Q1 Trading Update

WPP Group PLC
25 April 2008



FOR IMMEDIATE RELEASE                                              25 April 2008


                                      WPP
                                       
                            QUARTERLY TRADING UPDATE
                                        
                        REPORTABLE REVENUES UP OVER 14%
                                        
     FIRST QUARTER REPORTABLE REVENUES EXCEED $3 BILLION FOR THE FIRST TIME
                                        
                        CONSTANT CURRENCY REVENUES UP 9%
                                        
                      LIKE-FOR-LIKE REVENUES UP ALMOST 5%
                                        
                 FIRST QUARTER OPERATING MARGIN AHEAD OF BUDGET

 THE GROUP REMAINS ON COURSE TO ACHIEVE ITS FULL YEAR MARGIN OBJECTIVE OF 15.5%



Current Trading

In the first quarter of 2008, reported revenues rose by 14.1% to £1.558 billion.
Revenues in constant currency were up 9.0%, reflecting the strength of the Euro
overcoming the weakness of the US dollar against the pound sterling. On a
like-for-like basis, excluding the impact of acquisitions and currency
fluctuations, revenue growth was almost 5%, continuing the growth rates seen
throughout 2007 and before. First quarter growth reflected the continued steady
overall economic environment, despite the continuing uncertainty stimulated by
the credit and liquidity crisis and the much heralded slowdown in the United
States.

Whilst January and February were strong across the board, both geographically
and functionally, and indeed stronger than last year, March was slower, somewhat
surprisingly in Western Continental Europe. Throughout the quarter, North
America remained relatively strong and better than last year and global revenues
were in line with budget. Eastern Continental Europe, Latin America, Asia
Pacific, Africa and the Middle East remained in good shape and the United
Kingdom was stable.

As shown in appendix 1, on a constant currency basis, Asia Pacific, Latin
America, Africa and the Middle East, continues to be the fastest growing region,
with revenues up well over 15%. North America, despite the talk of recession and
the continuing crisis affecting the major financial institutions in the United
States, remains strong with revenues up almost 10%. On a like-for-like basis
revenues were up over 5%, an improvement over the second half of 2007. On a
constant currency basis, Continental Europe was up over 5% but at two speeds,
with Western Continental Europe up just over 3% and Eastern Continental Europe
up almost 26%. The United Kingdom remained the slowest growing region, with
revenues up almost 5%, although showing an improvement over the final quarter of
2007, and gross margin up almost 6%, reflecting the significance of market
research revenues.

As mentioned above, North America continues to grow faster than commentators
might expect, with like-for-like revenues up over 5%, an improvement on the last
half of 2007. Eastern Continental Europe, is now the fastest growing area,
marginally ahead of the Middle East, with both over 21%. Latin America continues
the strong growth of 2007, with almost 15% like-for-like growth, reflecting
double digit growth in the Group's media investment management, information,
insight & consultancy and specialist communications businesses. Asia Pacific
remains reasonably strong, with revenues up 6%, reflecting stronger growth in
South East Asia and weaker growth in Japan, Australia and New Zealand. Mainland
China and India continued the rapid growth seen in 2007, with first quarter
like-for-like revenues up over 19% in both markets. As mentioned before, Western
Continental Europe, showed some softening in March, particularly in the major
markets of Germany, France and Spain. The United Kingdom showed some improvement
with growth of almost 2%, a small increase over the last half of 2007.

By communications services sector, branding & identity, healthcare and
specialist communications (including direct, internet and interactive), showed
the strongest growth, with constant currency revenues up 18%, with public
relations & public affairs up almost 10%, information, insight and consultancy
up over 6% and advertising & media investment management up over 4%.

In the Group's 2007 interim and preliminary results announcements, additional
information was provided showing the first half and full year results in
reportable US dollars, to allow for better comparison with a number of our
competitors, who report in US dollars and, particularly, because significant
weakness in the US dollar sometimes makes comparisons difficult. Appendix 2
shows revenue growth by geography and communications services sector in
reportable US dollars, for the first quarter of 2008. US dollar reportable
revenues were up 15.6% in the first quarter, primarily reflecting the strength
of the Euro against the US dollar.

Net new business billings of £564 million ($1.100 billion) were won during the
first quarter and the Group continues to benefit from consolidation trends in
the industry, winning several assignments from existing and new clients.

In the first quarter, both operating margins and profitability were ahead of
budget and last year. The Group remains on course to achieve its margin
objective of 15.5% for 2008.

We are in the process of compiling our quarter one full year revised forecasts,
but early indications continue to show like-for-like revenues growing faster
than 2007.

On a proforma basis, the number of people in the Group, excluding associates,
was up 4.9% or 4,350 at 31 March 2008 to 93,352, as compared to the previous
year. On the same basis, in the first quarter of 2008, the number of people in
the Group averaged 91,870, up 4.5% or 3,914. In line with our strategy, 75% of
these people were added in the faster growing geographic markets of Asia
Pacific, Latin America, Africa and the Middle East and Central and Eastern
Europe, which now account for around 25% of Group revenues and are where a
significant part of the Group's investments are being focused.

