3rd Quarter Results

WPP Group PLC
28 October 2005


For Immediate Release                                         28 October 2005



                                        WPP

                            QUARTERLY TRADING UPDATE

                    THIRD QUARTER REPORTED REVENUE UP OVER 26%

               THIRD QUARTER LIKE-FOR-LIKE REVENUES UP ALMOST 5%
          
              REPORTED REVENUES UP OVER 23% IN FIRST NINE MONTHS

              LIKE-FOR-LIKE REVENUES UP 5.5% IN FIRST NINE MONTHS

            FULL YEAR OPERATING MARGIN IN LINE WITH REVISED TARGET


Revenue Growth - Third Quarter

In the third quarter, reported revenues rose by over 26% to £1.348 billion.
Revenues, in constant currencies, were up almost 23%, the difference being
primarily due to the strength of the dollar and the euro.  On a like-for-like
basis, excluding the impact of acquisitions and currency fluctuations, revenue
growth was up almost 5%.

As shown in the appendix to this release, on a constant currency basis, the
geographical pattern of revenue growth varied in the third quarter although all
regions performed well with the exception of Western Europe.  In North America,
revenues were up over 26%, with the United Kingdom up almost 10% and Continental
Europe up almost 25%.  Asia Pacific, Latin America, Africa and the Middle East
continued to perform well, with revenues up over 25%.

By communications services sector, advertising and media investment management
showed the strongest growth, with revenue up almost 31%, followed by branding
and identity, healthcare and specialist communications up almost 27%. Public
relations and public affairs was up over 16%, with information, insight and
consultancy up over 1%, as a result of the de-consolidation of AGB, following
the formation of the joint company in television audience measurement with AC
Nielsen, effective 1 March 2005. Like-for-like revenues in this sector were up
over 7%.

Revenue Growth - Nine Months

In the first nine months of 2005, reported revenues were up over 23%.  In
constant currencies, revenues were up over 22%.  On a like-for-like basis,
excluding the impact of acquisitions and currency fluctuations, revenues were up
5.5%.

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, although
all regions showed double-digit revenue growth.  In North America, revenues were
up over 24%, which marks the ninth consecutive quarter of growth.  The United
Kingdom and the western part of Continental Europe, which have been more
difficult markets, showed a slightly improved trend with revenue up 12% in the
United Kingdom, and Continental Europe as a whole, up almost 24%. Asia Pacific,
Latin America, Africa and the Middle East, have shown consistent growth in each
quarter of 2005, and for the first nine months of 2005 revenue across these
regions rose over 25%.

By communications services sector, advertising and media investment management
continues to show strongest growth of all, with revenues up almost 28% in the
first nine months.  Direct, internet and interactive related activities
continued their strong growth seen in the first half of the year, with OgilvyOne
and Wunderman gaining market share. Branding and identity, healthcare and
specialist communications revenues were up over 23%, with significant
improvement in the Group's healthcare businesses. Public relations and public
affairs revenues continued the improvement over last year, with revenues up over
15%, despite strong growth in 2004. Information, insight and consultancy was up
10% for the first nine months of 2005.

New Business

New business billings of £597 million ($1,104 million) were won during the third
quarter.  Net new business billings won in the first nine months of 2005 were
$4.635 billion, an increase of over 45% compared with the first nine months of
2004.   The Group continues to benefit from consolidation trends in the
industry, winning several large assignments from existing and new clients.

Current Trading

Like-for-like growth, in the third quarter, was slightly below that seen in the
first half of the year, due in part to the strong comparative growth rate of 6%
in the third quarter of 2004, which was the highest like-for-like quarterly
growth since the first quarter of 2001.

Third quarter revised forecasts indicate that the Group's operating margin for
the year is in line with the Group's recently increased headline operating
margin target of 13.7% under IFRS (14.8% under 2004 UK GAAP).

Prospects for improvements in trading performance remain good. The Group's
margin targets for both 2005 and 2006 were raised at the time of the interim
announcement and latest forecasts indicate the Group is on track to meet the
target for this year.   There are still concerns about the prospects for the
United States economy, focused on the twin    deficits and on the indebted
consumer and the impact of increasing interest rates and rising commodity
prices, including oil, on inflation.

However, the first nine months of 2005 have seen strong like-for-like growth.
Guidance for 2005 revenue growth has been raised to 4-5%, from previous
estimates of 3-4%, although our view remains that the industry itself will grow
2-3% in 2005. If industry growth rates this year are 2-3%, next year will
probably be at 3-4%, a slight increase in the growth rate, reflecting the impact
of the "mini-quadrennial" events - including the Football World Cup in Germany,
the Winter Olympics in Turin and mid-term Congressional elections in the United
States.

