2006 Agency Business Report: Dittus Communications

While Dittus will continue to specialize in DC-focused public affairs, its new ownership will make it easier to work on a global scale.

While Dittus will continue to specialize in DC-focused public affairs, its new ownership will make it easier to work on a global scale.

The acquisition is also attracting high-level talent, according to CEO Gloria Dittus, who pointed to such 2006 hires as Mike Waldron, formerly deputy director of public affairs for the US Department of Energy, and Yier Shi, previously senior advisor to the FDA.

"We're uniquely positioned to meet the needs of global clients seeking the most sophisticated counsel," says Dittus.

Name of parent division/company (enter both where applicable):
Financial Dynamics, Inc.

Has your ownership status changed in the past year? If yes, please explain.
In December 2005, Dittus Communications became part of Financial Dynamics, a business communications and consulting firm with offices in Europe, Asia, the Middle East, and the United States.

Name of global CEO and US CEO (or most senior equivalent):
Gloria Dittus, President and CEO, Dittus Communications

Name of person, if any, the most senior person named above reports to;
Declan Kelly, CEO, Financial Dynamics-US

What is your current headcount, and how has it changed from this time last year?
Forty-nine employees--about the same number as this time last year.

Did you make any senior hires in 2005 (VP and higher)?
Julia Payne, Vice President--Formerly president of The Payne Group. During the Clinton Administration, Julia served as an assistant press secretary to President Clinton and as a deputy press secretary to Vice President Gore.
Tom Squitieri, Senior Media Advisor--Formerly a correspondent for USA Today.

What senior staff have departed the firm? Please state name and previous title:
Buddy Eller, Vice President of the Energy and the Environment Practice, moved to Florida to work for a client.

Other senior management changes
Laura Sheehan was promoted to Vice President of the Energy and the Environment Practice.

Have you made any acquisitions in the past year, or merged with another agency?
In December 2005, Dittus Communications became part of Financial Dynamics, a business communications and consulting firm with offices in Europe, Asia, the Middle East, and the United States.

Dittus Communications will continue to specialize in Washington-focused public affairs, issue advocacy, government markets, and grassroots campaigns across the country. As an FD company, the firm will continue to go by the name Dittus Communications.

This partnership will give Dittus Communications new global reach through FD's offices in Europe, Asia and the Middle East, as well as other major US cities.

The industry sector practices of Dittus Communications will compliment those of FD, the only international communications consulting firm structured by dedicated industry sector practices.

Together with FD and its international network highlighted by LLM, the UK's leading public affairs firm, we are uniquely positioned to meet the needs of a global clients seeking the most sophisticated public affairs counsel.

How many offices do you have globally?
Dittus Communications is headquartered in Washington, DC, and is part of the global FD network consisting of 15 offices worldwide.

Is there a particular region, US and globally, that is growing right now?
In the aftermath of Hurricane Katrina, Dittus is helping with the reconstruction efforts in the Southeast. Specifically, the firm is helping Shell Exploration and Production get out the message that they would resume operations in New Orleans and retain their employees in the area. This ongoing campaign has touched the lives of many people and underscored Shell's commitment to its employees and to the communities where it operates.

Dittus is also working with the Fluor Corporation to highlight the role of the company in providing jobs and housing to the people of the Gulf Coast.

How many practice areas do you have?
Dittus Communications is comprised of six primary practice areas: Energy and the Environment; Food, Agriculture, and Nutrition; Design; Nonprofit; Public Affairs; and Technology and Communications. The industry sector practices of Dittus Communications will compliment those of FD, the only international communications consulting firm structured by dedicated industry sector practices.

Of those, which ones are part of the core strategy of the agency?
All of our practice areas make up the overall strategy of the firm with public affairs at the core. Our design division is a complement to the other practice areas, enabling us to meet all of the needs of our clients by providing award- winning creative services, including advertising, branding, collateral development and website design.

What practice areas showed the most growth?
Technology and Communications
Energy and the Environment

What key account wins did you have in 2005?
American Gas Association
Alliant Techsystems (ATK)
Cavalia
Columbia Lighthouse for the Blind
Community Power Alliance
Foley & Lardner
Goodwill Industries
High Tech DTV Coalition
The Home Depot
IBM
Independent Petroleum Association of America
Intel Corporation
LaFarge
Mortgage Bankers Association
National Association of the Self Employed
PhRMA
Poker Players Alliance
SAP America
Shell Exploration & Production
Solar Decathlon
TASER International
Tyco International
* Due to the nature of some of our client work and to client-confidentiality agreements, we have listed only those new clients that allow us to disclose our relationship publicly.

What key accounts did you lose in 2005?
We lost no key account in 2005.

Did you expand any existing accounts into new domestic or international markets?
As a result of our merger with FD, Guardian Technologies International, a provider of intelligent imaging informatics solutions for the homeland security and healthcare industries, retained Dittus Communications and Financial Dynamics (FD) to develop an integrated business communications program. Dittus/FD will initiate a program for Guardian including public affairs, media relations and investor relations services. "We believe the Dittus/FD team provides the expertise and guidance to clearly and successfully communicate our strategic business direction, enhance our reputation in the marketplace, facilitate introductions to key investors and analysts, and respond in a timely manner to investor inquiries and requests for information," stated Bill Donovan, president and chief operating officer of Guardian Technologies.

Dittus also helped the Business Software Alliance expand their efforts in global markets like India and China and provided media support for a major study on the global economic benefits of reducing software piracy.

Did any dormant clients start to spend with you again?
ACLU
Alliance to Save Energy
BioVid
Compressus
Intel
Rubber Manufacturers Association
Taylor Dejongh
Weyerhaeuser

What proportion of your clients are on a retainer?
65%

Has this changed over the past year?
This percentage has increased slightly over the past year.

What was your 2005 US revenue?
Dittus is not disclosing this data.

What was the % change over 2004 US revenue?
27.3% increase

Did you experience top-line or bottom-line growth in the past year?
Both

How did your performance, in terms of revenue and growth, meet expectations you had for the year?
Dittus Communications' met its performance goals, growing our current client base, expanding into the areas of telecommunications and defense, and continuing to remain focused on major policy issues including energy, food safety, obesity, homeland security, and globalization.

In early 2005, Dittus made the strategic decision to identify a global partner that would allow us to offer more sophisticated solutions that address government and business audiences. As result of our successful acquisition by Financial Dynamics (FD), we now provide those expanded capabilities to a broader set of clients, and also to bring global reach and additional resources to those we've traditionally served.

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