Interpublic Comments on Review of General Motors U.S. Media Buying Assignment
NEW YORK, Mar 15, 2005 (BUSINESS WIRE) -- The Interpublic Group (NYSE: IPG) today commented on the review of its General Motors U.S. media buying duties.
"General Motors is an important client. We are doing very good work for a number of their brands, across many of our companies and a range of marketing disciplines and geographies," said Interpublic Chairman and CEO Michael Roth. "In the early part of last week, we were confidentially informed by the client of their decision to review the U.S. media buying assignment. We firmly believe that we can mount a successful defense, as we did on the recent review of the GM European media buying assignment, which took place late last year. Given the concern that the announcement of the U.S. review has created in the financial markets, it bears mention that the revenue associated with the assignment in question represents less than one percent of our global revenue and that our financial condition and liquidity remain strong. It also bears repeating that a number of our companies continue to make competitive strides, as evident in significant recent wins, including Computer Associates, Nokia and Intel."
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, MAGNA Global, McCann Erickson, Octagon, Universal McCann and Weber Shandwick. Leading domestic brands include Campbell-Ewald, Deutsch and Hill Holliday. Cautionary Statement
This press release contains forward-looking statements. Interpublic's representatives may also make forward-looking statements orally from time to time. Statements in this release that are not historical facts, including statements about management's beliefs and expectations, constitute forward-looking statements. These statements are based on current plans, estimates and projections, and are subject to change based on a number of factors, including those outlined under the heading "Risk Factors" in Interpublic's annual report on Form 10-K and in Interpublic's other SEC filings. 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. 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, the following:
-- Interpublic's ability to attract new clients and retain existing clients;
-- Interpublic's ability to retain and attract key employees;
-- risks associated with the effects of global, national and regional economic and political conditions;
-- risks arising from material weaknesses in Interpublic's internal control over financial reporting;
-- potential adverse effects if Interpublic is required to recognize additional impairment charges or other adverse accounting-related developments;
-- potential adverse developments in connection with the SEC investigation;
-- potential downgrades in the credit ratings of Interpublic's securities;
-- development from changes in the regulatory and legal environment for advertising and marketing and communications services companies around the world; and
-- the successful completion and integration of acquisitions which complement and expand Interpublic's business capabilities.
Investors should carefully consider these factors and the additional risk factors outlined in more detail under the heading "Risk Factors" in Interpublic's 2003 Form 10-K, September 2004 Form 10-Q and other SEC filings.
SOURCE: The Interpublic Group
For The Interpublic Group
Julie Tu, 212-827-3776
Media, Analysts, Investors:
Philippe Krakowsky, 212-704-1328
Jerry Leshne, 212-704-1439