Havas: 2006 Revenue

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Havas ADS (MM)	NASDAQ:HAVS	NASDAQ	Common Stock

Havas (NASDAQ:HAVS)
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Annual Revenue up for the First Time Since 2001 SURESNES, France, February 2 /PRNewswire-FirstCall/ -- - Euro RSCG Worldwide Named "Global Agency of the Year" by Campaign and "Advertising Network of the Year" by Advertising Age 1. General comments For the first time in five years, Havas reported real growth in annual revenue for 2006. Full-year revenue was 1,472 million euros compared to 1,461 million euros for the previous year, an increase of +0.8%. At constant exchange rates, the increase was +1.0% over the full year. Excluding exchange rate and scope of consolidation changes, organic growth for 2006 was +0.6%. Havas' performance won recognition from Advertising Age and Campaign, the top advertising trade publications in the United States and United Kingdom respectively, both of which named Euro RSCG Worldwide as the best global advertising agency. BETC Euro RSCG was voted best agency of the year by CB News. In France, the Recma report ranked MPG France as the country's leading media agency. Q4 2006 revenue was 410 million euros, reflecting organic growth of +0.4% compared to +1.8% for Q4 2005. A much weaker dollar in the 4th quarter contributed to a global exchange rate impact on the Group revenue of 13 million euros, although exchange rate movements for the first nine months of the year had remained favorable. 2. Detailed analysis by region for the 4th quarter Good news came in the form of a return to growth in North America and confirmation of growth in Asia-Pacific and in the UK. Elsewhere, Latin America saw an acceleration in the trend apparent since the start of the year, with double-digit organic growth. The figures in brackets show revenue (millions of euros) and organic growth for the periods mentioned: - France (83, -5.6% in Q4 2006 and 304, +0.4% for full year 2006) Euro RSCG produced an excellent performance and reported excellent performance. Healthcare communication produced an excellent performance but as media consulting, it was penalized by a high baseline for comparison in Q4. - United Kingdom (48, +6.2% in Q4 2006 and 176, +2.0% for full year 2006) The UK reported its strongest quarterly growth for five years, thanks to a remarkable performance by advertising, corporate communication and healthcare communication. - Europe (95, -3.8% in Q4 2006 and 316, +5.9% for full year 2006) Overall, healthcare communication and CRM reported excellent performance over the year as a whole. Even so, certain key countries - the Netherlands and Portugal - were seriously affected by high baselines in the fourth quarter. The vitality of other key countries such as Italy and Poland was noteworthy. - North America (145, +1.6% in Q4 2006 and 550, -4.0% for full year 2006) The region enjoyed a return to growth in Q4, for the first time this year. Healthcare and corporate communications again proved extremely dynamic, particularly at Euro RSCG. After a difficult first quarter, media consulting at MPG went from strength to strength. - Asia Pacific (17, +4.8% in Q4 2006 and 60, -0.6% for full year 2006) Renewed growth in the region is driven by India, Korea, Japan, Taiwan, Thailand, Singapore and Malaysia. - Latin America (22, +26.9% in Q4 2006 and 67, +19.0% for full year 2006) Most countries in the region reported double-digit growth in the fourth quarter. 3. Net New Business 2006 Net New Business was 1,931 million euros for full year 2006. Lehmann Brothers ranked Havas number one for New Business in both November and December 2006, as well as for 2006 overall. The main accounts won in Q4 2006 were: - Advertising: Weight Watchers Meetings and Staples UK Retail (UK) ; SNCB and le Pass (Belgium) ; SFR and Manpower (France) ; Progressive Direct, Pearle Vision, Trex Company, Life Time Fitness, Select Comfort, Boniva for GlaxoSmithKline & Roche and Circuit City (USA); Viartril-S (Taiwan); CiticFirst Wealth Management (Hong Kong) - Media: Peugeot-Citroen, Forte Pharma, Schmidt/Cuisinella, Boostore of Carrefour, Century 21, Cdiscount, Pro BTP and Cheque Emploi Service Universel (France) ; Orange, Copa America 2007, Escalona Golf, Fiat, Olimpo, Parrot, Clickair and Banco Santander Central Hipano (Spain) ; Telefonica (Brazil) ; Transantiago (Chile). - Marketing services: Practical Action (UK) - Corporate: EDF, RATP and Sanofi-Aventis (France) 4. Creativity Creative awards for the final quarter of 2006: At the Cresta International Advertising Awards in October, BETC Euro RSCG, Euro RSCG Madrid, Euro RSCG London, Euro RSCG 4D Amsterdam and Arnold Boston took a total of ten awards. Euro RSCG Shanghai made its mark with eight awards and Euro RSCG Life with a Gold Award at the 13th National Awards in China. At the 'El Ojo de Iberoamerica' Latin-American festival, 11 awards were made to Euro RSCG Buenos Aires, Euro RSCG Santiago, Euro RSCG Viceversa, Euro RSCG 4D Sao Paulo and EHS Brann in Argentine, including 3 Gold awards: one to Euro RSCG Argentina for its "Futbol" campaign for Sony Argentina, another to Euro RSCG 4D Sao Paulo for "Oops" on behalf of Reckitt Benckiser and the third to EHS Brann for its "El teatro levanta la mano" for Coca-Cola. Media Contacts Barcelona won a Gold EFFIE Award for its campaign for Nike "Botas Tempo Legend" in the media effectiveness category and a Bronze EFFIE for its direct response strategy campaign for SpanAir. Control Magazine recognised MPG Spain as the Best Media Agency for the third year running. At the London International Advertising Awards in November, BETC Euro RSCG was awarded yet again for the "March of the Emperors" for Canal + and Arnold Boston took three notable awards for its American Legacy and Timberland campaigns. 