Publicis Groupe SA Announces Strategic Decisions & Management Appointments Following Merger.

Publicis Groupe S.A. Chairman and CEO Maurice Lévy announced to employees worldwide the first strategic decisions taken following the merger with Bcom3, effective last month, which created the world’s fourth largest communications group.

The decisions, based on a strategy focused on three global agency networks, include the integration of D’Arcy within other units of the Groupe and the nomination of new executives to key posts.

In making the announcement, Maurice Lévy told employees, “The decisions we are announcing to you today will enable our Groupe to create the unique client offering that is at the heart of our strategy. Publicis Groupe SA now will be the sole group to be able to offer clients three distinct global networks, each clearly positioned, with each its own specific culture, heritage and approach, and with each its own autonomous management.”

Maurice Lévy added, “To continue best serving our clients and winning new business-from current as well as new clients-we must make the most of our remarkable Groupe resources across the board. Our talents and capabilities are impressive as they stand today; the offer they comprise will be even stronger and more attractive to clients tomorrow following the steps we are now taking.”

Among the key points announced to employees:

Strategic Organizational Decisions

· Strengthening three main global agency networks: Publicis Worldwide, Saatchi & Saatchi Worldwide, and Leo Burnett Worldwide. Other units, including Fallon Worldwide, will continue to develop according to plan.

· Integration of D’Arcy in other units of the Publicis Groupe. The decision was taken following a detailed review by Maurice Lévy and by Roger Haupt, President and Chief Operating Officer of Publicis Groupe S.A. and member of its Directoire.

· In the United States, D’Arcy will be integrated into Publicis USA, with some accounts and teams going to Saatchi & Saatchi, with the agreement of clients. D’Arcy Detroit will form a new and exciting partnership with Leo Burnett Worldwide and details about this operation will follow shortly.

· Outside of the U.S., each country situation will be reviewed separately with the overall objective of strengthened client offerings and service worldwide.

The strategic decisions will be implemented to be effective over the next two to three months and in line with three main criteria:

1. For our clients: to make sure that they receive the best service and so that we deserve more than ever their continuing confidence

2. For our employees: to create new career paths and job opportunities in the medium-term and to reduce to an absolute minimum any short-term disruption during the implementation period

3. For our future: to reinforce the Groupe through three stronger worldwide agency networks, Publicis Worldwide, Saatchi & Saatchi Worldwide and Leo Burnett Worldwide, by making them even more competitive and attractive for clients, employees and the marketplace as a whole.

New Executive Appointments

Executive appointments were announced outside of the Leo Burnett network, which remains under the responsibility of CEO Linda Wolf, and outside of Saatchi & Saatchi, which remains under the responsibility of CEO Kevin Roberts.

Appointments involving Publicis Worldwide

· Rick Bendel as Chief Operating Officer, Publicis Worldwide. He is currently Regional Chairman for the United Kingdom and for the Nordic Region. He will have responsibility with Maurice Lévy, Chairman and CEO of Publicis Worldwide, for that agency network’s development and will be Vice Chairman of the Publicis Worldwide Comex management committee. Rick Bendel also will direct the worldwide implementation of ‘La Holistic Difference’, of which he was one of the architects.

· Susan Gianinno, currently President & Chief Branding Officer D’Arcy Worldwide, will direct Publicis Worldwide USA with the title of Chair and CEO. The U.S. unit will be significantly strengthened following the integration of D’Arcy units. Susan Gianinno will report to Maurice Lévy. She will aim to further develop Bob Bloom’s remarkable accomplishments over the past decade. Bob Bloom will remain through the period of implementation. Maurice Lévy commented, “The current teams of Publicis USA have done exceptional work in developing our creativity to a level that can compete with the market; I am sure that they will benefit from the changes we are making”.

· Lee Garfinkel, currently President & Chief Creative Officer D’Arcy Worldwide, has been asked to become Worldwide Creative Director for Publicis Worldwide, reporting directly to Maurice Lévy. He will work in partnership with Rick Bendel and Maurice Lévy on a worldwide basis and with Susan Gianinno in the U.S., with responsibility for the creative product.

Appointment involving Specialized Agencies and Marketing Services

Maurice Lévy told employees in his note that the groupe will invest in a key growth sector where it has untapped potential: Specialized Agencies and Marketing Services. He also announced an executive appointment in that area:

· John Farrell, currently President & CEO of D’Arcy Worldwide, has been asked to become President & CEO of the SAMS sector of Publicis Groupe. He will work directly with Roger Haupt and Maurice Lévy and bring to bear both his experience as CEO of a major global agency network and in marketing services.

Media Counsel and Buying

Maurice Lévy also announced to employees that Roger Haupt will manage the media counsel and buying area in which the Groupe is ranked number one world wide, according to RECMA. The objective is to generate even greater client benefits from its leadership position and to add further to the Publicis Groupe’s lead in the field. Reporting to Roger Haupt will be: Jack Klues, Chairman and CEO of Starcom MediaVest Group and, John Perriss, CEO of Zenith Optimedia Group.

The objective is to maintain two rigorously independent brands and managements, while carefully looking for synergies that will be of benefit to the Groupe’s clients.

Maurice Lévy concluded: “We have taken advantage of the months necessary for approvals of our merger with Bcom3 to carefully review the strategic decisions that can lead to success in creating profitable growth for our clients and for our groupe by the most intelligent use of our strengthened resources. We are convinced that we have identified the optimal organization and best people to make our strategy a success. We have now made those decisions and can rapidly implement them.

“Mergers always create issues that must be resolved in order to realise the full potential of the opportunities they promise. We intend to bring the full weight of our best management to resolve those issues rapidly, and on the model of the Saatchi & Saatchi integration through which not a single client was lost.”

Publicis Groupe S.A. Management

Publicis Groupe S.A. is managed through its Directoire. Members are Maurice Lévy, Chairman and Chief Executive Officer, Roger Haupt, President and Chief Operating Officer, Kevin Roberts, Bertrand Siguier, and Bruno Desbarats. Chief Financial Officer is Jean-Michel Etienne. General Secretary is Claudine Bienaime.