Exhibit 99.1
THE INTERPUBLIC GROUP OF COMPANIES, INC.
[INTERPUBLIC LOGO]
WORLDWIDE ADVERTISING AND MARKETING COMMUNICATIONS
1271 Avenue of the Americas, New York, N.Y. 10020
FOR IMMEDIATE RELEASE
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INTERPUBLIC NEGOTIATES RELEASE FROM
FORMULA ONE RIGHTS CONTRACT
Lease of Silverstone and Related Obligations Remain
NEW YORK, NY (April 19, 2004) - The Interpublic Group (NYSE: IPG) announced
today that it had reached agreement to terminate its contract and related
commitments with Formula One Administration Limited relating to the British
Grand Prix, held at the Silverstone auto racing circuit in the United Kingdom.
Under this agreement, following the completion of the 2004 race this
July, Interpublic and its subsidiary, Silverstone Motorports Limited, will be
released from their obligations to promote the British Grand Prix. In exchange
for the early termination of these obligations (which could otherwise have been
in effect until 2015) and all attendant liabilities, Interpublic will pay $93
million to Formula One Administration. As a consequence of this transaction,
Interpublic will recognize an accounting charge of $93 million in its statement
of operations for the second quarter of 2004.
Subsequent to this transaction, Interpublic will remain bound under its
Silverstone lease and its related obligations to the British Racing Drivers
Club. These remaining contractual commitments connected with Silverstone are
expected to approximate $62 million, to be paid through the end of 2007. This
estimate is based on early termination of the Silverstone lease in 2007 and
includes payments of remaining amounts under the promoters agreement for the
2004 British Grand Prix.
"This is another important step in our turnaround," said Interpublic
Chairman and CEO David Bell. "From the point at which I was asked to lead this
company, I have made it clear that it is inappropriate for us to be involved in
owning or operating venue-based motor sports businesses. We are pleased to have
moved closer to completing our exit from the motor sports business."
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About Interpublic
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Interpublic is one of the world's leading organizations of advertising agencies
and marketing services companies. Major global brands include Draft, Foote, Cone
& Belding Worldwide, Golin/Harris International, Initiative Media, Lowe &
Partners Worldwide, McCann-Erickson, Octagon, Universal McCann and Weber
Shandwick Worldwide. Leading domestic brands include Campbell-Ewald, Deutsch and
Hill Holliday.
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Contact Information
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General Inquiries:
Julie Tu, Financial Relations Board
(212) 445-8456
Media:
Philippe Krakowsky, Interpublic Group of Companies, Inc.
212-399-8088
Analysts:
Dan Leib, Interpublic Group of Companies, Inc.
(212) 621-5767
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Cautionary Statement
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This press release contains forward-looking statements. Interpublic's
representatives may also make forward-looking statements orally from time to
time. Statements in this document that are not historical facts, including
statements about Interpublic's beliefs and expectations, particularly regarding
ongoing liabilities following the early termination of the Silverstone event and
promoters agreements, recent business and economic trends, the impact of
litigation, the SEC investigation, dispositions, impairment charges, and the
integration of acquisitions and restructuring costs, constitute forward-looking
statements. These statements are based on current plans, estimates and
projections, and are subject to change based on a number of factors, including
those outlined in this section. Forward-looking statements speak only as of the
date they are made, and Interpublic undertakes no obligation to update publicly
any of them in light of new information or future events.
Forward-looking statements involve inherent risks and uncertainties. A number of
important factors could cause actual results to differ materially from those
contained in any forward-looking statement. Such risk factors include, but are
not limited to, the following:
o potential legal challenges to the validity of the agreement terminating the
event and promoters contracts at the Silverstone race track;
o potential claims relating to termination of the Silverstone lease
contracts;
o risks associated with the effects of global, national and regional economic
and political conditions;
o Interpublic's ability to attract new clients and retain existing clients;
o the financial success of Interpublic's clients;
o Interpublic's ability to retain and attract key employees;
o developments from changes in the regulatory and legal environment for
advertising and marketing and communications services companies around the
world;
o potential adverse effects if Interpublic is required to recognize
additional impairment charges or other adverse accounting related
developments;
o potential adverse developments in connection with the SEC investigation;
o risks associated with Interpublic's remaining motorsports commitments;
o potential downgrades in the credit ratings of Interpublic's securities; and
o the successful completion and integration of acquisitions which complement
and expand Interpublic's business capabilities.
Investors should carefully consider these risk factors and the additional risk
factors outlined in more detail in Interpublic's Form 10-K and other SEC
filings.