Cone Inc. Acquired by Omnicom Group Inc.; Agency To Retain Identity, Mission, Management, and Culture.

BOSTON--(BUSINESS WIRE)--Dec. 1, 1999--

Omnicom Group Inc. (NYSE: OMC) and Cone Inc. jointly announced today that Omnicom has acquired Cone Inc., which will become a wholly owned subsidiary of Omnicom. Cone will retain its identity, leadership, and culture, and will operate as an independent subsidiary in Omnicom's Diversified Agency Services (DAS) umbrella of companies.

Cone is a nationally recognized thought and program leader in building brands through stakeholder relationships. The marketing and communication agency's "Cone/Roper Cause Related Trends Reports" are widely cited by media and industry sources to document how consumer and employee behavior is affected by companies that link with social issues.

"Omnicom was attracted to Cone because of the agency's futuristic approach, which integrates Marketing Public Relations, Interactive Marketing, and Cause Branding(sm)," said Thomas L. Harrison, Chairman and CEO of Omnicom's Diversified Agency Services. "Cone has taken cause related marketing to a new level. They've developed an approach that uses different business practices to embed a social issue into the fabric of a company," adds Harrison. "Business success in the future will depend more than ever on brand differentiation, relevance, and relationships with customers. Cone's expertise adds to Omnicom's strength in all of those areas."

Over the past 3 years, the staff of Cone Inc. has grown 111% to 76 employees, with offices in Boston and New York. Over the same period, agency revenues have increased 157% to an expected 9.5 million dollars for 1999. Cone Inc. clients include ConAgra, Gillette, Home Depot, JCPenney, Dunkin' Donuts, Timberland, Summit Technology, MyFamily.com, SmartMoney.com, studentadvantage.com, and ZanyBrainy.com.

Omnicom has acquired Cone Inc. for a combination of cash and stock. Other financial terms were not disclosed. Carol Cone will continue as Chief Executive Officer, and Jens Bang will continue as President and Chief Operating Officer.

"We're thrilled to be joining the Omnicom family of companies and look forward to sharing our expertise and best practices with firms that represent the best-of-breed in advertising, marketing, and interactive media," said Carol Cone. "In the next millennium, we believe that brands will have to go far beyond excellent products or services to win. They will have to communicate innovatively. They will be expected to have one-on-one relationships with customers. And they will need to incorporate social issues into daily business practices. Becoming part of the Omnicom network will help us help current and future clients reach all of those goals," she added.

BENEFITS OF ACQUISITION TO STAFF, COMMUNITY, AGENCY

An agency-wide deferred compensation plan is being created from proceeds of the acquisition. This plan, supplemented by annual cash deposits based on the agency meeting its profit and growth goals, will benefit all long-term employees who contribute to Cone Inc.'s growth over the next several years.

In addition, to celebrate this milestone, in Spring 2000 Cone Inc. will fund and build a Habitat for Humanity house in metropolitan Boston. "Cone's success to date was built by the efforts of our entire agency, from account service to human resources, media services and finance. These programs were created to thank our team and to benefit them as we move into the next Millennium," said Ms. Cone.

CONE INC. HISTORY AND MISSION

Cone Inc. was founded in 1980. The agency's mission is to build 21st Century Brands(sm) through innovative leadership, using all three of its practices. Cone's past marketing public relations work has included Bausch & Lomb, 3M, FTD, and Hasbro. The agency's award winning "walking" positioning for Rockport supported that company's growth from $18 million to $250 million. Cone has been recognized as the nation's number one cause marketing firm for two consecutive years by Inside PR, and has created award winning campaigns such as Reebok's Human Rights Awards, Avon's Breast Cancer Awareness Crusade, and Kimberly-Clark's playgrounds program. Cone's interactive practice has helped develop major Internet brands such as iVillage and About.com, enabling them to maximize their valuation before and during the IPO process. The agency won a 1998 CIPRA (Creativity in Public Relations Award) for its work with iVillage.

ABOUT CONE INC.

Cone Inc., (www.coneinc.com) with offices in Boston and New York City, creates and implements innovative marketing and communications programs to support enduring relationships between companies and their customers.

ABOUT OMNICOM GROUP INC.

Omnicom Group Inc. (NYSE: OMC) (www.omnicomgroup.com), the leading marketing communications company in the world, consists of advertising agency networks BBDO Worldwide, DDB Worldwide and TBWA Worldwide. The group also includes Goodby, Silverstein & Partners; Diversified Agency Services (DAS), which operates a number of leading, independently branded companies in marketing services and specialty communications, and Communicade, a division of wholly owned and significant minority investment interests in several leading interactive and new media companies.