Ipsos in 2004: Growth Once Again Outpaces The Market

Paris, France - Ipsos generated consolidated revenues of 605.6 million euros in full-year 2004, up 6.3% relative to 2003.

Exchange rate effects dragged growth down by 3.8%, while changes in the scope of consolidation boosted growth by 2.6%.

At constant scope and exchange rates, Ipsos' revenues came in up 7.5% relative to 2003. This represents the sixth consecutive year since its IPO in which Ipsos has outperformed its market and other international research companies.

This figure is the result of slower growth during the last quarter in Europe, due to a high base for comparison - following a very strong fourth quarter in 2003 - along with reduced marketing activity among some fast moving consumer goods clients in the last few months of 2004. Information currently available suggests that this slowdown is likely to be temporary.

Looking at regional figures, Ipsos' best performances came in Asia, the Middle East and Latin America. In North America, revenue growth remains firm, despite the ongoing switch to online data collection systems, which is reducing the market growth rate.

Ipsos is maintaining its growth in all business lines. This is particularly the case in advertising research, due to its integrated organisation - operating under the single brand of Ipsos ASI - and in customer relationship management research, in which Ipsos has had an integrated organisation under the Ipsos Loyalty brand since 2004.

Ipsos expects operating margin of 9% for 2004. This performance would correspond to a slight improvement on an excellent 2003.

2005 Outlook

In 2005, the market is likely to grow by 5%, as in 2004. Ipsos is targeting stronger organic growth than in 2004.

This ambition is driven by the conviction that the company is well placed to respond to changes in the market, which are reflected by increasing demand for services that require:

• The ability to carry out coherent, homogeneous and simultaneous research programmes in a number of countries.
• Constant improvements in working procedures, resulting in information being produced with ever increasing quality and speed and at ever-lower cost.
• The ability to improve the explanatory and predictive power of data, such that they can be used immediately in brand management, innovation plans and the definition of communication policies.

Ipsos' strategy in meeting this demand remains unchanged, and has five main aspects:

• Selective acquisitions in Asia -Pacific, but also in the key markets of North America and the UK (see today's press release on the acquisitions of Descarie & Complices in Quebec and Shifrin Research in the USA).
• An ongoing programme to enhance and differentiate its offering in its five business lines.
• Efforts to strengthen partnerships with major international customers.
• An initiative to increase the proportion of research carried out online.
• Constant focus on the quality and professionalism of staff, guaranteeing the excellence of Ipsos' services and maintaining its reputation.

This strategy ensures that Ipsos' growth will continue, and that it will achieve its aim of being acknowledged by customers as one of their key partners in its specialist areas.

The successful pursuit of this policy comes at a price. It requires large amounts of R&D expenditure, the provision of additional production resources, particularly in online research, and efforts to expand the workforce and improve its quality. As a result, Ipsos expects operating margin to remain stable in 2005.

This forecast factors in the implementation of a new plan to enhance variable remuneration systems, the details of which will be announced alongside full-year 2004 results. It also includes the impact of recognising the cost of stock option plans in operating expenses.

Ipsos confirms its revenue target of one billion euros in 2007, based on an exchange rate of 1 dollar to the euro, and its operating margin target of 10%.

N.B.: a presentation on 2004 activity is available on www.ipsos.com

Ipsos also announces today the acquisition of two companies in North America.

For more information on this press release, please contact: Dan Maceluch VP, Marketing & Communications Ipsos North America 604.893.1635

About Ipsos Ipsos is a leading global survey-based market research company, owned and managed by research professionals. Ipsos helps interpret, simulate, and anticipate the needs and reactions of consumers, customers, and citizens around the world.

Member companies assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media. They measure public opinion around the globe.

Ipsos member companies offer expertise in advertising, customer loyalty, marketing, media, and public affairs research, as well as forecasting and modeling and consulting. Ipsos has a full line of custom, syndicated, omnibus, panel, and online research products and services, guided by industry experts and bolstered by advanced analytics and methodologies. The company was founded in 1975 and has been publicly traded since 1999. In 2003, Ipsos generated global revenues of $644.2 million U.S.

To learn more, visit: www.ipsos.com

Ipsos is listed on the Euronext Paris Premier Marchй, and is part of the SBF 120 and Next Prime Indices as well as eligible to the Deferred Settlement System (SRD). Euroclear code 7329, Reuters ISOS.LN, Bloomberg IPS FP