Omnicom Reports Third-Quarter 2002 Results

NEW YORK, Oct. 29 /PRNewswire-FirstCall/ -- Omnicom Group Inc. (NYSE: OMC) today announced that net income for the third-quarter of 2002 increased 11% to $126.1 million from $114.0 million in the third-quarter of 2001. Diluted earnings per share increased 11% to $0.68 per share in 2002 from $0.61 per share in 2001.

Effective January 1, 2002, in compliance with SFAS No. 142, the Company ceased recording goodwill amortization. The 2001 amounts were adjusted to assume that the cessation of goodwill amortization occurred on January 1, 2001.

Compared to our previously reported results for 2001, net income for the third-quarter of 2002 increased 37% from $92.4 million in the third-quarter of 2001 and diluted earnings per share increased 36% from $0.50 per share.

Worldwide revenue increased 12.6% to $1,768.5 million in the third-quarter of 2002 from $1,571.0 million in the third-quarter of 2001. Domestic revenue for the third-quarter of 2002 increased 19% to $991.5 million compared to $831.1 million in 2001. International revenue for the third-quarter of 2002 increased 5% to $777.0 million compared to $739.9 million in 2001.

Net income for the nine months ended September 30, 2002 increased 10% to $442.0 million from $400.8 million in 2001. Diluted earnings per share increased 10% to $2.36 per share in 2001 from $2.15 per share in 2001. The 2001 amounts were adjusted to assume that the cessation of goodwill amortization occurred on January 1, 2001.

Compared to our previously reported results for 2001, net income for the nine months ended September 30, 2002 increased 30% from $339.0 million for the nine months ended September 30, 2001 and diluted earnings per share increased 29% from $1.83 per share.

Worldwide revenue for the nine months ended September 30, 2002 increased 10.1% to $5,417.5 million in 2002 from $4,918.9 million in 2001. Domestic revenue for the nine months ended September 30, 2002 increased 18% to $3,131.1 million compared to $2,653.0 million in 2001. International revenue for the nine months ended September 30, 2002 increased 1% to $2,286.4 million compared to $2,265.9 million in 2001.

Omnicom Group Inc. (NYSE: OMC) (http://www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom's branded networks and numerous specialty firms provide advertising, strategic media planning and buying, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 100 countries.

For a live webcast and/or a replay of our third-quarter earnings conference call, go to http://www.omnicomgroup.com/InvestorRelations.

(Unaudited)

(in Thousands of Dollars,

Except Per Share Data) Adjusted (a)
for Goodwill

Three Months Ended As Reported Amortization

September 30 2002 2001 2001

Revenue $1,768,459 $1,571,012 $1,571,012

Operating and net

interest expense 1,562,632 1,406,922 1,382,704

Income before income taxes 205,827 164,090 188,308

Income taxes 69,696 64,340 67,099

Income after income taxes 136,131 99,750 121,209

Equity in affiliates/

Minority interests (10,027) (7,395) (7,172)

Net income $126,104 $92,355 $114,037

Earnings per share

Basic $0.68 $0.50 $0.62

Diluted $0.68 $0.50 $0.61

Weighted average shares (in thousands)

Basic 185,865 183,272 183,272

Diluted (b) 186,652 189,631 189,631

Dividend declared per share $0.200 $0.200 $0.200

(a) Effective January 1, 2002, in compliance with SFAS No. 142, the
Company ceased recording goodwill amortization. To present 2001 on
a comparable basis with 2002, amounts are adjusted to assume that
the cessation of goodwill amortization occurred on January 1, 2001.

(b) Diluted earnings per share for 2002 was calculated using an assumed
increase in net income of $252,000 related to the after-tax
compensation expense from dividends on restricted shares. Diluted
earnings per share for 2001 was calculated using an assumed increase
in net income of $2,499,000 related to the after-tax interest cost
of our 2-1/4% Convertible Debentures and the after-tax compensation
expense from dividends on restricted shares. The Company's 2-1/4%
Convertible Debentures were redeemed in the fourth quarter of 2001.

(Unaudited)

(in Thousands of Dollars,

Except Per Share Data) Adjusted (a)
for Goodwill

Nine Months Ended As Reported Amortization

September 30 2002 2001 2001

Revenue $5,417,454 $4,918,933 $4,918,933

Operating and net

interest expense 4,669,543 4,312,201 4,242,203

Income before income taxes 747,911 606,732 676,730

Income taxes 271,568 239,675 249,927

Income after income taxes 476,343 367,057 426,803

Equity in affiliates/

Minority interests (34,358) (28,056) (25,984)

Net income $441,985 $339,001 $400,819

Earnings per share

Basic $2.37 $1.86 $2.19

Diluted $2.36 $1.83 $2.15

Weighted average shares (in thousands)

Basic 186,107 182,626 182,626

Diluted (b) 187,923 189,573 189,573

Dividend declared per share $0.600 $0.575 $0.575

(a) Effective January 1, 2002, in compliance with SFAS NO. 142, the
Company ceased recording goodwill amortization. To present 2001 on
a comparable basis with 2002, amounts are adjusted to assume
goodwill amortization ceased on January 1, 2001.

(b) Diluted earnings per share for 2002 was calculated using an assumed
increase in net income of $757,000 related to the after-tax
compensation expense from dividends on restricted shares. Diluted
earnings per share for 2001 was calculated using an assumed increase
in net income of $7,462,000 related to the after-tax interest cost
of our 2-1/4% Convertible Debentures and the after-tax compensation
expense from dividends on restricted shares. The Company's 2-1/4%
Convertible Debentures were redeemed in the fourth quarter of 2001.
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SOURCE Omnicom Group Inc.

-0- 10/29/2002

/CONTACT: Randall Weisenburger, +1-212-415-3393/

/Web site: http://www.omnicomgroup.com/

(OMC)

CO: Omnicom Group Inc.

ST: New York

IN: ADV

SU: ERN CCA

AG

-- NYTU061 --

7198 10/29/2002 06:30 EST http://www.prnewswire.com

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