Quarterly Trading Update

WPP Group PLC
23 October 2000


                           WPP
                            
                QUARTERLY TRADING UPDATE


THIRD QUARTER REVENUES UP OVER 21% IN CONSTANT CURRENCIES

   YEAR TO DATE REVENUES UP 19% IN CONSTANT CURRENCIES
                            
    OPERATING MARGINS ON TARGET TO REACH 14% IN 2000
                            

Revenue Growth

In constant currencies, revenues rose by over 21% in the
third quarter. Sterling's weakness against  the  United
States  dollar and the Japanese yen was only partially
offset by strength against major European currencies and
as a result reported revenues rose by over 26%.

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 up over 19%. In Europe, the UK was up over
11%  and  Continental Europe was over 34%.  Asia Pacific,
Latin America, Africa, and the Middle East was up almost
25%, reflecting the continuing improvement  in  economic
conditions across the board in Asia Pacific and in  Latin
America (mainly in Brazil and Mexico).

By  communications services sector, advertising and media
investment management revenues were up almost  20%.
Information and consultancy was up almost 30% and  public
relations and public affairs up almost 45%.  The Group's
branding and identity, healthcare and specialist
communications  revenues were up almost  10%  with  gross
profit, a more accurate indicator of top line growth,  up
almost 22% on a like-for-like basis.


Net  new business  billings were £830  million ($1.2
billion) in  the third quarter. This compares to £730
million ($1.1 billion) for the comparable  quarter last
year. The Group continues to benefit from consolidation
trends  in the industry winning several large assignments
from  existing  and  new clients such as  Ford, Goldman
Sachs, Kimberly-Clark, KPMG, Lufthansa, Mazda, Motorola,
Nike, NTL, Sears, Sun Microsystems and Volvo.

Revenue Growth

In the first nine months of 2000, revenues rose by  19%
and gross profit by almost 25% in constant currencies. On
average, sterling weakened by just over 2%  against  all
other  currencies for the same period last  year.   As  a
result reported revenues rose by over 21%.

As shown in the appendix, in the  first  nine months
constant currency revenue growth was almost 19% in North
America. In Europe, the UK  was  up  almost 11%  and
Continental Europe over 24%. Asia  Pacific, Latin
America, Africa and the Middle East revenues were up over
24%, reflecting the improvement in economic conditions in
Asia Pacific and Latin America.

By  communications services sector, advertising and media
investment management revenues growth was up over 17%,
information and consultancy up over 26%, public relations
and public affairs up over 44% and branding and identity,
healthcare and specialist communications up by 9% with
gross profit up over 22%.

Merger with Young & Rubicam Inc.

On  12  May  2000, WPP announced that it had  agreed  the
terms of a merger with Young & Rubicam Inc. ('Y&R'). The
merger was conditional, inter alia, on the approval  of
both WPP and Y&R share owners at meetings scheduled to
take place at the end of September 2000. Both sets of
share owners approved the merger which closed on 4
October 2000.

WPP's  half  year announcement included  details  of  the
proportion of revenues and revenue growth (on a  constant
currency  basis)  by  region and communications services
sector on a proforma basis including Y&R. The following
tables provide similar information for the  first  nine
months of 2000.

The  proportion of revenues and revenue growth by  region
was as follows:

Region                Revenue as a      Revenue growth
                    % of total Group       %  00/99
                                               
North America             48.8               16.5
United Kingdom            15.8               13.5
Continental Europe        19.3               21.5
Asia Pacific, Latin                            
America, Africa &         16.1               31.8
Middle East
                          ----              -----
ENLARGED WPP GROUP         100               19.1
                          ----              -----
The proportion of revenues  and  revenue  growth  by
communications services sector was as follows:

Communications        Revenue as a      Revenue growth
Services            % of total Group       % 00/99
Sector
                                               
Advertising &                                  
Media Investment                        
Management                 45.4              16.5
Information and           
Consultancy                13.7              26.4
Public Relations                               
and Public Affairs         13.7              36.7
Branding &                                     
Identity,                                      
Healthcare and            
Specialist
Communications             27.2              12.9(1) 
                           ----              ----
ENLARGED WPP GROUP          100              19.1
                           ----              ----
(1) Gross profit up almost 17% on a like-for-like basis.

Current trading

For  the  first nine months of 2000, the Group was above
budget and significantly ahead of last year.  Year to
date results indicate that the Group will  achieve its
objective of a further 0.6 margin point improvement in
reported operating margins from 13.4% to 14.0% in 2000.

