | 495,000   |   |                                   | $      | 42.68 |   |
| September      30, 2007          |   |                    | –   |   |                                   |   | – |   |
| December      31, 2007      |   |                    | 2,370,500 |   |                                   | $      | 38.76 |   |
|                             |   |                    |      |   |                                   |   |   |   |
|                             |   |                    |      |   |                                   |   |   |   |
| Month      ended                 |   | Shares repurchased |      |   | Average price      per share |   |
| Thomson      Reuters PLC         |   |                    |      |   |                                   |   |   |   |
| April      30, 2008              |   |                    | 3,297,827 |   |                                   | $      | 31.13 |   |
| May      31, 2008           |   |                    | 6,298,500 |   |                                   | $      | 31.59 |   |
| June      30, 2008          |   |                    | 6,049,208 |   |                                   | $      | 29.25 |   |
| July      31, 2008               |   |                    | 825,000   |   |                                   | $      | 25.93 |   |
| August      31, 2008             |   |                    | –   |   |                                   |   | – |   |
| September      30, 2008          |   |                    | 912,350   |   |                                   | $      | 23.55 |   |
| October      31, 2008            |   |                    | –   |   |                                   |   | – |   |
| November      30, 2008           |   |                    | –   |   |                                   |   | – |   |
| December      31, 2008           |   |                    | –   |   |                                   |   | – |   |

|                  |   | Moody’s |   | Standard      &Poor’s |   | DBRS Limited (DBRS) |   | Fitch          |
|-----------------------|--------|---------------|--------|---------------------------------|--------|-------------------------------|--------|----------------|
| Long-term    debt     |   |  Baa1    |   |  A–                  |   | A      (low)                  |   |  A– |
| Commercial      paper |   |  – |   | –                         |   |  R-1      (low)          |   |  F2       |
| Trend/outlook         |   |  Stable  |   | Negative                        |   |  Stable                  |   | Stable         |

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                                   |   | As      of December 31 |   |
|--------------------------------------------------------|--------|-----------------------------|--------|
| (millions      of U.S. dollars)                        |   | 2008                        |   |   | 2007 |   |
| Short-term      indebtedness                           |   |                        | 13     |   |   |   | 183 |   |
| Current      portion of long-term debt                 |   |                        | 672    |   |   |   | 412 |   |
| Long-term      debt and finance lease obligations      |   |                        | 6,834  |   |   |   | 4,264 |   |
| Total      debt                                        |   |                        | 7,519  |   |   |   | 4,859 |   |
| Swaps                                                  |   |                        | 68     |   |   |   | (424 | ) |
| Total      debt after swaps                            |   |                        | 7,587  |   |   |   | 4,435 |   |
| Remove      fair value adjustment of cash flow hedges1 |   |                        | 14     |   |   |   | 14 |   |
| Less:      Cash and cash equivalents                   |   |                        | (841   | ) |   |   | (7,497 | ) |
| Net      debt                                          |   |                        | 6,760  |   |   |   | (3,048 | ) |

| 1 | Amounts      are removed to reflect net cash outflow upon  maturity. |
|---|----------------------------------------------------------------------|

|                                                             |   | Pensions |   |   | Other post-retirement      plans |   |
|------------------------------------------------------------------|--------|----------|--------|--------|----------------------------------|--------|
|                                                             |   | 2008     |   |   | 2007                             |   |   | 2006 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Assumptions      used to determine net periodic pension expense: |   |     |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expected      long-term rate of return on plan assets            |   |     | 7.1%   |   |                             |   | 7.2% |   |   |   | 7.3% |   |   |   | N/A |   |   |   | N/A |   |   |   | N/A |   |
| Discount      rate                                               |   |     | 5.9%   | 1      |                             |   | 5.5% |   |   |   | 5.4% |   |   |   | 6.2% | 1 |   |   | 5.9% |   |   |   | 5.7% |   |
| Rate      of compensation increase                               |   |     | 4.6%   |   |                             |   | 4.5% |   |   |   | 4.3% |   |   |   | N/A | 2 |   |   | N/A | 2 |   |   | N/A2 |   |
| Assumptions      used to determine benefit obligation:           |   |     |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Discount      rate                                               |   |     | 6.3%   |   |                             |   | 6.1% | 1 |   |   | 5.5% |   |   |   | 7.0% |   |   |   | 6.1% | 1 |   |   | 5.9% |   |
| Rate      of compensation increase                               |   |     | 4.3%   |   |                             |   | 4.6% |   |   |   | 4.5% |   |   |   | N/A | 2 |   |   | N/A2 |   |   |   | N/A2 |   |

| 1 | Amounts      differ due to the inclusion of acquired plans in  2008. |
|---|----------------------------------------------------------------------|

| 2 | At      the end of 2008, 2007 and 2006, these plans consisted of only a few active      participants whose life insurance benefit is based on preretirement pay,      therefore a change in rate of compensation would have nearly no impact on      benefit obligation and benefitexpense. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                                                                                                           |   |     |    |   | Other      post-      |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|--------|-----------------------|--------|
|                                                                                                                           |   | Pensions |    |   | retirement      plans |   |
|                                                                                                                           |   | Funded   |    |   | Unfunded              |   |   |   |   |
|                                                                                                                           |   | 2008     |    |   | 2007                  |   |   | 2006 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Components      of net periodic benefit expense (income):                                                                      |   |     |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current      service cost                                                                                                      |   |     | 71      |   |                  |   | 56 |   |   |   | 57 |   |   |   | 5 |   |   |   | 6 |   |   |   | 6 |   |   |   | 3 |   |   |   | 3 |   |   |   | 3 |   |
| Interest      cost                                                                                                             |   |     | 213     |   |                  |   | 135 |   |   |   | 126 |   |   |   | 14 |   |   |   | 12 |   |   |   | 12 |   |   |   | 11 |   |   |   | 10 |   |   |   | 9 |   |
| Plan      amendments                                                                                                           |   |     | – |   |                  |   | – |   |   |   | 3 |   |   |   | 1 |   |   |   | – |   |   |   | (3 | ) |   |   | – |   |   |   | (1 | ) |   |   | 3 |   |
| Actual      return on plan assets                                                                                              |   |     | 380     |   |                  |   | (287 | ) |   |   | (208 | ) |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Curtailment      charge                                                                                                        |   |     | – |   |                  |   | 1 |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Gain      on settlement of plan                                                                                                |   |     | – |   |                  |   | (34 | ) |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Special      termination benefits                                                                                              |   |     | – |   |                  |   | 6 |   |   |   | – |   |   |   | 5 |   |   |   | 2 |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Actuarial      (gains) losses                                                                                                  |   |     | (304    | )      |                  |   | (88 | ) |   |   | 15 |   |   |   | (25 | ) |   |   | (8 | ) |   |   | (9 | ) |   |   | (30 | ) |   |   | (3 | ) |   |   | (6 | ) |
| Change      in valuation allowance                                                                                             |   |     | 14      |   |                  |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Subtotal                                                                                                                       |   |     | 374     |   |                  |   | (211 | ) |   |   | (7 | ) |   |   | – |   |   |   | 12 |   |   |   | 6 |   |   |   | (16 | ) |   |   | 9 |   |   |   | 9 |   |
| Adjustments1      :                                                                                                            |   |     |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Difference      between expected and actual return on plan assets                                                              |   |     | (645    | )      |                  |   | 128 |   |   |   | 54 |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Difference      between actuarial loss (gain) recognized and actual actuarial loss      (gain) on benefit obligation |   |     | 317     |   |                  |   | 125 |   |   |   | 37 |   |   |   | 26 |   |   |   | 9 |   |   |   | 11 |   |   |   | 31 |   |   |   | 6 |   |   |   | 10 |   |
| Difference      between amortization of past service costs for year and actual plan      amendments for year              |   |     | 1       |   |                  |   | 1 |   |   |   | (3 | ) |   |   | (1 | ) |   |   | 1 |   |   |   | 4 |   |   |   | – |   |   |   | 1 |   |   |   | (3 | ) |
| Amortization      of transitional asset                                                                                        |   |     | (1      | )      |                  |   | (1 | ) |   |   | (1 | ) |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Subtotal      adjustments                                                                                                      |   |     | (328    | )      |                  |   | 253 |   |   |   | 87 |   |   |   | 25 |   |   |   | 10 |   |   |   | 15 |   |   |   | 31 |   |   |   | 7 |   |   |   | 7 |   |
| Net      defined benefit plan expense                                                                                          |   |     | 46      |   |                  |   | 42 |   |   |   | 80 |   |   |   | 25 |   |   |   | 22 |   |   |   | 21 |   |   |   | 15 |   |   |   | 16 |   |   |   | 16 |   |

| 1 | Adjustments      reflect the deferral and amortization of experience gains and losses over      applicable periods. |
|---|---------------------------------------------------------------------------------------------------------------------|

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                         |   |     |    |   |                             |   |    |   |   |   |    |   |   |   |    |   |   |   |
|----------------------------------------------|--------|----------|---------|--------|----------------------------------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|
|                                         |   | Pensions |    |   | Other      post-retirement plans |   |
|                                         |   | Funded   |    |   | Unfunded                         |   |    |   |   |
|                                         |   | 2008     |    |   | 2007                             |   |    | 2008   |   |   | 2007    |   |   | 2008   |    |   | 2007   |   |
| Benefit      obligation                      |   |     |    |   |                             |   |    |   |   |   |    |   |   |   |    |   |   |   |
| Beginning      benefit obligation            |   |     | 2,090   |   |                             |   | 2,498   |   |   |   | 213     |   |   |   | 207     |   |   |   | 165 |   |   |   | 164 |   |
| Current      service cost                    |   |     | 71      |   |                             |   | 56      |   |   |   | 5       |   |   |   | 6       |   |   |   | 3 |   |   |   | 3 |   |
| Interest      cost                           |   |     | 213     |   |                             |   | 135     |   |   |   | 14      |   |   |   | 12      |   |   |   | 11 |   |   |   | 10 |   |
| Plan      participants’ contributions  |   |     | 11      |   |                             |   | 5       |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 1 |   |
| Plan      amendments                         |   |     | – |   |                             |   | – |   |   |   | 1       |   |   |   | – |   |   |   | – |   |   |   | (1 | ) |
| Actuarial      (gains) losses                |   |     | (304    | )      |                             |   | (88     | )      |   |   | (25     | )      |   |   | (8      | )      |   |   | (30 | ) |   |   | (3 | ) |
| Acquisitions,      net                       |   |     | 2,409   |   |                             |   | – |   |   |   | 42      |   |   |   | 1       |   |   |   | 16 |   |   |   | – |   |
| Curtailments                                 |   |     | – |   |                             |   | (26     | )      |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Settlements                                  |   |     | – |   |                             |   | (422    | )      |   |   | – |   |   |   | (1      | )      |   |   | – |   |   |   | – |   |
| Special      termination benefits            |   |     | – |   |                             |   | 6       |   |   |   | 5       |   |   |   | 2       |   |   |   | – |   |   |   | – |   |
| Benefits      paid                           |   |     | (139    | )      |                             |   | (114    | )      |   |   | (13     | )      |   |   | (9      | )      |   |   | (13 | ) |   |   | (10 | ) |
| Translation      adjustments                 |   |     | (743    | )      |                             |   | 40      |   |   |   | (14     | )      |   |   | 3       |   |   |   | (1 | ) |   |   | 1 |   |
| Ending      benefit obligation               |   |     | 3,608   |   |                             |   | 2,090   |   |   |   | 228     |   |   |   | 213     |   |   |   | 151 |   |   |   | 165 |   |
| Plan      assets                             |   |     |    |   |                             |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Beginning      fair value of plan assets     |   |     | 2,279   |   |                             |   | 2,457   |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Actual      return on plan assets            |   |     | (380    | )      |                             |   | 287     |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Employer      contributions                  |   |     | 110     |   |                             |   | 25      |   |   |   | 13      |   |   |   | 10      |   |   |   | 13 |   |   |   | 9 |   |
| Plan      participants’ contributions  |   |     | 11      |   |                             |   | 5       |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 1 |   |
| Acquisitions,      net                       |   |     | 2,557   |   |                             |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Benefits      paid                           |   |     | (139    | )      |                             |   | (114    | )      |   |   | (13     | )      |   |   | (9      | )      |   |   | (13 | ) |   |   | (10 | ) |
| Other,      net                              |   |     | – |   |                             |   | (422    | )      |   |   | – |   |   |   | (1      | )      |   |   | – |   |   |   | – |   |
| Translation      adjustments                 |   |     | (795    | )      |                             |   | 41      |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Ending      fair value of plan assets        |   |     | 3,643   |   |                             |   | 2,279   |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Funded      status – surplus (deficit) |   |     | 35      |   |                             |   | 189     |   |   |   | (228    | )      |   |   | (213    | )      |   |   | (151 | ) |   |   | (165 | ) |
| Unamortized      net actuarial loss          |   |     | 464     |   |                             |   | 200     |   |   |   | (7      | )      |   |   | 20      |   |   |   | 3 |   |   |   | 35 |   |
| Unamortized      past service costs          |   |     | 4       |   |                             |   | 5       |   |   |   | 2       |   |   |   | 1       |   |   |   | – |   |   |   | – |   |
| Unamortized      net transitional asset      |   |     | (2      | )      |                             |   | (4      | )      |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Post-measurement      date activity1         |   |     | – |   |                             |   | 12      |   |   |   | 4       |   |   |   | 3       |   |   |   | 4 |   |   |   | 4 |   |
| Change      in valuation allowance           |   |     | (97     | )      |                             |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Accrued      benefit asset (liability)       |   |     | 404     |   |                             |   | 402     |   |   |   | (229    | )      |   |   | (189    | )      |   |   | (144 | ) |   |   | (126 | ) |

| 1 | Consists      primarily of contributions. |
|---|-------------------------------------------|

