Preliminary Results - Part 1

WPP Group PLC
21 February 2001



Part 1

FOR IMMEDIATE RELEASE                                          21 FEBRUARY 2001



                                WPP GROUP PLC


           PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2000


                     Revenues up over 37% to £3.0 billion

               Profit before tax up over 43% to £365.7 million

            Fully diluted earnings per share up over 26% to 28.4p

                     Final dividend up over 21% to 2.55p



-        Revenues up over 37% to £2.981 billion

-        Profit before interest and tax up 43% to £416.0  million

-        Operating margins up to 14.0% from 13.4% in line with objectives

-        Profit before tax up over 43% to £365.7 million

-        Fully diluted earnings per share up over 26% to 28.4p from 22.5p

-        Final dividend up over 21% to 2.55p per share making
         total for the year of 3.75p up 21% over 1999

-        Net new billings of over $4.5 billion up 15% on last year (1999 $3.9   
         billion)

-        On target to achieve fifth margin plan objectives of 15% operating     
         margin by 2001 and 15.5% by 2002


Summary of 2000 results

The Board of WPP Group plc ('WPP') announces the unaudited preliminary results
for the year ended 31 December 2000 including Young & Rubicam Inc. for the
fourth quarter.  These results represent record profits in the Company's
fifteenth year.

Turnover was up 49% to £13.9 billion (reflecting in part the growth of media
investment management), revenues up over 37% to £2.981 billion and gross
profit up over 47% to £2.736 billion.  On a constant currency basis, revenues
were up almost 33% and gross profit up almost 43%.

Operating profit (excluding income from associates) rose by over 43% to £378.0
million from £263.5 million and by over 40% in constant currencies.  Reported
operating margins (including income from associates) rose by 0.6 margin points
to 14.0% in line with objectives and by 0.7 margin points on a constant
currency basis.  The margin gap between the very best performing competition
and ourselves continues to narrow.  Profit before interest and tax was up 43%
to £416.0 million from £290.8 million and up almost 40% in constant
currencies.

Operating margins before short and long-term incentive payments (totalling £
118 million or over 22% of operating profit before bonus and taxes) rose to
17.9% from 16.7%.  Reported operating costs including direct costs rose by
over 36% and by 32% in constant currency.

Variable staff costs as a proportion of total staff costs have increased over
recent years to 12.1% and as a proportion of revenues to 6.6%.  This has
resulted in increased flexibility in the cost structure.

Net interest payable and similar charges increased to £50.3 million from £35.4
million, reflecting increased profitability more than offset by rising US
dollar interest rates, debt acquired, the increased level of acquisition
activity and share repurchases.  Interest cover, however, has improved to 8.3X
in comparison to 8.2X in the previous year.

Profit before tax rose by over 43% to £365.7 million from £255.4 million.
Pre-tax margins rose to 12.3% from 11.8%.  On a constant currency basis,
pre-tax profits were up over 40% reflecting the weakening of sterling against
the dollar, counterbalanced to some extent by strength against the euro.  If
sterling had stayed at the same average levels as 1999, pre-tax profits would
have been £360.0 million.

The Group's tax rate on profits was 30.0%, the same as in the previous year.

Fully diluted earnings per share rose over 26% to 28.4p from 22.5p.  In
constant currency earnings per share rose by 23%.

The Board recommends an increase of 21.4% in the final dividend to 2.55p per
share, which will be paid in the form of an ordinary dividend, making a total
of 3.75p per share for 2000, a 21% increase over 1999.  The dividend for 2000
is over seven times covered by earnings.

On a like-for-like basis (including Young & Rubicam Inc. for the final quarter
of 2000), revenues rose by almost 15% and gross profit was up almost 16% on
1999.  Total operating and direct costs were up over 14% on the previous year.
Staff costs excluding incentives rose by over 15% and salaries by over 14%.
On a reported basis the Group's staff cost to gross margin ratio excluding
incentives fell to 54.8% from 55.0%.

Our staff numbers averaged 36,157 against 27,711 in 1999, up 31%.  On a
like-for-like basis, average headcount was up 2,767 to 36,157 from 33,390, an
increase of 8%. At the end of 2000 staff numbers were 51,195 compared with
29,168 in 1999.

Review of operations

In 2000 the worldwide advertising industry grew approximately 6-7% with
marketing services growing at 7-9%.  Our Company continued to strengthen
particularly in the United States, the United Kingdom and Continental Europe.
Asia Pacific bounced back fully from the recession in 1997.  Latin America
also rebounded significantly but growth was primarily driven by Brazil and
Mexico.  In 2000, the Group believes it increased its worldwide market share
very significantly.

Network television price inflation and declining audiences, fragmentation of
traditional media and the rapid development of new technologies continued to
drive experimentation by our clients in new media and non-traditional
alternatives.  1998 was really the first year when WPP's marketing services
activities represented over 50% of Group revenues. In 2000 these activities
represented 53% of Group revenues.  On a pro-forma basis, including Young &
Rubicam Inc. for a full year, this proportion would be 54%.  In addition, in
2000, our narrowly-defined internet-related revenues were $293 million or
almost 7% of our worldwide reported revenues.  This compares with
approximately 3-4% for on-line media's share of total advertising spend in the
United States and a 2-3% share worldwide.