Balance sheet and cashflow

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

In   the  third  quarter  of  2000  the  Group  completed
acquisitions in  advertising  and  media investment
management  in  Taiwan; in public relations and  public
affairs, in  Switzerland;  in  branding  and identity,
healthcare  and  specialist  communications  in  Ireland,
Turkey, the UK and the USA; and in interactive in Israel,
Italy and the USA.


3.5  million WPP shares were purchased during  the  third
quarter  at an average price of £8.88 and total  cost  of
almost £31 million. In the first nine months of 2000  the
Group  has purchased 8.3 million WPP shares at an average
price  of  £9.28 per share and total cost of £77 million.
The  rolling  share  re-purchase and  buy-back  programme
continues at  a  target  level of £100 million -
£150  million  per annum,  equivalent to approximately
1-2% of the  ordinary share capital.

Average  net debt rose during the third quarter  to  £469
million from £248 million in the same period last year in
constant  currencies  and compares to a  market 
capitalisation of  approximately  £9.2  billion.  This
reflects £466  million  spent  on  capital  expenditure,
acquisitions,  share  purchases  and  dividends  in  the
previous  twelve  months.  Free cashflow  over  the same
period was £293 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 cashflow 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
geographic and functional areas and, last but not least,
improving our creative quality and capabilities.



For further information:

Sir Martin Sorrell  )
Paul Richardson     )    44-20-7408-2204
Feona McEwan        )    1-212-632-2301



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

3 months ended 30 September 2000

                 Revenue   Revenue  Revenue   Constant
                    2000      1999   growth   currency
Region                £m        £m reported     growth(1)
                                      00/99      00/99
                                          %          %
                                      
                                          
North America      309.5     238.4     29.8       19.5

United Kingdom     122.6     110.3     11.2       11.2

Continental        
Europe             122.1      96.4     26.7       34.3

Asia Pacific,                                        
Latin America,                                               
Africa &
Middle East        125.2      92.7     35.1       24.8
------------------------------------------------------
                                                  
Total Group        679.4     537.8    26.3        21.2
-------------------------------------------------------

Communications    Revenue   Revenue  Revenue   Constant
Services             2000      1999   growth   currency
Sector                 £m        £m reported     growth(1)
                                       00/99  00/99
                                           %          %
                                         
Advertising &                                        
Media                                                
Investment         
Management          302.0     242.0     24.8       19.7

Information &                                        
Consultancy         143.6     107.1     34.1       29.9

Public                                               
Relations &         
Public Affairs       70.8      46.3     52.9       44.7

Branding &                                           
Identity,                                            
Healthcare                                           
and                
Specialist                            
Communications       163.0     142.4    14.5       9.6(2)

------------------------------------------------------
                                                     
Total Group          679.4     537.8     26.3      21.2
------------------------------------------------------

(1) Constant currency revenue growth excludes the effect
    of currency movements.
(2) Gross profit up almost 22% on a like-for-like basis.


Appendix: Revenue and revenue growth by region and sector

9 months ended 30 September 2000

                 Revenue   Revenue  Revenue   Constant
                    2000      1999   growth   currency
Region                £m        £m reported     growth(1)
                                      00/99     00/99 
                                          %         %
                                          
North America      863.1     690.4     25.0       18.8
                            
                                  
United Kingdom     357.4     322.3     10.9       10.9
                      
                                  
Continental        
Europe             340.8     295.5     15.3       24.6          
                                  
Asia Pacific,                                        
Latin                                                
America,           
Africa &                     
Middle East       327.2     246.9     32.5       24.1
---------------------------------------------------------
                                                    
Total Group     1,888.5   1,555.1     21.4       19.0
--------------------------------------------------------                       
   



Communications    Revenue   Revenue  Revenue  Constant
Services            2000       1999   growth  currency
Sector                £m         £m reported    growth(1)
                                       00/99     00/99
                                           %         %
                                          
Advertising &                                        
Media                                                
Investment                      
Management         858.6      719.2     19.4      17.1

Information &                                        
Consultancy        383.1      299.0     28.1      26.4

Public                                               
Relations &        
Public Affairs(2)  192.6      129.1     49.2      44.5

Branding &                                           
Identity,                                            
Healthcare                                           
and                
Specialist
Communications      454.2     407.8     11.4       9.0(3) 
-------------------------------------------------------
                                                     
Total Group       1,888.5   1,555.1     21.4      19.0
-------------------------------------------------------                        
   

(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 grew over 37% to $352 million.
(3)  Gross profit up over 22% on a like-for-like basis.