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                   |   | Percentage      of plans’ assets |   |
|------------------------|--------|----------------------------------------|--------|
| Asset      category    |   | 2008                                   |   |   | 2007 |   |
| Equity      securities |   |                                   | 39     | % |   |   | 52 | % |
| Debt      securities   |   |                                   | 54     | % |   |   | 48 | % |
| Other                  |   |                                   | 7      | % |   |   | – |   |
| Total                  |   |                                   | 100    | % |   |   | 100 | % |

|                            |   |   | Pensions |   |     | Other      post- retirement plans |   |
|---------------------------------|--------|--------|----------|--------|----------|-----------------------------------|--------|
|                            |   | Funded |     |   | Unfunded |                              |   |   |   |
| 2007                            |   |   | 114      |   |     |                              | 9      |   |   |   | 10 |   |
| 2008                            |   |   | 139      |   |     |                              | 13     |   |   |   | 13 |   |
|                            |   |   |     |   |     |                              |   |   |   |   |   |   |
| Estimated      future payments: |   |   |     |   |     |                              |   |   |   |   |   |   |
| 2009                            |   |   | 146      |   |     |                              | 14     |   |   |   | 11 |   |
| 2010                            |   |   | 145      |   |     |                              | 15     |   |   |   | 11 |   |
| 2011                            |   |   | 151      |   |     |                              | 16     |   |   |   | 12 |   |
| 2012                            |   |   | 157      |   |     |                              | 17     |   |   |   | 13 |   |
| 2013                            |   |   | 165      |   |     |                              | 18     |   |   |   | 13 |   |
| 2014      to 2018               |   |   | 1,001    |   |     |                              | 95     |   |   |   | 73 |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| Cash      consideration paid to former Reuters shareholders |   |   | 8,450 |   |
|-------------------------------------------------------------|--------|--------|-------|--------|
| Transaction      costs paid                                 |   |   | 138   |   |
| Less:      cash acquired                                    |   |   | (465  | )      |
|                                                        |   |   | 8,123 |   |

|                                                        |   | Year      ended December 31 |    |
|-------------------------------------------------------------|--------|-----------------------------|---------|
|                                                        |   | 2008                        |    |   | 2007 |   |   | 2006 |   |
|                                                        |   | Number      of transactions |    |   | Cash      consideration |   |   | Number      of transactions |   |   | Cash      consideration |   |   | Number      of transactions |   |   | Cash      consideration |   |
| Businesses      and identifiable intangible assets acquired |   |                        | 19      |   |   |   | 326 |   |   |   | 33 |   |   |   | 438 |   |   |   | 23 |   |   |   | 692 |   |
| Contingent      consideration payment – Tradeweb      |   |                        | – |   |   |   | – |   |   |   | – |   |   |   | 50 |   |   |   | – |   |   |   | 50 |   |
| Investments      in businesses                              |   |                        | 3       |   |   |   | 53 |   |   |   | – |   |   |   | – |   |   |   | 2 |   |   |   | 2 |   |
|                                                        |   |                        | 22      |   |   |   | 379 |   |   |   | 33 |   |   |   | 488 |   |   |   | 25 |   |   |   | 744 |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                           |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Cash      and cash equivalents                 |   |   | 8      |   |   |   | 19     |   |   |   | 11 |   |
| Accounts      receivable                       |   |   | 9      |   |   |   | 38     |   |   |   | 31 |   |
| Prepaid      expenses and other current assets |   |   | 2      |   |   |   | 19     |   |   |   | 12 |   |
| Computer      hardware and other property      |   |   | 3      |   |   |   | 4      |   |   |   | 9 |   |
| Computer      software                         |   |   | 28     |   |   |   | 13     |   |   |   | 49 |   |
| Identifiable      intangible assets            |   |   | 111    |   |   |   | 206    |   |   |   | 160 |   |
| Goodwill                                       |   |   | 165    |   |   |   | 268    |   |   |   | 528 |   |
| Other      non-current assets                  |   |   | 33     |   |   |   | 18     |   |   |   | 5 |   |
| Total      assets                              |   |   | 359    |   |   |   | 585    |   |   |   | 805 |   |
| Accounts      payable and accruals             |   |   | (7     | )      |   |   | (46    | )      |   |   | (29 | ) |
| Deferred      revenue                          |   |   | (17    | )      |   |   | (39    | )      |   |   | (61 | ) |
| Other      non-current liabilities             |   |   | (1     | )      |   |   | (43    | )      |   |   | (12 | ) |
| Total      liabilities                         |   |   | (25    | )      |   |   | (128   | )      |   |   | (102 | ) |
| Net      assets                                |   |   | 334    |   |   |   | 457    |   |   |   | 703 |   |

| Date                |  Company                                   | Acquiring      segment    | Description                                                                                                                      |
|---------------------|-------------------------------------------------|---------------------------|----------------------------------------------------------------------------------------------------------------------------------|
| December      2008  | Paisley                                         | Tax      & Accounting | A      provider of governance, risk and compliance (GRC) software and services      for corporations and global accounting firms |
| January      2008   | TaxStream                                       | Tax      & Accounting | A      provider of income tax provision software for  corporations                                                               |
| October      2007   | Deloitte      Tax LLPProperty      Tax Services | Tax      & Accounting | A      provider of property tax outsourcing and compliance services                                                              |
| September      2007 | Prous      Science                              | Scientific                | A      provider of life sciences information solutions                                                                           |
| March      2007     | CrossBorder      Solutions                      | Tax      & Accounting | A      provider of transfer pricing and income tax provision    software                                                         |
| October      2006   | Solucient,      LLC                             | Healthcare                | An      advanced healthcare analytics and information company                                                                    |
| September      2006 | LiveNote      Technologies                      | Legal                     | A      provider of transcript and evidence management software                                                                   |
| May      2006       | MercuryMD,      Inc.                            | Healthcare                | A      provider of mobile information systems serving the healthcare      market                                                 |
| March      2006     | Quantitative      Analytics, Inc.               | Markets                   |  A      provider of financial database integration and analysis      solutions                                              |

|                        |   |   |   |   |   |   |   |   |   |   | Weighted-average amortization      period (years) |   |
|-----------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------------------------------------------------|--------|
|                        |   | 2008   |   |   | 2007   |   |   | 2006   |   |   | 2008                                              |   |   | 2007 |   |   | 2006 |   |
| Finite      useful lives:   |   |   |   |   |   |   |   |   |   |   |                                              |   |   |   |   |   |   |   |
| Tradenames                  |   |   | 7      |   |   |   | 17     |   |   |   | 16                                                |   |   |   | 6 |   |   |   | 8 |   |   |   | 10 |   |
| Customer      relationships |   |   | 94     |   |   |   | 149    |   |   |   | 116                                               |   |   |   | 10 |   |   |   | 10 |   |   |   | 10 |   |
| Databases      and content  |   |   | 2      |   |   |   | 20     |   |   |   | 8                                                 |   |   |   | 4 |   |   |   | 8 |   |   |   | 8 |   |
| Other                       |   |   | 8      |   |   |   | 20     |   |   |   | 20                                                |   |   |   | 3 |   |   |   | 7 |   |   |   | 7 |   |
|                        |   |   | 111    |   |   |   | 206    |   |   |   | 160                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                  |   | 2008   |     |   | 2007                                            |   |    | 2006   |   |
|---------------------------------------|--------|--------|----------|--------|-------------------------------------------------|--------|---------|--------|--------|
|                                  |   | SARs   |     |   | Canadian      $ weighted-average exercise price |   |    | SARs   |   |   | Canadian      $ weighted-average exercise price |   |   | SARs |   |   | Canadian      $ weighted-average exercise price |   |
| Outstanding      at beginning of year |   |   | 799,663  |   |                                            |   | 42.72   |   |   |   | 1,531,558 |   |   |   | 40.84 |   |   |   | 2,209,503 |   |   |   | 38.66 |   |
| Granted                               |   |   | –  |   |                                            |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Exercised                             |   |   | –  |   |                                            |   | – |   |   |   | (541,307 | ) |   |   | 37.33 |   |   |   | (527,000 | ) |   |   | 33.01 |   |
| Forfeited                             |   |   | (222,423 | )      |                                            |   | 40.71   |   |   |   | (190,588 | ) |   |   | 42.89 |   |   |   | (150,945 | ) |   |   | 36.26 |   |
| Outstanding      at end of year       |   |   | 577,240  |   |                                            |   | 42.67   |   |   |   | 799,663 |   |   |   | 42.72 |   |   |   | 1,531,558 |   |   |   | 40.84 |   |
| Exercisable      at end of year       |   |   | 541,210  |   |                                            |   | 42.80   |   |   |   | 669,938 |   |   |   | 43.05 |   |   |   | 1,197,941 |   |   |   | 40.65 |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                     |   |   | SARs      outstanding               |    |   | SARs      exercisable                            |   |
|------------------------------------------|--------|--------|-------------------------------------|---------|--------|--------------------------------------------------|--------|
| Canadian      $ range of exercise prices |   |   | Number      outstanding at 12/31/08 |    |   | Weighted-average      remaining contractual life |   |   | Canadian      $ weighted-average exercise price |   |   | Number      exercisable at 12/31/08 |   |   | Canadian      $ weighted-average exercise price |   |
| 36.00–41.00                        |   |   |                                | 285,811 |   |                                             |   | 4.08 |   |   |   | 39.42 |   |   |   | 249,781 |   |   |   | 39.23 |   |
| 41.74–48.40                        |   |   |                                | 251,109 |   |                                             |   | 5.01 |   |   |   | 44.01 |   |   |   | 251,109 |   |   |   | 44.01 |   |
| 57.40–57.45                        |   |   |                                | 40,320  |   |                                             |   | 1.97 |   |   |   | 57.40 |   |   |   | 40,320 |   |   |   | 57.40 |   |

|                                  |   | 2008   |    |
|---------------------------------------|--------|--------|---------|
|                                  |   | SARs   |    |   | U.S.      $ weighted-average exercise price |   |
| Outstanding      at beginning of year |   |   | 115,760 |   |   |   | 42.91 |   |
| Granted                               |   |   | 9,170   |   |   |   | 37.15 |   |
| Exercised                             |   |   | – |   |   |   | – |   |
| Forfeited                             |   |   | (28,650 | ) |   |   | 42.96 |   |
| Outstanding      at end of year       |   |   | 96,280  |   |   |   | 42.35 |   |
| Exercisable      at end of year       |   |   | 21,177  |   |   |   | 42.89 |   |

|                                 |   |   | SARs      outstanding               |   |   | SARs      exercisable                            |   |
|--------------------------------------|--------|--------|-------------------------------------|--------|--------|--------------------------------------------------|--------|
| U.S.      $ range of exercise prices |   |   | Number      outstanding at 12/31/08 |   |   | Weighted-average      remaining contractual life |   |   | U.S.      $ weighted-average exercise price |   |   | Number      exercisable at 12/31/08 |   |   | U.S.      $ weighted-average exercise price |   |
| 42.96                                |   |   |                                | 82,110 |   |                                             |   | 8.15 |   |   |   | 42.96 |   |   |   | 20,527 |   |   |   | 42.96 |   |
| 37.15-41.81                          |   |   |                                | 14,170 |   |                                             |   | 9.08 |   |   |   | 38.79 |   |   |   | 1,250 |   |   |   | 41.81 |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                  |   | 2008    |      |   | 2007                                            |   |    | 2006    |   |
|---------------------------------------|--------|---------|-----------|--------|-------------------------------------------------|--------|---------|---------|--------|
|                                  |   | Options |      |   | Canadian      $ weighted-average exercise price |   |    | Options |   |   | Canadian      $ weighted-average exercise price |   |   | Options |   |   | Canadian      $ weighted-average exercise price |   |
| Outstanding      at beginning of year |   |    | 4,703,152 |   |                                            |   | 49.80   |    |   |   | 5,099,392 |   |   |   | 49.79 |   |   |   | 5,451,664 |   |   |   | 49.67 |   |
| Granted                               |   |    | –   |   |                                            |   | – |    |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Exercised                             |   |    | –   |   |                                            |   | – |    |   |   | (117,900 | ) |   |   | 44.23 |   |   |   | (157,800 | ) |   |   | 42.69 |   |
| Forfeited                             |   |    | (434,902  | )      |                                            |   | 51.71   |    |   |   | (278,340 | ) |   |   | 52.05 |   |   |   | (194,472 | ) |   |   | 52.16 |   |
| Outstanding      at end of year       |   |    | 4,268,250 |   |                                            |   | 49.61   |    |   |   | 4,703,152 |   |   |   | 49.80 |   |   |   | 5,099,392 |   |   |   | 49.79 |   |
| Exercisable      at end of year       |   |    | 4,267,780 |   |                                            |   | 49.61   |    |   |   | 4,699,984 |   |   |   | 49.81 |   |   |   | 5,067,267 |   |   |   | 49.85 |   |

|                                     |   |   | Options      outstanding            |      |   | Options      exercisable                         |   |
|------------------------------------------|--------|--------|-------------------------------------|-----------|--------|--------------------------------------------------|--------|
| Canadian      $ range of exercise prices |   |   | Number      outstanding at 12/31/08 |      |   | Weighted-average      remaining contractual life |   |   | Canadian      $ weighted-average exercise price |   |   | Number      exercisable at 12/31/08 |   |   | Canadian      $ weighted-average exercise price |   |
| 40.69–44.40                        |   |   |                                | 997,500   |   |                                             |   | 1.35 |   |   |   | 41.03 |   |   |   | 997,030 |   |   |   | 41.03 |   |
| 45.90–48.70                        |   |   |                                | 1,766,070 |   |                                             |   | 2.95 |   |   |   | 48.35 |   |   |   | 1,766,070 |   |   |   | 48.35 |   |
| 50.25-57.45                              |   |   |                                | 1,504,680 |   |                                             |   | 1.94 |   |   |   | 56.76 |   |   |   | 1,504,680 |   |   |   | 56.76 |   |

|                                  |   | 2008    |       |   | 2007                                        |   |   | 2006    |   |
|---------------------------------------|--------|---------|------------|--------|---------------------------------------------|--------|--------|---------|--------|
|                                  |   | Options |       |   | U.S.      $ weighted-average exercise price |   |   | Options |   |   | U.S.      $ weighted-average exercise price |   |   | Options |   |   | U.S.      $ weighted-average exercise price |   |
| Outstanding      at beginning of year |   |    | 9,284,608  |   |                                        |   | 34.78  |    |   |   | 9,627,964 |   |   |   | 32.98 |   |   |   | 10,469,989 |   |   |   | 32.62 |   |
| Granted                               |   |    | 2,441,470  |   |                                        |   | 37.15  |    |   |   | 1,827,510 |   |   |   | 42.95 |   |   |   | 380,000 |   |   |   | 38.27 |   |
| Exercised                             |   |    | (504,139   | )      |                                        |   | 32.94  |    |   |   | (1,664,029 | ) |   |   | 32.28 |   |   |   | (742,400 | ) |   |   | 30.83 |   |
| Forfeited                             |   |    | (1,099,265 | )      |                                        |   | 37.05  |    |   |   | (506,837 | ) |   |   | 35.04 |   |   |   | (479,625 | ) |   |   | 32.66 |   |
| Outstanding      at end of year       |   |    | 10,122,674 |   |                                        |   | 35.45  |    |   |   | 9,284,608 |   |   |   | 34.78 |   |   |   | 9,627,964 |   |   |   | 32.98 |   |
| Exercisable      at end of year       |   |    | 6,585,345  |   |                                        |   | 33.87  |    |   |   | 7,433,244 |   |   |   | 31.75 |   |   |   | 5,094,436 |   |   |   | 31.39 |   |

|                                 |   |   | Options      outstanding            |      |   | Options      exercisable                         |   |
|--------------------------------------|--------|--------|-------------------------------------|-----------|--------|--------------------------------------------------|--------|
| U.S.      $ range of exercise prices |   |   | Number      outstanding at 12/31/08 |      |   | Weighted-average      remaining contractual life |   |   | U.S.      $ weighted-average exercise price |   |   | Number      exercisable at 12/31/08 |   |   | U.S.      $ weighted-average exercise price |   |
| 26.06–29.70                    |   |   |                                | 984,309   |   |                                             |   | 3.95 |   |   |   | 26.07 |   |   |   | 984,309 |   |   |   | 26.07 |   |
| 30.79–33.76                    |   |   |                                | 3,220,771 |   |                                             |   | 5.45 |   |   |   | 33.52 |   |   |   | 3,220,771 |   |   |   | 33.52 |   |
| 33.87-42.96                          |   |   |                                | 5,917,594 |   |                                             |   | 8.19 |   |   |   | 38.06 |   |   |   | 2,380,265 |   |   |   | 37.57 |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                          |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|-------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Risk-free      interest rate  |   |   | 3.5    | %      |   |   | 4.6    | %      |   |   | 4.6 | % |
| Dividend      yield           |   |   | 3.4    | %      |   |   | 2.3    | %      |   |   | 2.3 | % |
| Volatility      factor        |   |   | 31.5   | %      |   |   | 17.1   | %      |   |   | 18.5 | % |
| Expected      life (in years) |   |   | 6      |   |   |   | 6      |   |   |   | 6 |   |