Revenue and operating profit by region

The pattern of revenue growth differed regionally.  The table below gives
details of revenues and revenue growth (on a constant currency basis) by
region for 2000 as well as proportions of operating profits.


Region               Revenue as a        Revenue growth   Operating profit as a
                 % of Total Group         % +/(-) 00/99        % of Total Group

North America                44.7                  29.8                    47.6
United Kingdom               17.9                  22.5                    15.2
Continental                  19.7                  47.2                    19.7
Europe
Asia Pacific,
Latin
America, Africa
& the
Middle East                  17.7                  38.2                    17.5
                    
Total Group                 100                    32.9                    100
                    

Net new billings of £2.7 billion ($4.5 billion) were won last year, up 15% on
1999.  Young & Rubicam Inc. won net new billings of £540 million ($890
million) during 2000.

Revenue and operating profit by communications services sector and brand

The pattern of revenue growth also varied by communications services sector
and brand.  The table below gives details of revenues and revenue growth by
communications services sector for 2000 (on a constant currency basis) as well
as proportions of operating profits.

Communications services            Revenue as a      Revenue   Operating profit
sector                        % of Total Group        growth    as a % of 
                                               % +/(-) 00/99     Total Group


Advertising, Media                         46.9         33.8               55.6
Investment Management
Information and Consultancy                17.2         19.8               12.4
Public Relations and
Public Affairs                             11.1         75.6               10.4
Identity and Branding,
Healthcare &
Specialist Communications                  24.8         27.6               21.6

Total Group*                                100         32.9                100

*    Includes narrowly-defined internet and internet-related revenue totalling
     $323 million and broadly-defined revenues of $1.1 billion.

One of the Group's most important objectives is to increase its rate of
organic revenue growth which is a key measure of the success of its
value-added strategy.  Excluding acquisitions, this was approximately 15% in
2000, a rate of growth that, although delightful, is clearly unsustainable in
the long term.  Comparison with our competitors is difficult given that, to
the best of our knowledge, they define organic growth rates differently
absorbing acquisition revenues into organic growth rates more quickly.  If we
were to use their method of calculation, our organic growth rate would have
been closer to 19%.  Clients in the high revenue growth areas of information
and technology, telecommunications, healthcare, financial services and
entertainment and media now account for almost 28% of Group revenues.  As a
benchmark at the end of 2000 these sectors (excluding healthcare) accounted
for approximately the same percentage of the FTSE 100 by market
capitalisation.

Advertising and Media Investment Management

On a reported basis, combined advertising and media investment management
revenues at Ogilvy & Mather Worldwide (which was named the United States
agency of the year by Adweek), J. Walter Thompson Company, Y&R Advertising,
Conquest (now Red Cell), MindShare and The Media Edge rose by almost 34%.  The
combined operating margin of this group of companies was 16.5%.  Combined
operating costs rose by 32% and the combined staff costs to revenue ratio
excluding incentive payments fell to 52.6% from 53.7%.

In 2000, Ogilvy & Mather Worldwide generated net new billings of £515 million
($850 million), J. Walter Thompson Company £373 million ($615 million) and Y&R
Advertising £28 million ($46 million).

Also in 2000, MindShare generated net new billings of £1.5 billion ($2.5
billion).  Plans are being developed to create a 'WPP media' parent company
which, like Kantar in information and consultancy, will seek to add value to
our clients and our people through 'tribal' co-operation.

Conquest's (now Red Cell) revenues rose almost 11% and operating profits and
margins were up significantly.  Net new billings were £13 million ($21
million).

Information and Consultancy

The Group's information and consultancy businesses continued their strong
revenue growth with gross profit rising by almost 20% and operating margins up
slightly over the previous year.  Particularly strong performances were
recorded by Millward Brown in the United States, United Kingdom, Germany,
Hungary, the Czech Republic, Singapore, Japan and Australia; by Research
International in the United States, Germany, Greece, Japan, South Africa and
Brazil; by Kantar Media Research at BMRB in the United Kingdom; by IMRB in
India; and by Goldfarb Consultants in Canada, Italy and the United Kingdom.

Public Relations and Public Affairs

The Group's public relations and public affairs activities continued to
advance strongly.

Hill and Knowlton's revenues rose by over 31% and operating costs by over 29%.
As a result, margins increased to almost 13%, ahead of previously
established targets.

Revenues at Ogilvy Public Relations Worldwide (which was named PRWeek's United
States public relations agency of the year) rose by almost 61% and operating
costs by approximately 59%.  For the fourth year in a row following the change
in leadership, profitability improved significantly over the previous year.

