Burson-Marsteller Names Mark Penn Worldwide CEO; Founder of Leading Opinion Research Firm.

NEW YORK -- Burson-Marsteller today announced the appointment of Mark Penn, founding partner and president of the leading opinion research and strategic communications firm Penn, Schoen & Berland Associates (PSB), as Worldwide Chief Executive Officer. He succeeds Thomas R. Nides, who joined Morgan Stanley as chief administrative officer.

Howard Paster, WPP executive vice president for public relations and a member of the WPP board, and Ann Fudge, chairman and CEO of Y&R Brands, Burson-Marsteller's parent companies, termed Penn's appointment "a move that recognizes the close relationship between public relations counseling and the implementation and measurement of public opinion.

"Bringing Mark Penn into the public relations orbit has the promise of new thinking and new ways to serve client needs at the highest levels of management, and accords with Burson-Marsteller's long-time leading edge role. Coming from a kindred business, he brings a fresh approach that has the potential of taking public relations to a new enhanced value level in the management hierarchy. This comes at a time when result measurement is a prime consideration in undertaking public relations initiatives."

Founded 30 years ago, Penn's firm has been one of the most successful in adapting and applying political polling and communications techniques to business issues. Since its acquisition four years ago by WPP, one of the largest global communications firms, PSB has almost tripled in size. It has worked for such clients as Ford, McDonald's, BP and Verizon on corporate reputation, corporate governance, corporate and brand positioning and litigation issues. PSB has been closely associated with Burson-Marsteller on developing and implementing deregulation informational programs for the electric utilities industry and in the financial services sector.

Penn, 51, is also well-known for his role as a strategic advisor to former President Bill Clinton from 1995 until the end of his administration. In 2000, TIME Magazine described Penn as "master of the message" in a commentary on his role as a presidential advisor. He is a graduate of Harvard College and attended Columbia Law School.

"Leading Burson-Marsteller provides an exciting opportunity and expanded platform to work with respected professionals around the world in serving clients' strategic communication needs. The opportunity exists to bring new knowledge-based insights to the public relations/communications function. This comes at a time when businesses, facing the most intense competition ever, are committed to sustainable development, social responsibility and earning public understanding," said Penn.

"On the basis of long experience," he added, "I believe Burson-Marsteller has the people, resources and clients to deal with these issues and set new standards in the quality and relevancy of public relations and public affairs services. I am also well aware of the firm's unique culture - a culture that led one editor to describe it as 'the public relations firm against which all others are measured.'"

PSB will become a stand-alone division of Burson-Marsteller, reporting to Penn.

Coincident with Penn's appointment, Howard Paster, 60, was named chairman of the Burson-Marsteller executive board, in addition to his existing WPP responsibilities. Penn will remain as president of PSB while his partner, Mike Berland, takes on greater responsibility as CEO of PSB. Harold Burson, 84, will continue in a non-management capacity with the title of founding chairman Burson-Marsteller, a position which has evolved over the past 18 years since he was chief executive officer.

"Mark Penn, with his experience and reputation in a closely related business, represents an 'outside the envelope' happening for Burson-Marsteller," Burson said. "My expectation is that he will take the firm to a new level in both client service and new and innovative offerings. The time to do so is opportune. Public relations and effective communications have never been so important to corporate CEOs and others managing large institutions - a situation as much recognized by senior business executives as by public relations professionals."

About Burson-Marsteller

Burson-Marsteller (www.burson-marsteller.com), established in 1953, is a leading global public relations and public affairs firm. It provides clients with strategic thinking and program execution across a full range of public relations, public affairs, advertising, and web-related services. The firm's seamless worldwide network consists of 44 wholly owned offices and 49 affiliate offices, together operating in 57 countries across six continents. Burson-Marsteller is a part of Young & Rubicam Brands, a subsidiary of WPP Group plc (NASDQ: WPPGY), one of the world's leading communications services networks.