Balance Sheet and Cash Flow

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

In the first nine months of 2005, in addition to the completion of the
acquisition of Grey, with effect from the beginning of March, the Company
continued to make small to medium-sized acquisitions or investments in high
growth geographical or functional areas.  In the first nine months of this year,
acquisitions and increased equity stakes have been concentrated in advertising &
media investment management in the United States, the United Kingdom, Denmark,
the Netherlands, Spain, Russia, Australia and Argentina; in information, insight
& consultancy in the United States, Hong Kong, Korea and New Zealand; in public
relations & public affairs in the United States, Denmark, Bahrain, Hong Kong and
Argentina; in healthcare in the United States, the Netherlands and Switzerland
and in direct, internet & interactive in the United States.

In the first nine months of 2005, 19.3 million shares (1.5% of the issued share
capital) were purchased of which 16.6 million shares were cancelled at an
average price of £5.85 per share and total cost of £113 million.  The company's
objective remains to repurchase up to 2% of its share base in the open market,
at an approximate cost of £150 million when market conditions are appropriate.

Average net debt for the first nine months of 2005 was £1,137 million, compared
to £1,117 million in the comparable period last year, at 2005 average exchange
rates, a slight increase of £20 million, including the gross cash payment of
£384 million for Grey on 7 March 2005.  Net debt at 30 September 2005 was £1,326
million against £1,120 million at the same time last year, at 2005 average
exchange rates, an increase of £206 million.  The current net debt figure
compares with a market capitalisation of approximately £7 billion. Net debt
figures reflect £809 million spent on capital expenditure, acquisitions and
earnout payments, share purchases and dividends in the previous 12 months, a
large part of which was funded by cash flow before capital expenditure,
acquisitions and earnout payments, share purchases and dividends over the same
period of £660 million.   The increase in liquidity has come primarily from
significant improvements in working capital management.

Future Objectives

The Group continues to focus on its strategic objectives of improving operating
profits by 10 to 15% per annum; improving operating margins by half to one
margin point per annum; improving staff cost to revenue ratios by 0.6 margin
points per annum; growing revenue faster than industry averages; improving our
creative reputation and stimulating co-operation among Group companies.

For further information:

Sir Martin Sorrell                    )
Paul Richardson                       )     + 44 207-408-2204
Feona McEwan                          )

Fran Butera                                 + 1 212-632-2235


www.wppinvestor.com


This announcement has been filed at the Company Announcements Office of the
London Stock Exchange and is being distributed to all owners of Ordinary shares
and American Depository Receipts.  Copies are available to the public at the
Company's registered office.

The following cautionary statement is included for safe harbour purposes in
connection with the Private Securities Litigation Reform Act of 1995 introduced
in the United States of America.  This announcement may contain forward-looking
statements within the meaning of the US 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 announcement 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 2005

                                           Revenue          Revenue           Revenue            Constant
                                              2005             2004            growth            Currency
Region                                          £m               £m          reported           growth(1)
                                                                                05/04               05/04
                                                                                    %                   %

North America                                539.3            416.9              29.4                26.4

United Kingdom                               204.5            186.5               9.7                 9.7

Continental Europe                           333.4            262.0              27.3                24.7

Asia Pacific, Latin
America, Africa &
Middle East                                  271.2            202.2              34.1                25.1

Total Group                                1,348.4          1,067.6              26.3                22.8


Communications                             Revenue          Revenue           Revenue            Constant
Services                                      2005             2004            Growth            Currency
Sector                                          £m               £m          Reported           growth(1)
                                                                                05/04               05/04
                                                                                    %                   %

Advertising & Media
Investment
Management                                   648.3            479.9              35.1                30.8

Information, Insight
& Consultancy                                203.5            195.6               4.0                 1.5

Public Relations &
Public Affairs                               134.1            112.5              19.2                16.5

Branding & Identity,
Healthcare and
Specialist
Communications                               362.5            279.6              29.6                26.6

Total Group                                1,348.4          1,067.6              26.3                22.8



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



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

9 months ended 30 September 2005

                                           Revenue          Revenue           Revenue            Constant
                                              2005             2004            Growth            Currency
Region                                          £m               £m          Reported           Growth(1)
                                                                                05/04               05/04
                                                                                    %                   %

North America                              1,512.7          1,226.8              23.3                24.2

United Kingdom                               593.4            529.9              12.0                12.0

Continental Europe                           995.8            786.3              26.6                23.9

Asia Pacific, Latin
America, Africa &
Middle East                                  714.0            550.2              29.8                25.3

Total Group                                3,815.9          3,093.2              23.4                22.2


Communications                             Revenue          Revenue           Revenue            Constant
Services                                      2005             2004            Growth            Currency
Sector                                          £m               £m          Reported           Growth(1)
                                                                                05/04               05/04
                                                                                    %                   %

Advertising & Media
Investment
Management                                 1,833.0          1,416.6              29.4                27.6

Information, Insight
& Consultancy                                591.0            532.0              11.1                10.0

Public Relations &
Public Affairs                               385.9            334.1              15.5               15.4

Branding & Identity,
Healthcare and
Specialist
Communications                             1,006.0            810.5              24.1                23.5

Total Group                                3,815.9          3,093.2              23.4                22.2



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








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