|                                  |   | 2008   |      |   | 2007                                    |   |   | 2006   |   |
|---------------------------------------|--------|--------|-----------|--------|-----------------------------------------|--------|--------|--------|--------|
|                                  |   | RSUs   |      |   | U.S.      $ weighted-average value |   |   | RSUs   |   |   | U.S.      $ weighted-average value |   |   | RSUs |   |   | U.S.      $ weighted-average value |   |
| Outstanding      at beginning of year |   |   | 493,743   |   |                                    |   | 38.10  |   |   |   | 407,925 |   |   |   | 35.89 |   |   |   | 223,715 |   |   |   | 33.86 |   |
| Granted                               |   |   | 2,915,751 |   |                                    |   | 35.00  |   |   |   | 148,761 |   |   |   | 42.75 |   |   |   | 192,098 |   |   |   | 38.20 |   |
|  Forfeited                       |   |   | (276,016  | )      |                                    |   | 34.01  |   |   |   | (36,723 | ) |   |   | 35.15 |   |   |   | – |   |   |   | – |   |
| Vested                                |   |   | (65,953   | )      |                                    |   | 34.01  |   |   |   | (26,220 | ) |   |   | 34.10 |   |   |   | (7,888 | ) |   |   | 34.79 |   |
| Outstanding      at end of year       |   |   | 3,067,525 |   |                                    |   | 35.10  |   |   |   | 493,743 |   |   |   | 38.10 |   |   |   | 407,925 |   |   |   | 35.89 |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                  |   | 2008   |      |   | 2007                                         |   |    | 2006   |   |
|---------------------------------------|--------|--------|-----------|--------|----------------------------------------------|--------|---------|--------|--------|
|                                  |   | PRSUs  |      |   | U.S.      $ weighted-average value |   |    | PRSUs  |   |   | U.S.      $ weighted-average value |   |   | PRSUs |   |   | U.S.      $ weighted-average value |   |
| Outstanding      at beginning of year |   |   | 1,299,757 |   |                                         |   | 41.12   |   |   |   | 705,109 |   |   |   | 38.88 |   |   |   | – |   |   |   | – |   |
| Granted                               |   |   | 1,745,994 |   |                                         |   | 35.76   |   |   |   | 761,673 |   |   |   | 42.87 |   |   |   | 705,109 |   |   |   | 38.88 |   |
|  Forfeited                       |   |   | (196,789  | )      |                                         |   | 39.32   |   |   |   | (167,025 | ) |   |   | 39.17 |   |   |   | – |   |   |   | – |   |
| Vested                                |   |   | –   |   |                                         |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Outstanding      at end of year       |   |   | 2,848,962 |   |                                         |   | 37.84   |   |   |   | 1,299,757 |   |   |   | 41.12 |   |   |   | 705,109 |   |   |   | 38.88 |   |

|                                           |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Accounts      receivable                       |   |   | 1,009  |   |   |   | (135   | )      |   |   | (141 | ) |
| Prepaid      expenses and other current assets |   |   | (70    | )      |   |   | (93    | )      |   |   | 2 |   |
| Accounts      payable and accruals             |   |   | 119    |   |   |   | 99     |   |   |   | 67 |   |
| Deferred      revenue                          |   |   | (695   | )      |   |   | 100    |   |   |   | 78 |   |
| Income      taxes                              |   |   | 41     |   |   |   | (27    | )      |   |   | (35 | ) |
| Other                                          |   |   | (212   | )      |   |   | (80    | )      |   |   | (44 | ) |
|                                           |   |   | 192    |   |   |   | (136   | )      |   |   | (73 | ) |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| (millions of U.S. dollars)   |   | Revenues |    |   | Depreciation |   |    | Segment operating profit |   |   | Additions to      capital assets1and goodwill |   |   | Total assets |    |
|------------------------------|--------|----------|---------|--------|--------------|--------|---------|--------------------------|--------|--------|-----------------------------------------------|--------|--------|--------------|---------|
| Markets                      |   |     | 6,210   |   |         |   | 484     |                     |   |   | 1,104                                         |   |   |         | 22,060  |   |   |   | 23,844 |   |
| Legal                        |   |     | 3,531   |   |         |   | 235     |                     |   |   | 1,135                                         |   |   |         | 356     |   |   |   | 6,481 |   |
| Tax      & Accounting    |   |     | 861     |   |         |   | 30      |                     |   |   | 219                                           |   |   |         | 296     |   |   |   | 1,684 |   |
| Scientific                   |   |     | 646     |   |         |   | 36      |                     |   |   | 176                                           |   |   |         | 40      |   |   |   | 1,258 |   |
| Healthcare                   |   |     | 468     |   |         |   | 25      |                     |   |   | 85                                            |   |   |         | 37      |   |   |   | 755 |   |
| Professional                 |   |     | 5,506   |   |         |   | 326     |                     |   |   | 1,615                                         |   |   |         | 729     |   |   |   | 10,178 |   |
| Segment      totals          |   |     | 11,716  |   |         |   | 810     |                     |   |   | 2,719                                         |   |   |         | 22,789  |   |   |   | 34,022 |   |
| Corporate      and Other2    |   |     | – |   |         |   | 21      |                     |   |   | (543                                          | )      |   |         | 54      |   |   |   | 1,992 |   |
| Eliminations                 |   |     | (9      | )      |         |   | – |                     |   |   | –                                       |   |   |         | – |   |   |   | – |   |
| Continuing      operations   |   |     | 11,707  |   |         |   | 831     |                     |   |   | 2,176                                         |   |   |         | 22,843  |   |   |   | 36,014 |   |
| Discontinued      operations |   |     |    |   |         |   |    |                     |   |   |                                          |   |   |         |    |   |   |   | 6 |   |
| Total                        |   |     |    |   |         |   |    |                     |   |   |                                          |   |   |         |    |   |   |   | 36,020 |   |

| (millions of U.S. dollars) |   | Revenues |    |   | Depreciation |   |    | Segment Operating profit |   |   | Additions to capital assets1      and      goodwill |   |   | Total assets |    |
|----------------------------|--------|----------|---------|--------|--------------|--------|---------|--------------------------|--------|--------|-----------------------------------------------------|--------|--------|--------------|---------|
| Markets                    |   |     | 2,186   |   |         |   | 172     |                     |   |   | 454                                                 |   |   |         | 239     |   |   |   | 3,618 |   |
| Legal                      |   |     | 3,318   |   |         |   | 205     |                     |   |   | 1,044                                               |   |   |         | 361     |   |   |   | 6,562 |   |
| Tax      & Accounting  |   |     | 705     |   |         |   | 21      |                     |   |   | 184                                                 |   |   |         | 333     |   |   |   | 1,440 |   |
| Scientific                 |   |     | 651     |   |         |   | 32      |                     |   |   | 175                                                 |   |   |         | 113     |   |   |   | 1,419 |   |
| Healthcare                 |   |     | 452     |   |         |   | 24      |                     |   |   | 85                                                  |   |   |         | 44      |   |   |   | 772 |   |
| Professional               |   |     | 5,126   |   |         |   | 282     |                     |   |   | 1,488                                               |   |   |         | 851     |   |   |   | 10,193 |   |
| Segment      totals        |   |     | 7,312   |   |         |   | 454     |                     |   |   | 1,942                                               |   |   |         | 1,090   |   |   |   | 13,811 |   |
| Corporate      and Other2  |   |     | – |   |         |   | 14      |                     |   |   | (389                                                | )      |   |         | 122     |   |   |   | 9,010 |   |
| Eliminations               |   |     | (16     | )      |         |   | – |                     |   |   | –                                             |   |   |         | – |   |   |   | – |   |
| Continuing operations      |   |     | 7,296   |   |         |   | 468     |                     |   |   | 1,553                                               |   |   |         | 1,212   |   |   |   | 22,821 |   |
| Discontinued operations    |   |     |    |   |         |   |    |                     |   |   |                                                |   |   |         |    |   |   |   | 10 |   |
| Total                      |   |     |    |   |         |   |    |                     |   |   |                                                |   |   |         |    |   |   |   | 22,831 |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| (millions of U.S. dollars) |   | Revenues |    |   | Depreciation |   |    | Segment operating profit |   |   | Additions to capital assets1      and goodwill |   |   | Total assets |    |
|----------------------------|--------|----------|---------|--------|--------------|--------|---------|--------------------------|--------|--------|------------------------------------------------|--------|--------|--------------|---------|
| Markets                    |   |     | 2,025   |   |         |   | 180     |                     |   |   | 380                                            |   |   |         | 397     |   |   |   | 3,489 |   |
| Legal                      |   |     | 3,008   |   |         |   | 187     |                     |   |   | 943                                            |   |   |         | 348     |   |   |   | 6,445 |   |
| Tax      & Accounting  |   |     | 598     |   |         |   | 22      |                     |   |   | 168                                            |   |   |         | 76      |   |   |   | 1,086 |   |
| Scientific                 |   |     | 602     |   |         |   | 23      |                     |   |   | 151                                            |   |   |         | 62      |   |   |   | 1,344 |   |
| Healthcare                 |   |     | 374     |   |         |   | 16      |                     |   |   | 81                                             |   |   |         | 375     |   |   |   | 755 |   |
| Professional               |   |     | 4,582   |   |         |   | 248     |                     |   |   | 1,343                                          |   |   |         | 861     |   |   |   | 9,630 |   |
| Segment      totals        |   |     | 6,607   |   |         |   | 428     |                     |   |   | 1,723                                          |   |   |         | 1,258   |   |   |   | 13,119 |   |
| Corporate      and Other 2 |   |     | – |   |         |   | 10      |                     |   |   | (235                                           | )      |   |         | 28      |   |   |   | 1,452 |   |
| Eliminations               |   |     | (16     | )      |         |   | – |                     |   |   | –                                        |   |   |         | – |   |   |   | – |   |
| Continuing operations      |   |     | 6,591   |   |         |   | 438     |                     |   |   | 1,488                                          |   |   |         | 1,286   |   |   |   | 14,571 |   |
| Discontinued operations    |   |     |    |   |         |   |    |                     |   |   |                                           |   |   |         |    |   |   |   | 5,571 |   |
| Total                      |   |     |    |   |         |   |    |                     |   |   |                                           |   |   |         |    |   |   |   | 20,142 |   |

| (by country of origin)(millions of U.S. dollars)            |   | Revenues |   |   | Capital assets1      and goodwill |   |   | Total assets |   |
|-------------------------------------------------------------|--------|----------|--------|--------|-----------------------------------|--------|--------|--------------|--------|
| Americas      (North America, Latin America, South America) |   |     | 7,390  |   |                              |   | 17,506 |         |   |   | 20,696 |   |
| EMEA      (Europe, Middle East and Africa)                  |   |     | 3,308  |   |                              |   | 10,794 |         |   |   | 12,479 |   |
| Asia Pacific                                                |   |     | 1,009  |   |                              |   | 2,497  |         |   |   | 2,845 |   |
| Total                                                       |   |     | 11,707 |   |                              |   | 30,797 |         |   |   | 36,020 |   |

| (by      country of origin)(millions      of U.S. dollars) |   | Revenues |   |   | Capital      assets1      and      goodwill |   |   | Total      assets |   |
|------------------------------------------------------------|--------|----------|--------|--------|---------------------------------------------|--------|--------|-------------------|--------|
| Americas                                                   |   |     | 6,055  |   |                                        |   | 9,845  |              |   |   | 15,677 |   |
| EMEA                                                       |   |     | 1,011  |   |                                        |   | 1,788  |              |   |   | 6,851 |   |
| Asia      Pacific                                          |   |     | 230    |   |                                        |   | 192    |              |   |   | 303 |   |
| Total                                                      |   |     | 7,296  |   |                                        |   | 11,825 |              |   |   | 22,831 |   |

| (by      country of origin)(millions      of U.S. dollars) |   | Revenues |   |   | Capital      assets1      and      goodwill |   |   | Total      assets |   |
|------------------------------------------------------------|--------|----------|--------|--------|---------------------------------------------|--------|--------|-------------------|--------|
| Americas                                                   |   |     | 5,527  |   |                                        |   | 9,250  |              |   |   | 16,643 |   |
| EMEA                                                       |   |     | 871    |   |                                        |   | 1,888  |              |   |   | 3,112 |   |
| Asia      Pacific                                          |   |     | 193    |   |                                        |   | 159    |              |   |   | 387 |   |
| Total                                                      |   |     | 6,591  |   |                                        |   | 11,297 |              |   |   | 20,142 |   |

| 1 | Capital      assets include computer hardware and other property, capitalized software      and identifiable intangible assets. |
|---|---------------------------------------------------------------------------------------------------------------------------------|

| 2 | Corporate      and other includes corporate costs, costs associated with stock-based      compensation plans, expenses for integration and synergy programs, certain      Reuters transaction costs and certain fair value currency related      adjustments. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                    |   |   | For      the year ended December 31 |   |
|-----------------------------------------|--------|--------|-------------------------------------|--------|
|                                    |   | 2008   |                                |   | 2007 |   |   | 2006 |   |
| Segment      operating profit           |   |   | 2,176                               |   |   |   | 1,553 |   |   |   | 1,488 |   |
| Amortization                            |   |   | (411                                | )      |   |   | (256 | ) |   |   | (240 | ) |
| Impairment of assets held for      sale |   |   | (72                                 | )      |   |   | – |   |   |   | – |   |
| Operating profit                        |   |   | 1,693                               |   |   |   | 1,297 |   |   |   | 1,248 |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                                                |   | For      the year ended December 31 |    |
|---------------------------------------------------------------------|--------|-------------------------------------|---------|
|                                                                |   | 2008                                |    |   | 2007 |   |   | 2006 |   |
| Net      earnings under Canadian GAAP                               |   |                                | 1,405   |   |   |   | 4,004 |   |   |   | 1,120 |   |
| Differences      in GAAP increasing (decreasing) reported earnings: |   |                                |    |   |   |   |   |   |   |   |   |   |
| Business      combinations                                          |   |                                | 17      |   |   |   | 92 |   |   |   | 17 |   |
| Derivative      instruments and hedging activities                  |   |                                | – |   |   |   | (8 | ) |   |   | 12 |   |
| Recycling      of cumulative translation adjustment                 |   |                                | (146    | ) |   |   | – |   |   |   | – |   |
| Sale      leaseback accounting                                      |   |                                | (33     | ) |   |   | – |   |   |   | – |   |
| Employee      future benefits                                       |   |                                | 14      |   |   |   | – |   |   |   | – |   |
| Income taxes                                                        |   |                                | 7       |   |   |   | (26 | ) |   |   | (6 | ) |
| Net earnings under U.S.GAAP                                         |   |                                | 1,264   |   |   |   | 4,062 |   |   |   | 1,143 |   |
| Earnings      under U.S. GAAP from continuing operations            |   |                                | 1,264   |   |   |   | 1,096 |   |   |   | 932 |   |
| Earnings under U.S. GAAP from discontinued      operations          |   |                                | – |   |   |   | 2,966 |   |   |   | 211 |   |
| Net earnings under U.S.GAAP                                         |   |                                | 1,264   |   |   |   | 4,062 |   |   |   | 1,143 |   |
| Basic      earnings per share, under U.S. GAAP, from:               |   |                                |    |   |   |   |   |   |   |   |   |   |
| Continuing      operations                                          |   | $                                   | 1.63    |   |   | $ | 1.70 |   |   | $ | 1.44 |   |
| Discontinued      operations                                        |   | $                                   | 0.00    |   |   | $ | 4.63 |   |   | $ | 0.33 |   |
| Basic earnings per share                                            |   | $                                   | 1.63    |   |   | $ | 6.33 |   |   | $ | 1.77 |   |
| Diluted      earnings per share, under U.S. GAAP, from:             |   |                                |    |   |   |   |   |   |   |   |   |   |
| Continuing      operations                                          |   | $                                   | 1.62    |   |   | $ | 1.69 |   |   | $ | 1.43 |   |
| Discontinued operations                                             |   | $                                   | 0.00    |   |   | $ | 4.60 |   |   | $ | 0.33 |   |
| Diluted earnings per share                                          |   | $                                   | 1.62    |   |   | $ | 6.29 |   |   | $ | 1.76 |   |

