(30 March 2006 2:00 pm)

MUMBAI: Publicis Groupe has agreed to acquire an 80 per cent stake in Betterway Marketing Solutions, one of the largest and most innovative full-range marketing services agencies in China.

The transaction, subject to Chinese regulatory approval, illustrates Publicis Groupe's strategic commitment to expand and deepen its marketing services operations in the fast-growing Chinese market and across Asia, where it recently bought control of Solutions, India's largest marketing services group.

The Betterway acquisition will allow Publicis Groupe to further strengthen the leading position it enjoys in China through its key advertising networks Publicis, Saatchi & Saatchi and Leo Burnett and its media brands, Starcom MediaVest Group and ZenithOptimedia, as well as through its specialised marketing services agencies.

Betterway, the only marketing services agency in China's top ten R3 Advertising Agency 2005 ranking, will give Publicis Groupe new opportunities throughout the Chinese heartland, thanks to its unique network of offices in 29 cities.

Upon completion of the agreement, Betterway co-chief executive officers Jenny Zhang and York Huang, will remain minority partners. Betterway will be aligned with the Groupe's Publicis network, which already maintains a solid presence in China through three key offices (Shanghai, Beijing and Guangzhou) and a multi-discipline marketing services division, Publicis Dialog, based in Shanghai.

Publicis Dialog, recently strengthened by the arrival of the entire 25-strong team from Tarantula China - the independent relationship marketing and events agency that joined Publicis Dialog in late 2005 - will work closely with Betterway. By joining forces, Publicis Dialog and Betterway will offer clients a substantial competitive advantage and will be able to significantly strengthen Publicis' unique holistic offering.

Within its network across China, Betterway implements projects in around 50 cities each month, offering an array of marketing services from creative development and sales promotion to sampling, trade activation, direct marketing and events.

Publicis Groupe chairman and CEO Maurice Levy said Betterway is a perfect partner to complement the Groupe's marketing operations in China. "Given the increasing demands of global advertisers in this market, where we already have a very strong base through our most important brands, our decision to go forward with Betterway will solidify the Publicis network's marketing activities -- allowing us to become an even stronger entity in China. The Betterway team is not only outstanding in the Chinese context; they are also world-class in the quality of their services, their ambitions for their clients and business ethics. I am very proud to welcome them to Publicis Groupe, and our clients can look forward to our enhanced offering, which will support their own development plans, not only in the top two or three cities, but throughout the country."

Publicis Asia Pacific regional chairman Guillaume Levy-Lambert said, "Both York Huang and Jenny Zhang are two extremely talented players representative of a new generation of marketing professionals in China. Our complementary outlook, common ambition and shared ethical mindset enabled us to rapidly find an understanding that led to the completion of this agreement, which will result in the alignment of Betterway to the Publicis network. They are young, competent and will fight hard for our clients in this exciting but challenging marketplace--bringing a new strategic and solid dimension to the Publicis holistic offering."

Betterway co-CEO York Huang said the joint collaboration with Publicis will allow Betterway to expand their scope of expertise. "We have enjoyed strong growth but in order to stay on top we had to anticipate the demands, and satisfy the growing needs of our clients, which is one of the main reasons we rated Publicis as our best choice. As the market grows the stakes become higher but with Publicis we can fulfill our clients' needs and ensure solid growth."