In the final quarter of 2000, Burson-Marsteller's revenues rose by over 8% and
Cohn & Wolfe's by over 31%.  Robinson Lerer & Montgomery, which was acquired
by Young & Rubicam Inc. in the first quarter of 2000, made a strong first time
contribution to the Group.

Our public relations and public affairs businesses as a whole showed operating
margins of over 13%, in excess of the Group's objective for 2000 and in line
with the best performing publicly listed comparables.  Operating management
has developed new three year plans that indicate further significant
improvement in operating margins.

Identity and Branding, Healthcare and Specialist Communications

Identity and branding, healthcare and specialist communications revenues rose
by over 27%.  Although gross profit rose even more strongly, operating costs
rose faster, resulting in overall operating margins declining by 0.2 margin
points, chiefly due to margin erosion at our healthcare operations. Several of
our companies in this sector performed particularly well including in
promotion and direct marketing - Einson Freeman, OgilvyOne, A Eicoff &
Company; in identity and branding - Addison Design Company, Brouillard, Banner
McBride, BPRI, Coley Porter Bell, Lambie-Nairn, Scott Stern and Enterprise IG
Group; in healthcare - The Shire Hall Group; and in other specialist marketing
resources - The Henley Centre, P*Four Consultancy, Management Ventures, Metro
Broadcast, The Farm, The Geppetto Group, JWT Specialized Communications and
Perspectives.

In 2001 this communications services sector will be split into three parts for
strategic (but not reporting) purposes - first, identity and branding,
secondly, healthcare and finally specialist communications.

wpp.com

To date wpp.com has concentrated on strengthening its existing operations,
acquiring new activities in areas which we think are critically important,
investing in start-up companies with whom we wish to partner and spreading
knowledge of these developments throughout the Group.  We have continued to
use wpp.com as a way of strengthening the digital capabilities of our
operating companies.

Overall the effectiveness of this strategy has strengthened for three reasons.
First, staff turnover rates within our interactive business fell
significantly during the second half of the year with people who we had
previously lost returning to the Group.  Secondly, valuations have fallen,
making smaller interactive acquisitions more attractive.  Finally,  our
reliance on traditional companies as our main source of internet and new media
revenues has enabled us to continue growing revenues and profits beyond
expectations.

The merger with Young & Rubicam Inc. has brought with it strong interactive
capabilities, notably at The Digital Edge, Burson-Marsteller, Landor and
Impiric.  Notable features during 2000 included the growth of Ogilvy
Interactive, organically and by acquisition, into the leading global web
development agency and its recognition by Advertising Age International as
interactive agency of the year; the integration of IntelliQuest and
MBInteractive; the establishment of Lightspeed as Kantar's internet panel with
over 500,000 panelists by year end; the acquisition of a minority stake in
Medical Broadcasting Company (the leader in web development strategy and
implementation for pharmaceutical companies); the acquisition of a number of
technology firms (including advertising and public relations specialist Imagio
and e-commerce firm Imaginet) to strengthen J. Walter Thompson Company; the
establishment of Y&R 2.1 and the flotations of Concept! and Syzygy on the
NeuerMarkt in Germany.

Our pure internet revenues (web-based work) for 2000 were ahead of budget,
over 100% up on 1999 and reached $293 million.  These figures exclude our
share of revenues generated by minority and associate companies such as
Syzygy, Concept! and Inferentia.  Our budgets for 2001, using the same
narrowly based definition of interactive work, show growth rates in excess of
25%, fuelled by the continuing growth in the importance which traditional
clients attach to developing new channels and their desire to integrate those
channels. MindShare Digital, digital@JWT, Kantar, Blanc & Otus, Ogilvy
Interactive, The Digital Edge and Impiric continue to budget strong increases
in revenues for 2001 - despite a softening in market conditions and longer
sales cycles.  One or two of our companies in public relations and public
affairs which have benefited significantly on start-up dotcoms expenditure are
budgeting more moderate increases in revenues.  Our interactive operations,
whose margins are similar or ahead of those of the Group as a whole, are
likely to be strengthened further as a result of not having to deal with high
turnover rates and the associated direct and indirect costs.

Major clients of wpp.com include Accenture, American Express, Ameritrade,
Ariba, AT&T, Boots, Citibank, Covisint, the Diamond Trading Company,
DoubleClick, E*Trade, easyEverything, El Sitio!, Ericsson, FedEx, Ford Motor
Company, IBM, Instinet, iPlanet, Kimberly-Clark, Merrill Lynch, MindSpring,
Motorola, Nestle, NextCard, Nike, ntl, Qwest, SAP, Sears, Siemens, Sony, Sun
Microsystems, TiVo,  Unilever and Ziff Davis.

Despite the turmoil in the markets, technology is playing a growing role in
the way we develop our business.  For example, research can be implemented
more cost effectively and offer clients valuable results more quickly.  In
addition, it can streamline work processes in our advertising and media
investment management businesses and help us tap into global capabilities in a
more structured way.  Finally it extends the effectiveness of our relationship
marketing capabilities.  We continue to pursue aggressively ways of
incorporating technology into the operating processes of all of our
businesses.