Balance Sheet and Cash Flow

The Group continues to implement its strategy of using free cash flow to enhance
share owner value through a combination of capital expenditure, acquisitions and
share repurchases. In the twelve months to 31 March 2008, the Group's free cash
flow was £874 million. Over the same period, the Group's capital expenditure,
acquisitions, share repurchases and dividends were £1,423 million.

Average net debt in the first quarter of 2008 was £1,669 million, compared to
£1,083 million in 2007, at 2008 exchange rates. This represents an increase of
£586 million, reflecting the impact of the net acquisition cost of £709 million
for 24/7 Real Media Inc. and other acquisitions and £404 million on share
repurchases during the last twelve months. Net debt at 31 March 2008 was £2,152
million compared to £1,410 million in 2007 (at constant exchange rates) an
increase of £742 million, again reflecting the acquisition spend and share
repurchases. The current net debt figure compares with a market capitalisation
of approximately £7.4 billion.

In the first quarter of 2008, the Group made acquisitions or increased equity
interests in advertising and media investment management in the United States,
the United Kingdom, the Netherlands, the Middle East, Chile, Guatemala and
China; in information, insight & consultancy in the United States and India; in
public relations and public affairs in China; in direct, internet and
interactive in the United States and India.

Consistent with the objective, announced in 2006, of increasing the share
buy-back programme to 4-5% of the Group's share capital in 2007 and 2008, 15.6
million ordinary shares, equivalent to 1.3% of the share capital, were purchased
at an average price of £5.96 per share and total cost of £93.1 million in the
first quarter. All of these shares were purchased in the market and subsequently
cancelled. Such annual rolling share repurchases are believed to have a more
significant impact in improving share owner value, than sporadic buy-backs. We
are currently running at an annual rate of share buybacks of slightly over 5%.

Future Objectives

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


For further information:

Sir Martin Sorrell )
Paul Richardson    )     (44) 20 7408 2204
Feona McEwan       )
Fran Butera              (1) 212 632 2235

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.

This is WPP Group plc's first Interim Management Statement, made in accordance
with the UK Listing Authority's Disclosure and Transparency Rules, for the first
quarter of its financial year to 31 December 2008.

Appendix 1: Revenue and revenue growth by region and communications services
sector


3 months ended 31 March 2008
                                                              Revenue   Constant
                                                               Growth   Currency
Region                                                       Reported  Growth(1)
                        2008        %      2007        %    2008/2007  2008/2007
                          £m    Total        £m    Total          %          %

North America          580.9       37     531.6       39        9.3        9.8

United Kingdom         216.4       14     206.5       15        4.8        4.8*

Continental Europe     419.0       27     352.5       26       18.9        5.2

Asia Pacific, Latin
America, Africa
& Middle East          341.7       22     275.4       20       24.1       15.6
                       -------   ------   -------  -------   --------   --------

TOTAL GROUP          1,558.0      100   1,366.0      100       14.1        9.0
                       -------   ------   -------  -------   --------   --------


*Gross margin up 5.7%

                                                              
Communications                                                Revenue   Constant 
Services Sector                                                Growth   Currency
                                                             Reported    Growth*
                        2008        %      2007        %    2008/2007  2008/2007
                
                          £m    Total        £m    Total          %          %

Advertising, Media
Investment
Management             695.1       44     630.5       46       10.2        4.2

Information, Insight
& Consultancy          227.1       15     204.1       15       11.3        6.6

Public Relations
& Public Affairs       167.2       11     147.4       11       13.4        9.9

Branding & Identity,
Healthcare and
Specialist             468.6       30     384.0       28       22.0       18.0
Communications         -------   ------   -------  -------   --------   --------

TOTAL GROUP          1,558.0      100   1,366.0      100       14.1        9.0
                       -------   ------   -------  -------   --------   --------

 *Constant currency growth excludes the effects of currency movements.


Appendix 2: Revenue and revenue growth by region and communications services
sector in Reportable US Dollars

3 months ended 31 March 2008
                                    Revenue           Revenue          Revenue
                                       2008              2007           Growth
Region                                   $m                $m         Reported
--------
                                                                         08/07
                                                                             %

North America                     1,150.3           1,038.9               10.7

United Kingdom                      428.4             404.0                6.0

Continental Europe                  829.8             688.5               20.5

Asia Pacific, Latin
America, Africa &
Middle East                         676.7             538.2               25.7
                                  ---------          --------         ---------

TOTAL GROUP                       3,085.2           2,669.6               15.6
                                  ---------          --------         ---------



Communications                       Revenue           Revenue         Revenue
----------------
Services Sector                         2008              2007          Growth
-----------------
                                          $m                $m        Reported
                                                                         08/07
                                                                             %

Advertising & Media
Investment
Management                         1,376.9           1,229.9              12.0

Information, Insight
& Consultancy                        449.6             399.4              12.6

Public Relations &
Public Affairs                       330.9             288.0              14.9

Branding & Identity,
Healthcare and
Specialist
Communications                       927.8             752.3              23.3
                                   ---------          --------         ---------

TOTAL GROUP                        3,085.2           2,669.6              15.6
                                   ---------          --------         ---------






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