Ogilvy Group, Shanghai Advertising Agree to Renew JV

Ogilvy Group, Shanghai Advertising Agree to Renew JV

September 11, 2006

15-Yr Partnership Helped Build Ogilvy's #1 Position in China

    BEIJING and SHANGHAI, China, Sept. 11
/Xinhua-PRNewswire/ -- The Ogilvy Group China and Shanghai
Advertising Ltd. today announced the decision to renew
their joint venture partnership for another 15 years.  The
agreement, set to expire in October 2006, has been extended
until October 2021. 

    The announcement marks one of the few extensions of
joint ventures in China's advertising and marketing
industry.  In 2005 the China central government allowed
100% foreign ownership of advertising agencies. The Chinese
advertising market is the fastest growing in the world. 
China is now the third-biggest advertising market in the
world, after the U.S. and Japan, posting 21% growth in 2005
to nearly 316 billion yuan (US$40 billion). (Source: Nielsen
Media Research) 

    Under the new agreement, Ogilvy will continue to retain
a majority interest in the joint venture company. 

    Established in 1962, Shanghai Advertising is one of the
largest advertising agencies in China.  A full-service
agency, Shanghai Advertising is part of the Shanghai World
Expo (Group) Co.  With more than 40 years' experience,
Shanghai Advertising possesses in-depth understanding of
the local market and consumers, and extensive experience in
auto, communications, finance/insurance, medical and FMCG. 

    "Our 15-year partnership with Shanghai Advertising
has proven to be one of the most successful and fruitful in
China's advertising industry.  Ogilvy has benefited
tremendously, as the joint venture formed the foundation
for Ogilvy to become the biggest marketing and advertising
group in China," said TB Song, Chairman of Ogilvy
& Mather Greater China. 

    Mdm. Guo Lijuan, Chairman and GM of Shanghai
Advertising, said, "Our long association with Ogilvy
has set the standard for joint ventures in the industry. 
Both companies have prospered during the last 15 years and
become leaders in our own space.  Renewing our partnership
is a real show of commitment from Ogilvy to the China
market." 

    Miles Young, Chairman of Ogilvy & Mather Asia
Pacific, said, "Many people have speculated about the
ending of the JV's in China in this sector as they expired.
 This new agreement testifies to our belief that, with the
right partner, the combination of global and national
expertise is the best solution.  We look forward to another
highly productive 15 years." 

    In 1991, Shanghai Advertising and Ogilvy & Mather
established Shanghai Ogilvy & Mather Advertising Co.,
which formed the core of what is now Ogilvy Group in China.
 Today, the Ogilvy Group is the largest communications group
in the country, encompassing advertising, public relations,
direct and interactive marketing, and activation, with
offices in Beijing, Shanghai, Guangzhou, Fuzhou and Xiamen.
 Major multinational clients include IBM, Motorola and BP;
major Chinese brands include Lenovo, China Mobile, and
Great Wall Wine. 

    Ogilvy Group has also been an industry leader, helping
to establish the China 4As Association and regularly
publishing books and articles on brandbuilding in China. 

    About Ogilvy Group China 

    The Ogilvy Group China ( http://www.ogilvy.com.cn ) is
the leading marketing communications network in China.  It
offers the full range of marketing communication
disciplines including advertising, direct marketing,
interactive media, database management, public relations,
graphic design, and related marketing disciplines.  As
Brand Stewards, the agency works to leverage the brands of
its clients by combining local know-how with a worldwide
network, creating powerful campaigns that address local
market needs while still reinforcing the same universal
brand identity.  Ogilvy & Mather integrates these
communications disciplines using its proprietary 360 Degree
Brand Stewardship process, which holds that every point of
contact builds the brand. 

    Ogilvy & Mather Worldwide ( http://www.ogilvy.com )
is one of the largest marketing communications network in
the world, operating 497 offices in 125 countries.  Ogilvy
& Mather Worldwide is a member of WPP (Nasdaq: WPPGY),
one of the world's leading communications services groups.

    Ogilvy & Mather Ranked #1 Agency in China - R3
Survey, February 2006 
    Ogilvy & Mather Ranked #1 Agency in Asia Pacific -
Media, May 2006 

    For more information, please contact:

     Belinda Rabano 
     Corporate Communications
     Ogilvy & Mather Asia Pacific 
     Tel:   [phone] or [phone] 
     Email: [e-mail] 

     Dalton Dorne
     Corporate Communications
     Ogilvy & Mather Beijing
     Tel:   [phone] or [phone]
     Email: [e-mail] 

SOURCE  Ogilvy Group China