Interpublic Group Announces an 11% Gain in Operating Income

Revenue Advances 6%, Fueled by 6% Organic Growth



EPS Flat at $.21, Before Impairment Charges



Apr 26, 2001, 01:00 ET from Interpublic Group of Companies, Inc.

    NEW YORK, April 26 /PRNewswire/ -- The Interpublic Group of Companies,
 Inc., announced that revenue and operating income were higher in the first
 quarter, but higher net interest expense and additional shares outstanding
 held EPS flat at $.21, before impairment charges in 2001 associated with
 Internet investments and a restructuring charge in 2000.
     Net income for the quarter was $65.3 million, up 2.6% from the prior
 year's $63.7 million, before a $160.1 million pretax charge ($.33 per share)
 to recognize impairment of investments primarily in publicly-traded companies,
 including MarchFirst which declared bankruptcy in early April.
     In the first quarter of 2000, Interpublic incurred a charge of $36 million
 pretax ($.07 per share) related to a restructuring at Lowe Lintas.  Discussion
 of results elsewhere in this release excludes charges in both years to
 facilitate analysis of the company's operating performance.
     As expected, worldwide revenue grew just 6% in the quarter to
 $1,302.2 million, compared to $1,225.4 million in the first quarter of 2000.
 In constant dollars, revenue gained 11%.  In February, the company indicated
 that revenue comparisons in the first half of the year would be challenging,
 reflecting the impact of merger-related client losses at Lowe Lintas and the
 absence of dot.com revenue, which boosted year-earlier revenues at Initiative
 Media.  If results of Lowe Lintas were excluded from both years, revenue would
 have grown 11% in the quarter, or 15% in constant dollars.
     Operating income gained 11% to $130.4 million, compared to $117.5 million
 in 2000, and the operating profit margin improved 40 basis points to 10%.
     John J. Dooner, Chairman and Chief Executive Officer, commented:  "Despite
 a challenging revenue environment, Interpublic was able to deliver
 double-digit operating profit growth because of our relentless drive to manage
 costs.
     "Looking forward, we remain cautious about revenue comparisons in 2001,
 particularly in the first half of the year.  We remain committed to
 double-digit operating profit growth, and we have increased our emphasis on
 cost controls to ensure the highest possible return on revenue."
     Sean F. Orr, Interpublic's Chief Financial Officer, added: "We also remain
 focused on our balance sheet, and will intensify our scrutiny of working
 capital and capital expenditures in an effort to sustain and improve cash
 flow."
     Domestic revenue advanced 5% to $737.4 million reflecting, as expected,
 lower revenue at Lowe Lintas and Initiative Media.  International revenue grew
 7% to $564.8 million; in constant dollars, international revenue was 18%
 higher, including strong top-line performances in the United Kingdom and
 Brazil.
 
     Organic Growth
 
     Organic revenue, defined as revenue in constant dollars exclusive of
 acquisitions, grew 6% in the first quarter of 2001, or 9% excluding Lowe
 Lintas from both years.  In the United States, organic growth was 3%,
 reflecting difficult comparisons at Lowe Lintas and Initiative Media.
 Internationally, organic revenue was 11% higher.
     Acquired companies are included in organic growth calculations beginning
 January 1 following the first anniversary of the purchase.  Effective in 2001,
 revenue from entities acquired in pooling of interests transactions (which
 require a restatement of prior period results) is included in organic growth
 immediately.
 
     New Business
 
     Interpublic's agency systems gained net new business of approximately
 $827 million in the first quarter of 2001, compared to net new business of
 $702 million in the year-earlier quarter.  Major new account wins announced
 during the quarter included:
 
           Client         Agency                        Services
           Burger King    McCann Erickson, Campbell,    Advertising, Media,
                          Mithun Draft Worldwide        Direct Marketing
           Coca-Cola      McCann-Erickson               Advertising
           Cingular
            Wireless      Initiative Media              Media
           New Power      McCann Erickson               Advertising and Media
           Virgin Mobile  Lowe Lintas                   Advertising and Media
           Verizon        Deutsch, Hill Holliday        Advertising and Media
 
     On April 2, Lowe Lintas announced a major new business win when Verizon
 agreed to consolidate its $400 million marketing budget at the agency.
 
