THE INTERPUBLIC GROUP OF COMPANIES, INC. COMPUTATION OF EARNINGS PER SHARE (Dollars in Thousands Except Per Share Data) Year Ended December 31 2000 1999 1998 1997 1996 ------------------------------------------------------------------- BASIC: Net income $358,658 $331,287 $339,907 $224,184 $228,914 Weighted average number of common shares outstanding 303,191,966 297,992,048 294,755,783 283,795,670 284,219,045 Net income per share - Basic $1.18 $1.11 $1.15 $ .79 $ .81 DILUTED: Net income $358,658 $331,287 $339,907 $224,184 $228,914 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 666 631 541 447 384 ------------------------------------------------------------------- Net income, as adjusted $359,324 $331,918 $340,448 $230,560 $235,708 =================================================================== Weighted average number of common shares outstanding 303,191,966 297,992,048 294,755,783 283,795,670 284,219,045 Assumed conversion of subordinated debentures(1)(2) -- -- -- 8,020,582 8,933,004 Weighted average number of incremental shares in connection with assumed exercise of stock options 6,110,212 7,310,725 6,924,013 6,508,296 4,438,746 Weighted average number of incremental shares in connection with the Restricted Stock Plan 3,350,631 3,536,805 3,453,838 3,277,294 3,211,128 ------------------------------------------------------------------- Total 312,652,809 308,839,578 305,133,634 301,601,842 300,801,923 =================================================================== Diluted earnings per share data: Net income per share - diluted $1.15 $1.07 $1.12 $ .76 $ .78 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 2000, 1999 and 1998 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 1997 and 1996 excludes the assumed conversion of the 1.80% Convertible Subordinated Notes due 2004 because they were antidilutive.