|                                                                                  |   | As      of December 31 |   |
|---------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                  |   | 2008                   |   |   | 2007 |   |   | 2006 |   |
| Shareholders’      equity under Canadian GAAP                                   |   |                   | 20,126 |   |   |   | 13,571 |   |   |   | 10,481 |   |
| Differences      in GAAP increasing (decreasing) reported shareholders’ equity: |   |                   |   |   |   |   |   |   |   |   |   |   |
| Business      combinations                                                            |   |                   | (481   | ) |   |   | (498 | ) |   |   | (590 | ) |
| Derivative      instruments and hedging activities                                    |   |                   | 11     |   |   |   | 1 |   |   |   | 9 |   |
| Sale      leaseback accounting                                                        |   |                   | (33    | ) |   |   | – |   |   |   | – |   |
| Employee      future benefits                                                         |   |                   | (776   | ) |   |   | (257 | ) |   |   | (512 | ) |
| Income taxes                                                                          |   |                   | 364    |   |   |   | 195 |   |   |   | 339 |   |
| Shareholders’ equity      under U.S. GAAP                                       |   |                   | 19,211 |   |   |   | 13,012 |   |   |   | 9,727 |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                         |   | FAS      158adjustments |   |
|----------------------------------------------|--------|-------------------------|--------|
| Other      non-current assets                |   |                    | (380   | ) |
| Accounts      payable and accruals           |   |                    | 19     |   |
| Other      non-current liabilities           |   |                    | 103    |   |
| Long-term      deferred income tax liability |   |                    | (195   | ) |
| Accumulated      other comprehensive loss    |   |                    | (307   | ) |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                               |   | FAS      158adjustments |   |
|------------------------------------|--------|-------------------------|--------|
| Other      non-current liabilities |   |                    | (16    | ) |
| Retained      earnings             |   |                    | 16     |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| (millions      of U.S. dollars, except as otherwise indicated and except for per share      amounts) |    | For      the years ended and as at December 31 |   |
|------------------------------------------------------------------------------------------------------|---------|------------------------------------------------|--------|
|                                                                                                 |    | 2008                                           |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |
| Consolidated      statement of earnings data:                                                        |    |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                                                             |    |                                           | 11,707 |   |   |   | 7,296 |   |   |   | 6,591 |   |   |   | 6,122 |   |   |   | 5,632 |   |
| Operating      profit                                                                                |    |                                           | 1,693  |   |   |   | 1,297 |   |   |   | 1,248 |   |   |   | 1,159 |   |   |   | 1,046 |   |
| Earnings      from continuing operations                                                             |    |                                           | 1,405  |   |   |   | 1,096 |   |   |   | 912 |   |   |   | 652 |   |   |   | 639 |   |
| Net      earnings                                                                                    |    |                                           | 1,405  |   |   |   | 4,004 |   |   |   | 1,120 |   |   |   | 934 |   |   |   | 1,011 |   |
| Basic      earnings per share from continuing operations                                             |    | $                                              | 1.82   |   |   | $ | 1.70 |   |   | $ | 1.41 |   |   | $ | 0.99 |   |   | $ | 0.97 |   |
| Basic      earnings per share                                                                        |    | $                                              | 1.82   |   |   | $ | 6.24 |   |   | $ | 1.73 |   |   | $ | 1.42 |   |   | $ | 1.54 |   |
| Diluted      earnings per share from continuing operations                                           |    | $                                              | 1.81   |   |   | $ | 1.69 |   |   | $ | 1.41 |   |   | $ | 0.99 |   |   | $ | 0.97 |   |
| Diluted      earnings per share                                                                      |    | $                                              | 1.81   |   |   | $ | 6.20 |   |   | $ | 1.73 |   |   | $ | 1.42 |   |   | $ | 1.54 |   |
|                                                                                                 |    |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated      balance sheet data:                                                                |    |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                                                                                    |    |                                           | 36,020 |   |   |   | 22,831 |   |   |   | 20,142 |   |   |   | 19,434 |   |   |   | 19,643 |   |
| Total      common and ordinary share capital                                                         |    |                                           | 11,025 |   |   |   | 2,822 |   |   |   | 2,689 |   |   |   | 2,616 |   |   |   | 2,586 |   |
| Total      shareholders’ equity                                                                |    |                                           | 20,126 |   |   |   | 13,571 |   |   |   | 10,481 |   |   |   | 9,963 |   |   |   | 9,962 |   |
|                                                                                                 |    |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividend      data:                                                                                  |    |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends      per Thomson Reuters Corporation                                                       |    |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| common      share (US$)                                                                              |    | $                                              | 1.08   |   |   | $ | 0.98 |   |   | $ | 0.88 |   |   | $ | 0.79 |   |   | $ | 0.76 |   |
| Dividends      per Thomson Reuters PLC ordinary share (US$)                                          |    | $                                              | 0.49   |   |   |   | n/m |   |   |   | n/m |   |   |   | n/m |   |   |   | n/m |   |
| Dividends      per Thomson Reuters Corporation Series II preference share      (C$)                  |  C | $                                              | 0.85   |   |  C | $ | 1.07 |   |  C | $ | 1.00 |   |  C | $ | 0.77 |   |   C | $ | 0.70 |   |
|                                                                                                 |    |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average number of shares outstanding (in millions):                                    |    |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Thomson      Reuters Corporation common shares and Thomson Reuters PLC ordinary shares,      basic   |    |                                           | 770.8  |   |   |   | 641.2 |   |   |   | 644.1 |   |   |   | 654.4 |   |   |   | 655.3 |   |
| Thomson      Reuters Corporation common shares and Thomson Reuters PLC ordinary shares,      diluted |    |                                           | 775.2  |   |   |   | 644.4 |   |   |   | 646.0 |   |   |   | 655.0 |   |   |   | 655.9 |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| The      following individuals are our executive officers: |
|------------------------------------------------------------|
|                                                       |
| Name                                                       |   | Age |   | Title |
| Thomas H. Glocer                            |   | 49 |   | Chief      Executive Officer |
| Robert D. Daleo                             |   | 59 |   | Executive      Vice President and      Chief Financial Officer |
| James C. Smith                              |   | 49 |   | Chief      Executive Officer, Professional      Division |
| Devin N. Wenig                              |   | 42 |   | Chief      Executive Officer, Markets      Division |
| Stephen G. Dando                            |   | 47 |   | Executive      Vice President and      Chief Human Resources Officer |
| Deirdre      Stanley                                  |   | 44 |   | Executive      Vice President and      General Counsel |
| Gus Carlson                                      |   | 50 |   | Executive      Vice President, Chief      Marketing & Communications      Officer |
| James Powell                                     |   | 47 |   | Executive      Vice President and      Chief TechnologyOfficer |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                             | Committee      memberships |
|--------------------------------------------------|----------------------------|
| Name                                             | Age                        | Audit | CorporateGovernance | HumanResources | DirectorSince |
| David Thomson,      Chairman                | 51                         |   |   |   | 1988 |
| W.      Geoffrey Beattie, Deputy Chairman   | 49                         |   | • | • | 1998 |
| Niall FitzGerald,      KBE, Deputy Chairman | 63                         |   | Chair | • | 2008 |
| Thomas H. Glocer                  | 49                         |   |   |   | 2008 |
| Manvinder S. Banga                | 54                         |   |   | • | 2009 |
| Mary Cirillo                           | 61                         |   | • | • | 2005 |
| Steven A.      Denning                      | 60                         |   |   | Chair | 2000 |
| Lawton      Fitt                                 | 55                         | • |   |   | 2008 |
| Roger L. Martin                        | 52                         | • |    |          | 1999 |
| Sir Deryck Maughan                     | 61                         |   | • |   | 2008 |
| Ken Olisa                              | 57                         | • |   |   | 2008 |
| Vance K. Opperman                 | 66                         | Chair  |   |   | 1996 |
| John M. Thompson                  | 66                         | •  | •  |   | 2003 |
| Peter J. Thomson                  | 43                         |   |   |   | 1995 |
| John A. Tory                      | 79                         |   |   | • | 1978 |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| (in      millions of US dollars) |   | 2008   |   |   | 2007   |   |
|----------------------------------|--------|--------|--------|--------|--------|--------|
| Audit      fees                  |   | $      | 23.0   |   |   | $      | 13.7 |   |
| Audit-related      fees          |   |   | 3.8    |   |   |   | 19.0 |   |
| Tax      fees                    |   |   | 11.2   |   |   |   | 10.9 |   |
| All      other fees              |   |   | 0.7    |   |   |   | 0.2 |   |
| Total                            |   | $      | 38.7   |   |   | $      | 43.8 |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| • | authoring content for inclusion      in certain products and services;and |
|---------|---------------------------------------------------------------------------|

| • | French translations of our      financial statements, MD&A and financial information included in our      prospectuses and other offering  documents. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | One      of the directors (Thomas H. Glocer) is not independent because he is the      CEO of Thomson Reuters. |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | · | Four      of the directors (David Thomson, W. Geoffrey Beattie, Peter J. Thomson and      John A. Tory) are considered to not be independent pursuant to applicable      rules because they are directors and current or former executive officers      of Woodbridge, the controlling shareholder of Thomson Reuters. None of      these individuals is a member of Thomson Reuters executive management      team. With its substantial equity investment in Thomson Reuters,      Woodbridge considers that its interests as a shareholder are aligned with      those of all other shareholders. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      remaining 10 directors areindependent. |
|--------|--------|-------------------------------------------------|

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|   | · | Until      February 2009, Mr. Denning was a director of Hewitt Associates Inc. In      February 2005, we entered into an agreement with Hewitt Associates Inc. to      outsource certain human resources administrative functions in order to      improve operating and cost efficiencies. When we initially entered into      the agreement, we expected to pay Hewitt an aggregate of $115 million over      a five-year period. This agreement was subsequently renegotiated and      extended in September 2006. Under the new terms, we expect to pay Hewitt      an aggregate of $165 million over a 10-year period. In 2008, we paid      Hewitt $11 million for its services. Mr. Denning did not participate in      negotiations related to the agreement and has refrained from deliberating      and voting on any matters relating to Hewitt Associates Inc. by the HR      Committee and the board. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Mr.      Thompson is the non-executive independent Chairman of the board of The      Toronto-Dominion Bank. In the normal course of business, we have a banking      relationship with The Toronto-Dominion Bank and one of the bank’s      affiliates has served as a dealer for our recent offerings of debt      securities in the United States andCanada. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                |   | Thomson      Reuters Corporation |    |   | Thomson      Reuters PLC |   |
|-------------------------------------|--------|----------------------------------|---------|--------|--------------------------|--------|
|                                |   | January 1,                  |    |   | December 31,        |   |   | March 26, |   |   | January 1, |   |   | December 31, |   |   | March 26, |   |
| Name                                |   |                             | 20081   |   |                     | 2008   |   |   | 2009 |   |   |   | 20081 |   |   | 2008 |   |   | 2009 |   |
| David Thomson             |   |                             | 6,070   |   |                     |   | 6,070 |   |   |   | 6,070 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| W.      Geoffrey Beattie  |   |                             | 200,500 |   |                     |   | 43,500 |   |   |   | 43,500 |   |   |   | – |   |   |   | 263,624 |   |   |   | 263,624 |   |
| Niall FitzGerald,      KBE     |   |                             | 27,658  |   |                     |   | 27,658 |   |   |   | 27,658 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Thomas H. Glocer     |   |                             | – |   |                     |   | – |   |   |   | – |   |   |   | 452,722 |   |   |   | 650,231 |   |   |   | 650,231 |   |
| Manvinder S. Banga   |   |                             | – |   |                     |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Mary Cirillo              |   |                             | – |   |                     |   | – |   |   |   | 11,101 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Steven A.      Denning         |   |                             | 36,339  |   |                     |   | 40,712 |   |   |   | 40,904 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Lawton      Fitt                    |   |                             | – |   |                     |   | – |   |   |   | – |   |   |   | 4,000 |   |   |   | 4,000 |   |   |   | 4,000 |   |
| Roger L. Martin      |   |                             | 17,338  |   |                     |   | 22,319 |   |   |   | 24,014 |   |   |   | – |   |   |   | 7,500 |   |   |   | 7,500 |   |
| Sir Deryck Maughan   |   |                             | – |   |                     |   | 1,142 |   |   |   | 2,122 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Ken Olisa                 |   |                             | – |   |                     |   | – |   |   |   | 888 |   |   |   | 408 |   |   |   | 408 |   |   |   | 408 |   |
| Vance K. Opperman    |   |                             | 72,068  |   |                     |   | 77,760 |   |   |   | 79,707 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| John M. Thompson2    |   |                             | 15,036  |   |                     |   | 22,521 |   |   |   | 23,417 |   |   |   | – |   |   |   | – |   |   |   | 11,400 |   |
| Peter J. Thomson     |   |                             | 1,366   |   |                     |   | 1,627 |   |   |   | 1,644 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| John A. Tory         |   |                             | 504,200 |   |                     |   | 62,831 |   |   |   | 62,861 |   |   |   | – |   |   |   | 548,000 |   |   |   | 548,000 |   |

| 1 | As      of the date of appointment, if later than January 1,      2008. Mr. Banga was appointed to the Thomson Reuters board on      January 1, 2009. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | In      addition, Mrs. J.M. Thompson owns 300 Thomson Reuters      Corporation common shares. |
|---|---------------------------------------------------------------------------------------------------------|

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| • | Thomson      Reuters Corporation and Thomson Reuters PLC are separate publicly listed      companies; |
|---------|-------------------------------------------------------------------------------------------------------|

| • | the      boards of directors of the two companies are comprised of the same      individuals, as are the companies’ executive  management; |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| • | shareholders      of the two companies ordinarily vote together as a single decision-making      body, including in the election ofdirectors; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| • | shareholders      of the two companies receive equivalent cash dividends and capital      distributions; |
|---------|----------------------------------------------------------------------------------------------------------|

| • | each      company has guaranteed all contractual obligations of the other company      and will guarantee other obligations as agreed;  and |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------|

| • | a      take-over bid or similar transaction is required to be made for shares of      both companies on an equivalentbasis. |
|---------|-----------------------------------------------------------------------------------------------------------------------------|

