PBN Sells Strategic 49.9% Stake to WPP

WPP’s Investment in PBN to Support Growth in the former Soviet Union and other High-Opportunity Emerging Markets

Moscow, Russia — WPP and The PBN Company today announced a strategic partnership to further strengthen PBN’s leading position in Russia, Ukraine, other CIS countries and the Baltics and to leverage the firm’s expansion into other high-opportunity emerging markets.

WPP (www.wpp.com) is one of the world’s largest marketing communications companies. The PBN Company (www.pbnco.com) is the number one strategic communications firm specializing in the countries of the former Soviet Union. The firm’s clients include Western companies investing in the region as well as Russian, Ukrainian and CIS companies that are expanding both domestically and internationally. PBN has operated in the region since 1990, and has offices in Moscow, Kyiv, Almaty, Riga, London and Washington DC.

WPP has acquired a 49.9% interest in PBN. PBN’s original shareholders will maintain a controlling interest in the company. The firm will retain its strong PBN brand and the entire existing management team will remain in place to operate the company.

“This partnership combines the best of PBN’s entrepreneurial skills and regional expertise, with the clout and capacity of WPP as one of the world’s largest marketing communications companies,” said PBN Chairman and CEO Peter B. Necarsulmer. “Today PBN has more professionals in the United States, the U.K., Russia, Ukraine and the CIS dedicated to the region than any other communications company. The WPP partnership adds even more firepower to our client offering throughout the world.”

The PBN Company was founded in the United States in 1983 by Peter B. Necarsulmer and Susan A. Thurman, a husband and wife team, and continues to have an active US domestic practice. The firm serves major multinational and regional blue chip companies. BP, Bristol-Myers-Squibb, Enel, Merrill Lynch, Mittal Steel, Motorola, Pepsi, Telenor, Xerox and Western NIS Fund are some of the firm’s Western clients, and Basic Element, Ferrexpo, Renaissance Group, Rolf Group of Companies, Sberbank, UkrEximbank and UMC are representative of the firm’s regional clients. The firm has more than 100 employees in its six offices worldwide.

“PBN has deep roots and unparalleled experience in the countries of the former Soviet Union,” said Howard Paster, WPP Executive Vice President, Public Relations & Public Affairs. “Our companies have had the pleasure to work with PBN over the past several years and have witnessed firsthand the outstanding strategic advice and results the firm delivers to its diverse base of clients.”

“This is an exciting partnership that will further reinforce PBN’s position in our core markets and will leverage the firm’s growth in other high-growth emerging markets,” said PBN President Susan A. Thurman. “WPP and its founder, Sir Martin Sorrell, have consistently expressed confidence in and appreciation for the growth potential of Russia, Ukraine and the entire CIS. WPP’s visions and expectations of PBN as emerging markets specialists are firmly aligned with PBN’s shareholders and management, which is why we are so enthused about this partnership.”