Omnicom Reports Second Quarter 2006 Results

NEW YORK, July 25 /PRNewswire-FirstCall/ -- Omnicom Group Inc. (NYSE: OMC) today announced that net income for the second quarter of 2006 increased 8% to $244.1 million from $225.8 million in the second quarter of 2005. Diluted earnings per share in the second quarter of 2006 increased 15% to $1.42 per share from $1.24 per share in the second quarter of 2005.

Worldwide revenue increased 8% to $2,823.4 million from $2,615.8 million in the second quarter of 2005. Domestic revenue for the second quarter of 2006 increased 8% to $1,535.4 million compared to $1,427.7 million in the second quarter of 2005. International revenue increased 8% to $1,288.0 million compared to $1,188.1 million in the second quarter of 2005.

Net income for the six months ended June 30, 2006 increased 9% to $409.7 million from $376.3 million in the same period in 2005. Diluted earnings per share for the six months ended June 30, 2006 increased 14% to $2.34 per share in 2006 from $2.05 per share in the same period in 2005.

Worldwide revenue for the six months ended June 30, 2006 increased 7% to $5,386.3 million from $5,018.8 million in the same period in 2005. Domestic revenue for the six months ended June 30, 2006 increased 8% to $2,968.4 million from $2,739.8 million in the same period in 2005. International revenue for the six months ended June 30, 2006 increased 6% to $2,417.9 million from $2,279.0 million in the same period in 2005.

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 Millions of Dollars, Except Per Share Data)

    Three Months Ended June 30,              2006       2005

    Revenue                              $2,823.4   $2,615.8

    Operating expenses                    2,406.0    2,233.8

    Operating profit                        417.4      382.0

    Net interest expense                     25.5       14.3

    Income before income taxes              391.9      367.7

    Income taxes                            131.7      124.3

    Income after income taxes               260.2      243.4

    Equity in earnings of affiliates          6.3        5.0
    Minority interests                      (22.4)     (22.6)

    Net income                             $244.1     $225.8

    Net income per common share
      Basic                                 $1.43      $1.24
      Diluted                               $1.42      $1.24

    Weighted average shares (in millions)
      Basic                                 170.2      181.4
      Diluted                               172.0      182.8

    Dividend declared per share            $0.250     $0.225



    Omnicom Group Inc.

    (Unaudited)
    (In Millions of Dollars, Except Per Share Data)

    Six Months Ended June 30,           2006(1)       2005

    Revenue                           $5,386.3    $5,018.8

    Operating expenses                 4,684.4     4,379.5

    Operating profit                     701.9      639.3

    Net interest expense                  40.7       26.4

    Income before income taxes           661.2      612.9

    Income taxes                         222.6      210.5

    Income after income taxes            438.6      402.4

    Equity in earnings of affiliates      11.2       10.2
    Minority interests                   (40.1)     (36.3)

    Net income                          $409.7     $376.3

    Net income per common share
      Basic                              $2.36      $2.07
      Diluted                            $2.34      $2.05

    Weighted average shares (in millions)
      Basic                              173.6      182.0
      Diluted                            175.2      183.5

    Dividend declared per share         $0.500     $0.450

    (1) Included in operating profit and net income for the six months ended
        June 30, 2006 is a benefit of $3.6 million and $2.0 million,
        respectively, resulting from the cumulative effect of the adoption of
        SFAS 123(R) and the requirement to provide an estimate for forfeitures
        on all unvested stock-based compensation awards, as of January 1,
        2006.

CONTACT: Randall Weisenburger of Omnicom Group Inc., +1-212-415-3393

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