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| Ÿ | Joint      Electorate Actions. Thomson Reuters Corporation shareholders and      Thomson Reuters PLC shareholders vote together as a single decision-making      body on all matters other than those which constitute “Class Rights      Actions” or “Procedural Resolutions”. These matters are called “Joint      Electorate Actions” and include the election of directors, the appointment      of auditors and the approval and receipt of financial statements and      reports. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ÿ | Class      Rights Actions. On specified matters where the interests of Thomson      Reuters Corporation shareholders and Thomson Reuters PLC shareholders may      diverge, the shareholders of each company vote separately. These matters      are called “Class Rights Actions” and include: (i) the voluntary      liquidation of either company; (ii) any adjustment to the Equalization      Ratio other than in accordance with the Equalization and Governance      Agreement; (iii) any amendment to, or termination of, the contractual      arrangements giving effect to the DLC structure; and (iv) any amendment to      the provisions of our organizational documents giving effect to the DLC      structure. Matters that are Class Rights Actions may not be implemented      unless they have been approved by the requisite majority of the votes cast      by the Thomson Reuters Corporation shareholders and Thomson Reuters PLC      shareholders voting separately. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ÿ | Procedural      Resolutions. Procedural or technical resolutions do not constitute      either Joint Electorate Actions or Class Rights Actions and will be voted      on separately by the relevant Thomson Reuters Corporation shareholders or      Thomson Reuters PLC shareholders. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ÿ | For      Joint Electorate Actions, the Thomson Reuters Corporation special voting      share carries the number of votes cast at the parallel meeting of Thomson      Reuters PLC shareholders (as adjusted by the Equalization Ratio and      rounded up to the nearest whole number) and the Thomson Reuters PLC      special voting share carries the number of votes cast at the parallel      meeting of Thomson Reuters Corporation shareholders (as adjusted by the      Equalization Ratio and rounded up to the nearest whole      number). |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ÿ | For      Class Rights Actions, the special voting shares carry voting rights only      if the proposed action has not been approved at the parallel meeting of      the Thomson Reuters PLC shareholders or Thomson Reuters Corporation      shareholders, as the case may be. In that event, the special voting shares      carry such number of votes in respect of the proposed action as would be      sufficient to defeat it. These voting rights reflect the requirement that      Class Rights Actions be approved by the shareholders of each of Thomson      Reuters Corporation and Thomson Reuters PLC voting    separately. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| • | Thomson      Reuters Corporation’s authorized share capital consisted of an unlimited      number of common shares, an unlimited number of preference shares,      issuable in series, a Reuters Founders Share, a special voting share and      an equalization share. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Thomson      Reuters PLC’s authorized share capital consisted of      2,031,700,000 ordinary shares, a Reuters Founders Share and a special      voting share. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| Ÿ | Thomson      Reuters Corporation common shares are listed in Canadian dollars on the      TSX and in US dollars on the NYSE under the symbol “TRI” and the Series II      preference shares are listed in Canadian dollars on the TSX under the      symbol “TRI.PR.B”. Prior to the closing of the Reuters acquisition, our      common shares and preference shares traded under the symbols “TOC” and      “TOC.PR.B”, respectively. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ÿ | Thomson      Reuters PLC ordinary shares are traded in British pounds sterling on the      LSE under the symbol “TRIL”. ADSs, each representing six Thomson Reuters      PLC ordinary shares, are listed in US dollars on the Nasdaq Global Select      Market under the symbol “TRIN”. The ADSs are evidenced by American      Depositary Receipts (ADRs) issued by Deutsche Bank Trust Company Americas,      as depositary under a deposit agreement dated April 17, 2008 signed with      Thomson Reuters PLC and on behalf of ADR  holders. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | Thomson      Reuters Corporation      common      shares (C$) |   |   | Thomson      Reuters Corporation      common      shares (US$) |   |   | Thomson      ReutersCorporation      Series IIpreferred      shares (C$) |   |   | Thomson      Reuters PLC      ordinary shares      (£) |   |   | Thomson      Reuters PLC      ADSs (US$) |   |
|--------|--------|---------------------------------------------------------------|--------|--------|----------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------|--------|--------|------------------------------------------|--------|
|   |   | High                                                          |   |   | Low                                                            |   |   | High                                                                     |   |   | Low                                                         |   |   | High                                     |   |   | Low |   |   | High |   |   | Low |   |   | High |   |   | Low |   |
| 2004   |   |                                                          | 47.99  |   |                                                           |   | 39.86  |                                                                     |   |   | 37.29                                                       |   |   |                                     | 29.84  |   |   |   | 26.10 |   |   |   | 24.55 |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
| 2005   |   |                                                          | 45.50  |   |                                                           |   | 38.80  |                                                                     |   |   | 38.55                                                       |   |   |                                     | 31.09  |   |   |   | 26.05 |   |   |   | 24.61 |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
| 2006   |   |                                                          | 49.54  |   |                                                           |   | 39.50  |                                                                     |   |   | 43.41                                                       |   |   |                                     | 34.01  |   |   |   | 26.49 |   |   |   | 25.23 |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
| 2007   |   |                                                          | 51.95  |   |                                                           |   | 36.44  |                                                                     |   |   | 47.26                                                       |   |   |                                     | 36.93  |   |   |   | 28.80 |   |   |   | 23.25 |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
| 2008   |   |                                                          | 40.70  |   |                                                           |   | 24.83  |                                                                     |   |   | 41.16                                                       |   |   |                                     | 19.30  |   |   |   | 24.45 |   |   |   | 9.00 |   |   |   | 17.12 |   |   |   | 8.83 |   |   |   | 197.65 |   |   |   | 86.00 |   |

|   |   |   | Thomson      Reuters Corporation      common      shares (C$) |   |   | Thomson      Reuters Corporation      common      shares (US$) |   |   | Thomson      Reuters Corporation      Series II preferred      shares (C$) |   |   | Thomson      Reuters PLC      ordinary shares      (£) |   |   | Thomson      Reuters PLC      ADSs (US$) |   |
|--------|--------|--------|---------------------------------------------------------------|--------|--------|----------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------|--------|--------|------------------------------------------|--------|
|   |   |   | High                                                          |   |   | Low                                                            |   |   | High                                                                       |   |   | Low                                                         |   |   | High                                     |   |   | Low |   |   | High |   |   | Low |   |   | High |   |   | Low |   |
| 2007   |   |   |                                                          |   |   |                                                           |   |   |                                                                       |   |   |                                                        |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Q1     |   |   |                                                          |   | 51.95  |                                                           |   |   | 46.30                                                                      |   |   |                                                        | 44.19  |   |                                     |   | 39.46 |   |   |   | 28.80 |   |   |   | 25.27 |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
| Q2     |   |   |                                                          |   | 50.00  |                                                           |   |   | 43.17                                                                      |   |   |                                                        | 44.93  |   |                                     |   | 39.75 |   |   |   | 26.04 |   |   |   | 25.00 |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
| Q3     |   |   |                                                          |   | 46.19  |                                                           |   |   | 41.00                                                                      |   |   |                                                        | 44.36  |   |                                     |   | 38.27 |   |   |   | 25.75 |   |   |   | 24.77 |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
| Q4     |   |   |                                                          |   | 44.69  |                                                           |   |   | 36.44                                                                      |   |   |                                                        | 47.26  |   |                                     |   | 36.93 |   |   |   | 25.23 |   |   |   | 23.25 |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
| 2008   |   |   |                                                          |   |   |                                                           |   |   |                                                                       |   |   |                                                        |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Q1     |   |   |                                                          |   | 40.70  |                                                           |   |   | 31.67                                                                      |   |   |                                                        | 41.16  |   |                                     |   | 31.96 |   |   |   | 24.45 |   |   |   | 21.95 |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
| Q2     |   |   |                                                          |   | 39.78  |                                                           |   |   | 32.01                                                                      |   |   |                                                        | 39.75  |   |                                     |   | 31.65 |   |   |   | 22.45 |   |   |   | 21.00 |   |   |   | 17.12 |   |   |   | 12.74 |   |   |   | 197.65 |   |   |   | 157.33 |   |
| Q3     |   |   |                                                          |   | 37.91  |                                                           |   |   | 25.89                                                                      |   |   |                                                        | 35.50  |   |                                     |   | 24.83 |   |   |   | 23.00 |   |   |   | 21.85 |   |   |   | 16.25 |   |   |   | 11.32 |   |   |   | 179.82 |   |   |   | 125.09 |   |
| Q4     |   |   |                                                          |   | 35.75  |                                                           |   |   | 24.83                                                                      |   |   |                                                        | 29.42  |   |                                     |   | 19.30 |   |   |   | 22.40 |   |   |   | 9.00 |   |   |   | 15.95 |   |   |   | 8.83 |   |   |   | 142.20 |   |   |   | 86.00 |   |
| 2009   |   |   |                                                          |   |   |                                                           |   |   |                                                                       |   |   |                                                        |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Q1     |   |   |                                                          |   | 35.51  |                                                           |   |   | 27.57                                                                      |   |   |                                                        | 29.99  |   |                                     |   | 21.89 |   |   |   | 14.49 |   |   |   | 10.00 |   |   |   | 15.89 |   |   |   | 13.02 |   |   |   | 142.71 |   |   |   | 108.47 |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|      |   | Thomson      Reuters Corporation      common      shares (C$) |   |   | Thomson      Reuters Corporation common      shares (US$) |   |   | Thomson      Reuters Corporation Series      II preference shares |   |
|-----------|--------|---------------------------------------------------------------|--------|--------|-----------------------------------------------------------|--------|--------|-------------------------------------------------------------------|--------|
|      |   | High                                                          |   |   | Low                                                       |   |   | Closing                                                           |   |   | Trading      volume |   |   | High |   |   | Low |   |   | Closing |   |   | Trading      volume |   |   | High |   |   | Low |   |   | Closing |   |   | Trading      volume |   |
| 2008      |   |                                                          |   |   |                                                      |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| January   |   |                                                          | 40.70  |   |                                                      |   | 32.30  |                                                              |   |   | 35.84 |   |   |   | 32,249,916 |   |   |   | 41.16 |   |   |   | 32.37 |   |   |   | 35.54 |   |   |   | 4,945,050 |   |   |   | 24.45 |   |   |   | 22.55 |   |   |   | 23.50 |   |   |   | 32,844 |   |
| February  |   |                                                          | 36.79  |   |                                                      |   | 32.60  |                                                              |   |   | 32.77 |   |   |   | 32,983,608 |   |   |   | 36.82 |   |   |   | 33.21 |   |   |   | 33.27 |   |   |   | 3,517,685 |   |   |   | 23.50 |   |   |   | 22.70 |   |   |   | 22.99 |   |   |   | 19,206 |   |
| March     |   |                                                          | 38.80  |   |                                                      |   | 31.67  |                                                              |   |   | 34.52 |   |   |   | 53,413,948 |   |   |   | 39.05 |   |   |   | 31.96 |   |   |   | 33.53 |   |   |   | 7,132,127 |   |   |   | 23.25 |   |   |   | 21.95 |   |   |   | 22.00 |   |   |   | 48,772 |   |
| April     |   |                                                          | 39.78  |   |                                                      |   | 34.35  |                                                              |   |   | 37.30 |   |   |   | 49,234,412 |   |   |   | 39.16 |   |   |   | 33.69 |   |   |   | 37.60 |   |   |   | 5,194,240 |   |   |   | 22.38 |   |   |   | 21.00 |   |   |   | 22.00 |   |   |   | 17,010 |   |
| May       |   |                                                          | 39.77  |   |                                                      |   | 35.92  |                                                              |   |   | 36.15 |   |   |   | 35,092,944 |   |   |   | 39.75 |   |   |   | 35.85 |   |   |   | 36.55 |   |   |   | 4,207,038 |   |   |   | 22.09 |   |   |   | 21.25 |   |   |   | 21.75 |   |   |   | 27,347 |   |
| June      |   |                                                          | 37.32  |   |                                                      |   | 32.01  |                                                              |   |   | 32.90 |   |   |   | 26,663,472 |   |   |   | 36.94 |   |   |   | 31.65 |   |   |   | 32.19 |   |   |   | 3,114,202 |   |   |   | 22.45 |   |   |   | 21.75 |   |   |   | 22.05 |   |   |   | 100,726 |   |
| July      |   |                                                          | 33.10  |   |                                                      |   | 27.51  |                                                              |   |   | 33.05 |   |   |   | 28,674,766 |   |   |   | 32.64 |   |   |   | 27.54 |   |   |   | 32.23 |   |   |   | 4,496,550 |   |   |   | 22.49 |   |   |   | 22.05 |   |   |   | 22.49 |   |   |   | 57,670 |   |
| August    |   |                                                          | 37.91  |   |                                                      |   | 32.21  |                                                              |   |   | 35.75 |   |   |   | 20,337,464 |   |   |   | 35.50 |   |   |   | 31.38 |   |   |   | 33.62 |   |   |   | 4,234,015 |   |   |   | 23.00 |   |   |   | 22.32 |   |   |   | 22.99 |   |   |   | 31,410 |   |
| September |   |                                                          | 36.93  |   |                                                      |   | 25.89  |                                                              |   |   | 28.93 |   |   |   | 51,362,984 |   |   |   | 34.50 |   |   |   | 24.83 |   |   |   | 27.27 |   |   |   | 7,476,906 |   |   |   | 22.99 |   |   |   | 21.85 |   |   |   | 22.29 |   |   |   | 16,340 |   |
| October   |   |                                                          | 31.00  |   |                                                      |   | 25.02  |                                                              |   |   | 28.38 |   |   |   | 32,493,872 |   |   |   | 28.60 |   |   |   | 19.75 |   |   |   | 23.48 |   |   |   | 8,670,302 |   |   |   | 22.40 |   |   |   | 18.00 |   |   |   | 19.00 |   |   |   | 170,855 |   |
| November  |   |                                                          | 31.72  |   |                                                      |   | 24.83  |                                                              |   |   | 31.72 |   |   |   | 31,393,572 |   |   |   | 26.67 |   |   |   | 19.30 |   |   |   | 24.74 |   |   |   | 8,734,105 |   |   |   | 18.50 |   |   |   | 14.75 |   |   |   | 15.00 |   |   |   | 13,460 |   |
| December  |   |                                                          | 35.75  |   |                                                      |   | 26.50  |                                                              |   |   | 35.60 |   |   |   | 35,473,184 |   |   |   | 29.42 |   |   |   | 21.35 |   |   |   | 29.15 |   |   |   | 10,866,609 |   |   |   | 14.99 |   |   |   | 9.00 |   |   |   | 11.50 |   |   |   | 196,414 |   |
| 2009      |   |                                                          |   |   |                                                      |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| January   |   |                                                          | 35.51  |   |                                                      |   | 27.57  |                                                              |   |   | 30.00 |   |   |   | 32,577,446 |   |   |   | 29.99 |   |   |   | 21.89 |   |   |   | 24.39 |   |   |   | 9,937,820 |   |   |   | 12.49 |   |   |   | 10.00 |   |   |   | 11.80 |   |   |   | 409,335 |   |
| February  |   |                                                          | 33.33  |   |                                                      |   | 28.19  |                                                              |   |   | 31.54 |   |   |   | 31,616,264 |   |   |   | 27.36 |   |   |   | 22.52 |   |   |   | 24.72 |   |   |   | 9,969,950 |   |   |   | 13.99 |   |   |   | 11.90 |   |   |   | 13.99 |   |   |   | 25,590 |   |
| March     |   |                                                          | 32.16  |   |                                                      |   | 28.60  |                                                              |   |   | 31.60 |   |   |   | 18,458,900 |   |   |   | 26.13 |   |   |   | 22.02 |   |   |   | 25.46 |   |   |   | 5,956,997 |   |   |   | 14.49 |   |   |   | 13.38 |   |   |   | 13.38 |   |   |   | 5,525 |   |

