Press Release

NEW YORK--(BUSINESS WIRE)--May 12, 2004--The Interpublic Group (NYSE: IPG) announced today that it has entered into two new credit facilities, replacing its two existing committed facilities which were scheduled to mature on May 15, 2004 and June 26, 2005, respectively. The new facilities are comprised of a $250 million 364-day facility and a $450 million 3-year facility.

The new facilities permit Interpublic to make payments of dividends on preferred stock of $45 million annually and additional payments of dividends on its common and preferred stock and share repurchases of up to $50 million annually. The $50 million amount is twice the amount permitted in the previous facilities and may be carried over to succeeding years to the extent unused, up to a maximum in any year of $125 million. The new credit agreements provide that the company may make new acquisitions for cash of up to $100 million, as did the previous credit facilities. But the new agreements allow Interpublic to carry over unused amounts to succeeding years, up to $250 million in any year. Under the new facilities the company's capital expenditures are capped at $225 million annually, with a carry-over of up to $50 million. The previous facilities capped capital expenditures at $175 million and permitted up to $40 million of any unused amounts to be carried forward to the next calendar year. In addition, the new facilities bear interest at an interest spread above LIBOR of 1.125%, representing a savings of .625% when compared to the prior facilities.

About Interpublic

Interpublic is one of the world's leading organizations of advertising agencies and marketing services companies. Major global brands include Draft, Foote, Cone & Belding Worldwide, Golin/Harris International, Initiative Media, Lowe & Partners Worldwide, McCann-Erickson, Octagon, Universal McCann and Weber Shandwick Worldwide. Leading domestic brands include Campbell-Ewald, Deutsch and Hill Holliday.

Cautionary Statement

This press release contains forward-looking statements. Interpublic's representatives may also make forward-looking statements orally from time to time. Statements in this document that are not historical facts, including statements about Interpublic's beliefs and expectations, particularly regarding recent business and economic trends, ongoing liabilities following termination of the British Grand Prix promoters agreement, the impact of litigation, the SEC investigation, dispositions, impairment charges, and the integration of acquisitions and restructuring costs, constitute forward-looking statements. These statements are based on current plans, estimates and projections, and are subject to change based on a number of factors, including those outlined in this section. Forward-looking statements speak only as of the date they are made, and Interpublic undertakes no obligation to update publicly any of them in light of new information or future events.

Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such risk factors include, but are not limited to, the following:

    --  risks associated with the effects of global, national and
        regional economic and political conditions;

    --  Interpublic's ability to attract new clients and retain
        existing clients;

    --  the financial success of Interpublic's clients;

    --  Interpublic's ability to retain and attract key employees;

    --  developments from changes in the regulatory and legal
        environment for advertising and marketing and communications
        services companies around the world;

    --  potential adverse effects if Interpublic is required to
        recognize additional impairment charges or other adverse
        accounting related developments;

    --  potential adverse developments in connection with the SEC
        investigation;

    --  risks associated with Interpublic's remaining motorsports
        commitments;

    --  potential claims relating to termination of the British Grand
        Prix promoters agreement and the Silverstone lease contracts;

    --  potential downgrades in the credit ratings of Interpublic's
        securities; and

    --  the successful completion and integration of acquisitions
        which complement and expand Interpublic's business
        capabilities.

Investors should carefully consider these risk factors and the additional risk factors outlined in more detail in Interpublic's Form 10-K, March 2004 Form 10-Q and other SEC filings.

CONTACT: General Inquiries:
Financial Relations Board
Julie Tu, 212/445-8456
or
Media:
Interpublic Group of Companies, Inc.
Philippe Krakowsky, 212/399-8088

SOURCE: The Interpublic Group