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Leap Group Sells Multicultural Subsidiary to Young & Rubicam

The Leap Group Inc. said Young & Rubicam Inc. will acquire the business of its multiculturally focused subsidiary, One World Communications Inc., including the Kang & Lee operations in New York and Los Angeles.

Frederick A. Smith, Leap Group chairman and CEO, said the divestiture of the multicultural units will provide capital to the company for the purpose of increasing Internet-related revenue streams.

"We recognize that the Internet sector is an important part of our company's growth and we are making a conscious decision to redirect our resources in that direction," he said.

Financial terms were not disclosed, but the companies said the transaction is expected to close in the third quarter.

The Leap Group is a creatively focused advertising holding company providing consumer marketing, advertising and Internet-related services and products. The company's stock has soared this month, due in part to the growth of its Internet advertising sector, the company said in a statement issued on July 7. LEAP closed Friday at $5.69.