|      |   | Thomson      Reuters PLC ordinary shares (£) |   |   | Thomson      Reuters PLC ADSs (US$) |   |
|-----------|--------|---------------------------------------------------|--------|--------|-------------------------------------|--------|
|      |   | High                                              |   |   | Low                                 |   |   | Closing |   |   | Trading      volume |   |   | High |   |   | Low |   |   | Closing |   |   | Trading      volume |   |
| 2008      |   |                                              |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| April     |   |                                              | 17.00  |   |                                |   | 14.96 |   |   |   | 15.63 |   |   |   | 29,562,513 |   |   |   | 195.25 |   |   |   | 182.79 |   |   |   | 186.88 |   |   |   | 306,723 |   |
| May       |   |                                              | 17.12  |   |                                |   | 15.03 |   |   |   | 16.29 |   |   |   | 44,217,188 |   |   |   | 197.65 |   |   |   | 179.09 |   |   |   | 194.07 |   |   |   | 1,884,648 |   |
| June      |   |                                              | 16.23  |   |                                |   | 12.74 |   |   |   | 13.44 |   |   |   | 41,868,104 |   |   |   | 189.67 |   |   |   | 157.33 |   |   |   | 161.90 |   |   |   | 531,979 |   |
| July      |   |                                              | 14.06  |   |                                |   | 11.32 |   |   |   | 13.68 |   |   |   | 61,821,912 |   |   |   | 168.21 |   |   |   | 139.87 |   |   |   | 161.56 |   |   |   | 571,330 |   |
| August    |   |                                              | 16.25  |   |                                |   | 13.46 |   |   |   | 15.37 |   |   |   | 37,061,428 |   |   |   | 179.82 |   |   |   | 156.85 |   |   |   | 168.20 |   |   |   | 568,009 |   |
| September |   |                                              | 16.14  |   |                                |   | 11.81 |   |   |   | 12.41 |   |   |   | 60,333,204 |   |   |   | 171.13 |   |   |   | 125.09 |   |   |   | 135.73 |   |   |   | 910,112 |   |
| October   |   |                                              | 13.06  |   |                                |   | 8.83 |   |   |   | 10.73 |   |   |   | 53,054,284 |   |   |   | 137.82 |   |   |   | 86.00 |   |   |   | 104.56 |   |   |   | 1,173,348 |   |
| November  |   |                                              | 13.15  |   |                                |   | 10.39 |   |   |   | 12.99 |   |   |   | 50,810,480 |   |   |   | 120.68 |   |   |   | 90.92 |   |   |   | 120.17 |   |   |   | 1,458,856 |   |
| December  |   |                                              | 15.95  |   |                                |   | 12.00 |   |   |   | 15.10 |   |   |   | 32,579,992 |   |   |   | 142.20 |   |   |   | 109.44 |   |   |   | 135.81 |   |   |   | 1,013,289 |   |
| 2009      |   |                                              |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| January   |   |                                              | 15.89  |   |                                |   | 13.05 |   |   |   | 13.97 |   |   |   | 35,765,460 |   |   |   | 142.71 |   |   |   | 108.47 |   |   |   | 121.52 |   |   |   | 749,507 |   |
| February  |   |                                              | 15.19  |   |                                |   | 13.02 |   |   |   | 14.50 |   |   |   | 35,776,692 |   |   |   | 134.40 |   |   |   | 114.19 |   |   |   | 124.30 |   |   |   | 922,827 |   |
| March     |   |                                              | 15.89  |   |                                |   | 13.51 |   |   |   | 15.61 |   |   |   | 21,516,450 |   |   |   | 138.00 |   |   |   | 113.58 |   |   |   | 133.85 |   |   |   | 612,924 |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| Ÿ | US$750      million of 5.95% notes due 2013; |
|--------|----------------------------------------------|

| Ÿ | US$1      billion of 6.50% notes due 2018; |
|--------|--------------------------------------------|

| Ÿ | C$600      million of 5.25% notes due 2011;and |
|--------|------------------------------------------------|

| Ÿ | C$600      million of 5.70% notes due2015. |
|--------|--------------------------------------------|

| Ÿ | Holders      of Thomson Reuters Corporation common shares receive their dividends in US      dollars, unless they elect to receive their dividends in Canadian dollars      or British pounds sterling; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ÿ | Holders      of Thomson Reuters PLC ordinary shares receive their dividends in British      pounds sterling, unless they elect to receive their dividends in US      dollars, Canadian dollars or certain other local currencies;      and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Ÿ | Holders      of Thomson Reuters PLC ADSs receive their dividends in US      dollars. |
|--------|--------------------------------------------------------------------------------------|

|                           |   |        |     |   |             |   |     |           |   |
|--------------------------------|--------|-------------|----------|--------|------------------|--------|----------|----------------|--------|
|                           |   | Thomson     |     |   | Thomson          |   |     | Thomson        |   |
|                           |   | Reuters     |     |   | Reuters      PLC |   |     | Reuters        |   |
|                           |   | Corporation |     |   | ordinary         |   |     | Corporation    |   |
|                           |   | common      |     |   | shares           |   |     | Series      II |   |
|                           |   | shares      |     |   | (US$)            |   |     | preference     |   |
|                           |   | (US$)       |     |   |             |   |     | shares    (C$) |   |
| Dividend      amount per share |   |
| 2006                           |   |        |     |   |             |   |     |           |   |
| Q1                             |   | $           | 0.220000 |   |             |   | -        |           |   | C$ | 0.224384 |   |
| Q2                             |   | $           | 0.220000 |   |             |   | -        |           |   | C$ | 0.250437 |   |
| Q3                             |   | $           | 0.220000 |   |             |   | -        |           |   | C$ | 0.264658 |   |
| Q4                             |   | $           | 0.220000 |   |             |   | -        |           |   | C$ | 0.264658 |   |
| 2007                           |   |        |     |   |             |   |     |           |   |   |   |   |
| Q1                             |   | $           | 0.245000 |   |             |   | -        |           |   | C$ | 0.258904 |   |
| Q2                             |   | $           | 0.245000 |   |             |   | -        |           |   | C$ | 0.261781 |   |
| Q3                             |   | $           | 0.245000 |   |             |   | -        |           |   | C$ | 0.274362 |   |
| Q4                             |   | $           | 0.245000 |   |             |   | -        |           |   | C$ | 0.273921 |   |
| 2008                           |   |        |     |   |             |   |     |           |   |   |   |   |
| Q1                             |   | $           | 0.270000 |   |             |   | -        |           |   | C$ | 0.250200 |   |
| Q2                             |   | $           | 0.317470 |   |             |   | -        |           |   | C$ | 0.212800 |   |
| Q3                             |   | $           | 0.222530 |   |             | $      | 0.222530 |           |   | C$ | 0.208900 |   |
| Q4                             |   | $           | 0.270000 |   |             | $      | 0.270000 |           |   | C$ | 0.180355 |   |
| 2009                           |   |        |     |   |             |   |     |           |   |   |   |   |
| Q1                             |   | $           | 0.280000 |   |             | $      | 0.280000 |           |   | C$ | 0.131610 |   |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| • | corporate      governance, including the effectiveness of our  board; |
|---------|-----------------------------------------------------------------------|

| • | appointment      of the Chief Executive Officer and other members of senior management and      related succession planning; |
|---------|------------------------------------------------------------------------------------------------------------------------------|

| • | development      of the long-term business strategy of Thomson Reuters and assessment of      its implementation; and |
|---------|-----------------------------------------------------------------------------------------------------------------------|

| • | capital      strategy. |
|---------|------------------------|

| Shareholder                                 |   | Number           |       |   | Percentage       |   |       | Percentage           |   |
|---------------------------------------------|--------|------------------|------------|--------|------------------|--------|------------|----------------------|--------|
|                                        |   | of      ordinary |       |   | of      ordinary |   |       | of      total voting |   |
|                                        |   | shares           |       |   | shares           |   |       | interests            |   |
| Royal      Bank of Canada (1)               |   |             | 14,601,274 |   |             |   | 8.05       | %                    |   |   | 1.76 | % |
| ValueAct      Capital Master Fund L.P.      |   |             | 10,833,806 |   |             |   | 5.97  | %                    |   |   | 1.30 | % |
| Caisse      de depot et placement du Quebec |   |             | 5,700,959  |   |             |   | 3.14  | %                    |   |   | 0.68 | % |

|                             |   |       |   |   | Estimated  |   |
|----------------------------------|--------|------------|--------|--------|------------|--------|
|                             |   | Registered |   |   | beneficial |   |
|                             |   | holders    |   |   | holders    |   |
| Common      shares               |   |       | 2,891  |   |       |   | 39,385 |   |
| Series      II preference shares |   |       | 8      |   |       |   | 336 |   |

|                 |   |       |   |   | Estimated  |   |
|----------------------|--------|------------|--------|--------|------------|--------|
|                 |   | Registered |   |   | beneficial |   |
|                 |   | holders    |   |   | holders    |   |
| Ordinary      shares |   |       | 20,180 |   |       |   | N/A |   |
| ADSs                 |   |       | 1,688  |   |       |   | N/A |   |

|                             |   | Registered      holders |   |   | Number      of shares      held |   |       | Percentage      of      total voting interests |   |
|----------------------------------|--------|-------------------------|--------|--------|---------------------------------|--------|------------|------------------------------------------------|--------|
| Common      shares               |   |                    | 223    |   |                            |   | 52,071,566 |                                           |   |   | 6.29 | % |
| Series      II preference shares |   |                    | 1      |   |                            |   | 150        |                                           |   |   | N/A |   |
| Ordinary      shares             |   |                    | 985    |   |                            |   | 205,635    |                                           |   |   | 0.02 | %  |
| ADSs                             |   |                    | 1,599  |   |                            |   | 19,939,038 |                                           |   |   | 2.41 | %  |

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| Agreement/Document                                               |   | Parties                                                                                                                                                                                                                                                    |
|------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Equalization      and Governance Agreement                       |   | Thomson      Reuters Corporation and Thomson Reuters PLC                                                                                                                                                                                              |
| Special      Voting Share Agreement                              |   | Thomson      Reuters Corporation, Thomson Reuters PLC and Computershare Trust Company      of Canada                                                                                                                                                  |
| Thomson      Reuters Corporation Special Voting Share Trust Deed |   | Thomson      Reuters Corporation and Computershare Trust Company of Canada, as Trustee                                                                                                                                                                     |
| Thomson      Reuters PLC Special Voting Share Trust Deed         |   | Thomson      Reuters Corporation and Computershare Trust Company of Canada, as      Trustee                                                                                                                                                           |
| Thomson      Reuters Corporation Deed of Guarantee               |   | Thomson      Reuters Corporation and Thomson Reuters PLC                                                                                                                                                                                              |
| Thomson      Reuters PLC Deed of Guarantee                       |   | Thomson      Reuters Corporation and Thomson Reuters PLC                                                                                                                                                                                              |
| Amended      Deed of Mutual Covenant                             |   | Thomson      Reuters Corporation, Thomson Reuters PLC, Australian Associated Press Pty      Limited, New Zealand Press Association Limited, Reuters Founders Share      Company Limited, Reuters Group PLC, PA Group Limited and NPA Nominees      Limited |
| Reuters      Trust Principles Support Agreement                  |   | Reuters      Founders Share Company Limited and The Woodbridge Company      Limited                                                                                                                                                                        |

| • | That      Thomson Reuters shall at no time pass into the hands of any one interest,      group or faction; |
|---------|------------------------------------------------------------------------------------------------------------|

| • | That      the integrity, independence and freedom from bias of Thomson Reuters shall      at all times be fully preserved; |
|---------|----------------------------------------------------------------------------------------------------------------------------|

| • | That      Thomson Reuters shall supply unbiased and reliable news services to      newspapers, news agencies, broadcasters and other media subscribers and to      businesses, governments, institutions, individuals and others with whom      Thomson Reuters has or may havecontracts; |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | That      Thomson Reuters shall pay due regard to the many interests which it serves      in addition to those of the media;and |
|---------|---------------------------------------------------------------------------------------------------------------------------------|

| • | That      no effort shall be spared to expand, develop and adapt the news and other      services and products of Thomson Reuters so as to maintain its leading      position in the international news and information    business. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| Name                                                |   | Country                   |   | Director      since |
|-----------------------------------------------------|--------|---------------------------|--------|---------------------|
| Leonard Berkowitz                         |   | UK                   |   | 1998                |
| The      Honourable Mrs. Anson Chan  |   | China                |   | 2002           |
| Sir Michael Checkland                |   | UK                   |   | 1994                |
| Jiri Dienstbier                           |   | Czech Republic  |   | 2005                |
| Uffe Ellemann-Jensen                      |   | Denmark              |   | 2001                |
| John Fairfax                              |   | Australia            |   | 2005                |
| Pehr Gyllenhammar      (Chairman)              |   | Sweden                    |   | 1997                |
| Alejandro      Junco de la Vega                     |   | Mexico                    |   | 2006                |
| Joseph      Lelyveld                                |   | USA                       |   | 2004                |
| Sir      Christopher Mallaby                        |   | UK                        |   | 1998                |
| John      McArthur                                  |   | Canada                    |   | 2001                |
| Mammen Matthew                            |   | India                |   | 2002                |
| The      Right Hon. Baroness Noakes            |   | UK              |   | 1998                |
| Sir William Purves                   |   | UK                        |   | 1998                |
| Jaakko Rauramo                            |   | Finland              |   | 1999                |
| Dr. Sachio Semmoto                   |   | Japan                     |   | 2007                |

| • | enter      into, operate and carry into effect various agreements related to the DLC      structure; and |
|---------|----------------------------------------------------------------------------------------------------------|

| • | carry      on business as a general commercial company and to carry on any trade or      business whatsoever. |
|---------|---------------------------------------------------------------------------------------------------------------|

| • | relating      primarily to his or her remuneration as a director of the corporation or      an affiliate; |
|---------|-----------------------------------------------------------------------------------------------------------|

| • | for      indemnity of or insurance for the directors as contemplated under the      OBCA; or |
|---------|----------------------------------------------------------------------------------------------|

| • | with      an affiliate. |
|---------|-------------------------|

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| • | any      transaction or arrangement in which he or she is interested by virtue of      an interest in shares, debentures or other securities of Thomson Reuters      PLC or otherwise in or through Thomson Reuters  PLC; |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | the      giving of any guarantee, security or indemnity in respect of: (a) money      lent or obligations incurred by him or her or by any other person at the      request of, or for the benefit of, Thomson Reuters PLC or any of its      subsidiary undertakings; or (b) a debt or obligation of Thomson Reuters      PLC or any of its subsidiary undertakings for which he or she has assumed      responsibility in whole or in part (either alone or jointly with others)      under a guarantee or indemnity or by the giving of    security; |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | indemnification      (including loans made in connection with it) by Thomson Reuters PLC in      relation to the performance of his or her duties on behalf of Thomson      Reuters PLC or any of its subsidiary  undertakings; |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | any      issue or offer of shares, debentures or other securities of Thomson      Reuters PLC or any of its subsidiary undertakings in respect of which he      or she is or may be entitled to participate in his or her capacity as a      holder of any such securities or as an underwriter or      sub-underwriter; |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | any      transaction or arrangement concerning any other company in which he or she      does not hold, directly or indirectly as shareholder, or through his or      her direct or indirect holdings of financial instruments voting rights      representing 1% or more of any class of shares in the capital of that      company; |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | any      arrangement for the benefit of employees of Thomson Reuters PLC or any of      its subsidiary undertakings which does not accord to him or her any      privilege or benefit not generally accorded to the employees to whom the      arrangement relates; and |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | the      purchase or maintenance of insurance for the benefit of directors of      Thomson Reuters PLC or for the benefit of persons including directors of      Thomson Reuters PLC. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | a      special resolution of shareholders approved as a Class Rights Action or      Joint Electorate Action, as applicable;and |
|---------|--------------------------------------------------------------------------------------------------------------------------------|

| • | a      special resolution of the holders of the class of shares that is being      affected. |
|---------|----------------------------------------------------------------------------------------------|

