Grey Reports $6.6M Second Quarter Loss

Grey Advertising Inc. reported a net loss of
$6.63 million for the second quarter of 1999 and a loss of $6.52 million for
the six months ended June 30.

That compares to net income of $8.31 million and $13.35 million respectively,
for the same periods in 1998.

Gross billings were $1.74 billion for the second quarter of 1999, an increase
of 11.9%. The company said its 1999 performance is “being impacted by reduced levels of
revenues at the company’s general advertising agency operations in the U.S.
and abroad.”

However, the company said it recently has secured a number of new business
assignments that are expected to contribute to top-line growth in the future.
In the interactive arena, Grey recently acquired Beyond Interactive. The company said in a
statement that its is committed to further expansion of its holdings in the
Internet sector, adding that “these are all high-growth businesses that
promise significant long-term returns.”

Recent new accounts include Oracle Corp., Hasbro for its Play-Doh global
account, Stanley Tools for its pan-European account, Procter & Gamble for its Flash
brands in Europe and Ivory brand in Asia-Pacific. British American Tobacco
for its Rothmans, Dunhill, Vogue and Cartier global brands and AOL Europe for
its account in Germany.

Grey Advertising, with operations in 90 countries, ranks as the world’s sixth
largest advertising agency.

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