2006 Agency Business Report: Zeno Group

Jerry Epstein, CEO and President

Jerry Epstein, CEO and President

Name of subsidiary companies:
Daniel J. Edelman

Name of subsidiary companies
Competitive Insights is a division of Zeno.

Name of person, if any, the most senior person named above reports to
Richard Edelman

What is your current headcount, and how has it changed from this time last year?
130; up 20%

What was the percentage of staff turnover?
We accept that turnover is necessary in order to build and retain the teams that are truly aligned with our entrepreneurial culture.

Did you make any senior hires in 2005 (VP and higher)? Please state name, title, and previous company.
Stacey Gandler SVP
Cheryl Pellegrino SVP
Other senior management changes include:

What senior staff have departed the firm? Please state name and previous title
N/A

Have you made any acquisitions in the past year, or merged with another agency?
No

How many offices do you have globally?
North America
6 – New York City, Chicago, Washington DC, Los Angeles, San Francisco, Seattle
Europe
1 - London

What offices opened in 2005 or early 2006?

London, September 2005

How many practice areas do you have?
6 – Corporate/Public Affairs, Consumer Marketing, Healthcare, Technology, Research, Speaking Female

Which ones are new?
Speaking Female

Of those, which ones are part of the core strategy of the agency?
All are a part of the core Zeno strategy

Which practice areas have been phased out in the past year?
None

What practice areas showed the most growth?
Public Affairs

Which practice areas showed the least growth?
Corporate & Issues Adv.

What key account wins did you have in 2005? (Please exclude non-US business)

TD Waterhouse, Otsuka Pharmaceuticals, Gap, Inc., Cartoon Network, The May Department Stores Company, Quiznos, Rubbermaid, Cablevision, AT&T, Gladiator GarageWorks, JAMDAT, Pfizer, Inc., Vinfolio, Earthlink/SKG, Union Bank of California, Turtle Wax, Stamps.com, LA Auto show and VISX.

What key accounts did you lose in 2005? (Please exclude non-US business)
Sonos, Skil Power Tools, TED/United Airlines, 1 800 Flowers, Collegiate Funding Services.

Did you expand any existing accounts into new domestic or international markets?

Yes

Did any dormant clients start to spend with you again?
Yes

What proportion of your clients are on a retainer?
40%

Has this changed over the past year?
Remains consistent

What was your 2005 US revenue (as entered into the separately submitted Rankings Form)?
$19,610,384.00

What was the % change over 2004 US revenue?
19%

What was your 2005 global revenue (as entered into the separately submitted Rankings Form)?
$19,915,940.00

What was the % change over 2004 global revenue.
20%

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?
Our performance exceeded our expectations.

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