     Revenue by Discipline
 
     Revenue generated by advertising and media was 1% higher at $752.4 million
 in the quarter, compared to $743.1 million a year earlier, reflecting lower
 revenue at Lowe Lintas and Initiative Media and the negative impact of foreign
 currency translation.  Excluding Lowe Lintas from both years, advertising and
 media revenue grew 6% in the quarter.  Alternatively, in constant dollars,
 advertising and media revenue also grew 6%.
     Revenue from specialized marketing services grew 14% in the quarter to
 $549.8 million, and represented 42% of total revenue.  In 2000's first
 quarter, specialized marketing services contributed $482.2 million, or 39% of
 revenue.
 
     Discipline            Revenues        %Total      %Change       %Change
                                                                 /Constant $
     Promotion, Event
      & Direct Marketing     $296.2         22.7%         +25%          +29%
     Public Relations         116.1           8.9          +12           +15
     Marketing Intelligence   137.5          10.6          - 3           + 1
     Total                   $549.8         42.2%         +14%          +18%
 
 
     Other Income and Expense
 
     Interest expense increased to $33.9 million in the quarter, from $20.4
 million a year ago, reflecting higher average borrowings at higher average
 rates.
     Other non-operating income was comprised of $11.5 million of interest
 income and approximately $6.9 million of other income, including a
 $4.6 million gain on the sale of a Lowe Lintas affiliate in Switzerland.  In
 the 2000 quarter, interest income was $12.7 million and the company recognized
 approximately $4.3 million of pretax gains on the sale of securities.
 
     Taxes
 
     The company's tax rate increased slightly to 41% in the first quarter of
 2001, compared to 40.9% in 2000.  For the full year, the company estimates its
 tax rate will remain at 41%, compared to 39% in 2000, principally reflecting a
 change in the tax status of Deutsch, Inc.
 
     Cash EPS
 
     The Financial Accounting Standards Board (FASB) has proposed changes in
 accounting rules related to business combinations that are expected to
 eliminate the impact of goodwill on reported earnings in future periods,
 making cash EPS the standard measure of performance.  The company is
 evaluating these rules to determine their potential impact on its operations
 and financial statements.
     Cash EPS is the sum of reported net income per share plus amortization of
 intangibles net of tax.  In the first quarter, cash EPS were $.30, compared to
 $.27 in 2000, representing an increase of 11%.
 
     True North
 
     On March 19, the company agreed to purchase True North Communications in a
 pooling-of-interests transaction valued at approximately $2 billion.  The
 transaction is discussed in detail in a proxy statement filed at the
 Securities and Exchange Commission on April 19.
     Interpublic expects that the True North acquisition will be completed
 early in the third quarter.
 
     Impairment Charge
 
     Interpublic historically played an active role in funding start-up
 businesses in the interactive and new media technology market spaces.  The
 company realized a significant flow of financial gains over several years from
 these investments, which augmented operating results between 1997 and 2000.
     The impairment charge in the current quarter adjusts the carrying value of
 remaining assets to estimated market value.
 
     Outlook
 
     Interpublic remains committed to reporting double-digit gains in revenue
 and operating profit (exclusive of the True North transaction), but it has
 moderated its expectations for 2001 in recognition of the challenging economic
 environment.  In addition, the company will continue to incur higher net
 interest expense and will be subject to a higher tax rate compared to 2000,
 while other non-operating income declines significantly.  Finally, diluted
 shares outstanding for the full year are expected to increase approximately
 4% to 335 million.  As a result, Interpublic now expects to generate EPS of
 $1.40-1.45 in 2001, compared to $1.51 in 2000, assuming no deterioration in
 economic activity.
     In the second quarter of 2000, Interpublic reported restated earnings per
 share of $.56 (diluted), which included approximately $.04 per share of
 after-tax gains on investments.  In the second quarter of 2001, the company
 estimates it will earn $.40-.45 per share as increases in non-operating items
 exceed the growth in operating income.
     The impact of adverse non-operating items will moderate in the year's
 second half, and the company expects growth in earnings per share to resume in
 the third and fourth quarters of 2001.
 
     Conference Call and Webcast
 
     Management will discuss first quarter results on a conference call today
 at 5 PM (EDT).  Investors are invited to access the call by dialing
 (800) 659-6183 (confirmation number: 8658567) or on the company's website
 (http://www.interpublic.com).  The discussion will be archived at the
 company's website for 45 days.
 
