3rd Quarter Results

WPP Group PLC
24 October 2002


FOR IMMEDIATE RELEASE                                           24 October 2002



                                      WPP

                            QUARTERLY TRADING UPDATE


                  THIRD QUARTER LIKE-FOR-LIKE REVENUES DOWN 3%

                 REPORTED REVENUES DOWN 2% IN FIRST NINE MONTHS

             CONSTANT CURRENCY REVENUES UP 1% IN FIRST NINE MONTHS

              LIKE-FOR-LIKE REVENUES DOWN 7% IN FIRST NINE MONTHS

              SECOND HALF MARGIN LIKELY TO BE LESS THAN FIRST HALF


Revenue Growth - Third Quarter

In the third quarter, reported revenues fell by almost 3%, with constant
currency revenues up over 2% reflecting the relative weakness of the dollar.  On
a like-for-like basis, excluding the impact of acquisitions and currency
fluctuations, revenues fell by over 3%.

As shown in the appendix to this release, on a constant currency basis, the
geographical pattern of revenue growth varied in the third quarter.  In North
America, revenues were flat, relatively better than the first half.  The UK was
up almost 1% and Continental Europe up 4%, both weaker than the first six
months.  Asia Pacific, Latin America, Africa and the Middle East were up over
7%, improving over the first half.

By communications services sector, advertising and media investment management
was up over 4%, public relations and public affairs down almost 3% and branding
and identity, healthcare and specialist communications up over 1%, all stronger
than the first half.  Information and consultancy up almost 1%, was weaker than
the first six months.

Revenue Growth - Nine Months

In the first nine months of 2002, reported revenues were down over 2%. In
constant currencies, revenues were up almost 1% in the first nine months. On a
like-for-like basis, excluding the impact of acquisitions and currency
fluctuations, revenues were down 7%.

As shown in the appendix to this release, on a constant currency basis, the
geographical pattern of revenue growth varied in the first nine months.  The
recession has affected North America the most, with revenues down over 4%. Less
affected, the UK was up almost 3% with Continental Europe least affected up over
6%.  Asia Pacific, Latin America, Africa and the Middle East were also less
affected up almost 5%.

By communications services sector, information and consultancy was least
affected, up almost 5%.  Advertising and media investment management up almost
2%, and branding and identity, healthcare and specialist communications up
almost 1% were both less affected. Public relations and public affairs remained
most affected with revenues down over 8%.

New Business

Net new business billings of £0.7 billion ($1.1 billion) were won during the
third quarter, making a total of £1.9 billion ($2.9 billion) for the first nine
months.  The Group continues to benefit from consolidation trends in the
industry, winning several large assignments from existing and new clients. The
Group was ranked second for net new business gains in the Credit Suisse First
Boston survey for the first eight months of 2002.

Current Trading

Although the rate of decline in like-for-like revenues in the third quarter was
lower than that seen in the first half of the year, the recovery was less than
that anticipated a few months earlier.  Falling share prices in the summer on
both sides of the Atlantic and increasing unemployment has had an impact on
consumer confidence suggesting a potential "double-dip" recession.  As a result,
although comparative like-for-like revenue growth figures have become better
since 11 September, the comparative improvement is less than that anticipated
previously.

By region, the recession has continued to have most materially affected North
America, with proportionately less impact on the UK, Continental Europe and Asia
Pacific, Latin America, Africa and the Middle East.

By communications services sector, it has impacted public relations and public
affairs the most, branding and identity, healthcare and specialist
communications next, advertising and media investment management less so and
information and consultancy the least.

In response to the impact of the recession on revenue growth, the Group's
operating companies have adjusted their staff costs in relation to revenues. In
the first nine months of this year, on a like-for-like basis, the total number
of people in the Group (excluding associates) has fallen over 4% from 52,307 on
1 January 2002 to 49,957 on 30 September 2002.   Average headcount is down
almost 9% to 50,656 in the first nine months of 2002 as compared with 55,584
during the same period last year.

Third quarter revised forecasts indicate that the Group's operating margin for
the second half of the year is likely to be less than that of the first half.

Balance Sheet and Cash Flow

The Group continues to develop its strategy of using free cash flow to enhance
share owner value through a combination of strategic acquisitions and share
purchases.

In the first nine months of 2002 the Group completed acquisitions in advertising
and media investment management in the United Kingdom, China, Finland and
France; in information and consultancy in the United States, France, Ireland,
India and Thailand; in public relations and public affairs in the United States,
Australia, China, Japan, Norway and Taiwan; and in branding and identity,
healthcare and specialist communications in the United States and Germany.

