Press Release


Interpublic Announces Tender Offer for up to $250 Million of Its 7.875% Notes Due 2005

November 15, 2004 at 8:39 AM EST

NEW YORK, Nov 15, 2004 (BUSINESS WIRE) -- The Interpublic Group of Companies Inc. (NYSE:IPG) announced today that it has commenced a cash tender offer for up to $250 million in aggregate principal amount of its outstanding 7.875% Notes due 2005 (CUSIP No. 460690AK6). The tender offer is set forth in an offer to purchase dated November 15, 2004.

The total consideration payable for notes validly tendered will be determined by reference to a fixed spread of 50 basis points over the bid side yield (as quoted on Bloomberg PX3 on the price determination date at 2:00 p.m. New York City time) of the U.S. Treasury 1.625% note due October 31, 2005, calculated to the maturity date of the notes, as fully described in the offer to purchase. The total consideration includes an early tender premium of $10 per $1,000 principal amount of notes (the "Early Tender Premium") payable only to holders of notes that validly tender and do not validly withdraw such notes before 5:00 p.m. New York City time on Monday, November 29, 2004 (the "Early Tender Date"). The price determination date is expected to be Thursday, December 9, 2004.

The tender offer will expire at midnight, New York City time, on Monday, December 13, 2004, unless extended or earlier terminated (the "Expiration Date"). Upon consummation of the tender offer, holders that validly tender and do not validly withdraw their notes will receive accrued and unpaid interest to, but not including, the settlement date. The settlement date is expected to be the business day following the Expiration Date.

Interpublic's obligation to accept for purchase and pay for notes validly tendered is subject to certain conditions, including debt financing sufficient to consummate the offer to purchase. The offer to purchase is not contingent upon the tender of a minimum principal amount of notes, but if the aggregate principal amount of notes validly tendered and not properly withdrawn exceeds $250 million, Interpublic will accept notes for purchase on a pro rata basis based on the principal amount of notes tendered. Subject to and in accordance with applicable law, the company reserves the right to amend the offer to purchase.

Interpublic has retained Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and UBS Securities LLC to serve as dealer managers for the tender offer, and Global Bondholder Service Corporation to serve as the information agent and the depositary.

Copies of the offer to purchase and related documents may be obtained at no charge by contacting the information agent and depositary by telephone at (866) 470-4300 (toll-free) or (212) 430-3774, or in writing at 65 Broadway - Suite 704, New York, NY 10006. These documents contain important information, and holders should read them carefully before making any investment decision.

Questions regarding the tender offer may be directed to: Citigroup Global Markets Inc. at (800) 558-3745 (toll free), J.P. Morgan Securities Inc. at (866) 834-4666 (toll-free) and UBS Securities LLC at (888) 722-9555 ext. 4210 (toll-free).

This announcement does not constitute an offer to purchase or a solicitation of an offer to sell securities. The tender offer is being made solely by the offer to purchase. In any jurisdiction where the laws require tender offers to be made by a licensed broker or dealer, the tender offer will be deemed to be made on behalf of Interpublic by the dealer managers, or one or more registered brokers or dealers under the laws of such jurisdiction.

About Interpublic

Interpublic is one of the world's leading organizations of advertising agencies and marketing-services companies. Major global brands include Draft, Foote, Cone & Belding Worldwide, GolinHarris International, Initiative, Jack Morton Worldwide, Lowe & Partners Worldwide, McCann Erickson, Octagon, Universal McCann and Weber Shandwick Worldwide. Leading domestic brands include Campbell-Ewald, Deutsch and Hill Holliday.

SOURCE: The Interpublic Group of Companies Inc.

General Inquiries:
Julie Tu, 212-827-3776
Media, Analysts, Investors:
Philippe Krakowsky, 212-704-1328
Analysts, Investors:
Jerry Leshne, 212-704-1439