Our interactive equity investments have been made directly and indirectly
through venture funds.  The aim of these indirect investments has been to keep
abreast of developments on the West Coast of the United States and identify
potential client relationships, thus enhancing our core capabilities.
Historically the prime venture funds through which we have made indirect
investments have been Allegis Capital LLC (www.allegiscapital.com) previously
known as Media Technology Ventures and Wit Capital's Dawntrader II fund.  The
value of our investments in these funds has obviously declined over the past
few months but is still well ahead of its original cost.

We made only one direct investment in the second half of the year as we
concentrated on consolidating the investments which Young & Rubicam Inc. had
made and concentrating on building closer relationships between our operating
companies and our existing minority investments.  We continue to see
interesting  opportunities for investments and outright acquisitions, made
easier by the fall in valuations and the desire for start ups to partner with
traditional companies such as ourselves.

Manufacturing

Revenues and operating profit were up slightly at the Group's manufacturing
division.

Balance sheet

An unaudited summary of the Group's consolidated balance sheet as at 31
December 2000 is attached in Appendix I.  Appendix II presents, for
illustrative purposes only, the preliminary consolidated profit and loss
account and the preliminary consolidated balance sheet in euros.  As at 31
December 2000, the Group had net debt of £25 million compared with net cash of
£92 million at 31 December 1999 (1999 - £90 million on the basis of 2000 year
end exchange rates), following cash expenditure of £247 million on
acquisitions, £94 million on share repurchases and long-term debt of £195
million from Young & Rubicam Inc.

Net debt averaged £423 million in 2000, up £217 million against £206 million
in 1999 (up £198 million against £225 million in 1999 at 2000 exchange rates).
The average debt figures for 2000 include the impact of the Young & Rubicam
Inc. long-term convertible bond of £195 million for the final quarter.  These
net debt figures compare with a current equity market capitalisation of
approximately £9.0 billion giving a total enterprise value of approximately £
9.4 billion.

Cash flow continued to improve as a result of improved profitability and
management of working capital.  In 2000, operating profit was £378 million,
capital expenditure £112 million, depreciation and amortisation of £79
million, tax paid £81 million, interest and similar charges paid £57 million
and other net cash inflows of £84 million.  Free cash flow available for debt
repayment, acquisitions, share buybacks and dividends was therefore £291
million. A summarised unaudited consolidated cash flow statement is included
in Appendix I.  This free cash flow was more than absorbed by acquisition
payments and investments of  £247 million, share repurchases and cancellations
of £94 million and dividends of £26 million.

In the first five weeks of 2001 up until 6 February, the last date for which
information is available prior to this announcement, net debt averaged £251
million versus net debt of  £119 million for the same period last year at 2001
exchange rates.

Your Board continues to examine ways of deploying its substantial cash flow of
over £500 million per annum to enhance share owner value.  As necessary
capital expenditure normally approximates to 1-1.5 times the depreciation
charge, the Company has concentrated on examining possible acquisitions or
returning excess capital to share owners in the form of dividends or share
buy-backs.  In 2000 the Group increased its equity interests, at a combined
initial cost of £247 million in cash, in advertising and media investment
management agencies in; Belgium, China, France, Israel, Italy, The Middle
East, The Netherlands, Pakistan, Portugal, Puerto Rico, Spain and Taiwan; in
information and consultancy in Australia, Denmark, Singapore, Spain and
Sweden; in public relations and public affairs in Italy, Poland, Turkey and
The United States; and in branding and identity, healthcare and specialist
communications in Australia, Canada, Denmark, Ireland, Mexico, The
Netherlands, Portugal, Spain, Singapore, Switzerland and The United States.
Particularly interesting functional acquisitions and investments have been
made in augmenting the Group's loyalty marketing capabilities (The Lacek
Group), strengthening our creative capabilities (SCPF), in technology (Socket
Public Relations, Imagio and Imaginet), in interactive (Interfaz401 and
Absolut) and in new areas, for example, Inflight Media (Spafax).

As noted above, your Board has decided to increase the final dividend by 21%
to 2.55p per share, taking the full year dividend to 3.75p per share which is
over seven times covered.  In addition, as current opportunities for cash
acquisitions at sensible prices are limited particularly in the United States,
the Company will continue to commit £150-200 million for share buy-backs in
the open market, when market conditions are appropriate.  Such annual rolling
share repurchases would represent approximately 1-2% of the Company's share
capital which seems to have a more significant impact in improving share owner
value.  If sufficient small to medium sized cash acquisition opportunities are
available and there are attractive opportunities for share repurchases, your
Board is prepared to increase net debt further to the range of £400-450
million in comparison with the historical target range of £200-250 million.
This level of debt would still represent only 4-5% of the Company's market
value.

Developments in 2000

Including associates, the Group had almost 65,000 full-time people in over
1,300 offices in 102 countries at the year end.  It services over 300 of the
Fortune Global 500 companies, over one-half of the Nasdaq 100, over 30 of the
Fortune e-50, and approximately 330 national or multi-national clients in
three or more disciplines.  More than 60 clients are served in four
disciplines.  The Group also works with over 100 clients in six or more
countries.

