Modem Media, Poppe Tyson to Merge

True North Communications (TNC) said that its Modem Media and Poppe Tyson Inc. units will be merged into a single company, to be called Modem Media . Poppe Tyson.

The new company will be majority owned by TNC and headquartered in Westport,
CT. True North acquired Modem Media in 1996 for an estimated $25 million. Last
year, True North acquired Bozell Worldwide, the holding company for Poppe

The merger “will create the largest digital marketing communications
organization in the world,” with operating offices on five continents in eight
major cities across the globe, TNC said. Billings for the two companies were
not disclosed.

Modem Media . Poppe Tyson will provide a complete range of strategic marketing
consulting, technology, creative, production and media services. The merger
brings together seasoned industry professionals organized around core
competencies for interactive business services, TNC said.

“The dynamics of the Internet are creating new business opportunities every
day. By leveraging our enormous talent and expertise under one cohesive
service architecture, we can help global marketers create value from these
opportunities,” said G.M. O’Connell, co-founder and chairman of Modem Media.
“Put simply, this agreement redefines the standard for world-class client and
marketing services in the digital arena.”

“There has always been a merger of the minds between us on the vision and the
value of today’s interactive marketplace,” said Kevin C. Clark, chairman and
CEO of Poppe Tyson. “I’m extremely proud that we’ve taken that shared vision
to the next level.”

Under the new management structure, O’Connell will serve as chairman and CEO
of the resulting combined organization, with a particular focus on
strengthening and developing the new company’s strategic service architecture
and creative product. O’Connell also will lead the company’s key marketing and
sales initiatives.

Kevin C. Clark assumes the role of vice chairman with a primary focus on
realizing emerging business opportunities and company expansion. Modem Media
President Bob Allen will serve as president of the new entity, heading the
day-to-day management and operation. True North non-executive chairman and
director, Richard Braddock, will join the board of directors of the new
organization as chairman of the board. True North Communications (TNC) will
continue to be the majority shareholder in Modem Media . Poppe Tyson.

Said Braddock: “This merger validates TNC’s early investment in this rapidly
growing interactive segment, and represents significant value to our
shareholders worldwide.”

Modem Media . Poppe Tyson will become the primary digital marketing
communications services holding of TNC, held in its technology services
division, TN Technologies Inc.

Established in 1987, Modem Media claims to be the first agency dedicated
exclusively to interactive marketing. Modem Media employs more than 200 people
and is headquartered in Westport, with offices in Chicago, New York, San
Francisco, London and Hong Kong. Clients include: 3Com; AT&T; Delta Air Lines;
Intel; JCPenney and Unilever.

Poppe Tyson Inc. is a global interactive marketing
company headquartered in New York City, with offices in Silicon Valley,
London, Hong Kong, Sydney and Sao Paolo. Clients include: Harper Collins;
Hasbro-Interactive; ING Barings; Johnson & Johnson; Kodak and Sony.

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