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| • | in      the case of an annual general meeting, by all the shareholders entitled to      attend and vote thereat, including the holder of the Reuters Founders      Share; and |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | in      the case of any other general meeting, by a majority in number of the      shareholders having a right to attend and vote thereat, being a majority      together holding not less than 95% in nominal value of the shares giving      that right, and by the holder of the Reuters Founders    Share. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| Year   |   | Average |   | Month/Year |                | High   |   |   | Low    |   |
|--------|--------|---------|--------|------------|---------------------|--------|--------|--------|--------|--------|
| 2004   |   |    | 1.3018 |       | September      2008 |   |   | 1.0756 |   |   |   | 1.0342 |   |
| 2005   |   |    | 1.2118 |       | October      2008   |   |   | 1.2928 |   |   |   | 1.0514 |   |
| 2006   |   |    | 1.1344 |       | November      2008  |   |   | 1.2675 |   |   |   | 1.1564 |   |
| 2007   |   |    | 1.0743 |       | December      2008  |   |   | 1.2711 |   |   |   | 1.1933 |   |
| 2008   |   |    | 1.0662 |       | January      2009   |   |   | 1.2652 |   |   |   | 1.1857 |   |
| 2009   |   |    | 1.2449 |       | February      2009  |   |   | 1.2622 |   |   |   | 1.2199 |   |
|   |   |    |   |       | March      2009     |   |   | 1.2907 |   |   |   | 1.2413 |   |

| Year   |   | Average |   | Month/Year |                | High   |   |   | Low    |   |
|--------|--------|---------|--------|------------|---------------------|--------|--------|--------|--------|--------|
| 2004   |   |    | 0.5461 |       | September      2008 |   |   | 0.5711 |   |   |   | 0.5390 |   |
| 2005   |   |    | 0.5500 |       | October      2008   |   |   | 0.6409 |   |   |   | 0.5560 |   |
| 2006   |   |    | 0.5436 |       | November      2008  |   |   | 0.6791 |   |   |   | 0.6208 |   |
| 2007   |   |    | 0.4997 |       | December      2008  |   |   | 0.6910 |   |   |   | 0.6442 |   |
| 2008   |   |    | 0.5447 |       | January      2009   |   |   | 0.7268 |   |   |   | 0.6598 |   |
| 2009   |   |    | 0.6980 |       | February      2009  |   |   | 0.7030 |   |   |   | 0.6739 |   |
|   |   |    |   |       | March      2009     |   |   | 0.7265 |   |   |   | 0.6969 |   |

| Subsidiary                                                  |   | Jurisdiction      of incorporation/ formation |
|-------------------------------------------------------------|--------|-----------------------------------------------|
| 1602854      Ontario Ltd.                                   |   | Ontario,      Canada                          |
| 3097052      Nova Scotia Company                            |   | Ontario,      Canada                          |
| Information      Holdings Inc.                              |   | Delaware,      U.S.A.                         |
| International      Thomson Reuters B.V.                |   | The      Netherlands                          |
| LiveNote      Technologies Limited                          |   | England                                       |
| LiveNote,      Inc.                                         |   | Delaware,      U.S.A.                         |
| LN      Holdings Limited                                    |   | Bermuda                                       |
| Physicians’      Desk Reference Inc.                  |   | Florida,      U.S.A.                          |
| Reuters      Canvas Holdings 1 Limited                      |   | Bermuda                                       |
| Reuters      Holdings Limited                               |   | England                                       |
| Reuters      International Holdings Sarl                    |   | Switzerland                                   |
| Reuters      Limited                                        |   | England                                       |
| Reuters      SA                                             |   | Switzerland                                   |
| The      Thomson Organisation Limited                       |   | England                                       |
| Thomcorp      Holdings Inc.                                 |   | New      York, U.S.A.                         |
| Thomson      Financial Holdings Inc.                        |   | Delaware,      U.S.A.                         |
| Thomson      Financial LLC                                  |   | Delaware,      U.S.A.                         |
| Thomson      Holdings Limited                               |   | England                                       |
| Thomson      Information & Publishing Holdings Limited  |   | England                                       |
| Thomson      Information & Solutions (Holdings) Limited |   | England                                       |
| Thomson      Information & Solutions Limited            |   | England                                       |
| Thomson      Organisation (No. 10)                          |   | England                                       |
| Thomson      Publishing Group Limited                       |   | England                                       |
| Thomson Reuters      (Healthcare) Inc.                 |   | Delaware,      U.S.A.                         |
| Thomson Reuters      (Legal) Inc.                      |   | Minnesota,      U.S.A.                        |
| Thomson Reuters      (Markets) Group                   |   |                                          |
| Overseas      Holdings UK Limited                           |   | England                                       |
| Thomson Reuters      (Scientific) Inc.                 |   | Pennsylvania,      U.S.A.                     |
| Thomson Reuters      (Tax & Accounting) Inc.       |   | Texas,      U.S.A.                            |
| Thomson Reuters      (TRI) Inc.                        |   | Delaware,      U.S.A.                         |
| Thomson      Reuters Applications Inc.                      |   | Delaware,      U.S.A.                         |
| Thomson      Reuters Canada Limited                         |   | Ontario,      Canada                          |
| Thomson      Reuters Finance S.A.                           |   | Luxembourg                                    |
| Thomson Reuters      Global Resources                  |   | Ireland                                       |
| Thomson      Reuters Group Limited                          |   | England                                       |
| Thomson      Reuters Holdings A.G.                          |   | Switzerland                                   |
| Thomson Reuters      Holdings B.V.                     |   | The      Netherlands                          |
| Thomson      Reuters Holdings Inc.                          |   | Delaware,      U.S.A.                         |
| Thomson      Reuters Holdings SA                            |   | Luxembourg                                    |
| Thomson Reuters Italia      Holdings Spa          |   | Italy                                         |
| Thomson Reuters Netherlands Holdings      BV |   | The      Netherlands                          |
| Thomson Reuters      No. 4 Inc.                        |   | Delaware,      U.S.A.                         |
| Thomson Reuters      No. 5 LLC                         |   | Delaware,      U.S.A.                         |
| Thomson      Reuters U.S. Holdings Inc.                     |   | Delaware,      U.S.A.                         |
| Thomson      Reuters U.S. Inc.                              |   | Delaware,      U.S.A.                         |
| Thomson      Reuters U.S.A. Inc.                            |   | Delaware,      U.S.A.                         |
| Thomson      UK Limited                                     |   | England                                       |
| TLRS      (Holdings) Ltd.                                   |   | England                                       |
| TR      (2008) Limited                                      |   | England                                       |
| TR      Holdings Limited                                    |   | Bermuda                                       |
| TR      Netherlands Holdings Cooperatief U.A.               |   | The      Netherlands                          |
| TR      Organisation PLC                                    |   | England                                       |
| TR      U.S. Inc.                                           |   | Delaware,      U.S.A.                         |
| TTC      (1994) Limited                                     |   | England                                       |
| TTC      Holdings Limited                                   |   | Bermuda                                       |
| West      Publishing Corporation                            |   | Minnesota,      U.S.A.                        |
| West      Services Inc.                                     |   | Delaware,      U.S.A.                         |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

----

----

|                                                                                                | Page/Document                                                      |
|-----------------------------------------------------------------------------------------------------|--------------------------------------------------------------------|
| ITEM      1. COVER PAGE                                                                             | Cover                                                         |
| ITEM      2. TABLE OF CONTENTS                                                                      |        Inside Cover                                           |
| ITEM      3. CORPORATE STRUCTURE                                                                    |                                                               |
|                                                                                                | 3.1      Name, Address and Incorporation                           |        116 |
|                                                                                                | 3.2      Intercorporate Relationships                              |        116-119, 134 |
| ITEM      4. GENERAL DEVELOPMENT OF THE BUSINESS                                                    |                                                               |
|                                                                                                | 4.1      Three Year History                                        |        26-33 |
|                                                                                                | 4.2      Significant Acquisitions                                  |        21-22 |
| ITEM      5. DESCRIBE THE BUSINESS                                                                  |                                                               |
|                                                                                                | 5.1      General                                                   |        1-11 |
|                                                                                                | 5.2      Risk Factors                                              |        12-17 |
|                                                                                                | 5.3      Companies with Asset-backed Securities Outstanding        | N/A |
|                                                                                                | 5.4      Companies With Mineral Projects                           | N/A |
|                                                                                                | 5.5      Companies with Oil and Gas Activities                     | N/A |
| ITEM      6. DIVIDENDS                                                                              |        122                                                    |
| ITEM      7. DESCRIPTION OF CAPITAL STRUCTURE                                                       |                                                               |
|                                                                                                | 7.1      General Description of Capital Structure                  |        119 |
|                                                                                                | 7.2      Constraints                                               | N/A |
|                                                                                                | 7.3      Ratings                                                   |        124 |
| ITEM      8. MARKET FOR SECURITIES                                                                  |                                                               |
|                                                                                                | 8.1      Trading Price and Volume                                  |        120-121 |
|                                                                                                | 8.2      Prior Sales                                               |        122 |
| ITEM      9. ESCROWED SECURITIES AND SECURITIES SUBJECT TO CONTRACTUAL RESTRICTIONS      ON TRANSER | N/A                                                                |
| ITEM      10. DIRECTORS AND OFFICERS                                                                |                                                               |
|                                                                                                | 10.1      Name, Occupation and Security Holding                    | 110-115 |
|                                                                                                | 10.2      Cease Trade Orders, Bankruptcies, Penalties or Sanctions |        N/A |
|                                                                                                | 10.3      Conflicts of Interest                                    |        N/A |
| ITEM      11. PROMOTERS                                                                             | N/A                                                                |
| ITEM      12. LEGAL PROCEEDINGS AND REGULATORY ACTIONS                                              |                                                               |
|                                                                                                | 12.1      Legal Proceedings                                        | 42 |
|                                                                                                | 12.2      Regulatory Actions                                       | 42 |
| ITEM      13. INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL    TRANSACTIONS                         | 42-43                                                              |
| ITEM      14. TRANSFER AGENTS AND REGISTRARS                                                        |        124                                                    |
| ITEM      15. MATERIAL CONTRACTS                                                                    |        116-118, 124-125                                       |
| ITEM      16. INTEREST OF EXPERTS                                                                   |                                                               |
|                                                                                                | 16.1      Names of Experts                                         |        135 |
|                                                                                                | 16.2      Interests of Experts                                     |        135 |
| ITEM      17. ADDITIONAL INFORMATION                                                                |        135                                                    |
| ITEM      18. ADDITIONAL DISCLOSURE FOR COMPANIES NOT SENDING INFORMATION      CIRCULARS            | N/A                                                                |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                       |                                                                                                          | Page/Document                |
|--------------------------------------------|---------------------------------------------------------------------------------------------------------------|------------------------------|
| PART      1 DIRECTORS' REPORT              |                                                                                                          |
| 1.1                                        | Directors                                                                                                     | MIC                          |
| 1.2                                        | Principal      activities                                                                                     |        1-11             |
| 1.3                                        | Dividends                                                                                                     |        122              |
| 1.4                                        | Disclosure      of information to auditors                                                                    | TR      PLC FS               |
| 1.5                                        | Consistency      with accounts                                                                                | TR      PLC FS               |
| 1.6                                        | Third      party indemnity provisions                                                                         | N/A                          |
| 1.7                                        | Disclosures      of a general nature                                                                          |                         |
|                                       | (a)   Asset      values                                                                        | TR      PLC FS               |
|                                       | (b)   Political      donations and expenditure                                                 |        134              |
|                                       | (c)   Charitable      donations                                                                |        134              |
|                                       | (d)   Financial      instruments                                                               | TR      PLC FS               |
|                                       | (e)   Important      events, future developments and research and development                  | 1-59                         |
|                                       | (f)         Branches                                                                           | N/A                          |
| 1.8                                        | Buyback      programs                                                                                         | 38,      TR PLC FS           |
| 1.9                                        | Employee      policies and involvement                                                                        |        135              |
| 1.10                                       | Policy      and practice on payment of creditors                                                              |        134              |
| 1.11                                       | Disclosures      by publicly traded companies                                                                 |                         |
|                                       | (a)   Share      capital                                                                       |        119, TR PLC FS   |
|                                       | (b)   Restrictions      on transfers                                                           |        N/A              |
|                                       | (c)   Significant      shareholders                                                            |        123              |
|                                       | (d)   Shareholders      with special rights                                                    | N/A                          |
|                                       | (e)   Employee      share plans                                                                | MIC                          |
|                                       | (f)         Restrictions on voting rights                                                      | N/A                          |
|                                       | (g)   Agreements      restricting transfer or voting rights                                    | N/A                          |
|                                       | (h)   Company      rules governing directors, amendment of articles and directors'      powers |        126-128          |
|                                       | (i)         Significant agreements affected by change of control                               | 124-125                      |
|                                       | (j)         Compensation for loss of office                                                    | N/A                          |
| 1.12                                       | Business      review                                                                                          |                         |
|                                       | (a)   Principal      risks and uncertainties                                                   |        12-17            |
|                                       | (b)   Key      performance indicators                                                          |        18-59            |
|                                       | (c)   Explanation      of amounts included in accounts                                         | TR      PLC FS               |
|                                       | (d)   Main      trends and factors likely to affect future performance                         | 19,      27-33               |
|                                       | (e)   Environmental,      employee, social and community issues                                |        10-11            |
|                                       | (f)         Essential contracts or arrangements                                                |        116-118, 124-125 |
| PART      2 DIRECTORS' REMUNERATION REPORT |                                                                                                          |
| 2.1                                        | Remuneration      committee                                                                                   | MIC                          |
| 2.2                                        | Remuneration      policy statement                                                                            | MIC                          |
| 2.3                                        | Directors'      contracts and compensation                                                                    | MIC                          |
| 2.4                                        | Chairman      and non-executive remuneration                                                                  | MIC                          |
| 2.5                                        | Performance      graph                                                                                        | MIC                          |
| 2.6                                        | Audited      directors' remuneration                                                                          | TR      PLC FS               |
| PART      3 LISTING RULES                  |                                                                                                          |
| 3.1                                        | Capitalized      interest                                                                                     | TR      PLC FS               |
| 3.2                                        | Profit      estimate / forecast                                                                               | TR      PLC FS               |
| 3.3                                        | Related      party transactions                                                                               | 42-43                        |
| 3.4                                        | Directors'      long-term incentive plans                                                                     | MIC                          |
| 3.5                                        | Waivers      of emoluments by directors                                                                       | N/A                          |
| 3.6                                        | Equity      securities issued for cash                                                                        | N/A                          |
| 3.7                                        | Parent      participation in placing                                                                          | N/A                          |
| 3.8                                        | Significant      contracts                                                                                    |        116-118, 124-125 |
| 3.9                                        | Provisions      of services by controlling shareholders                                                       | N/A                          |
| 3.10                                       | Waiver      of dividends                                                                                      | N/A                          |
| 3.11                                       | Director      Ownership Interests                                                                             |  111                    |
| 3.12                                       | Substantial      Shareholders                                                                                 |  123                    |
| 3.13                                       | Going      concern statement                                                                                  | TR      PLC FS               |
| 3.14                                       | Buyback      authority and programs                                                                           | 38,      TR PLC FS           |
| 3.15                                       | Combined      Code compliance statement                                                                       | MIC                          |
| 3.16                                       | Remuneration      policy and directors' remuneration                                                          | MIC,      TR PLC FS          |
| 3.17                                       | Review      by auditors                                                                                       | TR      PLC FS               |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                                               | Page/Document                                                                 |
|--------------------------------------------------------------------|-------------------------------------------------------------------------------|
| PART      4 DISCLOSURE AND TRANSPARENCY RULES                      |                                                                          |
| 4.1                                                                | Audited      financial statements                                             | TR      PLC FS |
| 4.2                                                                | Management      report                                                        | TR      PLC FS |
| 4.3                                                                | Responsibility      statement                                                 | TR      PLC FS |
|                                                               |                                                                          |   |
| FORM      40-F CROSS REFERENCE TABLE                               |
|                                                               | Page/Document                                                                 |
| ANNUAL      INFORMATION FORM                                       |        See AIF table                                                     |
| AUDITED      ANNUAL FINANCIAL STATEMENTS                           | 61-108                                                                        |
| MANAGEMENT'S      DISCUSSION AND ANALYSIS                          | 18-59                                                                         |
| DISCLOSURE      CONTROLS AND PROCEDURES                            | 47                                                                            |
| INTERNAL      CONTROL OVER FINANCIAL REPORTING                     |                                                                          |
|                                                               | a.      Changes in Internal Controls over Financial Reporting                 | 47-48 |
|                                                               | b.      Management's Report on Internal Control over Financial      Reporting | 60 |
|                                                               | c.      Auditor's Report on Internal Control over Financial    Reporting      | 61 |
| NOTICE      PURSUANT TO REGULATION BTR                             | N/A                                                                           |
| AUDIT      COMMITTEE FINANCIAL EXPERT                              | 112                                                                           |
| CODE      OF ETHICS                                                | 114                                                                           |
| PRINCIPAL      ACCOUNTANT FEES AND SERVICES                        | 112-113                                                                       |
| OFF-BALANCE      SHEET ARRANGEMENTS                                | N/A                                                                           |
| TABULAR      DISCLOSURE OF CONTRACTUAL OBLIGATIONS                 | 41                                                                            |
| IDENTIFICATION      OF THE AUDIT COMMITTEE                         | 111-112                                                                       |
|                                                               |                                                                          |
| FORM      20-F CROSS REFERENCE TABLE                               |
|                                                               |                                                                          |   |
| PART      I                                                        | Page/Document                                                                 |
| ITEM      1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS | N/A                                                                           |
| ITEM      2. OFFER STATISTICS AND EXPECTED TIMETABLE               | N/A                                                                           |
| ITEM      3. KEY INFORMATION                                       |                                                                          |
|                                                               | ITEM      3A. Selected Financial Data                                         |        109 |
|                                                               | ITEM      3B. Capitalization and Indebtedness                                 | N/A |
|                                                               | ITEM      3C. Reasons for the Offer and Use of Proceeds                       | N/A |
|                                                               | ITEM      3D. Risk Factors                                                    |        12-17 |
| ITEM      4. INFORMATION ON THE COMPANY                            |                                                                          |
|                                                               | ITEM      4A. History and Development of the Company                          |        116-119 |
|                                                               | ITEM      4B. Business                                                        |        1-11 |
|                                                               | ITEM      4C. Organizational Structure                                        |        116-119, 134 |
|                                                               | ITEM      4D. Property, Plants and Equipment                                  |        11 |
| ITEM      4A. UNRESOLVED STAFF COMMENTS                            | NONE                                                                          |
| ITEM      5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS          |                                                                          |
|                                                               | ITEM      5A. Operating Results                                               | 23-26 |
|                                                               | ITEM      5B. Liquidity and Capital Resources                                 | 36-41 |
|                                                               | ITEM      5C. Research and Development, Patents and Licenses, etc             | N/A |
|                                                               | ITEM      5D. Trend Information                                               | 19,      27-33 |
|                                                               | ITEM      5E. Off-Balance Sheet Arrangements                                  | 41 |
|                                                               | ITEM      5F. Tabular Disclosure of Contractual Obligations                   | 41 |
|                                                               | ITEM      5G. Safe Harbor                                                     | 48 |
| ITEM      6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES            |                                                                          |
|                                                               | ITEM      6A. Directors and Senior Management                                 |        110-115 |
|                                                               | ITEM      6B. Compensation                                                    | MIC p. 20-23, 28-30,      32-33, 37-40(1)  |
|                                                               | ITEM      6C. Board Practices                                                 | MIC p. 36, 40,      44-45 |
|                                                               | ITEM      6D. Employees                                                       |        11, 135 |
|                                                               | ITEM      6E. Share Ownership                                                 | 114,      MIC p. 7-11, 30, 32, 39 |
| ITEM      7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS     |                                                                          |
|                                                               | ITEM      7A. Major Shareholders                                              |        123 |
|                                                               | ITEM      7B. Related Party Transactions                                      | 42-43 |
|                                                               | ITEM      7C. Interests of Experts and Counsel                                | N/A |
| ITEM      8. FINANCIAL INFORMATION                                 |                                                                          |
|                                                               | ITEM      8A. Consolidated Statements and Other FinancialInformation          | 62-108 |
|                                                               | ITEM      8B. Significant Changes                                             | 44 |