These statistics reflect the increasing opportunities for developing client
relationships between activities nationally, internationally and by function.
The Group estimates that 25% of new assignments in the year were generated
through the joint development of opportunities by two or more Group companies.

Management Stock Ownership

As part of the Group's 100, 300 and High Potential club programs, stock
options have been granted each year since 1995 to those people with the most
significant responsibility for the success of our businesses.  Beginning in
2001, these programs will be known as WPP Leaders, WPP Partners and WPP High
Potentials and will be expanded in response to the significant growth of the
Group.  In addition, 50% of all awards to all participants in operating
company long-term incentive plans will continue to be paid in WPP restricted
stock.

In 1997, WPP launched the Worldwide Ownership Plan to give all our people an
opportunity to share in its success through stock ownership.  Options have
been granted annually under this program to approximately 11,000 people
worldwide, and in 2001 the program will be extended to all eligible Young &
Rubicam Inc. people.

Including outstanding options, interests in WPP restricted stock, stock
already owned and holdings of the Employee Stock Ownership Plan, people
working in the Group currently own, or have interests in, in excess of 71
million ordinary WPP shares representing over 6% of the Company.

However, your Company is still at a significant competitive disadvantage
relative to major competitors in the United States, in relation to the
availability of stock to promote equity ownership.  Omnicom Group Inc. ('
Omnicom') and The Interpublic Group of Companies Inc. ('IPG'), for example,
have historically issued 15-20% of their total share capital in the form of
stock options or restricted stock.  Beginning in 2001, your Company will be
increasing the level of stock option grants to meet this competitive standard
but will not exceed a total dilution level of 13% over any 10-year period
through 2006, consistent with our commitment to UK institutional investors in
June 1999.

The Leadership Equity Acquisition Plan (LEAP) was approved by share owners on
September 2 1999.  Twenty-two executives of the Group have been invited to
participate in the plan.  These participants will acquire or have acquired 3.5
million WPP ordinary shares and have made a commitment to retain them until
September 2004.  One-third of these share purchases has been or will be made
in cash or earned bonuses, the other two-thirds being in committed shares.
Under the terms of LEAP, the participants may earn matching shares over a
five-year performance period, based on the Group's relative total share owner
return as compared with 14 other major listed companies in our industry.

Future prospects

Considerable progress, particularly in the area of organic growth, was again
made in 2000, helped by the quadrennial factors of the Olympic Games and
United States Presidential Election, by the strong economic environment in
Europe and by continued recovery in Asia Pacific and parts of Latin America.

Continued progress has been made over the last eight years during which
pre-tax profits have increased almost seven times from £54 million in 1993 to
£85 million in 1994, £114 million in 1995, £153 million in 1996, £177 million
in 1997, £213 million in 1998, £255 million in 1999 and £366 million in 2000.
Over the same period operating margins (including income from associates) have
doubled from 7.0% to 14.0%, and interest cover has increased from 3.0X in 1993
to 8.3X in 2000 giving credit ratings of A- and Baa1.

However, there is still a significant profit opportunity in matching the
operating margins of the best-performing competition.  The best-performing
competitive listed holding companies, IPG and Omnicom, achieve 15-16%
operating margins, whilst their best-performing individual agencies such as
McCann-Erickson Worldwide and BBDO Worldwide are estimated to achieve
operating margins of as much as 20%. This compares to a WPP parent company
margin of 14.0% and reported combined margins of the Ogilvy & Mather
Worldwide, J. Walter Thompson Company and Y&R Advertising brands of 18%.

Historically, listed public relations companies showed operating margins of
over 10% which have now been more than matched by our own operations.  As
mentioned before operating management has indicated that margin performance
can be improved further.

The results of our research into comparative benchmarking data on our
information and consultancy and identity and branding, healthcare and
specialist communications operations confirm that our businesses in these
areas are competitive, although there are still opportunities to improve
performance to the level of the best-performing competitors.

The task of eliminating surplus property costs has been achieved over the last
eight years.  Over 650,000 sq ft with a cash cost of approximately £14 million
($22 million) per annum has been sublet or absorbed.  Whilst WPP's rental
costs to revenue ratio is competitive to its best performing competition your
Board believes the Group is still capable of achieving a further 1 margin
point improvement equivalent to approximately £40 million of operating profit,
which would, of course, form part of any general operating profit improvement.

Achievement of 'best practice' competitive operating margins and our targets
in just our advertising and public relations and public affairs businesses at
current pro-forma revenue levels, would generate approximately £30 million of
annual operating profits.

