THE INTERPUBLIC GROUP OF COMPANIES, INC. COMPUTATION OF EARNINGS PER SHARE (Dollars in Thousands Except Per Share Data) Year Ended December 31 1999 1998 1997 1996 1995 ---- ---- ---- ---- ---- BASIC: Net income $321,921 $309,905 $200,378 $214,619 $134,311 Weighted average number of common shares outstanding 278,923,346 270,970,652 260,499,892 260,594,738 255,605,266 Net income per share - Basic $1.15 $1.14 $ .77 $ .82 $ .53 DILUTED: Net income $321,921 $309,905 $200,378 $214,619 $134,311 After tax interest savings on assumed conversion of subordinated debentures(1)(2) -- -- 5,929 6,410 -- Add: Dividends paid net of related income tax applicable to the Restricted Stock Plan 631 541 447 384 461 -------- -------- -------- -------- -------- Net income, as adjusted $322,552 $310,446 $206,754 $221,413 $134,772 ======== ======== ======== ======== ======== Weighted average number of common shares outstanding 278,923,346 270,970,652 260,499,892 260,594,738 255,605,266 Assumed conversion of subordinated debentures(1)(2) -- 5,320 8,020,582 8,933,004 -- Weighted average number of incremental shares in connection with assumed exercise of stock options 7,087,793 6,620,734 5,821,296 4,438,746 3,843,846 Weighted average number of incremental shares in connection with the Restricted Stock Plan 3,536,805 3,453,838 3,277,294 3,211,128 4,160,134 ----------- ----------- ----------- ----------- ------------ Total 289,547,942 281,050,544 277,619,064 277,177,616 263,609,246 Diluted Earnings Per Share Data: Net Income $1.11 $1.10 $ .74 $ .80 $ .51 All share data for prior periods have been adjusted the two-for-one stock split effective July 15, 1999. - ---------------- <FN> (1) The computation of diluted EPS for 1999 excludes the assumed conversion of the 1.87% and 1.80% Convertible Subordinated Notes due 2006 and 2004, respectively, because they were antidilutive. (2) The computation of diluted EPS for 1998 and 1997 excludes the assumed conversion of the 1.80% Convertible Subordinated Notes due 2004 because they were antidilutive. Similarly, the computation of diluted EPS for 1995 excludes the assumed conversion of the 3 3/4% Convertible Subordinated Debentures due 2002 as they were antidilutive. </FN>