Omnicom Group Inc. Announces Third Quarter Earnings

NEW YORK, Oct. 23, 2001 -- Omnicom Group Inc. (NYSE: OMC) today announced that net income for the third quarter of 2001 increased 8% to $92.4 million from $85.7 million in the third quarter of 2000. Diluted earnings per share increased 4% to $0.50 per share in 2001 from $0.48 per share in 2000.

Worldwide revenue increased 8% to $1,571.0 million in the third quarter of 2001 from $1,452.5 million in the third quarter of 2000. Domestic revenue for the third quarter of 2001 increased 7% to $831.1 million compared to $775.7 million in 2000. International revenue for the third quarter of 2001 increased 9% to $739.9 million compared to $676.8 million in 2000.

Net income for the nine months ended September 30, 2001 increased 16% to $339.0 million from $292.8 million in 2000, excluding an after-tax gain in the first nine months of 2000 of $63.8 million on the sale of a portion of the Company's ownership position in Razorfish. Diluted earnings per share increased 13% to $1.83 per share in 2001 from $1.62 per share in 2000, excluding the Razorfish gain. Including the Razorfish gain the nine months net income was $356.6 million and diluted earnings per share was $1.95.

Included in net income for the nine months is a reduction of $2.9 million ($0.02 per diluted share) resulting from the cumulative effect of adopting, on January 1, 2001, Financial Accounting Standards Board Statement No. 133, "Accounting for Derivatives and Hedging Activities".

Worldwide revenue for the nine months ended September 30, 2001 increased 13% to $4,918.9 million in 2001 from $4,351.8 million in 2000. Domestic revenue for the nine months ended September 30, 2001 increased 15% to $2,653.0 million compared to $2,298.4 million in 2000. International revenue for the nine months ended September 30, 2001 increased 10% to $2,265.9 million compared to $2,053.4 million in 2000.

Omnicom Group Inc. (NYSE: OMC) (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 www.omnicomgroup.com/investor/index.html.

    Three Months Ended September 30                  2001           2000

    Revenue                                       $1,571,012     $1,452,523

    Operating and net interest expense             1,406,922      1,293,768

    Income before income taxes                       164,090        158,755

    Income taxes                                      64,340         64,552

    Income after income taxes                         99,750         94,203

    Equity in affiliates/Minority interests           (7,395)        (8,539)

    Net income                                       $92,355        $85,664


    Earnings per share

      Basic                                            $0.50          $0.49
      Diluted                                          $0.50          $0.48


    Dividend declared per share                       $0.200         $0.175


                                                   Excluding    Including
                                                   Razorfish    Razorfish
                                                      Gain          Gain

    Nine Months Ended September 30   2001             2000          2000

    Revenue                      $4,918,933      $4,351,783    $4,351,783

    Operating and net interest
     expense                      4,307,316       3,803,038     3,803,038

    Realized gain on sale of
     Razorfish shares                    --              --       110,044

    Income before income taxes      611,617         548,745       658,789

    Income taxes                    241,629         223,058       269,276

    Income after income taxes       369,988         325,687       389,513

    Equity in affiliates/Minority
     interests                      (28,056)        (32,924)      (32,924)

    Cumulative effect of accounting
     change                          (2,931)             --            --

    Net income                     $339,001        $292,763      $356,589


    Earnings per share

      Basic                           $1.86           $1.67         $2.04
      Diluted                         $1.83           $1.62         $1.95


    Dividend declared per share      $0.575          $0.525        $0.525

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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