As usual, our budgets for 2001 have been prepared on a conservative basis
largely excluding new business particularly in advertising and media
investment management.  They predict like-for-like revenue increases of over
7% in comparison to 2000 pro-forma numbers, with advertising and media
investment management revenue growth of 2-3% and marketing services growth of
over 10%.  This compares with budgeted growth of 6% in 1998 against an actual
outcome of almost 8%, budgeted growth of over 4% and actual growth of almost
8% in 1999 and budgeted growth of 10% and actual growth of 15% in 2000.  We
only have data for one month so far in 2001, for January, and this shows a
like-for-like increase well in excess of budget.

Economic conditions in North America are now, to say the least, more
challenging.  The United Kingdom and Continental Europe, however, particularly
France, Germany, Italy and Spain are stronger, along with Asia Pacific and
Latin America.  Our fourth quarter performance in 2000 reflected this pattern
with the United States and United Kingdom performing in line with expectations
and Continental Europe, Asia Pacific and Latin America performing more
strongly than forecast.  Recent relaxation in monetary policy on both sides of
the Atlantic will probably stimulate those economies in the second half of the
year.  However, it may well be that the real economic challenge may come not
in 2001 but in 2002, if lower interest rates and United States tax cuts
overheat the economy and general inflation and wages rise beyond the rates of
3-4% that we have become used to in the 1990s.

Given these economic uncertainties in the medium-term, therefore,
like-for-like revenue gains are likely to be in the mid-single to high-single
digit range and in these circumstances the Company will continue to
concentrate on improving the balance of its resources and the flexibility of
its costs particularly in staff and property areas.  To achieve this,
short-term and long-term incentive plan objectives have been based on
improving absolute levels of profit, operating margins, staff cost to revenue
ratios, incremental revenue conversion, revenue growth and Group co-operation.
These incentive plans now include 'side-car' cyber funds, minority interest
IPO's and equity for fee funds which offer attractive additional inducements
to our key new media and technology people.  The structure of the equity for
fee funds is aimed to ensure cash fees for the Group, offer effective
retention incentives to our people and minimise divisiveness between the 'old'
and 'new' media parts of our business.  As our margins improve and come even
closer to matching the very best performing competition, increasing emphasis
is being placed on revenue generation through the incentive objectives.

Consequently, the Group has increasingly focused on improving its competitive
position in the faster growing segments of the communications services
industry. Your Board continues to believe that Asia Pacific, Latin America,
Africa and the Middle East and Central and Eastern Europe will offer superior
opportunities for growth in the medium to long-term. These markets now account
for over 18% of the Group's revenue as opposed to 13% in 1992 and over 20% if
our share of associates' revenues are included.  These markets are still
forecast to continue to grow at significantly faster rates than those of North
America and Western Europe in the long-term. WPP, according to the Advertising
Age Agency Report, ranks in the top three in all of the ten fastest growing
markets of the world.

In these circumstances there is no reason to believe that the Group cannot
achieve the objective set in 2000 of further improving margins by another 1
margin point to 15.0% in 2001 or a further 0.5 of a margin point in 2002.
Your Board does not believe that there is any functional, geographic, account
concentration or structural reason that should prevent the Group achieving
operating margins of 15.5% by 2002.  After all the two best listed performers
in the industry are at 15-16% and that is where we would want to be. Neither
is there any reason why operating margins could not be improved beyond this
level by continued focus on revenue growth and careful husbandry of costs.  As
a result of this confidence, your Board is setting a new operating margin
plan, its sixth since 1991, to achieve further growth in operating margins
beyond 2002.  The objective will be to achieve 20% margins over a period of
time.

Increasingly, WPP is concentrating on its mission of the 'management of the
imagination', and ensuring it is a big company with the heart and mind of a
small one.  To aid the achievement of this objective and to develop the
benefits of membership of the Group for both clients and our people, the
parent company continues to develop its activities in the areas of human
resources, property, procurement, information technology and practice
development.  Ten practice areas which span all our brands have been developed
initially in media investment management, healthcare, privatisation, new
technologies, new faster growing markets, internal communications, retailing,
entertainment and media, financial services and hi-tech and
telecommunications.

2001 has been ushered in with a multitude of gloomy prognostications.  Some
may prove to be justified.  But early indications are that the worldwide
growth of advertising expenditure will be around 5-6%, with marketing services
growing at 6-8 % - neither significantly behind 2000.

As long as financial markets remain stable and governments do not stimulate
inflation, the worldwide economic environment should be good for growth in the
communications services sector as a whole.  The global dominance of the
American economy;  over-capacity in production; the shortage of human capital;
the growing impact of new technologies; and the critical importance of
internal communications:  these are all encouraging factors for our industry.
Between them, they have already stimulated growth in the ratio of advertising
and marketing services as a proportion of gross national product to new highs.
As long, again, as inflationary pressures are not allowed to build, these
trends should continue into 2002.

We believe that 2001, WPP's sixteenth year, should be another good one.

Further information:

Sir Martin Sorrell               )
Paul Richardson                  )     (44) 020 7408 2204
Feona McEwan                     )


Share owner web-site - www.wppinvestor.com

This press release may contain forward-looking statements within the meaning
of the 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 press release should be considered in light of these risks
and uncertainties.


