March 3, 2000

Don Seeley: 312/425-6505
Kathryn Woods: 212/727-5582

 FOR IMMEDIATE RELEASE

 TRUE NORTH REPORTS STRONG FOURTH QUARTER AND 1999 EARNINGS FROM OPERATIONS

 Q4 earnings rose to $0.85 per diluted share on higher organic growth and operating margin.

• Organic growth was 9.0% from 0.6% a year ago; operating margin rose to 17.1% from 15.7%.
• Q4 net new business wins doubled to $156 million in equivalent annualized billings vs. a year ago.
• Q4 acquisitions strengthened FCB in Europe as well as multicultural and digital marketing.

A stronger global structure and increasing collaboration is fostering growth worldwide.

• Organic growth rose to 6.2% for the full year 1999, with 140+ collaborative wins since April.
• 1999 net new business wins increased 28% to $640 million in equivalent annualized billings.
• International organic growth rose to 8.1% in the fourth quarter.

Fourth Quarter and 12-Month 1999 Highlights
Excludes unusual items and the 1998 impact of a Feb. 1999 pooling of interests transaction. (Amounts in thousands, except per share data and percentages)

See the attached statements which reconcile the above table to reported results.

March 3, 2000

Don Seeley: 312/425-6505
Kathryn Woods: 212/727-5582

FOR IMMEDIATE RELEASE

TRUE NORTH REPORTS STRONG FOURTH QUARTER AND 1999 EARNINGS FROM OPERATIONS

CHICAGO – True North Communications Inc. (NYSE: TNO) today reported stronger earnings for the fourth quarter and the full year 1999, led by improved organic growth and operating margin.

Fourth Quarter Results
For the fourth quarter ended December 31, 1999, net income was $42.2 million or $0.85 per diluted share, compared with a net loss of $7.3 million or $(0.16) per share in 1998's fourth quarter.

Excluding 1998 unusual items and the 1998 impact of a pooling of interests transaction, as detailed in the attached financial schedules, fourth quarter 1999 net income rose 22% to $42.2 million from $34.7 million, with earnings per diluted share up 13% to $0.85 from $0.75 in the year-ago quarter. Diluted average shares outstanding increased 7% from a year ago. Fourth quarter results include pretax gains on the sale of securities of $4.7 million ($2.7 million after tax or $0.05 per diluted share).

Fourth quarter revenues increased 19% to $423.6 million, paced by organic growth of 9.0% compared with 0.6% a year ago. Excluding Modem Media (Nasdaq: MMPT), which is approximately 48% owned by True North, organic growth was 6.6%. Net new business grew to $156 million in equivalent annualized billings, up from $75 million in last year's fourth quarter. Operating income rose 30% to $72.5 million, as staff costs as a percentage of revenues decreased to 54.6% from 58.3% in last year's fourth quarter. As a result, operating margin increased to 17.1% in the fourth quarter from last year's 15.7%.

"We continued to make progress toward achieving our near-term financial goals in the fourth quarter, as we built on the year-over-year trends of stronger organic growth from both current clients and new business, as well as higher operating margins," said David Bell, True North's Chairman and Chief Executive Officer. "Moreover, our growth was balanced between U.S. and international markets, reflecting the positive impact of our new global structure. True North is definitely headed in the right direction, with the client capabilities and global leadership to build on our growth momentum. We are still in the early stages of realizing True North's upside potential."

Full Year 1999 Results
For the year ended December 31, 1999, net income was $38.8 million or $0.81 per diluted share, compared with net income of $27.3 million or $0.57 per diluted share in 1998.

Excluding 1998 unusual items and the 1998 impact of a pooling of interests transaction, 1999 net income rose 24% to $86.1 million from $69.4 million, with earnings per diluted share up 19% to $1.79 from $1.50 in the prior year. Diluted average shares outstanding increased 4% from 1998.

