Pegasus and Omnicom to Form E-services Holding Company.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 2, 2001

Pegasus Partners II, L.P. and Omnicom Group Inc. have entered into an agreement in principle to form a new e-services holding company.

As part of the agreement in principle, Omnicom will contribute several of

In a joint statement, Pegasus and Omnicom said, "Our objective in forming the company is to maximize consolidation and other strategic opportunities among companies in the currently depressed e-services consulting and professional services marketplace. We will work with these companies to leverage their client relationships and infrastructure to create stronger, more substantial e-services consulting networks."

The agreement in principle is subject to definitive documentation, required approvals and other conditions. The formation of the new holding company is expected to be completed this month.

Omnicom Group Inc. (NYSE:OMC) (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom's branded networks and numerous specialty firms provide advertising, strategic media planning and buying, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 100 countries.