Euro RSCG Acquires Middleberg + Associates

Business & High Tech Editors

NEW YORK--(BUSINESS WIRE)--June 1, 2000

Middleberg Ranked No.1 Internet Public Relations

Agency in the United States

Bob Schmetterer, Chairman and CEO of Euro RSCG Worldwide, the world's fifth ranked global agency network, today announced the acquisition of the leading Internet communications and public relations firm in the United States - Middleberg + Associates. Middleberg, with billings exceeding $22 million (up from $11.3 million as of December 31, 1999) was the fastest growing public relations agency in the U.S. in 1999 (of the 75 largest agencies) and is currently among the nation's ten largest independent agencies. The firm is highly regarded as being a pioneer in recognizing the growth of the digital economy and its impact on public relations and communications. Middleberg, in particular, created many of the industry's best practices used today including Internet crises management, adaptive branding, and created the term "rogue Website."

Middleberg will be a wholly owned subsidiary and will operate as a separate unit within Euro RSCG Worldwide's corporate communications group. The agency will be known as Middleberg Euro RSCG. Don Middleberg, agency founder, will remain Chief Executive Officer. No financial details were disclosed.

"We're delighted to be acquiring what we consider to be the finest independent communications firm in the United States," said Mr. Schmetterer. "Not only is Middleberg widely considered the best of the digital age, their growth has been extraordinary," he added. "The fact that they are recognized as one of the finest firms in the U.S. representing both established leaders leveraging their franchises online as well as fast-moving dot-coms, makes Middleberg a great fit for our network, which is known for its leadership in technology, innovation and interactivity," he added.

"Moreover, the acquisition of Middleberg is key for us as we continue to expand our global corporate communications group, which today is among the leading groups in Europe," Mr. Schmetterer continued. "This strategically brilliant agency will become the centerpiece of our North American initiative."

Commenting on the deal, Don Middleberg stated, "As the Internet intersects with virtually all industries, Middleberg Euro RSCG will now be able to offer clients unparalleled communications capabilities on a global scale."

"We decided - and by we I mean our six principals as well as other members of our senior staff - that the firm and its clients would greatly benefit from global reach, fully integrated communications capabilities and the capital and support to grow our firm in our own image."

"This deal is being done because it is a wonderful strategic fit and in Bob Schmetterer we have found a leader who `gets it' - both the digital economy and our entrepreneurial culture."

Headquartered in New York City, Euro RSCG Worldwide is the fifth largest agency network in the world. With 202 agencies in 75 countries, Euro RSCG Worldwide provides advertising, marketing services, corporate communications and interactive solutions to global, regional and local clients. The network's client roster includes Intel Corporation, WorldCom, Peugeot, Philips Electronics, CNN, Air France and Louis Vuitton. Euro RSCG Corporate Communications is comprised of 25 agencies around the world that provide strategic communications solutions in a wide variety of areas, including consulting, corporate communications, media relations, crisis management, financial relations, events management, strategic marketing and healthcare. Clients include Group Danone, United Technologies, Disneyland Paris, Bausch & Lomb and Procter & Gamble.

Euro RSCG is a unit of the Havas Advertising Group, the world's fourth-largest communications group. With its headquarters in Paris and operating divisions headquartered in Paris, New York and Madrid, Havas Advertising brings a multinational approach to its business, which distinguishes it from other major advertising companies.

Middleberg is a 150-person public relations and communications agency. Middleberg pioneered a unique set of services to meet the demands of dot-coms and more traditional e-businesses, integrating high-end research and analysis, online marketing and public relations into single campaigns. The firm has offices in New York, Boston and San Francisco. With billings now exceeding $22 million, Middleberg is among the ten largest independent agencies in the U.S. and was the fastest growing PR firm in 1999. Clients include AXA Financial, CMGI, IBM, Sesame Street, and United Airlines.

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