Two million WPP shares were purchased during the third quarter at an average
price of £4.16 per share and total cost of £8.3 million.  All of these shares
were cancelled.  In the first nine months of 2002 the Group purchased a total of
12.75 million WPP shares at an average price of £5.98 per share and total cost
of £76.2 million.  The rolling buy-back program continues at a target level of
£150 to £200 million per annum, equivalent to approximately 3-4% of the current
market capitalisation.

Net debt at 30 September 2002 was £1,303 million against £978 million at the
same time last year, an increase of £325 million.  The current net debt figure
compares with a market capitalisation of approximately £5.0 billion. The
increase in net debt reflects £806 million spent on capital expenditure,
acquisitions and earnout payments, share purchases and dividends in the previous
12 months, offset by cash flow before capital expenditure, acquisitions and
earnout payments, share purchases and dividends over the same period of  £436
million.

Future Objectives

The Group continues to focus on its key objectives of improving operating
profits and margins, increasing cost flexibility (particularly in the areas of
staff and property costs), using free cash flow to enhance share owner value,
continuing to develop the role of the parent company in adding value to our
clients and people, developing our portfolio in high revenue growth,
geographical and functional areas and improving our creative quality and
capabilities.

For further information:

Sir Martin Sorrell              )
Paul Richardson                 )      + 44 20 7408 2204
Feona McEwan                    )

This press release may contain forward-looking statements within the meaning of
the federal securities laws. These statements are subject to risks and
uncertainties that could cause actual results to differ materially including
adjustments arising from the annual audit by management and the company's
independent auditors. For further information on factors which could impact the
company and the statements contained herein, please refer to public filings by
the company with the Securities and Exchange Commission. The statements in this
press release should be considered in light of these risks and uncertainties.

Appendix: Revenue and revenue growth by region and communications services
sector

3 months ended 30 September 2002


                                        Revenue            Revenue         Revenue            Constant
                                           2002               2001          growth            currency
Region                                       £m                 £m        reported           growth(1)
                                                                             02/01               02/01
                                                                                 %                   %

North America                             406.3              436.0            -6.8                 0.1

United Kingdom                            156.2              155.1             0.7                 0.7

Continental Europe                        210.8              198.8             6.0                 4.0

Asia Pacific, Latin
America, Africa &
Middle East                               155.2              166.4            -6.7                 7.4

Total Group                               928.5              956.3            -2.9                 2.3


Communications                          Revenue            Revenue         Revenue            Constant
Services                                   2002               2001          growth            Currency
Sector                                       £m                 £m        reported           growth(1)
                                                                             02/01               02/01
                                                                                 %                   %

Advertising & Media
Investment
Management                                419.1              427.2            -1.9                 4.6

Information &
Consultancy                               145.5              149.9            -2.9                 0.9

Public Relations &
Public Affairs(2)                         107.9              117.0            -7.8                -2.7

Branding & Identity,
Healthcare and
Specialist
Communications                            256.0              262.2            -2.4                 1.5

Total Group                               928.5              956.3            -2.9                 2.3



(1) Constant currency revenue growth excludes the effect of currency movements.

(2) The revenue figures submitted to the Council of Public Relations Firms
reflect some public relations income which is included here in advertising and 
media investment management, branding and identity, healthcare and specialist 
communications.  Total public relations and public affairs revenues fell 3.7% to 
$174 million.

Appendix: Revenue and revenue growth by region and communications services
sector

9 months ended 30 September 2002


                                        Revenue            Revenue         Revenue            Constant
                                           2002               2001          Growth            Currency
Region                                       £m                 £m        reported           Growth(1)
                                                                             02/01               02/01
                                                                                 %                   %

North America                           1,296.4            1,393.8            -7.0                -4.3

United Kingdom                            468.4              455.6             2.8                 2.8

Continental Europe                        655.0              611.1             7.2                 6.4

Asia Pacific, Latin
America, Africa &
Middle East                               468.5              492.8            -4.9                 4.7

Total Group                             2,888.3            2,953.3            -2.2                 0.6


Communications                          Revenue            Revenue         Revenue            Constant
Services                                   2002               2001          growth            currency
Sector                                       £m                 £m        reported           growth(1)
                                                                             02/01               02/01
                                                                                 %                   %

Advertising & Media
Investment
Management                              1,315.1            1,341.0            -1.9                 1.6

Information &
Consultancy                               443.9              431.8             2.8                 4.8

Public Relations &
Public Affairs(2)                         340.8              381.5           -10.7                -8.6

Branding & Identity,
Healthcare and
Specialist
Communications                            788.5              799.0            -1.3                 0.9

Total Group                             2,888.3            2,953.3            -2.2                 0.6



(1) Constant currency revenue growth excludes the effect of currency movements.

(2) The revenue figures submitted to the Council of Public Relations Firms
reflect some public relations income which is included here in advertising and 
media investment management, branding and identity, healthcare and specialist 
communications.  Total public relations and public affairs revenues fell 9.1% to 
$535 million.


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