17 awards were made to Group agencies at the Epica Awards, Europe's premier creative awards, held in December 2006. BETC Euro RSCG did particularly well, taking 8 awards for its campaigns for Canal+, Air France, 13eme Rue, INPES, Peugeot and ECPAT. Euro RSCG 4D Amsterdam, Euro RSCG Spain, Euro RSCG Prague, Euro RSCG London, Euro RSCG Switzerland and Scher Lafarge were also awarded. At the Eurobest Awards, BETC Euro RSCG won two awards, a Gold for "March of the Emperors" for Canal + and a Silver for > for 13eme Rue. 2006 drew to a close with the Meribel Ad Festival where BETC Euro RSCG walked away with ten Cristal awards, including a Cristal Europe, while Devarrieuxvillaret and Euro RSCG 4D Paris each took two Cristal awards and Euro RSCG Germany, Euro RSCG Brussels and Havas Media UK one Cristal award each. 5. Calendar The Group will publish its 2006 results in March 2007. About Havas Havas (Euronext Paris: HAV.PA) is a global advertising and communications services group. Headquartered in Paris, Havas operates through its two worldwide networks, Euro RSCG Worldwide headquartered in New York and Havas Media in Barcelona, and through Arnold Worldwide Partners. A multicultural and decentralized Group, Havas is present in more than 75 countries through its networks of agencies and contractual affiliations. The Group offers a broad range of communications services, including traditional advertising, direct marketing, media planning and buying, corporate communications, sales promotion, design, human resources, sports marketing, multimedia interactive communications and public relations. Havas employs approximately 14,400 people. Further information about Havas is available on the company's website: http://www.havas.com/ Forward-Looking Information This document contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions, concerning matters that are not historical facts. These forward-looking statements reflect Havas' current views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause Havas' actual results to differ significantly from those expressed in any forward-looking statement. Certain factors that could cause actual results to differ materially from expected results include changes in global economic, business, competitive market and regulatory factors. For more information regarding risk factors relevant to Havas, please see Havas' filings with the U.S. Securities and Exchange Commission. Havas does not intend, and disclaims any duty or obligation, to update or revise any forward-looking statements contained in this document to reflect new information, future events or otherwise. (a) Net New Business : Net new business represents the estimated annual advertising budgets for new business wins (which includes new clients, clients retained after a competitive review, and new product or brand expansions for existing clients) less the estimated annual advertising budgets for lost accounts. Havas' management uses net new business as a measurement of the effectiveness of its client development and retention efforts. Net new business is not an accurate predictor of future revenues, since what constitutes new business or lost business is subject to differing judgments, the amounts associated with individual business wins and losses depend on estimated client budgets, clients may not spend as much as they budget, the timing of budgeted expenditures is uncertain, and the amount of budgeted expenditures that translate into revenues depends on the nature of the expenditures and the applicable fee structures. In addition, Havas' guidelines for determining the amount of new business wins and lost business may differ from those employed by other companies. Contacts : Communications : Anne Marsan Tel: +33-(0)1-58-47-90-33 Solenne Anthonioz Tel: +33-(0)1-58-47-90-27 Investor Relations: Herve Philippe Directeur Financier du Groupe Havas Tel: +33-(0)1-58-47-91-23 2 allee de Longchamp 92281 Suresnes Cedex, France Tel +33-(0)-1-58-47-90-00 Fax +33-(0)-1-58-47-99-99 http://www.havas.com/ SA au capital de 171 179 760,80 euros - 335 480 265 RCS Nanterre - APE 744 B [1] Net account wins, expressed in estimated annual billings. Full definition given on the last page of the press release. DATASOURCE: Havas CONTACT: Communications : Anne Marsan, Tel: +33-(0)1-58-47-90-33, , Solenne Anthonioz, Tel: +33-(0)1-58-47-90-27, , Investor Relations: Herve Philippe, Directeur Financier du Groupe Havas, Tel: +33-(0)1-58-47-91-23,

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