Revenues increased 16% in 1999 to $1.4 billion on broad-based growth throughout True North, both among operating divisions and between domestic and international operations. Organic growth was 6.2%, up from 0.2% in 1998. Excluding Modem Media, organic growth was 4.5% in 1999.

Operating income rose 21% to $158.7 million in 1999. As a percentage of revenue, staff costs decreased to 60.5% in 1999 from 61.5% in the previous year, while other general expenses increased to 28.4% from 28.0% in 1998, partly due to Y2K compliance costs. With revenue growth outpacing the increase in total operating expenses, operating margin rose to 11.0% from 10.6% in the prior year. Earnings also benefited from initiatives that reduced the effective tax rate to 43.0% in 1999 from 44.5% in 1998.

New Business Wins, Progress Against Key Goals
True North's net new business increased to approximately $156 million in equivalent annualized billings in the quarter, up from $75 million a year ago. For the full year, net new business rose 28% to approximately $640 million in equivalent annualized billings, up from $500 million in 1998.

Bell said True North improved against each of its near-term financial goals:

"We're making solid progress against all of our metrics, and are particularly pleased with the strong momentum in the fourth quarter," Bell said. "Equally important, we see numerous opportunities to continue this positive momentum and achieve stronger results in the future. When you consider that we're still in the early stages of capitalizing on our global structure and the brands within our Diversified Companies, you can see there's a lot of upside in True North."

Bell continued, "For example, we announced our new global structure in September 1999 and we are already beginning to see a positive impact, with stronger international revenue growth and organic growth in the fourth quarter. Before we had global coverage – now we have global strength – and we're confident that we'll continue to get stronger."

"We're also delivering on our acquisition priorities, with several transactions since the third quarter that expanded the European presence of both FCB and our public relations agency, BSMG, and a key acquisition for the New America Strategies Group," Bell noted. "We also strengthened True North's portfolio of interactive services brands, acquiring digital branding agency Stein Rogan. True North is clearly a leader in digital marketing, with our equity position in Modem Media as well as our wholly owned brands: R/GA Interactive, Bozell Silicon Valley, BSMG CyberPR, and our new SixtyFootSpider brand."

Outlook for 2000
"The outlook for 2000 is encouraging," Bell said. "Industry conditions are healthy, organic growth and new business are gaining steam, and we're on track to meet our near-term financial goals. We now have the global structure and the leadership position, and we're developing the assets to capitalize on the digital revolution and other fast-growth arenas. We've set the stage for continued progress."

Cash Flow
Fourth quarter EBITDA (earnings before interest, taxes, depreciation and amortization, as well as restructuring charges) was $92.8 million, up 135% from $39.4 million in the year-ago quarter. Depreciation and amortization totaled $15.8 million in this year's fourth quarter, compared with $9.8 million in 1998's fourth quarter.

In 1999, EBITDA rose 46% to $226.3 million from $155.1 million in 1998. Depreciation and amortization totaled $56.3 million in 1999, up from $45.1 million a year ago.

Key Growth Initiatives – Q4 New Business
Commenting on True North's new business performance in the fourth quarter, Bell said, "In addition to our continuing growth in new business in the U.S., we are very encouraged by the new business we are gaining on the international front. Our growth in new business worldwide spans a wide range of geographies and includes a number of highly sought-after accounts."

Fourth quarter new business showed global and pan-regional gains. Other highlights included:

Key Growth Initiatives – Q4 Collaboration
Presently, more than 175 clients work with two or more True North companies, and 25 clients are served by four or more True North companies. Since April 1999, collaboration has resulted in more than 140 new assignments throughout True North. New collaborative efforts during the fourth quarter included:

• FCB Worldwide with BSMG Worldwide – Monsanto
• FCB Worldwide with BSMG Worldwide – Quaker Foods
  