Appendix I


WPP GROUP PLC
Preliminary results for the year ended 31 December, 2000
Unaudited preliminary consolidated profit & loss account for the year ended 31
December, 2000


                                                           2000
                                      Notes                Acquisitions

                                               Continuing      (Young &
                                              Operations* Rubicam only)
                                                                         Total
                                                       £m            £m     £m

Turnover (gross billings)                        12,212.7       1,736.7 13,949.4
Revenue                                   5       2,621.3         359.4 2,980.7


Gross Profit                                      2,376.7         359.4 2,736.1
Operating costs                                 (2,046.3)       (311.8)(2,358.1)

Operating profit                                    330.4          47.6  378.0

Income from associates                               35.4           2.6   38.0

Profit on ordinary activities before
interest  and taxation                    5         365.8          50.2  416.0
                                          
Net interest payable and similar                   (47.8)         (2.5) (50.3)
charges

Profit on ordinary activities before
taxation                                            318.0          47.7  365.7
                                                    
Tax on profit on ordinary activities      6                             (109.7)

Profit on ordinary activities after
taxation                                                                 256.0
                                                                         
Minority interests                                                      (11.3)

Profit attributable to ordinary share
owners                                                                   244.7

Ordinary dividends                        7                             (37.8)

Retained profit for the year                                             206.9

Earnings per share (net basis)
   Basic earnings per ordinary share      8                              29.3p
   Fully diluted earnings per             8                              28.4p
          ordinary share

Ordinary dividend - interim               7                               1.2p
per share
                  - final                 7                              2.55p

Earnings per ADR (net basis) **

  Basic earnings per ADR                  3                              $2.22
  Fully diluted earnings per ADR          3                              $2.15

Ordinary dividend per ADR **

           Interim                        3                               9.4c
           Final                          3                              19.0c

*  The figures presented for continuing operations include 2000 acquisitions,
   other than Young & Rubicam. Aggregated figures for acquisitions were revenue
   of £438.9 million, operating profit of £61.5 million and PBIT of £66.4
   million. These figures are shown in more detail in note 4.

** These figures have been translated for convenience purposes only, using
   the profit and loss exchange rate shown in note 3.

Unaudited preliminary consolidated profit & loss account for the year ended 31
December, 2000

Continued


                                                                       Constant
                                                                       Currency
                                                                       (Note 3)
                                                  Notes
                                                            1999
                                                           Total   +/-      +/-
                                                              £m     %        %

Turnover (gross billings)                                9,345.9 +49.3%   +45.0%

Revenue                                               5  2,172.6 +37.2%   +32.9%

Gross Profit                                             1,855.3 +47.5%   +42.7%

Operating costs                                         (1,591.8) -48.1%  -43.2%

Operating profit                                           263.5 +43.5%    40.1%

Income from associates                                      27.3 +39.2%   +38.0%

Profit on ordinary activities before interest
and taxation                                          5    290.8 +43.1%   +39.9%

Net interest payable and similar charges                  (35.4) -42.1%   -37.0%

Profit on ordinary activities before taxation              255.4 +43.2%   +40.3%
                                                           
Tax on profit on ordinary activities                  6   (76.6) -43.2%   -40.3%

Profit on ordinary activities after taxation               178.8 +43.2%   +40.3%

Minority interests                                         (6.0) -88.3%   -88.3%

Profit attributable to ordinary share owners               172.8 +41.6%   +38.5%

Ordinary dividends                                    7   (24.0) +57.5%   +57.5%

Retained profit for the year                               148.8 +39.0%   +35.3%

Earnings per share (net basis)
   Basic earnings per ordinary share                  8    22.9p +27.9%   +25.1%
   Fully diluted earnings per ordinary                8    22.5p +26.2%   +23.0%
    share

Ordinary dividend per share - interim                 7     1.0p +20.0%   +20.0%
                            - final                   7     2.1p +21.4%   +21.4%
     
Earnings per ADR (net basis) **

  Basic earnings per ADR                              3    $1.85 +20.0%   +20.0%
  Fully diluted earnings per ADR                      3    $1.82 +18.1%   +18.1%

Ordinary dividend per ADR **

Interims                                              3     8.1c +16.0%   +16.0%
Final                                                 3    17.0c +11.8%   +11.8%


*    The figures presented for continuing operations include 2000
     acquisitions, other than Young & Rubicam. Aggregated figures for           
     acquisitions were revenue of £438.9 million, operating profit of £61.5     
     million and PBIT of £66.4 million. These figures are shown in more detail  
     in note 4.

**   These figures have been translated for convenience purposes only,
     using the profit and loss exchange rate shown in note 3.