     About Interpublic
 
     The Interpublic Group of Companies, Inc., is one of the largest
 organizations of advertising agencies and marketing services companies.  Its
 major worldwide companies include McCann Erickson WorldGroup, The Lowe Group,
 Draft Worldwide, Initiative Media Worldwide, Octagon, NFO WorldGroup and the
 Allied Communications Group.  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.
 
     The Interpublic Group of Companies, Inc. and True North Communications
 Inc. will be filing a proxy statement/prospectus and other relevant documents
 concerning the proposed transaction with the Securities and Exchange
 Commission.  INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY
 STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT
 DOCUMENTS FILED WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION
 ON THE PROPOSED TRANSACTION.  Investors and security holders will be able to
 obtain the document free of charge at the SEC's website
 (http://www.sec.gov/EDGAR), or at the SEC's public reference room located at
 450 Fifth Street, NW, Washington, DC 20549.  Please call the SEC at
 1-800-SEC-0330 for further information about the public reference room.  In
 addition, documents filed with the SEC by Interpublic and
 True North may be obtained free of charge by contacting The Interpublic Group
 of Companies, Inc., 1271 Avenue of the Americas, New York, NY, 10020,
 Attn: Investor Relations (tel: 212-399-8057), or  True North Communications
 Inc. at 101 East Erie Street, Chicago, IL, 60611, Attn: Corporate
 Communications (tel: 312-425-6500).  INVESTORS SHOULD READ THE PROXY
 STATEMENT/PROSPECTUS CAREFULLY WHEN IT BECOMES AVAILABLE BEFORE MAKING ANY
 VOTING OR INVESTMENT DECISION.  True North and certain other persons referred
 to below may be deemed to be participants in the solicitation of proxies of
 True North's stockholders to approve and adopt the merger agreement with
 Interpublic.  The participants in this solicitation may include the directors
 and executive officers of True North, who may have an interest in the
 transaction as a result of holding shares or options of True North.  A
 detailed list of the names and interests of True North's directors and
 executive officers, and of their ownership interests in True North, is
 contained in True North's proxy statement for its 2000 Annual Meeting, which
 may be obtained without charge at the SEC's website (http://www.sec.gov).
 
                                Three Months Ended March 31
 
                2001 Post-     2000 Post-    2001 Pre-   2000 Pre-       Pre-
                Impairment   Restructuring  Impairment Restructuring  Charges %
                                                                      Favorable
                                                                  (Unfavorable)
     Revenue
     United
      States      $737,408     $699,112     $737,408     $699,112         5.5
     International
                  $564,791     $526,253     $564,791     $526,253         7.3
     Total
      Revenue   $1,302,199   $1,225,365   $1,302,199   $1,225,365         6.3
 
     Operating
      Costs     $1,137,470   $1,084,459   $1,137,470   $1,084,459       (4.9)
     Amortization
      of Intangible
      Assets       $34,319      $23,409      $34,319      $23,409      (46.6)
     Restructuring
      and other
      Merger Related
      Costs           $ --      $36,051         $ --         $ --         N/A
     Income from
      Operations  $130,410      $81,446     $130,410     $117,497        11.0
 
     Interest
      Expense    $(33,899)    $(20,414)    $(33,899)    $(20,414)      (66.1)
     Other Income,
      Net          $18,364      $17,011      $18,364      $17,011         8.0
     Investment Impairment
                $(160,100)         $ --         $ --         $ --         N/A
     Income Before
      Provision for
      Income
      Taxes      $(45,225)      $78,043     $114,875     $114,094         0.7
 
     Provision for
      Income
      Taxes       $(9,342)      $31,382      $47,099      $46,701       (0.9)
     Net Equity
      Interests (a)
                  $(2,474)     $(3,726)     $(2,474)     $(3,726)        33.6
     Net Income  $(38,357)      $42,935      $65,302      $63,667         2.6
 
     Per Share Data:
     Basic E.P.S.  $(0.12)        $0.14        $0.21        $0.21          --
     Diluted
      E.P.S.       $(0.12)        $0.14        $0.21        $0.21          --
     Dividend
      per share     $0.095       $0.085       $0.095       $0.085        11.8
 
     Weighted Average Shares:
     Basic         308,916      299,822      308,916      299,822
     Diluted       308,916      310,522      317,636      310,522
 
     (a)Net equity interests is the net of equity in income of unconsolidated
         affiliates less income attributable to minority interests of
         consolidated subsidiaries.
 
