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FCB REPORTS FIRST QUARTER RESULTS

 FCB REPORTS FIRST QUARTER RESULTS
 CHICAGO, May 12 /PRNewswire/ -- Foote, Cone & Belding


Communications Inc. (NYSE: FCB) today reported net income for the first quarter totaled $1,237,000 or $.12 per share in 1992, up 20 percent compared to $1,038,000 or $.10 per share in 1991. Consolidated revenues increased 4.1 percent while operating expenses decreased 0.2 percent. Consequently, operating margin as a percent of revenues increased from 1.3 percent in 1991 to 5.4 percent in 1992.
 QUARTER ENDED MARCH 31, 1992 Consolidated revenues totaled $78,711,000, up 4.1 percent from 1991 first quarter revenues of $75,588,000. Additionally, FCB's proportionate share of European revenues rose to $58,413,000 in 1992 from $48,815,000 in 1991. On a combined basis, revenues increased 10.2 percent. Excluding the effects of currency and acquisitions, combined revenues increased approximately 4.5 percent. Operating margin for consolidated operations was $4,288,000 in 1992, compared to $988,000 in 1991. Reflecting FCB's continuing efforts to tighten its operating expense structure, consolidated operating expenses decreased at a rate of 0.2 percent between years, compared to the 4.1 percent increase in revenues. While the company expects growth in revenues and operating margin for the full year, the annual improvement may not be as strong as the first quarter rate.
 Equity earnings, which consist primarily of FCB's share of European operations, resulted in a loss of $461,000 compared to 1991 income of $914,000. The decline in profitability of our European operations is attributable to the United Kingdom. Operating results in the United Kingdom have been adversely impacted by a continuing weak economic environment as well as rationalization expenses resulting from two recent acquisitions. European operations are expected to rebound strongly in the remaining three quarters of 1992.
 NEW BUSINESS GAINS FCB new business gains in the first quarter included Ace Hardware (FCB/Chicago); Mattel Games Division and additional toy lines (FCB/Los Angeles); New Jersey Transit Authority (FCB/LGK, Philadelphia); and SCJohnson Canada (FCB/Ronalds-Reynolds, Toronto). FCB/Direct, the company's direct marketing unit, and IMPACT, its sales promotion unit, also won significant new accounts.
 FCB Chairman and CEO Bruce Mason said, "We are pleased to add these bluechip clients, along with new business from existing clients, during a quarter that is traditionally slow in our industry. These achievements bode well for our future."
 Foote, Cone & Belding ranks as the seventh largest worldwide advertising company and the third largest agency in the United States. Its network included 176 offices in 40 countries, with worldwide billings, including Publicis FCB European operations, totaling more than $5 billion.
 NOTE: Pro Forma and Consolidated Financial Summaries follow.
 FOOTE, CONE & BELDING COMMUNICATIONS AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 (000s except per-share amounts)
 THREE MONTHS ENDED Percentage
 MARCH 31, Increase
 1991 1992 (Decrease)
 REVENUES $ 75,588 $ 78,711 4.1
 OPERATING EXPENSES:
 Salaries and other employee benefits 47,481 47,560 0.2
 Office and general expenses 23,674 22,542 (4.8)
 Direct marketing cost of goods sold 3,445 4,321 25.4
 TOTAL OPERATING EXPENSES $74,600 $74,423 (0.2)
 Operating margin 988 4,288 334.0
 Other income (expense) (737) (883) 19.8
 Income Before Provision for
 Taxes on Income 251 3,405 1,256.6
 Provision for Federal, Foreign &
 State Income Taxes 125 1,682 1,245.6
 TOTAL $ 126 $ 1,723 1,267.5
 Minority interest expense (2) (25) 1,150.0
 Equity in Earnings (Losses) of
 Affiliated Companies 914 (461) (150.4)
 NET INCOME $ 1,038 $ 1,237 19.2
 Per Common and Common
 Equivalent Share $ 0.10 $ 0.12 20.0
 Average number of common and common
 equivalent shares outstanding 10,418 10,735 3.0
 Operating margin percentage (PCT) 1.3 5.4
 FOOTE, CONE & BELDING COMMUNICATIONS AND SUBSIDIARIES
 PRO FORMA SUMMARY OF OPERATING RESULTS (UNAUDITED) (000s):
 THREE MONTHS ENDED
 MARCH 31,
 1991 1992
 REVENUES
 FCB (ex Europe) $75,588 $78,711
 European Holdings 48,815 58,413
 TOTAL $124,403 $137,124
 OPERATING MARGIN
 FCB (ex Europe) 988 4,288
 European Holdings 3,706 1,961
 TOTAL $ 4,694 $ 6,249
 NET INCOME
 FCB (ex Europe) 239 1,819
 European Holdings 799 (582)
 TOTAL $ 1,038 $ 1,237
 -0- 5/12/92
 /CONTACT: Terry Ashwill 312-751-7002 or Owen Dougherty, 312-751-7789, both of FCB/
 (FCB) CO: Foote Cone & Belding Communications Inc. ST: Illinois IN: SU: ERN


MC -- SF006 -- 9339 05/12/92 16:53 EDT
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Date:May 12, 1992
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