P&G Aligns All Brands Under Grey and Publicis Networks

CINCINNATI, Nov. 15, 2002 - The Procter & Gamble Company (NYSE:PG) today announced several changes to its agency roster in conjunction with a number of brand reassignments. Moving forward, virtually all of P&G's brands will be aligned with Grey Global Group and Publicis Groupe SA. P&G will add Publicis Worldwide to its agency roster. P&G will also end its relationship with Arnold/McGrath.

"The changes at Publicis Groupe SA presented a timely opportunity for P&G to revisit our agency/brand alignment," said Jim Stengel, P&G's global marketing officer. "This choice allows P&G to partner with two strategic networks at unprecedented levels. Together, we will spend less time focused on internal transactions and more time focused on the external business of winning with our consumers."

Related to the Publicis Groupe restructuring announced in October, the P&G brands that worked with D'Arcy will be reallocated among other Publicis Groupe agencies. The Arnold/McGrath brands will be divided between Grey Global Group and Publicis Groupe. Specific agency changes are included in the attached tables. The vast majority of brands will transition over the next three months.

Grey & Publicis - Strategic Partners
Virtually all of P&G's brands will be aligned with two major agency networks - Grey Global Group and Publicis Groupe SA. "Grey and P&G have a tremendous 46-year history together - building brands consumers love," said Stengel. "This expansion of our relationship is an indication of our confidence in Grey going forward and a reflection of their outstanding work. We recently rewarded this with a Clairol assignment."

"We are thrilled to be P&G's long-term partner and one of two global agency networks that will serve them," said Ed Meyer, chairman, president and chief executive officer of Grey Global Group. "The additional brand assignments are great - particularly since there is one in each of the company's sectors we serve - Beauty Care, Fabric and Home Care and Snacks. It's a good day for Grey and signals an even brighter future for us with this outstanding company."

Through Publicis' acquisition of Saatchi & Saatchi in 2000 and BCom3 in 2002, P&G and Publicis Groupe SA became global partners. "We are thrilled to have the opportunity to partner with a network of the scope, scale and creative talent of Publicis Groupe SA," commented Stengel. "Their strong alliance with Dentsu will also benefit many P&G brands in Asia. We are confident they will dedicate their best resources to P&G's business globally."

"We are extremely proud of this partnership between Procter & Gamble and Publicis Groupe SA," commented Maurice Levy, chairman and chief executive officer of Publicis Groupe SA. "This is a dream come true," says Kevin Roberts, chief executive officer of Saatchi & Saatchi, who will oversee P&G's development for the Publicis Groupe. "We are passionately committed to building a global partnership with P&G and the Groupe's network of agencies: a partnership that will unleash the best-of-the-best strategy, creative and brand development."

"Grey and Publicis are vital partners to P&G's business," added Stengel. "We are guided by the same basic philosophy, 'the consumer is boss.' With this mindset, we will continue to build great brands and great marketing capability together around the world."

Arnold/McGrath
As a part of the restructuring, P&G will end its relationship with Arnold/McGrath. Brands currently assigned to Arnold/McGrath will move to other agencies in the P&G network.

"As we examined our agency roster, it became apparent that to build the strongest, long-term, strategic partnerships we need to focus on building relationships with global networks where P&G's business has a significant presence," added Stengel.

"We are grateful to Arnold/McGrath, particularly Pat McGrath, for the enormous contribution they have made to our business," said Mark Ketchum, P&G's president global baby and family care. "Arnold/McGrath helped us build Bounty into one of the company's great brands over almost two decades, in addition to strong work on Zest and Era. The decision to consolidate all of our business at Grey and Publicis was difficult because of this long and successful relationship." Bounty will be assigned to Publicis, Zest will be assigned to Grey and Era to Leo Burnett.

Ethnic Agencies
To align ethnic agencies within P&G's new agency line-up, several brands will move Hispanic creative assignments. "Many P&G brands now have agencies focused on building their business with the Hispanic community," said Stengel. "This reinforces our commitment to a very important and diverse group of consumers."

About P&G
P&G is celebrating 165 years of providing trusted quality brands that make every day better for the world's consumers. We market nearly 300 brands - including Pampers, Tide, Ariel, Always, Whisper, Pantene, Bounty, Pringles, Folgers, Charmin, Downy, Lenor, Iams, Crest, Actonel, Olay and Clairol Nice 'n Easy - in more than 160 countries around the world. The P&G community consists of nearly 102,000 employees working in almost 80 countries worldwide.