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EXHIBIT 99.2
FOR IMMEDIATE RELEASE AUGUST 23, 2001
PRESS RELEASE
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THE DEPARTMENT OF JUSTICE SAYS SIMON
WORLDWIDE IS A "VICTIM" OF ONE ROGUE EMPLOYEE
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SIMON WORLDWIDE RETAINS THE RESPECTED
LAW FIRM OF O'MELVENY & MYERS
TO CONDUCT A REVIEW OF THE FACTS
ABOUT PROMOTIONAL GAMES
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Los Angeles CA, August 23, 2001 - Simon Worldwide, Inc. (Nasdaq:SWWI)
announced that today the company was informed by the United States Department of
Justice that it is a "victim" of the alleged actions of one rogue employee.
According to Mark B. Devereaux, an Assistant United States Attorney based in
Jacksonville, Florida and the lead prosecutor on this matter, the Department of
Justice views Simon as a victim of one rogue employee, that based on its
investigation to date no other Simon employees were involved in the matter and,
confirmed that Simon is not a subject or target of the Justice Department's
investigation.
Devereaux said, "We view Simon as a victim of one rogue employee and based
on our investigation to date no other Simon employee was involved. Simon is not
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a subject or a target of our investigation." Devereaux added, "What has happened
to Simon and its employees is an absolute tragedy."
Allan Brown, Simon Worldwide's Chief Executive Officer, said, "The Justice
Department's statements make it clear for all to see that Simon, and its more
than 400 hardworking employees, are the victims of the alleged actions of one
rogue employee. For over 25 years Simon has provided our clients, including
McDonald's, the world's most successful and profitable premium promotions. The
company and its employees have worked tirelessly on behalf of McDonald's. It is
truly unfortunate that all of our employees are now being unfairly and
unnecessarily impugned as a result of what appears to be the alleged actions of
one rogue employee. This is a disservice to Simon, our employees, our other
customers and our shareholders. As the Department of Justice said today, this
situation came about as the result of the alleged conduct of one person -- no
other employee at Simon has been implicated in this matter." Brown went on to
add, "The suggestion that Simon betrayed anyone is an outrageous distortion of
the facts."
In a further development, Simon announced that is has retained the
international law firm of O'Melveny & Myers LLP to conduct a review of the facts
about the promotional games administered by the company's main operating
subsidiary, Simon Marketing, Inc., on behalf of McDonald's. Simon also repeated
the company's commitment to working closely with the Justice Department to
address the situation, which the company learned about for the first time
Tuesday.
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O'Melveny & Myers is a national law firm headquartered in Los Angeles,
California. Immediately after Simon Worldwide executives were notified on August
21, 2001 of this situation, Simon Worldwide called former Secretary of State
Warren Christopher, a senior partner at O'Melveny, to arrange for the law firm's
involvement. O'Melveny's review will be overseen by Ralph J. Shapira, a senior
partner at the firm. The review will be comprehensive in scope and will begin
immediately, reflecting Simon Worldwide's commitment to learning all the facts
as quickly as possible.
Simon CEO Allan Brown, said, "Upon learning of this situation for the first
time Tuesday, we made a firm commitment to getting all the facts. To help
fulfill our commitment, we worked as quickly as possible to retain O'Melveny &
Myers to conduct the review of the situation by having a member of our Board
reach out personally to Warren Christopher, a senior partner at O'Melveny and a
man of impeccable credentials. O'Melveny's charge is very simple: Determine the
facts and get to the truth."
Simon Worldwide also announced today that Phillip Morris and other clients
have terminated their relationships with Simon Marketing, Inc., effective
immediately, as the result of published reports and press related to this
incident. CEO Allan Brown said: "Although Phillip Morris and other clients
announced that they have terminated their relationships with Simon, the steps we
have taken to get to the bottom of this matter demonstrates that we are doing
the right thing under these difficult circumstances."
For further information, please contact Chris Lehane or Mark Fabiani at
202.549.5911.
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ABOUT SIMON WORLDWIDE, INC.
Simon Worldwide is a diversified marketing and promotion agency with
offices throughout North America, Europe and Asia. The company works with some
of the largest and best-known brands in the world and has been involved with
some of the most successful consumer promotional campaigns in history. Through
its wholly owned subsidiary, Simon Marketing, Inc., the company provides
promotional agency services and integrated marketing solutions including loyalty
marketing, strategic and calendar planning, game design and execution, premium
development and production management. Simon is one of the world's largest
creators, developers and procurers of promotional games and toys. The company
was founded in 1976.
This press release contains forward-looking statements (within the meaning
of the Private Securities Litigation Reform Act of 1995). These statements
include statements regarding intent, belief or current expectations of the
Company and its management. You are cautioned that any such forward-looking
statements are not guarantees of future performances and involve risks and
uncertainties that may cause the Company's actual results to differ materially
from the Company's expectations. Factors that could cause actual results to
differ materially are discussed in Exhibit 99.1 to the Company's Second Quarter
2001 Report on Form 10-Q. Reference to this Cautionary Statement or Exhibit 99.1
in the context of a forward-looking statement or statements shall be deemed to
be a statement that any one or more of these factors may cause actual results to
differ materially from those anticipated in such forward-looking statement or
statements.
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