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

|                                                                                            | Page/Document                                         |
|-------------------------------------------------------------------------------------------------|-------------------------------------------------------|
| ITEM      9. THE OFFER AND LISTING                                                              |                                                  |
|                                                                                            | ITEM      9A. Offer and Listing Details               |        120-122 |
|                                                                                            | ITEM      9B. Plan of Distribution                    | N/A |
|                                                                                            | ITEM      9C. Markets                                 |        120 |
|                                                                                            | ITEM      9D. Selling Shareholders                    | N/A |
|                                                                                            | ITEM      9E. Dilution                                | N/A |
|                                                                                            | ITEM      9F. Expenses of the Issue                   | N/A |
| ITEM      10. ADDITIONAL INFORMATION                                                            |                                                  |
|                                                                                            | ITEM      10A. Share Capital                          | N/A |
|                                                                                            | ITEM      10B. Memorandum and Articles of Association |        126-128 |
|                                                                                            | ITEM      10C. Material Contracts                     |  116-118,      124-125 |
|                                                                                            | ITEM      10D. Exchange Controls                      |        119 |
|                                                                                            | ITEM      10E. Taxation                               |        129-133 |
|                                                                                            | ITEM      10F. Dividends and Paying Agents            | N/A |
|                                                                                            | ITEM      10G. Statement by Experts                   | N/A |
|                                                                                            | ITEM      10H. Documents on Display                   |        135 |
|                                                                                            | ITEM      10I. Subsidiary Information                 | N/A |
| ITEM      11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET    RISK                     | 42                                                    |
| ITEM      12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES                            | N/A                                                   |
| PART      II                                                                                    |                                                  |
| ITEM      13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES                                   | NONE                                                  |
| ITEM      14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF      PROCEEDS | N/A                                                   |
| ITEM      15. CONTROLS AND PROCEDURES                                                           |        47, 60-61                                 |
| ITEM      16A. AUDIT COMMITTEE FINANCIAL EXPERT                                                 | 112                                                   |
| ITEM      16B. CODE OF ETHICS                                                                   | 114                                                   |
| ITEM      16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES                                           | 112-113                                               |
| ITEM      16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES                       | N/A                                                   |
| ITEM      16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED      PURCHASERS      | 38-39                                                 |
| PART      III                                                                                   |                                                  |
| ITEM      17. FINANCIAL STATEMENTS                                                              | 61-108                                                |
| ITEM      18. FINANCIAL STATEMENTS                                                              | N/A                                                   |

| (1) | Information      regarding Thomas H. Glocer only, found on pages 20-23, 28-30 and 32-33 of      the MIC, and all information on the directors compensation, found on pages      37-40 of the MIC, are incorporated by reference herein as part of our      annual report on Form 20-F. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

----

| Corporate      Headquarters       THOMSON REUTERS   3      Times Square New      York, New York 10036 United      States Tel:      +1 646 223 4000   Registered      Offices  THOMSON      REUTERS CORPORATION  Suite      2076 Toronto Dominion Bank Tower P.O.      Box 24, Toronto-Dominion CentreToronto,      Ontario M5K 1A1 Canada Tel:      +1 416 360 8700   THOMSON      REUTERS PLC   The      Thomson Reuters Building South      Colonnade, Canary Wharf London      E14 5EP United      Kingdom Tel:      +44 20 7250 1122Registered      no. 06141013  www.thomsonreuters.com  Stock      Exchange Listings  THOMSON      REUTERS CORPORATION  Common      Shares•        Toronto Stock Exchange (TSX) (symbol:      TRI) •   New      York Stock Exchange (NYSE) (symbol:      TRI)   Series      II Preference Shares•        Toronto Stock Exchange (symbol:      TRI.PR.B)   THOMSON      REUTERS PLC   Ordinary      Shares•        London Stock Exchange (LSE) (symbol:      TRIL)   American      Depositary Shares (ADSs)•        Nasdaq(symbol:      TRIN) |   | Transfer      Agents and Registrars       THOMSON      REUTERS CORPORATIONCOMMON      AND PREFERENCE SHARES(TRI      – TSX; TRI – NYSE)  Computershare      Trust Company of Canada 100      University Avenue, 9th Floor Toronto,      Ontario M5J 2Y1 Canada   E-mail:      service@computershare.comTel:      +1 800 564 6253 (U.S./Canada) Tel:      +1 514 982 7555 (outside U.S./Canada)   www.computershare.com  THOMSON      REUTERS PLC ORDINARY      SHARES(TRIL      – LSE)  EquinitiAspect      HouseSpencer      Road, Lancing West      Sussex BN99 6DA United      Kingdom   Tel:      +44 871 384 2030 (U.K.) Tel:      +44 12 1415 7047 (outside U.K.)   www.shareview.co.uk  THOMSON      REUTERS PLC ADSs (TRIN      – NASDAQ)  Deutsche      Bank Trust Company Americas c/o American Stock Transfer & Trust      Company Peck      Slip Station, P.S. Box 2050 New      York, New York 10272-2050 United      States   E-mail:      db@amstock.com Tel:      +1 866 249 2593 (U.S./Canada) Tel:      +1 718 921 8137 (outside U.S./Canada)   www.adr.db.com  Auditors  PricewaterhouseCoopers      LLP |   | Further      Information  Please      visit www.thomsonreuters.comfor      corporate and management news and more detailed information on individual      Thomson Reuters businesses, products and services.   For      investor relations queries,please      call +1 800 969 9974 or e-mail investor.relations@thomsonreuters.com. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| THOMSON      REUTERS | ANNUAL      REPORT 2008 |
|----------------------|-------------------------|

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|  www.thomsonreuters.com |  |
|------------------------------|--|

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|                           | THOMSON      REUTERS PLC(Registrant)  |                     |
|--------------------------------|--------------------------------------------|--------------------------|
|                           | By:                              | /s/      Deirdre Stanley |   |
|                           |                                       | Name:          | Deirdre      Stanley |   |
|                           |                                       | Title:              | Executive      Vice President and General Counsel |   |
| Date:      March 30, 2009 |                                       |                     |   |   |

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| Number |   | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 1.1    |   | Thomson      Reuters PLC Memorandum of Association  (incorporated by      reference to Exhibit 3.1 from Thomson Reuters PLC’s Form 20-F filed on      April 17, 2008)                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 1.2    |   | Thomson      Reuters PLC Articles of Association                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 2.1    |   | Deposit      Agreement, dated as of April 17, 2008, by and among Thomson Reuters PLC,      Deutsche Bank Trust Company Americas, as depositary, and all Holders and      Beneficial Owners from time to time of American Depositary Shares      evidenced by American Depositary Receipts issued thereunder (including the      form of American Depositary Receipt to be issued thereunder, attached as      Exhibit A thereto)(incorporated by reference to Exhibit A from Thomson      Reuters PLC’s Form F-6 registration statement dated April 17,      2008) |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 2.2    |   | Summary      Description of the Thomson Reuters PLC American Depositary Shares,      evidenced by American Depositary Receipts (incorporated by reference to      Exhibit 99.12 of Thomson Reuters PLC’s Form 20-F filed on April 17,      2008)                                                                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3.1    |   | Thomson      Reuters Corporation Voting Share Trust Deed (incorporated by reference to      Exhibit 99.6 from Thomson Reuters Corporation’s Form 6-K dated      April 17, 2008)                                                                                                                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3.2    |   | Thomson      Reuters PLC Voting Share Trust Deed (incorporated by reference to Exhibit      99.7 from Thomson Reuters Corporation’s Form 6-K dated April 17,      2008)                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3.3    |   | Special      Voting Share Agreement (incorporated by reference to Exhibit 99.8      from Thomson Reuters Corporation’s Form 6-K dated April 17,      2008)                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.1    |   | Credit      Agreement dated as of August 14, 2007 (incorporated by reference to      Exhibit 99.1 from Thomson Reuters Corporation’s Form 6-K dated August 31,      2007)                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.2    |   | Trust      Indenture dated November 20, 2001(incorporated by reference to Exhibit 7.1      from Thomson Reuters PLC’s Form F-9 registration statement dated December      16, 2008)                                                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.3    |   | Eighth      Supplemental Indenture dated September 20, 2005 (incorporated by reference      to Exhibit 7.2 from Thomson Reuters PLC’s Form F-9 registration statement      dated December 16, 2008)                                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.4    |   | Eleventh      Supplemental Indenture dated May 29, 2008 (incorporated by reference to      Exhibit 7.3 from Thomson Reuters PLC’s Form F-9 registration statement      dated December 16, 2008)                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.5    |   | Equalization      and Governance Agreement (incorporated by reference to Exhibit 99.3 from      Thomson Reuters Corporation’s Form 6-K dated April 17,      2008)                                                                                                                                                                                                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.6    |   | Thomson      Reuters Corporation Deed of Guarantee (incorporated by reference to      Exhibit 99.4 from Thomson Reuters Corporation’s Form 6-K dated      April 17, 2008)                                                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.7    |   | Thomson      Reuters PLC Deed of Guarantee (incorporated by reference to Exhibit 99.5      from Thomson Reuters Corporation’s Form 6-K dated April 17,      2008)                                                                                                                                                                                                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.8    |   | Reuters      Trust Principles Support Agreement (incorporated by reference to Exhibit      99.9 from Thomson Reuters Corporation’s Form 6-K dated April 17,      2008)                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.9    |   | Amended      and Restated Deed of Mutual Covenant (incorporated by reference to Exhibit      99.10 from Thomson Reuters Corporation’s Form 6-K dated April 17,      2008)                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.10   |   | Woodbridge      Undertaking (incorporated by reference to Exhibit 99.11 from Thomson      Reuters Corporation’s Form 6-K dated April 17,    2008)                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.11   |   | Agreement      dated November 26, 2008 between Thomas H. Glocer and Thomson      Reuters                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

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| 7.1    |   | Computations      of ratios of earnings to fixed charges                                                                             |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                 |
| 8.1    |   | Subsidiaries      of Thomson Reuters (set forth in the Thomson Reuters Annual Report      for the year ended December 31, 2008) |
|   |   |                                                                                                                                 |
| 12.1   |   | Certification      of the Chief Executive Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002                     |
|   |   |                                                                                                                                 |
| 12.2   |   | Certification      of the Chief Financial Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002                     |
|   |   |                                                                                                                                 |
| 13.1   |   | Certification      of the Chief Executive Officer pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002                |
|   |   |                                                                                                                                 |
| 13.2   |   | Certification      of the Chief Financial Officer pursuant to Section 906 of the      Sarbanes-Oxley Act of2002                 |

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