Re-evaluation of GM’s Impact on Publicis Groupe.

On Friday July 10th 2009, General Motors Company purchased substantially all of the operating assets of General Motors Corporation in a Section 363 transaction, effectively allowing the New GM to operate outside the Chapter 11 process in the U.S., free from many of Old GM’s legacy obligations. The New GM will operate the Chevrolet, Cadillac, Buick and GMC brands on an ongoing basis while it continues the process of selling or winding down the Saturn, Saab, and Hummer brands and winds down the Pontiac brand. Motors Liquidation Company, the Old GM, plans to liquidate the remaining assets. The agencies of Publicis Groupe have worked with Old GM and will continue to work with New GM. As we noted in our release of June 4th we are now in a better position to quantify our financial exposure as a result of the GM bankruptcy.

Since the filing of the bankruptcy, Old GM has signed agreements with some of our agencies and assumed and assigned contracts with other of our agencies to New GM. As a result, we have received payment of the bulk of our fee receivables as of the date of the bankruptcy, and GM has committed to pay us our remaining pre-petition fee receivables over the next few months.