Press Release

NEW YORK, NY (July 10, 2001)---Believing that marketing has reached a new level of sophistication and complexity, The Interpublic Group of Companies, Inc. has announced a new organizational structure to provide its clients with a wider, more inter-connected array of sector-leading marketing capabilities that can be delivered in concert.

John J. Dooner, Jr., Chairman and CEO, today formalized the evolution of Interpublic into four major global operating divisions, each of which has expanded its array of collaborative marketing services. Interpublic is taking this next step in its progression in response to the increased needs of its clients for the accelerated inter-connectivity of all areas of marketing communications and marketing services.

The four global operating divisions will be an expanded McCANN-ERICKSON WORLDGROUP, an enhanced FCB GROUP, a new global marketing resource called THE PARTNERSHIP, and the ADVANCED MARKETING SERVICES group.

Explaining the value of the new organization, Mr. Dooner said:

“Five years ago our clients looked to us to provide marketing solutions that were driven primarily by advertising. Now, while advertising is still the major cornerstone in the global brand communications mix, clients also want us to offer more types of marketing services and communications expertise of the highest quality and on a worldwide basis. As today’s announcement indicates, each of our three marketing communications groups will now be able to offer their clients a full range of marketing services delivered on a collaborative and integrated basis.

“Even before the True North acquisition we were rapidly moving in this direction, which is why adding True North made so much strategic sense to us. Now with the addition of their companies, we have expanded our leadership positions in many key diversified marketing communications areas and now have many of the strongest brands in their sectors. We can better align, connect, and enhance our entire offering across the full marketing spectrum.”

Mr. Dooner continued: “Other major benefits of our new organization include increased organic growth opportunities and measurable improvements in operating productivity. By opening the doors to more collaboration we expect to provide each individual component company with more new-client opportunities from sister companies, as well as new system clients. By consolidating into four powerful operating groups we also expect to achieve real improvements in productivity.”

While McCANN-ERICKSON WORLDGROUP, the FCB GROUP and THE PARTNERSHIP will each have a similar mix of advertising and marketing communications offerings, the structures will vary based on the different histories and operations of the groups. Each will retain the heritage and positioning differences that have fueled its success in the marketplace. Importantly, through the new organizations, each Interpublic unit will now be linked to a full complement of global marketing services and marketing communications services.

Additionally, Mr. Dooner announced the merger of Weber Shandwick Worldwide with True North’s BSMG Worldwide, creating the world's largest public relations firm with approximately $500 million in revenue. The firm, which will be known as Weber Shandwick Worldwide, combines the visionary thinking and global reach of Weber Shandwick with the entrepreneurial spirit of BSMG to create a new type of public relations firm that will take the lead in transforming the PR industry. The merging of these two entities will enable Weber Shandwick Worldwide to provide clients with specialized knowledge and creative thinking in the high growth practice areas of technology, financial services, government relations/public affairs, lifestyle /consumer/ entertainment and healthcare.

The merger will be completed by September 30. Current BSMG Chairman Jack Leslie and CEO Harris Diamond have been named Chairman-elect and CEO-elect, respectively. They will report to Larry Weber in his role as head of Interpublic’s Advanced Marketing Services. Weber, who is also current CEO of Weber Shandwick, will chair the integration team. Further management positions will be announced shortly.

"There is incredible geographic, practice area and client synergy between these two firms," said Mr. Dooner. "By bringing them together, we can now offer our clients the highest quality counsel on how to harness the power of influence to shape public opinion and manage their various constituencies." The new Interpublic operating divisions are:

McCANN-ERICKSON WORLDGROUP is comprised of best-in-class specialist global marketing communications companies. These companies are united by a shared culture of leadership, creativity and accountability and a shared commitment to collaborative solutions, achieved through a set of common operating principles and strategic processes. Launched in late 1997, the WORLDGROUP has expanded rapidly to become the world’s leading networked marketing communications group, now working with more than 25 key worldwide clients in three or more disciplines and with more than 40 U.S. clients alone in two or more disciplines. The WORLDGROUP now includes McCann-Erickson Worldwide, MRM Partners Worldwide, Momentum Worldwide, FutureBrand, Torre Lazur Healthcare Worldwide, Universal McCann Worldwide, Nationwide Advertising Services, and an Aligned Agency Group consisting of independently branded general advertising agencies having conflict-free access to those marketing resources. New agencies joining this Aligned Agency Group include Temerlin McClain (Dallas), Hill, Holliday (Boston, New York and San Francisco), Bozell (Chicago) and Avrett Free & Ginsberg (New York). Additionally, Weber Shandwick Worldwide is aligned globally for public relations, a continuation of a longstanding affiliation. Jim Heekin remains Chairman and CEO of WORLDGROUP.

