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WPP GROUP ANNUAL GENERAL MEETING: CHAIRMAN'S STATEMENT

 WPP GROUP ANNUAL GENERAL MEETING: CHAIRMAN'S STATEMENT
 LONDON, July 20 /PRNewswire/ -- Jeremy Bullmore, who chaired the


meeting in David Ogilvy's absence through illness, at today's annual general meeting of WPP Group (NASDAQ: WPPGY), said:
 "I should just like to say a few words about current trading and the proposed capital restructuring. Despite there having been no significant upturn in the level of economic activity, particularly in the U.K. and U.S., the estimate of profit before tax and exceptional items of not less than 14.2 million pounds sterling for the first six months of 1992, as stated in the circular posted last week, represents an improvement on the comparable figures for 1991. Although the directors remain concerned about the general economic environment, we have been encouraged by the group's trading performance in recent months.
 "The directors believe that the proposed capital restructuring is vital to the future of the group. Essentially, the capital restructuring comprises three main elements. The first, which is already in place, is an extension of the group's syndicated term loan and working capital facilities to June 1997 and a new loan facility of up to 79 million pounds for up to two years; the second is the issue to the group's banking syndicate, subject to clawback arrangements of dollar denominated convertible redeemable preference shares for up to 143 million pounds and a reduction of a corresponding amount of indebtedness; and the third, the conversion of the issued convertible preference shares at a conversion rate in excess of five times the current conversion rate.
 "These are the proposals that will be put before the shareholders on Aug. 5 and the board strongly urges all shareholders to vote in favor of the resolutions which must be passed before the capital restructuring can become effective.
 "The board believes that the actions which it is taking to improve operating margins combined with the capital restructuring will mean the group will be significantly better placed to take advantage of any economic recovery."
 -0- 7/20/92
 /CONTACT: Martin Sorrell, Robert Lerwill or Feona McEwan of WPP Group, in London: 071-408-2204/
 (WPPGY) CO: WPP Group plc ST: IN: ADV SU:


TS-PS -- NY024 -- 0650 07/20/92 10:34 EDT
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Publication:PR Newswire
Date:Jul 20, 1992
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