Organic Growth Accelerates in Fourth Quarter 2004: +4.6%

Organic Growth Accelerates in Fourth Quarter 2004: +4.6%

Organic Growth for the Year 2004: +2%

New Business 2004: +59% in Net Revenue

SURESNES, France, February 9/PRNewswire-FirstCall/ -- 1. The acceleration in organic growth in the 4th quarter clearly
underscores the Group's recovery in 2004



Havas today announced revenue of EUR 406 million for fourth
quarter 2004, representing organic growth of +4.6% compared to fourth quarter
2003.



This performance confirms the Group's successful reversal of the trend
throughout 2004 (Q1 +0.7%, Q2 +0.5%, Q3 +2.1%, Q4 +4.6%).



2004 revenue is EUR 1,494 million. At constant exchange rates and
structure, organic growth for 2004 is +2%.



2. All regions reported positive organic growth in the 4th quarter



- In France, activity was strong throughout the year with
fourth quarter performance better than third quarter thanks to a number of
major accounts won in the second half of 2004.



- The United Kingdom ended the year on a high note with
positive organic growth in the 4th quarter, bringing the region almost back
up to breakeven for the year and confirming the effectiveness of the new
teams put in place.



- In Europe (excluding the UK and France) organic growth in
the fourth quarter remained positive at +1%, in line with forecasts. Overall
organic growth for the year shows a good trend at +4.1%.



- In the USA, organic growth turned positive at +3.4%, an
excellent performance, ahead of expectations, mainly due to record new
business at Arnold, MPG and in Healthcare and Marketing Services at Euro
RSCG.



- In both Latin America and Asia Pacific, organic growth
remained very strong.



4th Quarter




Q4 04 Organic growth
Revenue Q4 04 vs Q4 03
(in EUR millions)

France 87 +6.4%
Europe (excluding France and 80 +1.0%
UK)
United Kingdom 52 +2.4%
North America 149 +3.4%
Asia-Pacific 19 +10.4%
Latin America 19 +11.1%
TOTAL 406 +4.6%




Full year 2004




2004 Revenue Organic growth
(in EUR millions) 2004 vs 2003

France 296 +6.6%
Europe (excluding France and 264 +4.1%
UK)
United Kingdom 221 -0.4%
North America 585 -1.9%
Asia-Pacific 65 +7.3%
Latin America 63 +11.6%
TOTAL 1,494 +2.0%




3. 2004 Net New Business: +59% in terms of estimated net revenue



Net New Business for 2004 amounted to billings of EUR 1.5 billion.
Expressed in terms of estimated annual net revenue, this represents growth of
+59% over 2003.



Key accounts won in the 4th quarter include:




- Integrated communication accounts:

Charles Schwab and Vonage (USA) and two pharmaceutical
products manufactured by Pfizer (USA)

- Traditional advertising accounts:

Glaxo Smithkline Consumer (Italy), Eurotel (Czech Republic),
Pantech (China), Jacob Delafon (France), Barilla's Wasa
Crispbread (USA)

- Media accounts:

SNCF (France), Coca Cola and CTI Movil Argentina (Argentina)

- Marketing Services accounts:

Diageo, Bosley Medical Institute (USA), Orange (France)

- Corporate/Healthcare accounts:

Celgen, DEY LP Duoneb and Curosurf (USA), Alstom and Sanef
(France)




The strong performance has continued into the early weeks of
2005. Significant new accounts won since the start of the year include:
Lukoil (Arnold), Yahoo ! Hot Jobs PR (Euro RSCG Magnet), Homebase in
marketing services (Euro RSCG 4D), Lou (Euro RSCG Compagnie), P&O ferries
(MPG London), Auto Zone (MPG USA).



During the same period, however, the group has lost the Intel
account and the Volkswagen media mandate in the USA.



4. Highly satisfactory results in creativity




- Advertising Age ranked Euro RSCG Worldwide the 2nd most
successful network in 2004 for global and pan-regional account wins.

