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WPPTrading Statement for the ThirdQuarter 2008

October 2008

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Third Quarter 2008Summary – Q3

Like-for-like growth was 3.0%, with acquisitions adding 3.0% to give constant currency growth of 6.0%.

Currency movements increased revenue growth by 10.2%, resulting in reported revenues of 16.2%.

Geographically,

– Asia Pacific, Latin America, Africa and the Middle East continues to be the fastest growing region.

– Continental Europe strengthened compared with the first half.

– The UK saw some softening.

– North America was flat.

Advertising and media investment management and public relations and public affairs showed the strongest growth.

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Third Quarter 2008Summary – Revenue Growth

% change Third

Quarter

YTD

Like-for-like 3.0 3.8

Acquisitions 3.0 3.6

Constant currency 6.0 7.4

Foreign exchange 10.2¹ 7.5

Reported 16.2 14.9

¹ Average Q3 2008 exchange rate for US$/ £ was $1.891 (Q3 2007 $2.021), €/£ was €1.259 (Q3 2007 €1.470) and Japanese Yen/£ was Y203.6 (Q3 2007 Y238.0).

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Third Quarter 2008Revenue by Discipline: Third Quarter

2008 2007 % Change

£m £m Reported Constant Currency

Like-for-like

Advertising, Media Investment Management

785.3

663.2

18.4

7.3

6.1

Information, Insight & Consultancy

246.7

218.5

12.9

4.0

2.0

Public Relations & Public Affairs 184.2 157.3 17.1 7.6 5.1

Branding & Identity, Healthcare and Specialist Communications

503.1

441.1

14.1

4.4

(1.6)

Total 1,719.3 1,480.1 16.2 6.0 3.0

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Third Quarter 2008Revenue by Discipline: Year to Date

2008 2007 % Change

£m £m Reported Constant Currency

Like-for-like

Advertising, Media Investment Management

2,306.6

2,023.6

14.0

5.3

4.5

Information, Insight & Consultancy

733.2

650.3

12.7

6.1

4.0

Public Relations & Public Affairs 540.3 470.3 14.9 8.5 6.7

Branding & Identity, Healthcare and Specialist Communications

1,478.4

1,257.0

17.6

11.1

1.7

Total 5,058.5 4,401.2 14.9 7.4 3.8

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Third Quarter 2008Advertising, Media Investment Management

Constant currency revenue growth over 7%. Like-for-like growth over 6%.

This sector performed well with strong like-for-like growth in both Advertising and Media Investment Management.

On a like-for-like basis Asia Pacific, Latin America, Africa and the Middle East, Continental Europe and the UK showed above average growth.

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Third Quarter 2008Information, Insight and Consultancy

Constant currency revenue growth up 4.0%, with like-for-like growth up 2.0%.

Strong organic growth from Millward Brown, IMRB, Lightspeed and Kantar Media Research.

Above average like-for-like growth in the UK, Asia Pacific, Latin America, Africa and the Middle East .

Offer for TNS became wholly unconditional on 29 October 2008 and will be included in the Group’s 2008 results from 1 November.

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Third Quarter 2008Public Relations & Public Affairs

Continued strong growth with constant currency revenue up over 7%. Like-for-like growth over 5%.

Strong performances at Burson-Marsteller, Hill & Knowlton, Clarion and Public Strategies.

Geographically, Continental Europe, Asia Pacific, Latin America and the Middle East performed well above the average like-for-like growth.

Acquisition in India completed in the quarter.

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Third Quarter 2008Branding & Identity, Healthcare and Specialist Communications

Constant currency revenue growth up over 4%. Like-for-like growth down over 1%.

Strong performances at Wunderman, VML, Schematic, 24/7 Real Media, the Blue Group, Quasar, The Brand Union, Lambie Nairn, The Partners and The Food Group.

Continuing pressure at some of the Group’s healthcare and specialist communications businesses, particularly in the USA and the UK.

