Ipsos Reports Consolidated Results For 1st Half Of 2002

Paris - September 25, 2002. Ipsos, a world leader in survey-based market research, reported a significant increase in consolidated results for the first half of 2002, with an improved profitability.

Business Growth

Consolidated revenues for the Paris-based Ipsos Group in the first half of the current financial year rose to 244.5 million euros, up 13% from the same period last year. Much of this increase can be attributed to strong organic growth: up 7.3% year-over year (constant exchange rates and constant perimeter), a rate that outpaces the average for the market research industry as well as the performance of Ipsos main worldwide research competitors.

Growth has been satisfactory in all Ipsos sectors of specialization except for media research, which is still affected by the drop in advertising revenues among media companies. Of particular note is the strong performance of the Group's advertising research division with an organic growth of 15%. The opinion and social research division and the marketing research division also fared well, with respective organic growth of 9% and 7%. Activity is also particularly strong in North America, with a 15% organic growth, and in Latin America, which has grown organically by 11%.

Sharp increase in profitability

Operating profit outpaced revenues at 17.8 million euros, up 27% over the first half of 2001, and now represents 7.3% of revenues, compared with 6.4% for the same period last year. This improvement is mainly related to the better profitability of the companies included in the 2001 consolidation perimeter, with especially a very strong increase in profit for the Ipsos-ASI division in all the countries where it is present.

Net interest charge stands at 3.3 million euros down by 9% compared to first half of 2001, thanks to a lower level of debt and to relatively low interest rates, particularly in the United States. Two thirds of the Ipsos debt has been raised in order to finance US acquisitions. They are denominated in US dollar with variable interest rates.

Effective tax level at 28% remains lower than common law tax rates.

In total, net income shareholders' part amounts to 9.5 million euros, up 29%.

Financial structure improvement

The company's financial net debt stands at 147 million euros, with a gearing of 79% to compare with 92% at June 30th 2001. The financial structure improvement is due to an increased operating cash flow standing at 17 million euros, up by 44% over the same period last year, and to higher EUR / USD exchange rate which positively impacts the Group's debt. Considering all these elements, Ipsos has strong financial resources to pursue its internal developments and its programme of acquisitions.

Acquisitions

The Group has pursued its strategy of selective acquisitions in order to strengthen its geographical coverage and /or its key specialisations. The following have been included in the consolidation perimeter during the first half of 2002: Ipsos-Imri in Sweden and Ipsos-Vantis in the United-States, as well as the whole activity of Ipsos-Focus (UK) of which Ipsos acquired the remaining 50% shares.

The newly-acquired companies Sample-INRA (Germany), F-Squared (Russia, Poland and Ukraine) and Ipsos-Eureka and Intervjubolaget (Sweden) will be included in reporting in the second half.

Lastly, Ipsos announced on September 18 plans to acquire Lyncs in Japan and Feng & Associates Marketing Services (FAMS) in China. With these two acquisitions Ipsos will significantly increase its presence in the Asia-Pacific region. Japan, the largest economy in Asia, represents 8% of the worldwide research expenditures while China, the region's fastest growing economy, offers very high potential for future growth.

Prospects for the remainder of 2002

The Group's solid performance in 2002 shows the resiliency of the survey-based market research sector and Ipsos's continuing ability to grow its market shares. This is especially true in its advertising research practice as well as in marketing research to international companies, but also in North and Latin America. The Group's success is based in large part on its efforts in the following three strategic areas:

• To establish leadership positions in key designated countries, especially in North America which accounts for 40% of the global research market, and more than 60% of global Key Accounts;
• To create a global organisation able to work seamlessly around the world with its Key Accounts;
• To continue to offer clients new global products and services to meet the demand of an ever-changing business and consumer marketplace.

The market research is traditionally highly seasonal, with increased business in the second half of the year. Ipsos growth will continue to outpace the industry as a whole for the remainder of the year. The Group's North American and Latin American operations will record double-digit growth, while Europe will improve its performance. On the basis of these prospects, the Ipsos co-chairmen feel confident in Ipsos's ability to reach 8% organic growth for the full year 2002, and improve its operating margins. For the period 2005-2006, they also confirm their commitment to reach revenues of 1 billion euros and an operating margin equal or superior to 10%.

Merger between Ipsos and LT Participations The announced project of merging Ipsos SA and its holding company LT Participations that was to be approved by the general meetings of shareholders of both companies on September 30, 2002 is postponed.

Indeed, it appeared to the Boards of Directors of LT Participations and Ipsos, which met on Wednesday September 25, that the recent and harsh fall of the equity markets rendered this operation inappropriate.

Aimed to simplify Ipsos Group's structure, this operation will be proposed to the shareholders of both companies as soon as the markets will have resumed certain stability. As the merger will be carried out transparently it will have no impact on the Ipsos financial statements once completed. Accordingly, the postponement of this operation does not have any impact on the Ipsos group accounts.

Appendix: Consolidated balance sheet at 30 June 2002 Consolidated profit and loss account Consolidated statement of cash flows

A worldwide group specializing in research for brands, companies, and institutions.

`Consumers, citizens and clients, we can be all of these in turn and at the same time. Ipsos researchers solve these psychological and sociological puzzles, enabling us to identify what unites and what differentiates us as individuals.'

At Ipsos, we call this approach `Profiling people'.

Since July 1, 1999, Ipsos has been listed on the Nouveau Marchй of the Paris Stock Exchange, and is part of SRD, SBF 250 Index and Next Prime Index.

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