The FCB GROUP will expand its capabilities and operate as a single global integrated marketing communications network. At the heart of the group is Foote, Cone & Belding Worldwide, which includes advertising and then direct marketing and digital delivered through FCBi, all provided seamlessly to clients. The balance of the FCB Group encompasses more specialized services, including ANALYTICi, database marketing; Marketing Drive, integrated marketing; Luxon Carra, design and branding; The Hacker Group, customer acquisition direct marketing; R/GA, web design and development; and FCB HealthCare. Media will be planned by FCB Media Services and bought on a worldwide basis through an alignment with Initiative Media. The FCB Group companies enjoy affiliate relationships with the new Weber Shandwick Worldwide, building on its historical relationship with BSMG. The independent advertising and marketing communications company Campbell-Ewald will form a global strategic alliance with the FCB Group. Brendan Ryan is Chairman and CEO of the FCB Group.

THE PARTNERSHIP will provide collaboration across a global group of independent networks with outstanding creative and world-class capabilities across all areas of marketing communications. The partners are all communications companies – frequently selected by clients based on their individual strengths – that began a process nine months ago of determining how best to preserve their independence while creating the ability to inter-connect seamlessly when clients request it. The recent $400 million Verizon consolidation grew out of this process and paves the way for further efforts. Senior Partners include Lowe Lintas & Partners, DraftWorldwide and Golin/Harris International as well as Initiative Media. The Partnership will also include a group of Member Partners, strong and strongly independent advertising agencies, that will have now closer-in access to both global capabilities and increased marketing services. This group will include the Lowe Group independent agencies as well as new Member Partners, including Bozell-NY, Carmichael Lynch, Deutsch, Howard Merrell & Partners, Tierney Communications and minority international partners Delaney Lund and Springer & Jacoby. While media will continue to be planned by each of the individual agencies, media will be bought on a worldwide basis through the alignment with Initiative Media. David Bell, who has been named Vice Chairman of Interpublic, will oversee The Partnership. Senior Partners include Howard Draft, Chairman and CEO of Draft; Rich Jernstedt, Golin/Harris CEO; Jerry Judge, CEO of Lowe Lintas; Louis Schultz, Chairman and CEO of Initiative Media; Michael Sennott, Senior Partner of The Partnership; and Donny Deutsch, Chairman and CEO of Deutsch, Inc., who will serve as a Senior Partner representing the Member Partners within The Partnership. Sir Frank Lowe will continue as Chairman of Lowe Lintas & Partners and Chairman & CEO of Octagon, contributing to The Partnership overall via his commitment to and passion for the creative product.

ADVANCED MARKETING SERVICES (AMS), which succeeds the Allied Communications Group, will include NFO WorldGroup (for marketing intelligence services), Jack Morton Worldwide (for specialized marketing services including corporate events, meetings, and training/learning), and New America Strategies Group (for multi-cultural marketing and communications). AMS also includes the ISO Healthcare Group, a strategic healthcare consulting practice. Additionally, Interpublic's public relations networks Weber Shandwick Worldwide and Golin/Harris International will continue to be based administratively within Advanced Marketing Services' Constituency Management Group, while maintaining their professional affiliation with the global groups previously indicated. AMS is also charged with expanding the Interpublic charter into new marketing intelligence, services, and communications areas. Larry Weber is Chairman and CEO of AMS.

The shares of Interpublic trade on the New York Stock Exchange (symbol: IPG).

Cautionary Statement

This document contains forward-looking statements. Statements that are not historical fact, including statements about Interpublic’s beliefs and expectations constitute forward-looking statements. These statements are based on current plans, estimates and projections, and therefore undue reliance should not be placed on them. Forward-looking statements speak only as of the date they are made, and Interpublic undertakes no obligation to update publicly any of them in light of new information or future events.

Forward-looking statements involve inherent risks and uncertainties. Interpublic cautions that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, those associated with the effect of national and regional economic conditions, the ability of Interpublic to attract new clients and retain existing clients, the financial success of the clients of Interpublic, and developments from changes in the regulatory and legal environment for advertising companies around the world, and the successful completion and integration of acquisitions which complement and expand Interpublic’s business capabilities.

Another important factor is Interpublic’s acquisition strategy. One of Interpublic’s business strategies is to acquire businesses that complement and expand its current business capabilities. Accordingly, Interpublic is usually engaged in evaluating potential acquisition candidates. Interpublic is currently engaged in a number of preliminary discussions that may result in one or more substantial acquisitions. These acquisition opportunities require confidentiality and from time to time give rise to bidding scenarios that require quick responses by Interpublic. Although there is uncertainty that any of these discussions will result in definitive agreements or the completion of any transactions, the announcement of any such transaction may lead to increased volatility in the trading price of the shares of Interpublic.

Moreover, the success of recent or contemplated future acquisitions will depend on the effective integration of newly-acquired businesses into Interpublic’s current activities. Important factors for integration include realization of anticipated synergies and the ability to retain new personnel and clients. Investors should evaluate any statements in light of these important factors.