• FCB Worldwide with BSMG Worldwide – SC Johnson
  
• FCB Worldwide with R/GA Interactive – About.com
  
• FCB Worldwide with TN Media – Chase Manhattan
  
• Bozell with Tierney & Partners – IKON Office Solutions
  
• Avrett Free & Ginsberg with Bozell Global Healthcare – Rexall Sundown
  
• BSMG Worldwide with Bozell Silicon Valley – Adam.com
  
• KSL Media with BSMG Worldwide – Fodor's
  
• Tierney & Partners with Marketing Drive Worldwide – Deloitte Consulting

Key Growth Initiatives – Q4 Acquisitions
In the fourth quarter, True North announced transactions related to two of its acquisition priorities – to enhance FCB Europe and expand multicultural marketing – plus the acquisition of a digital marketing agency. Looking ahead, True North will continue to target acquisitions in Europe for FCB in traditional, healthcare and direct. True North is also seeking acquisitions in multicultural marketing, public relations and sales promotion, each of which are growing at twice or more the rate of traditional advertising. Fourth quarter acquisitions included:

· FCB Europe: In the fourth quarter, FCB acquired Augusta BBT, one of the top three independent agencies in Barcelona. The move better enables FCB Spain to serve key multinational clients like Nabisco. And, in combining Augusta BBT with FCB's existing operation in Barcelona, FCB Spain strengthens its position as that country's 8th largest agency.

· Multicultural Marketing: True North strengthened its leadership in multicultural marketing by acquiring a 49% stake in Imada Wong Communications Group, a leading Asian Pacific American marketing communications firm, which will operate as part of True North's New America Strategies Group (NASG). With offices in Los Angeles, San Francisco and New York, Imada Wong serves such leading clients as AT&T, Northwest Airlines, Washington Mutual and Merrill Lynch.

· Digital Marketing: True North expanded its commitment to Internet services companies with the acquisition of Stein Rogan + Partners, a New York-based advertising agency specializing in integrated online and offline marketing for digital brands. Stein Rogan was a first-mover among integrated offline/online agencies, entering this marketplace in 1995. Stein Rogan serves such digital brands as E-Steel, cars.com, snowball.com and blackboard.com.

Other Interactive Initiatives
· New Interactive Brand: At the close of the fourth quarter, True North launched a new interactive brand, SixtyFootSpider, a data-driven, interactive communications company offering complete interactive solutions through six interactive disciplines: strategic consulting, technology, media, creative, development and relationship technology. SixtyFootSpider now has offices in Dallas, Seattle and New York. It services more than 20 clients – including the United States Air Force, Subaru of America, Inc., Bahamas Ministry of Tourism and epicRealm.

CAUTIONARY STATEMENT
Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of Section 21E(i)(1) of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause True North's actual results to be materially different from any future results expressed or implied by these statements. Such factors include the following: general economic and business conditions, changes in demand for True North's services, changes in competition, the ability of True North to integrate acquisitions or complete future acquisitions, interest rate fluctuations, dependence upon and availability of qualified personnel and changes in government regulation. In light of these and other uncertainties, the forward-looking statements included in this document should not be regarded as a representation by True North that True North's plans and objectives will be achieved.

True North Communications (NYSE: TNO) is a top global advertising and communications holding company. It has three major advertising agencies: FCB Worldwide, a top-ten global agency and the largest agency brand in the U.S.; and two strongly positioned agencies in the U.S., Bozell Group and Temerlin McClain. True North Diversified Companies group is comprised of leading communications services brands, including: BSMG Worldwide, public relations; Marketing Drive Worldwide, global marketing services; R/GA Interactive; Tierney & Partners, advertising and PR; TN Media; and New America Strategies Group, the largest multicultural marketer; among others. True North, based in Chicago, has annual revenues exceeding $1.4 billion and annual billings of more than $14 billion.

Download Consolidated Income Statement.

Download Operations Analysis Quarter Ended December 31,2000 Spreadsheet.

Download Operations Analysis Year Ended December 31,2000 Spreadsheet.

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