         Prior year data has been restated to reflect the effect of Deutsch,
         Inc., NFO Worldwide and several other acquisitions accounted for as
         poolings of interests.
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X77484571
 
 

SOURCE Interpublic Group of Companies, Inc.
    NEW YORK, April 26 /PRNewswire/ -- The Interpublic Group of Companies,
 Inc., announced that revenue and operating income were higher in the first
 quarter, but higher net interest expense and additional shares outstanding
 held EPS flat at $.21, before impairment charges in 2001 associated with
 Internet investments and a restructuring charge in 2000.
     Net income for the quarter was $65.3 million, up 2.6% from the prior
 year's $63.7 million, before a $160.1 million pretax charge ($.33 per share)
 to recognize impairment of investments primarily in publicly-traded companies,
 including MarchFirst which declared bankruptcy in early April.
     In the first quarter of 2000, Interpublic incurred a charge of $36 million
 pretax ($.07 per share) related to a restructuring at Lowe Lintas.  Discussion
 of results elsewhere in this release excludes charges in both years to
 facilitate analysis of the company's operating performance.
     As expected, worldwide revenue grew just 6% in the quarter to
 $1,302.2 million, compared to $1,225.4 million in the first quarter of 2000.
 In constant dollars, revenue gained 11%.  In February, the company indicated
 that revenue comparisons in the first half of the year would be challenging,
 reflecting the impact of merger-related client losses at Lowe Lintas and the
 absence of dot.com revenue, which boosted year-earlier revenues at Initiative
 Media.  If results of Lowe Lintas were excluded from both years, revenue would
 have grown 11% in the quarter, or 15% in constant dollars.
     Operating income gained 11% to $130.4 million, compared to $117.5 million
 in 2000, and the operating profit margin improved 40 basis points to 10%.
     John J. Dooner, Chairman and Chief Executive Officer, commented:  "Despite
 a challenging revenue environment, Interpublic was able to deliver
 double-digit operating profit growth because of our relentless drive to manage
 costs.
     "Looking forward, we remain cautious about revenue comparisons in 2001,
 particularly in the first half of the year.  We remain committed to
 double-digit operating profit growth, and we have increased our emphasis on
 cost controls to ensure the highest possible return on revenue."
     Sean F. Orr, Interpublic's Chief Financial Officer, added: "We also remain
 focused on our balance sheet, and will intensify our scrutiny of working
 capital and capital expenditures in an effort to sustain and improve cash
 flow."
     Domestic revenue advanced 5% to $737.4 million reflecting, as expected,
 lower revenue at Lowe Lintas and Initiative Media.  International revenue grew
 7% to $564.8 million; in constant dollars, international revenue was 18%
 higher, including strong top-line performances in the United Kingdom and
 Brazil.
 
     Organic Growth
 
     Organic revenue, defined as revenue in constant dollars exclusive of
 acquisitions, grew 6% in the first quarter of 2001, or 9% excluding Lowe
 Lintas from both years.  In the United States, organic growth was 3%,
 reflecting difficult comparisons at Lowe Lintas and Initiative Media.
 Internationally, organic revenue was 11% higher.
     Acquired companies are included in organic growth calculations beginning
 January 1 following the first anniversary of the purchase.  Effective in 2001,
 revenue from entities acquired in pooling of interests transactions (which
 require a restatement of prior period results) is included in organic growth
 immediately.
 
     New Business
 
     Interpublic's agency systems gained net new business of approximately
 $827 million in the first quarter of 2001, compared to net new business of
 $702 million in the year-earlier quarter.  Major new account wins announced
 during the quarter included:
 
           Client         Agency                        Services
           Burger King    McCann Erickson, Campbell,    Advertising, Media,
                          Mithun Draft Worldwide        Direct Marketing
           Coca-Cola      McCann-Erickson               Advertising
           Cingular
            Wireless      Initiative Media              Media
           New Power      McCann Erickson               Advertising and Media
           Virgin Mobile  Lowe Lintas                   Advertising and Media
           Verizon        Deutsch, Hill Holliday        Advertising and Media
 
     On April 2, Lowe Lintas announced a major new business win when Verizon
 agreed to consolidate its $400 million marketing budget at the agency.
 