- The RECMA report ranks MPG as joint leader in France.

- Euro RSCG Life was voted best agency/best network of the
year for 2004 by Medical Marketing & Media magazine.

- Arnold Boston remains one of the top award-winning agencies
worldwide in the fourth quarter of 2004, winning a series of awards for its
American Legacy campaign at the New York Festival, the Cresta Awards, and
taking the Grand Prix at the London International Advertising Awards.

- BETC Euro RSCG's "Waterboy" campaign for Evian took prizes
at the 2004 Euro Effies and Epica awards and was awarded the Grand Prix at
Eurobest.

- Euro RSCG London's "Artery" campaign won awards at Eurobest
and at the Direct Marketing Awards. It is also the third most awarded
marketing direct campaign in the world.

- BETC Euro RSCG's campaigns for Peugeot took several prizes,
in particular for the Peugeot 407 "Toys" campaign which was recognized at
Eurobest, Epica, the London International Festival and SATCAR. "The Bridge"
campaign for the Peugeot 607 also won a number of awards, including the
Cristal for the best pan-European campaign and the advertisers' Cristal at
the Meribel Festival. The campaign has also notched up Eurobest, Cresta,
SATCAR and London International Festival awards.

- Euro RSCG Flagship's Soken DVD "Kill Bill Kill Bill /
Titititannic / XXX" were ranked third most award campaigns by the 2004 Gunn
Report.

- Havas won eleven prizes at the New York Festivals TV/Film
and BETC Euro RSCG alone scooped 50% of the French prizes with two golds and
two silvers.




5. Very good prospects for profitability in 2004



The Group's operating margin for 2004 should be higher than for the first
half of the year thanks to the rapid acceleration in organic growth reported
in the second half.



Commenting on these results, Havas Chairman and CEO Alain de Pouzilhac
said:



"This doubling in the rate of organic growth in our 4th
quarter revenue underlines even more positively the turnaround achieved by
Havas since the start of 2004.



It is the direct result of the decisions and actions taken as
part of the strategic reorganization launched at the end of 2003.



Our results to be presented early March will show, moreover,
that all the targets management had set itself over the year have been
achieved and even exceeded.



This is the clearest possible demonstration that our strategy
is the right one and is bearing fruit. I would like to thank everyone in the
Group for their creative talent and commercial energy which have fuelled this
impressive turnaround.



In this context, we can only be optimistic for 2005
performance."



About Havas



Havas (Euronext Paris: HAV.PA; Nasdaq: HAVS) is a global
advertising and communications services group. Headquartered in Paris, Havas
has three principal operating divisions: Euro RSCG Worldwide which is
headquartered in New York, Arnold Worldwide Partners in Boston, and Media
Planning Group in Barcelona. A multicultural and decentralized Group, Havas
is present in 88 countries through its networks of agencies located in 45
countries and contractual affiliations with agencies in 43 additional
countries. 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 15,000 people.



Further information about Havas is available on the company's website:
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.



Net New Business :



Net new business represents the estimated annual advertising
budgets (or revenue depending on the cicumstance) 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 (or revenue depending on the circumstance) 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 (or revenue depending on the circumstance), 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.




APPENDIX - 2004 ORGANIC GROWTH

1. 2003 Revenue 1 645
2. Exchange rate impact (66)
3. 2003 Revenue at 2004 exchange rates 1 579
4. Impact of companies sold or closed (129)
5. Impact of acquisitions +14
6. 2003 Revenue at 2004 exchange rates and scope 1 464
7. 2004 Reported revenue 1 494
8. Organic growth +2.0%



Source: Havas

Communications: Peggy Nahmany, Tel: +33-(0)1-58-47-90-73, peggy.nahmany@havas.com or Investor Relations: Virginia Jeanson, Tel: +33-(0)1-58-47-91-34, virginia.jeanson@havas.com or Catherine Francois, Tel: +33-(0)1-58-47-91-35, catherine.francois@havas.com


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