Havas: Record Organic Growth of +8.0% in H1 2008

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Havas ADS (MM)	NASDAQ:HAVS	NASDAQ	Common Stock

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SURESNES, France, July 25 /PRNewswire-FirstCall/ -- "After record organic growth of 7.1% in 2007, Havas has sustained that trend in the first half of 2008. We are now preparing for a more fragile economic environment but our performance, which exceeded our expectations, leaves us comfortable about our ability to react." - Fernando Rodes Vila, Chief Executive Officer of the Havas Group - H1 revenue rose to EUR755 million in 2008, a 3.6% increase over H1 2007 at current exchange rates - H1 revenue up 10.6% at constant exchange rates - Q2 organic growth reached 8.4%, after 7.4% in Q1, establishing H1 organic growth at 8.0% - Strong organic growth achieved by all the group's businesses: - Euro RSCG: + 6.6% - Havas Media: +16.3% - Net new business(**) continued at a brisk pace : EUR623 million in Q2 following EUR510 million in Q1, i.e. EUR1,133 million in H1 2008 versus EUR1,242 million in H1 2007 1. General comments on our 8.0% organic growth in H1 2008: - In terms of revenue growth, all the group's businesses improved sharply, in particular digital, corporate communications, media expertise and design which all posted double-digit growth. These levels of performance confirm the group's strategy of focussing on new business and integration of the businesses. - As for the networks, Havas Media continues to generate very sustained organic growth in all countries and especially in the digital sector. Euro RSCG has progressed significantly largely due to the new business model launched last year putting integrated digital communications at the very heart of our creative agencies. The increasingly strong euro has had a negative impact on the group which would have achieved 10.6% growth at constant exchange rates in H1 2008. By comparison with H1 2007, the exchange rate impact was EUR46 million mostly attributable to the weakening of the US dollar and sterling against the euro. 2. Detailed comments on H1 by region Revenue (M EUR) H1 H1 Organic growth H1 H1 2008 2007* (%) 2008 2007* EUROPE 448 415 EUROPE 8.1% 5.0% NORTH AMERICA 234 220 NORTH AMERICA 6.4% 1.6% REST OF THE WORLD 73 65 REST OF THE WORLD 11.4% 11.2% including including Asia Pacific 36 30 Asia Pacific 18.0% 9.8% Latin America 37 34 Latin America 7.5% 16.8% TOTAL 755 700 TOTAL 8.0% 4.4% * at 2008 exchange rates and scope of consolidation While Europe has performed in line with the group as a whole, certain countries posted strong growth in excess of 10%, particularly in southern Europe in countries such as Portugal, Italy and Spain where Havas Media Spain continues to have an outstanding performance; Eastern Europe (Russia and Hungary); and Germany where growth is particularly driven by Havas Media Germany. Great Britain's growth accelerated sharply in the second quarter, despite the depressed market, thanks to good performance by all our entities and in particular Euro RSCG London, Euro RSCG KLP, Euro RSCG Biss Lancaster, The Maitland Consultancy and MPG UK. In France, four agencies clearly outperformed the market, namely Havas Media, Euro RSCG C&O, BETC Euro RSCG and W&Cie. North America also had a strong performance. Euro RSCG in the United States posted double-digit growth, out-performing the market, primarily thanks to the New York and Chicago creative agencies which adopted the new business model putting digital at the core. Havas Media also recorded a very sustained growth rate. In the rest of the world, growth was driven by Asia Pacific but the loss of the DELL account will affect the region as of the second half-year. Latin America's growth was close to that of the group and was driven by the media business. 