     Revenue by Discipline
 
     Revenue generated by advertising and media was 1% higher at $752.4 million
 in the quarter, compared to $743.1 million a year earlier, reflecting lower
 revenue at Lowe Lintas and Initiative Media and the negative impact of foreign
 currency translation.  Excluding Lowe Lintas from both years, advertising and
 media revenue grew 6% in the quarter.  Alternatively, in constant dollars,
 advertising and media revenue also grew 6%.
     Revenue from specialized marketing services grew 14% in the quarter to
 $549.8 million, and represented 42% of total revenue.  In 2000's first
 quarter, specialized marketing services contributed $482.2 million, or 39% of
 revenue.
 
     Discipline            Revenues        %Total      %Change       %Change
                                                                 /Constant $
     Promotion, Event
      & Direct Marketing     $296.2         22.7%         +25%          +29%
     Public Relations         116.1           8.9          +12           +15
     Marketing Intelligence   137.5          10.6          - 3           + 1
     Total                   $549.8         42.2%         +14%          +18%
 
 
     Other Income and Expense
 
     Interest expense increased to $33.9 million in the quarter, from $20.4
 million a year ago, reflecting higher average borrowings at higher average
 rates.
     Other non-operating income was comprised of $11.5 million of interest
 income and approximately $6.9 million of other income, including a
 $4.6 million gain on the sale of a Lowe Lintas affiliate in Switzerland.  In
 the 2000 quarter, interest income was $12.7 million and the company recognized
 approximately $4.3 million of pretax gains on the sale of securities.
 
     Taxes
 
     The company's tax rate increased slightly to 41% in the first quarter of
 2001, compared to 40.9% in 2000.  For the full year, the company estimates its
 tax rate will remain at 41%, compared to 39% in 2000, principally reflecting a
 change in the tax status of Deutsch, Inc.
 
     Cash EPS
 
     The Financial Accounting Standards Board (FASB) has proposed changes in
 accounting rules related to business combinations that are expected to
 eliminate the impact of goodwill on reported earnings in future periods,
 making cash EPS the standard measure of performance.  The company is
 evaluating these rules to determine their potential impact on its operations
 and financial statements.
     Cash EPS is the sum of reported net income per share plus amortization of
 intangibles net of tax.  In the first quarter, cash EPS were $.30, compared to
 $.27 in 2000, representing an increase of 11%.
 
     True North
 
     On March 19, the company agreed to purchase True North Communications in a
 pooling-of-interests transaction valued at approximately $2 billion.  The
 transaction is discussed in detail in a proxy statement filed at the
 Securities and Exchange Commission on April 19.
     Interpublic expects that the True North acquisition will be completed
 early in the third quarter.
 
     Impairment Charge
 
     Interpublic historically played an active role in funding start-up
 businesses in the interactive and new media technology market spaces.  The
 company realized a significant flow of financial gains over several years from
 these investments, which augmented operating results between 1997 and 2000.
     The impairment charge in the current quarter adjusts the carrying value of
 remaining assets to estimated market value.
 
     Outlook
 
     Interpublic remains committed to reporting double-digit gains in revenue
 and operating profit (exclusive of the True North transaction), but it has
 moderated its expectations for 2001 in recognition of the challenging economic
 environment.  In addition, the company will continue to incur higher net
 interest expense and will be subject to a higher tax rate compared to 2000,
 while other non-operating income declines significantly.  Finally, diluted
 shares outstanding for the full year are expected to increase approximately
 4% to 335 million.  As a result, Interpublic now expects to generate EPS of
 $1.40-1.45 in 2001, compared to $1.51 in 2000, assuming no deterioration in
 economic activity.
     In the second quarter of 2000, Interpublic reported restated earnings per
 share of $.56 (diluted), which included approximately $.04 per share of
 after-tax gains on investments.  In the second quarter of 2001, the company
 estimates it will earn $.40-.45 per share as increases in non-operating items
 exceed the growth in operating income.
     The impact of adverse non-operating items will moderate in the year's
 second half, and the company expects growth in earnings per share to resume in
 the third and fourth quarters of 2001.
 
     Conference Call and Webcast
 
     Management will discuss first quarter results on a conference call today
 at 5 PM (EDT).  Investors are invited to access the call by dialing
 (800) 659-6183 (confirmation number: 8658567) or on the company's website
 (http://www.interpublic.com).  The discussion will be archived at the
 company's website for 45 days.
 
     About Interpublic
 
     The Interpublic Group of Companies, Inc., is one of the largest
 organizations of advertising agencies and marketing services companies.  Its
 major worldwide companies include McCann Erickson WorldGroup, The Lowe Group,
 Draft Worldwide, Initiative Media Worldwide, Octagon, NFO WorldGroup and the
 Allied Communications Group.  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.
 
