Quarterly Trading Update

WPP Group PLC
26 April 2001


                                                                  26 April 2001



                                      WPP

                         QUARTERLY TRADING UPDATE

               FIRST QUARTER REPORTED REVENUES UP OVER 73%

              COMBINED WPP & Y&R  CONSTANT CURRENCY REVENUES
                                   UP OVER 9%

      OPERATING MARGINS ON TARGET TO IMPROVE BY ONE MARGIN POINT IN 2001


Revenue Growth

Reported revenues grew over 73%, reflecting organic growth, the first- time
contribution of Young & Rubicam, Inc. ('Y&R') and other acquisitions and the
strength of the dollar and major Continental European currencies against
sterling.  In constant currencies, first quarter revenues rose by 64%.

Combined WPP and Y&R constant currency revenues were up over 9% and on a
like-for-like basis, excluding acquisitions and currency fluctuations,
revenues rose 6%.

As shown in the appendix to this release, on a constant currency basis, the
geographical pattern of revenue growth varied in the first quarter.  In North
America, revenues were up over 64%.  In Europe, the UK was up over 35% and
Continental Europe up over 90%.  Asia Pacific, Latin America, Africa and the
Middle East grew over 72%.  On a combined WPP and Y&R constant currency basis,
North America was below the average, with the UK and Continental Europe above.
Asia Pacific and Latin America were above even more.

By communications services sector, advertising and media investment management
was up over 64%, information and consultancy up almost 15%, public relations
and public affairs up almost 117% and branding and identity, healthcare and
specialist communications over 83%.  Again on a combined WPP and Y&R constant
currency basis, information and consultancy was well above the average.
Advertising and media investment management, public relations and public
affairs and branding and identity, healthcare and specialist communications
were slightly below average.

Net new business billings of £235 million ($365 million) were won during the
first quarter.  The Group continues to benefit from consolidation trends in
the industry, winning several large assignments from existing and new clients.

Current Trading

Organic revenue growth in the first quarter, to some extent reflects the sharp
deceleration in the growth rate of the United States economy, that seems to
have started in the fourth quarter of 2000.  The impact of this slowdown has
primarily impacted the technology, media and telecommunications sectors of the
economy, although there is some spill over into the 'old' economy.

So far, by region, it has primarily affected North America, with less impact
on the UK and Continental Europe and even less on Asia Pacific and Latin
America.  As a result our operating companies continue to review their costs
closely and make adjustments where necessary.

By communications services sector, it has impacted public relations and public
affairs, and branding and identity, healthcare and specialist communications
the most, advertising and media investment management less so, and information
and consultancy the least.

First quarter revised forecasts for the year indicate that the Group is on
target to achieve its objective of a further one point margin improvement in
operating margins from 14.0% to 15.0% in 2001.

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 strategic acquisitions and
share purchases.

In the first quarter of 2001 the Group completed acquisitions in advertising
and media investment management in the United States, the United Kingdom,
South Korea and Brazil; in information and consultancy in Germany; in public
relations and public affairs in the United States, France and South Korea; and
in branding and identity, healthcare and specialist communications in the
United States, the United Kingdom, France and Hong Kong.

Almost 3.8 million WPP shares were purchased during the first quarter at an
average price of £7.57 and total cost of over £28 million.  The rolling
buy-back program continues at an increased target level of £150 to £200
million per annum, equivalent to approximately 2% of the current market
capitalization.

Average net debt rose during the first quarter to £470 million (including Y&
R's convertible debt of £195 million) compared to £239 million in the same
period in constant currency and to a market capitalization of approximately £9
billion.   This includes the  £653 million spent on capital expenditure,
acquisitions, share purchases and dividends in the previous 12 months.  Free
cash flow over the same period was  £417 million.

Future Objectives

The Group continues to focus on its key objectives of improving operating
profits and margins, increasing cost flexibility (particularly in the areas of
staff and property costs), using free cash flow to enhance share owner value,
continuing to develop the role of the parent company in adding value to our
clients and people, developing our portfolio in high revenue growth
geographical and functional areas and improving our creative quality and
capabilities.

For further information:

Sir Martin Sorrell                            )    44 207 408 2204
Paul Richardson                               )    1 212 632 2301
Feona McEwan                                  )



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: Revenue and revenue growth by region and communications services
sector

3 months ended March 31, 2001

                                                        Revenue        Constant
                                                         Growth        Currency
Region                                                 Reported      Growth (1)
                                       2001     2000  2001/2000       2001/2000
                                       £m       £m            %               %

North America                         468.9    260.0       80.3            64.1

United Kingdom                        150.4    111.1       35.4            35.4

Continental Europe                    198.3    101.5       95.4            90.6

Asia Pacific, Latin America, Africa
& Middle East                         148.8     85.4       74.2            72.1

Total Group                           966.4    558.0       73.2            64.3


                                                      Revenue          Constant
Communications services                                Growth          Currency
sector                                               Reported        Growth (1)
                                2001    2000        2001/2000         2001/2000
                                £m        £m                %                 %

Advertising, media
investment
management                     431.3   249.5             72.9              64.2

Information &
consultancy                    135.1   113.5             19.0              14.7

Public relations
& public affairs (2)           130.7    56.2            132.6             116.9

Branding & identity,
healthcare and                 269.3   138.8             94.0              83.3
specialist communications

Total Group                    966.4   558.0             73.2              64.3



(1) Constant currency growth excludes the effects of currency movements.

(2) The revenue figures submitted to the O'Dwyer Report reflect some public
relations income which is included here in advertising, media investment
management and branding & identity, healthcare and specialist communications.
Total public relations and public affairs revenues grew by over 97% to $205
million in the three months to March 31.