3. Net New Business in 2008 Net New Business totalled EUR1,133 million in H1 2008. ** Net account gains, expressed in estimated annual billings. The complete definition can be found at the end of this release 4. Creativity In the second quarter, a large number of the group's agencies received awards at several advertising festivals. The main awards were: In April 2008, Latin Spots published its 2007 creativity ranking for Latin America in which Euro RSCG Buenos Aires came 10th. At the Sabre European Awards in May 2008, Euro RSCG C&O was named the Best Corporate Agency in France. Media Contacts Spain took the Best Interactive Agency prize at the Interactiva Awards in May as well as the award for the Best Integrated Online/Offline Media Campaign 2008 for Atrapalo.com. For only the second time since the creation of the prestigious D&AD Awards in 1962, a French agency received an award. BETC Euro RSCG took a Yellow Pencil for its eBay campaign in the Broadcast Innovation category. At the 55th International Advertising Festival in Cannes, Havas took ten Lions, Euro RSCG Sao Paulo taking a Silver Lion in the Press category for "Emily/Annie/Peter" (CERCA), with nine Bronze Lions going to Euro RSCG Lisbon in the Press category for "Balloons / Tourism / Stadium" (Delta Cafes), Euro RSCG Buenos Aires in the Radio category for "Faded Films" (Sony / Bravia HDTV), Euro RSCG Spain in the Outdoor category for "Protest / Child" (Strepsils), Archibald Ingall Stretton in the Cyber category for "Stare Out" (O2 / Mobile Telecommunications), BETC Euro RSCG in the Films category for "Adopt SciFi" (NBC Universal / SciFi), Euro RSCG New York in the Films category for "Auditorium" (Reckitt Benckiser / Clearasil), Arnold Boston in the Films category for "Puppet / Gun Store / Actor Interview" (American Legacy Foundation/Truth), MPG Spain / Barcelona in the Media category for "The Hung" (Atrapalo.com) and Nitro / Arnold in the Media category for "Interactive Cinema Gaming" (Volvo). Arnold Boston triumphed at the One Show with a Gold and a Silver Award. The One Show Design bestowed a Silver award on Euro RSCG New York for Kraft/Ritz Crackers. At the Clio Awards, once again Arnold Boston was acknowledged with three Bronze awards while Euro RSCG BETC took one Bronze. Arena BLM received the Grand Prix for Domino's Pizza at the Thinkbox TV Planning Awards. At the New York Festivals, Euro RSCG 4D Amsterdam took one Gold and one Silver award in the Internet category for its Volvo campaign at the Innovative Advertising Awards. In the All Media competition, Arnold Boston received seven awards while Euro RSCG Worldwide took twenty awards. At the US Effies, Arnold Boston took a Gold award for Ocean Spray and two Silver awards for American Legacy. 5. Calendar The H1 2008 results will be published on August 28, 2008. 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 and Havas Media, which are headquartered in New York and Barcelona respectively, and through a number of independent agencies renowned for their creativity, such as 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 which speak only as of the date on which they are made. Forward-looking statements relate to projections, anticipated events or trends, future plans and strategies, and reflect Havas' current views about future events. They are therefore subject to inherent risks and uncertainties that may cause Havas' actual results to differ materially from those expressed in any forward-looking statement. Factors that could cause actual results to differ materially from expected results include changes in the global economic environment or in the business environment, and in factors such as competition and market regulation. For more information regarding risk factors relevant to Havas, please see Havas' filings with the Autorite des Marches Financiers (documents in French) and, up to October 2006, with the U.S. Securities and Exchange Commission (documents in English only). 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. (1) : 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: Lorella Gessa Director of Communications Tel: +33(0)1-58-47-90-36 Investor Relations: Herve Philippe Chief Financial Officer Tel: +33(0)1-58-47-91-23 Elsa Cardarelli Tel: +33(0)1-58-47-90-58 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.fr/ SA au capital de 171 940 080,40 EUR - 335 480 265 RCS Nanterre - APE 7311Z DATASOURCE: Havas CONTACT: Contacts: Communications, Lorella Gessa, Director of Communications, Tel: +33(0)1-58-47-90-36, ; Investor Relations: Herve Philippe, Chief Financial Officer, Tel: +33(0)1-58-47-91-23, ; Elsa Cardarelli, Tel: +33(0)1-58-47-90-58,

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