     The Interpublic Group of Companies, Inc. and True North Communications
 Inc. will be filing a proxy statement/prospectus and other relevant documents
 concerning the proposed transaction with the Securities and Exchange
 Commission.  INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY
 STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT
 DOCUMENTS FILED WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION
 ON THE PROPOSED TRANSACTION.  Investors and security holders will be able to
 obtain the document free of charge at the SEC's website
 (http://www.sec.gov/EDGAR), or at the SEC's public reference room located at
 450 Fifth Street, NW, Washington, DC 20549.  Please call the SEC at
 1-800-SEC-0330 for further information about the public reference room.  In
 addition, documents filed with the SEC by Interpublic and
 True North may be obtained free of charge by contacting The Interpublic Group
 of Companies, Inc., 1271 Avenue of the Americas, New York, NY, 10020,
 Attn: Investor Relations (tel: 212-399-8057), or  True North Communications
 Inc. at 101 East Erie Street, Chicago, IL, 60611, Attn: Corporate
 Communications (tel: 312-425-6500).  INVESTORS SHOULD READ THE PROXY
 STATEMENT/PROSPECTUS CAREFULLY WHEN IT BECOMES AVAILABLE BEFORE MAKING ANY
 VOTING OR INVESTMENT DECISION.  True North and certain other persons referred
 to below may be deemed to be participants in the solicitation of proxies of
 True North's stockholders to approve and adopt the merger agreement with
 Interpublic.  The participants in this solicitation may include the directors
 and executive officers of True North, who may have an interest in the
 transaction as a result of holding shares or options of True North.  A
 detailed list of the names and interests of True North's directors and
 executive officers, and of their ownership interests in True North, is
 contained in True North's proxy statement for its 2000 Annual Meeting, which
 may be obtained without charge at the SEC's website (http://www.sec.gov).
 
                                Three Months Ended March 31
 
                2001 Post-     2000 Post-    2001 Pre-   2000 Pre-       Pre-
                Impairment   Restructuring  Impairment Restructuring  Charges %
                                                                      Favorable
                                                                  (Unfavorable)
     Revenue
     United
      States      $737,408     $699,112     $737,408     $699,112         5.5
     International
                  $564,791     $526,253     $564,791     $526,253         7.3
     Total
      Revenue   $1,302,199   $1,225,365   $1,302,199   $1,225,365         6.3
 
     Operating
      Costs     $1,137,470   $1,084,459   $1,137,470   $1,084,459       (4.9)
     Amortization
      of Intangible
      Assets       $34,319      $23,409      $34,319      $23,409      (46.6)
     Restructuring
      and other
      Merger Related
      Costs           $ --      $36,051         $ --         $ --         N/A
     Income from
      Operations  $130,410      $81,446     $130,410     $117,497        11.0
 
     Interest
      Expense    $(33,899)    $(20,414)    $(33,899)    $(20,414)      (66.1)
     Other Income,
      Net          $18,364      $17,011      $18,364      $17,011         8.0
     Investment Impairment
                $(160,100)         $ --         $ --         $ --         N/A
     Income Before
      Provision for
      Income
      Taxes      $(45,225)      $78,043     $114,875     $114,094         0.7
 
     Provision for
      Income
      Taxes       $(9,342)      $31,382      $47,099      $46,701       (0.9)
     Net Equity
      Interests (a)
                  $(2,474)     $(3,726)     $(2,474)     $(3,726)        33.6
     Net Income  $(38,357)      $42,935      $65,302      $63,667         2.6
 
     Per Share Data:
     Basic E.P.S.  $(0.12)        $0.14        $0.21        $0.21          --
     Diluted
      E.P.S.       $(0.12)        $0.14        $0.21        $0.21          --
     Dividend
      per share     $0.095       $0.085       $0.095       $0.085        11.8
 
     Weighted Average Shares:
     Basic         308,916      299,822      308,916      299,822
     Diluted       308,916      310,522      317,636      310,522
 
     (a)Net equity interests is the net of equity in income of unconsolidated
         affiliates less income attributable to minority interests of
         consolidated subsidiaries.
 
         Prior year data has been restated to reflect the effect of Deutsch,
         Inc., NFO Worldwide and several other acquisitions accounted for as
         poolings of interests.
 
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 SOURCE  Interpublic Group of Companies, Inc.