Publicis Groupe to Comment on its Exposure to GM's Bankrupty

PARIS, June 4 -- General Motors, Monday June 1st, filed a petition for protection under Chapter 11 with the U.S. Bankruptcy Court in order to restructure its business. The premise of GM's restructuring plan is the sale of its businesses to a new company free from many of GM's legacy obligations.

GM asked the bankruptcy Court to grant "essential vendor" status to certain of its suppliers and to establish procedures for the assumption and assignment of certain contracts to the new company, and the bankruptcy court has agreed in principle with that concept. GM has authority from the court to grant "essential vendor" status to certain contracts, and has indicated that it will ask the court to approve the assumption and assignment of the bulk of its contracts to the new company. In both instances, GM has said in its bankruptcy filings that it expects to pay those vendors. The agencies of Publicis Groupe which work with GM have been asked to continue to work with GM through the bankruptcy and we expect our relationships to continue with the new company. In the event our agencies either are deemed essential or have their contracts assumed if the GM sale is approved, our agencies will have an important protection that reduces their exposure to the risk of non-payment of their debts in connection with GM before the date of the petition for protection, and assures a good relationship with the new company.

In addition, in many instances our agencies have acted as agents for GM with respect to certain suppliers, notably Starcom MediaVest's contracts with media owners for the purchase of media, which has led to GM scheduling Starcom as one of the large creditors in the bankruptcy proceedings. This represents the bulk of the business of our agencies in volume and value and reflects a conduit of funds to the media owners. According to the principle of "sequential liability", our agencies can only be held liable for payment of the invoices when acting in that capacity to the extent that they have been paid by GM.

As we are waiting for the bankruptcy Court decision, we continue to work with GM to confirm the essential or assumed status of our agencies' agreements, following the bankruptcy filing. When the decision will be taken, we shall be in a better position to quantify our financial exposure. Taking into account the principle of sequential liability which obliges us to pay media vendors on behalf of GM, only after receiving payment from GM, we evaluate today our maximum exposure at EUR 55 million. When our agencies' contracts are assumed and assigned to the new company that exposure is significantly reduced.

As soon as further information is available, more precise estimates on our exposure and risk will be communicated.

About Publicis Groupe

Publicis Groupe [Euronext Paris: FR0000130577] is the world's fourth largest communications group. In addition, it is ranked as the world's second largest media agency, and is a global leader in digital and healthcare communications. With activities spanning 104 countries on five continents, the Groupe employs approximately 45,000 professionals. Publicis Groupe offers local and international clients a complete range of advertising services through three global advertising networks, Leo Burnett, Publicis, Saatchi & Saatchi and two multi-hub networks, Fallon and 49%-owned Bartle Bogle Hegarty. Media consultancy and buying agency is offered through two worldwide networks, Starcom MediaVest Group and ZenithOptimedia; and interactive and digital marketing led by Digitas. Publicis Groupe recently launched VivaKi to leverage the combined scale of the autonomous operations of Digitas, Starcom MediaVest Group, Denuo and ZenithOptimedia to develop new services, tools, and next generation digital platforms. Publicis Groupe's Specialized Agencies and Marketing Services offer healthcare communications, corporate and financial communications, sustainability communications, shopper marketing, public relations, CRM and direct marketing, event and sports marketing, and multicultural communications.