Omnicom Reports Second Quarter 2002 Results

NEW YORK, Aug. 6 /PRNewswire-FirstCall/ -- Omnicom Group Inc. (NYSE: OMC) today announced that net income for the second quarter of 2002 increased 9% to $187.3 million from $171.4 million in the second quarter of 2001. Diluted earnings per share increased 10% to $1.00 per share in 2002 from $0.91 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 second quarter of 2002 increased 24% from $151.4 million in the second quarter of 2001 and diluted earnings per share increased 23% from $0.81 per share.

Worldwide revenue increased 9.7% to $1,916.6 million in the second quarter of 2002 from $1,746.8 million in the second quarter of 2001. Domestic revenue for the second quarter of 2002 increased 21% to $1,119.4 million compared to $925.3 million in 2001. International revenue for the second quarter of 2002 decreased 3% to $797.2 million compared to $821.5 million in 2001.

Net income for the six months ended June 30, 2002 increased 10% to $315.9 million from $286.8 million in 2001. Diluted earnings per share increased 8% to $1.67 per share in 2001 from $1.54 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 six months ended June 30, 2002 increased 28% from $246.6 million for the six months ended June 30, 2001 and diluted earnings per share increased 27% from $1.32 per share.

Worldwide revenue for the six months ended June 30, 2002 increased 9% to $3,649.0 million in 2002 from $3,347.9 million in 2001. Domestic revenue for the six months ended June 30, 2002 increased 18% to $2,141.5 million compared to $1,821.9 million in 2001. International revenue for the six months ended June 30, 2002 decreased 1% to $1,507.5 million compared to $1,526.0 million in 2000.

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 second quarter earnings conference call, go to http://www.omnicomgroup.com/InvestorRelations.

                              Omnicom Group Inc.
                                 (Unaudited)
               (in Thousands of Dollars, Except Per Share Data)

                                                                 Adjusted (a)
                                                                for Goodwill
                                                   As Reported  Amortization
    Three Months Ended June 30         2002            2001          2001

    Revenue                      $1,916,569      $1,746,788    $1,746,788

    Operating and net interest
     expense                      1,592,021       1,475,121     1,452,012

    Income before income taxes      324,548         271,667       294,776

    Income taxes                    122,014         107,613       111,291

    Income after income taxes       202,534         164,054       183,485

    Equity in affiliates
     /Minority interests            (15,219)        (12,688)      (12,034)

    Net income                     $187,315        $151,366      $171,451


    Earnings per share
     Basic                            $1.01           $0.83         $0.94
     Diluted                          $1.00           $0.81         $0.91


    Weighted average
     shares (in thousands)
     Basic                          185,705         182,824       182,824
     Diluted (b)                    188,119         190,042       190,042

    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 $188,000 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 $2,255,000 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.


                                                                 Adjusted (a)
                                                                 for Goodwill
                                                    As Reported  Amortization
    Six Months Ended June 30           2002            2001          2001

    Revenue                      $3,648,995      $3,347,921    $3,347,921

    Operating and net interest
     expense                      3,106,911       2,905,279     2,859,498

    Income before income taxes      542,084         442,642       488,423

    Income taxes                    201,872         175,336       182,828

    Income after income taxes       340,212         267,306       305,595

    Equity in affiliates
     /Minority interests            (24,331)        (20,660)      (18,813)

    Net income                     $315,881        $246,646      $286,782

    Earnings per share
     Basic                            $1.70           $1.35         $1.57
     Diluted                          $1.67           $1.32         $1.54

    Weighted average shares
    (in thousands)
     Basic                          186,227         182,332       182,332
     Diluted (b)                    189,056         189,587       189,587

    Dividend declared per share      $0.400          $0.375        $0.375


    (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 $375,000 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 $4,488,000 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.
Web site: http: //www.omnicomgroup.com
CONTACT: Randall Weisenburger of Omnicom Group Inc., +1-212-415-3393

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