Cordiant Communications Group Consolidates Interactive Services Into New Global Company: CCG.XM Launched with Global Internet/E-Business Expertise.

Business and Technology Editors

NEW YORK--(BUSINESS WIRE)--March 14, 2000

Marriage of Strategy, Execution, Industry Specialization, and

A Heritage of Motivating the End-User

CCG.XM, a wholly owned subsidiary of Cordiant Communications Group, PLC, today established operations as a fully global player in the booming e-business strategy and Internet development marketplace. Priding itself in a heritage steeped in the ability to inspire consumers, coupled with e-business strategy and execution, CCG.XM unifies--under one brand--an existing, thriving global network of Internet services companies.

The newly unified professional services firm offers solutions in e-business strategy, brand strategy, e-commerce execution, back-end network infrastructure, front-end design, and implementation--all driven by proven expertise in building customer relationships.

Operating from offices in the United States, Europe, Asia, the Middle East, and Australia, CCG.XM will continue to influence the e-business revolution that is transforming industries worldwide. CCG.XM is being incorporated as a separate, wholly owned subsidiary. It remains part of Cordiant Communications Group, the global, integrated communications organization (LSE/NYSE). The new company will tap into the full resources of the parent, including the marketing, advertising, media, and research practices of Bates Worldwide.

"Having one brand for our interactive capabilities around the world will enable CCG.XM to attract and serve local, regional and multinational clients more effectively," said Ian Smith, chief executive of the e-business company. "We have a powerful proposition: Our teams understand people and brands. They share a passion for Internet-based solutions. And they draw upon the full resources of the Cordiant family."

Michael Bungey, Chief Executive Officer of Cordiant Communications Group, said, "We have a tremendously powerful offering--a global e-business company affiliated with marketing, advertising, research, and media firms--all working together for our clients. Having this integrated suite of capabilities has already enabled us to win business from better-known e-business providers who lack this portfolio of resources."

Technology Tailored to User Needs

The newly consolidated company has a full array of technological capabilities-- e-business strategy, information architecture and design, specialized applications, and programming. "Our technical capabilities are among the best in the business," said Smith. "What we add to the mix is a keen understanding of building brands and a deep appreciation for the subtleties of motivating people."

He added, "While information technology has fantastically multiplied the means for building human relationships, it's only effective if it's truly tailored to the end user. Regardless of your technology's sophistication, you can only address customer relationship issues if you start from the end-user's point of view."

Global Capabilities, Local Expertise

At the time of launch, CCG.XM employs nearly 200 people in offices in New York, California, the United Kingdom, France, Belgium, Denmark, Norway, Finland, Singapore, Dubai, and Australia. Two-thirds of current revenues come from outside the United States.

Executives at New York headquarters will provide strategic and marketing resources for a worldwide team of entrepreneurial directors. The New York team, in addition to Smith, comprises Claude Singer, Chief Marketing Officer, and Richard Greenberg, Chief Strategy Officer. Global management includes three regional directors and the managing executive of every CCG.XM office worldwide.

Industry Knowledge, Brand-Name Clients

Cordiant Communications Group began building the first global network in interactive services in 1995. The parent company built each of its interactive operations from the ground up. Since then, CCG.XM's offices around the world have been working together to deliver local, regional, and global e-business solutions for multinationals such as Compaq, Nokia, Visa, Coca-Cola, Warner Lambert, Cable & Wireless, Unilever, and Hyundai. CCG.XM also offers dot.com start-ups a complete suite of strategic and executional capabilities, from business planning to designing e-services to integrated marketing and advertising.

The February 14 edition of Ad Week listed Cordiant's interactive revenues at $18 million for 1999. Mr. Bungey said that significant growth from that level is expected.

"We're already in the key markets of the world, including countries where competitors like Sapient, Razorfish, and Scient are still dreaming of setting up shop," said Greenberg. "While the U.S. accounts for 60 percent of the worldwide market, the non-U.S. market is growing at a faster clip. We're positioned to take advantage of that trend, especially in target industries such as technology, automotive and healthcare."

One Brand Worldwide

Until today, the new company's offices have operated under different names, such as Expanded Media in Asia and in Belgium, XM Harrow in Australia, Bates Interactive in the U.K., and 141 Interactive in New York. "Now we're CCG.XM around the globe--and our people will be one team, as well," said chief marketer Singer. "Clients will recognize us for our ability to reach, motivate, and build relationships with the end-user of interactive technology."

Cordiant Communications Group plc, headquartered in London, is a global creative communications group with 180 offices in 74 countries and 8,000 employees (including affiliates). The Group, known for its expertise in consumer research and understanding, comprises: Bates Worldwide, one of the world's largest advertising and integrated communications networks and its subsidiary 141 Worldwide, a global network specializing in diversified marketing services; Scholz & Friends, the largest multinational advertising network headquartered in Germany; HP:ICM, specializing in live communications; Healthworld Corp., the world's third-largest specialist healthcare marketing group; 30% ownership of the Facilities Group, a pre-production agency; 50% ownership of Zenith Media Worldwide, the specialist media services and planning agency; and CCG.XM, which provides e-business solutions worldwide.