Publicis Groupe to Expand Further in China: Acquires Majority Stake in Yong Yang, Leading Marketing Services Group

Publicis Groupe to Expand Further in China: Acquires Majority Stake in Yong Yang, Leading Marketing Services Group

April 03, 2007

    PARIS, April 3 /Xinhua-PRNewswire/ -- Publicis Groupe
announced today the acquisition of a majority stake in
Chengdu-based Yong Yang, a leader in field force logistics
and retail and promotional marketing. The transaction,
subject to Chinese regulatory approval, illustrates
Publicis Groupe's strategic commitment to expand and deepen
its marketing services operations in the fast-growing
Chinese market and across Asia. Last year, the Groupe
acquired control of Shanghai-based Betterway Marketing
Solutions, one of China's largest and most innovative
full-range marketing services agencies. Publicis Groupe
currently has over 2,500 employees across China, at 79
offices in 33 cities. 

    Yong Yang, founded in 1995, has in-depth knowledge of
China's regional urban markets, particularly those deep in
the Chinese heartland. With 29 offices across China, Yong
Yang is the only marketing services company with a
substantial presence in Chengdu, the rapidly-growing
capital of Sichuan province. The agency's key clients
include Budweiser, Wliansheng Liquor, Marlboro and Sony
Ericsson. 

    When the transaction is completed, Yong Yang will be
aligned with Arc, part of Leo Burnett Greater China. Leo
Burnett Greater China has five main offices in Taipei, Hong
Kong, Guangzhou, Shanghai and Beijing with close to 700
employees. Arc's key Greater China clients include global
brand owners P&G, Wrigley and McDonalds. 

    "China continues to be of absolutely critical
importance to Publicis Groupe," said Maurice Levy,
Chairman and CEO of Publicis Groupe. "We are already
meeting the increasing demands of advertisers with an
incredibly strong grass-roots offering across China. I am
delighted to welcome the Yong Yang teams, who will make
that offer even stronger." 

    Michael Wood, CEO, Leo Burnett and Arc Greater China,
said: "Joining forces with Yong Yang allows Leo
Burnett China to further build Arc's presence in Greater
China, providing a strong geographical foot print in the
Chinese market. This partnership brings new areas of
expertise to the table, allowing us to fuse Arc and Leo
Burnett's international status and knowledge to Yong Yang,
while they add their 10 years of expertise in grass roots
China to our offering. It's a 'win win' situation for our
clients. Yong Yang brings an unrivalled wealth of
experience both provincially and in key growth cities.
" 

    Ms Zhao, General Manager of Yong Yang, adds: "We
are very pleased that our already strong working
relationship with Arc & Leo Burnett has now become a
formal partnership. We believe that our companies
complement each other both culturally and in how we think.
Arc and Yong Yang can only go from strength to strength and
we look forward to the opportunities ahead". 

    Simon Holt, Managing Director of Arc Greater China,
added: "Yong Yang is a hugely professional operation
with whom we have worked regularly, prior to this
acquisition. Their local production runs like clockwork -
and they deliver. The Yong Yang teams have worked
consistently over the years to build a strong reputation
plus an impressive client list. They have also created
positive relationships with local and national government -
very important in the fast developing China market. Like all
good acquisitions, mutual benefit is at the heart of the
deal and our clients can only be happy about that". 

    Yong Yang will retain its name under the acquisition,
and management will be led by Simon Holt (Managing Director
Arc Greater China) and Patrick Lai, currently Head of
Strategic Planning for Arc Greater China. Patrick Lai will
now assume the post of Management Supervisor, while Michael
Wood will oversee as CEO of Leo Burnett & Arc Greater
China. Yong Yang's current Management, Ms Zhao (General
Manager) and Mr Zhang (Deputy General Manager) will
continue in their current roles. 

    Yong Yang: Yong Yang is a leading expert in field force
logistics, retail and promotional marketing and activation
origination, management and production. 

    - 18 wholly owned offices and 11 affiliated offices
across Greater China 

    - Wholly owned: Hangzhou, Wenzhou, Nanjing, Hefei,
Shanghai, Zhengzhou, Wuhan Guangzhou, Fushan, Shunde,
Zhongshan, Dongwan, Shengzhen, Nanning, Guiyang, Chengdu,
Kunming, Changsha 

    - Number of full time employees: 120 - 1200 temporary
staff 

    Leo Burnett Worldwide: Founded in Chicago in 1935, Leo
Burnett Worldwide, comprising the Leo Burnett brand agency
and marketing partner Arc Worldwide, is one of the world's
largest agency networks and a wholly owned subsidiary of
Publicis Groupe, the world's fourth largest communications
group. 

    With expertise in mass advertising and digital,
promotional and retail marketing, LBW partners with
blue-chip clients such as The Coca-Cola Company, Diageo,
McDonald's and Procter & Gamble, Heinz, Kellogg's. 

    The company has won more advertising awards for
campaign effectiveness than any other agency in the last
five years. 

    Publicis Groupe (Euronext Paris: FR0000130577 and NYSE:
PUB) is the world's fourth largest communications group, as
well as world's second largest media counsel and buying
group. With activities spanning 104 countries on five
continents, the Groupe employs approximately 40,000
professionals. 

    The Groupe's communication activities cover
advertising, through three autonomous global advertising
networks: Leo Burnett, Publicis, Saatchi & Saatchi, as
well as through its two multi-hub networks Fallon Worldwide
and 49%-owned Bartle Bogle Hegarty; media consultancy and
buying through two worldwide networks ZenithOptimedia and
Starcom MediaVest Group; and marketing services and
specialized communications including direct marketing,
public relations, corporate and financial communications,
event communications, multicultural and healthcare
communications. 

    Web sites: http://www.publicisgroupe.com and
http://www.finance.publicisgroupe.com



    For more information, please contact:

    Publicis Groupe: 
     Eve Magnant, Corporate Communications 
     Tel:   [phone]

    Leo Burnett Greater China: 
     Jeani Rodgers, PR Director 
     Tel:   [phone]