WPP GROUP PLC
Unaudited preliminary consolidated cash flow statement  for the year ended 31
December, 2000

                                                               2000       1999
Reconciliation of operating profit                                £m         £m
to net cash inflow  from operating activities:

Operating profit                                               378.0      263.5
Depreciation, amortisation and impairment charge                78.9       42.2
Movements in working capital and provisions                    166.1       42.8
Net cash inflow from operating activities                      623.0      348.5
Dividends received from associates                               7.6        4.3
Return on investments and servicing of finance                (64.6)     (37.1)
United Kingdom and overseas tax paid                          (81.4)     (58.4)

Purchase of tangible fixed assets                            (111.9)     (64.6)
Purchase of own shares by ESOP trust                          (94.1)     (17.9)
Other movements                                                  6.9        2.0

Capital expenditure and financial investment                 (199.1)     (80.5)
Cash consideration for acquisitions                          (206.5)    (242.2)
(Overdraft)/cash acquired                                     (33.6)       51.8
Net purchases of other investments                            (40.9)     (11.8)
Total acquisitions                                           (281.0)    (202.2)
Equity dividends paid                                         (25.6)     (21.1)

Net cash outflow before financing                             (21.1)     (46.5)
Increase in drawings on bank loans                             126.6      258.0
Proceeds from issue of shares                                   78.0       12.0
Net  cash inflow from financing                                204.6      270.0
Increase in cash and overdrafts for the year                   183.5      223.5

Translation difference                                          35.1      (0.6)

Balance of cash and overdrafts at beginning  of year           551.4      328.5

Balance of cash and overdrafts at end of year                  770.0      551.4

Reconciliation  of net cash flow to movement
in net (debt)/ funds:

Increase in cash and overdrafts for the year                   183.5      223.5
Cash inflow from debt financing                              (126.6)    (258.0)
Debt acquired                                                (194.9)          -
Other movements                                                (1.9)      (1.7)
Translation difference                                          23.4      (6.2)

Movement of net (debt)/ funds in the year                    (116.5)     (42.4)

Net funds at beginning of year                                  91.9      134.3

Net (debt)/ funds at end of year (Note 14)                    (24.6)       91.9



WPP GROUP PLC
Unaudited preliminary consolidated balance sheet as at 31 December, 2000


                                                                 2000      1999

                                                      Notes           RESTATED*
                                                                   £m        £m
Fixed assets

Intangible assets:
Corporate brands                                          9     950.0     350.0
Goodwill                                              2, 10   3,497.3     410.3
Tangible assets                                                 390.2     196.7
Investments                                              10     551.5     356.9
                                                              5,389.0   1,313.9
Current assets

Stocks and work in progress                                     241.1     113.5
Debtors                                                  11   2,181.0   1,068.4
Debtors within working capital facility:
Gross debts                                                     464.9     345.7
Non-returnable proceeds                                       (231.6)   (214.1)
                                                                233.3     131.6
Cash at bank and in hand                                      1,067.6     607.0
                                                              3,723.0   1,920.5

Creditors:  amounts falling due within one year          12 (4,252.4) (2,148.0)
Net current liabilities                                       (529.4)   (227.5)
Total assets less current liabilities                         4,859.6   1,086.4
Creditors: amounts falling due after more than one       13 (1,279.6)   (652.5)
year

Provisions for liabilities and charges                        (145.9)    (79.2)

Net assets                                                    3,434.1     354.7

Capital and reserves

Share capital                                                   111.2      77.5
Reserves                                                      3,298.7     268.7
Share owners' funds                                           3,409.9     346.2
Minority interests                                               24.2       8.5
Total capital employed                                        3,434.1     354.7

*   The 1999 balance sheet has been restated as a result of the
    implementation of FRS19 in the Group's 2000 financial statements. The
    resulting prior year adjustment is shown in note 11.

WPP GROUP PLC
Unaudited preliminary reconciliation of movements in consolidated share
owners' funds for the year ended 31 December 2000

                                                                 2000      1999
                                                                      RESTATED*
                                                                   £m        £m

Profit for the financial year                                   244.7     172.8
Ordinary dividends payable                                     (37.8)    (24.0)
                                                                206.9     148.8

Exchange adjustments on foreign currency net investments      (133.0)    (31.2)
Shares issued for  acquisition of Y&R Inc.                    2,412.1         -
Reserve for shares to be issued as a result of acquisition of
Y&R Inc.                                                        547.3         -
Share issue costs charged to share premium                     (33.3)         -
Other share issues                                               63.7      12.9
Net additions to share owners' funds                          3,063.7     130.5

Opening share owners' funds                                     346.2     215.7
Closing share owners' funds                                   3,409.9     346.2


Unaudited preliminary statement of consolidated recognised gains and losses
for the year ended 31 December 2000

                                                                  2000     1999
                                                                    £m       £m

Profit for the year                                              244.7    172.8
Exchange adjustments on foreign currency net investments       (133.0)   (31.2)

Total recognised gains                                           111.7    141.6


*   The 1999 balance sheet has been restated as a result of the
    implementation of FRS19 in the Group's 2000 financial statements. The
    cumulative effect of the resulting prior year adjustment is to increase
    retained earnings at December 31, 1999 by £28.0 million. The implementation
    did not impact on the reported profit and loss account for 1999.


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