Geographically, strong like-for-like growth in all regions except the US and UK.

Acquisitions in the United States, France, the Netherlands, Russia and the Czech Republic.

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Third Quarter 2008Revenue by Region: Third Quarter

2008 2007 % Change

£m £m Reported Constant Currency

Like-for-like

North America

596.9

557.1

7.1

-

(2.5)

UK

224.0

217.6

2.9

2.9

1.9

Continental Europe 459.4 366.2 25.5 7.2 4.9

Asia Pacific, Latin America, Africa & Middle East

439.0

339.2

29.4

16.5

10.6

Total 1,719.3 1,480.1 16.2 6.0 3.0

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Third Quarter 2008Revenue by Region: Year to Date

2008 2007 % Change

£m £m Reported Constant Currency

Like-for-like

North America

1,786.7

1,668.9

7.1

4.3

0.5

UK

674.2

648.0

4.0

4.0

2.3

Continental Europe 1,388.8 1,137.7 22.1 5.5 3.7

Asia Pacific, Latin America, Africa & Middle East

1,208.8

946.6

27.7

17.2

10.6

Total 5,058.5 4,401.2 14.9 7.4 3.8

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Asia Pacific, Latin America, Africa and the Middle East, fastest growing region, with like-for-like growth almost 11%.

The Middle East, again became the fastest growing area, with like-for-like revenue up 23.6%, ahead of Central and Eastern Europe at 15.2% and Latin America at 13.6%.

Asia Pacific remains strong, up almost 8%, the same as the first half, with stronger growth in SE Asia and weaker growth in Japan and ANZ. Like-for-like growth in mainland China slowed to almost 15% in the first nine months, with India up almost 30% in the third quarter and up almost 27% in the first nine months.

Western Continental Europe strengthened in the third quarter, with like-for-like growth of almost 3%, with the UK up 1.9%. North America like-for-like growth down 2.5%, mainly as a result of softness in the Group’s branding and identity, healthcare and some of the Group’s specialist communications businesses.

Third Quarter 2008Growth by Region – Third Quarter

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Third Quarter 2008Growth by Country – Year to Date

1 Constant currency

Revenue Growth¹ Countries

20%+ Argentina, Brazil, India

15-20% Canada, South Africa

10-15% Mainland China², Poland, Sweden

5-10% Denmark, Mexico, Singapore

<5% Australia, France, Germany, Italy, Japan, Netherlands, Spain, UK, US

² Like-for-like growth

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Third Quarter 2008Revenue Growth by Category – Year to Date

1Constant currency

Revenue Growth1 Categories

15-20% Telecommunications

10-15% Computers

5-10% Automotive, Financial Services, Retail

<5% Drinks, Entertainment, Food, Oil, Personal Care & Drugs

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Third Quarter September YTD

WPP 2008 – Revenue by Industry

T&E4%

Retail3%

Technology7%

Auto10%

Consumer Products

6%

Telcom8%

Healthcare11%

Food & Drink17%

Financial Services

9%

Other12%

Personal Care13%

Charts represent the amount of revenue attributed to each industry expressed as a percentage of the total revenue from WPP’s designated clients (1,934 with Sept YTD revenue) for the period ended September 30, 2008.

T&E5%

Retail4%

Technology8%

Auto10%

Consumer Products

6%

Telcom9%

Healthcare10%

Food & Drink14%

Financial Services

9%

Other12%

Personal Care13%

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Third Quarter 2008 Effects of Strength of Sterling

Currency movements accounted for a 10.2% increase in revenue, largely reflecting the weakness of the £ sterling against the US dollar and the euro.

The average US dollar exchange rate for the third quarter of 2008 was $1.891/£1 compared to $2.021/£1 for the same period last year, a change of almost 7%. The average euro exchange rate for the third quarter was €1.259/£1 compared to €1.470/£1 for the same period last year, a change of over 14%.

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Average net debt in the first nine months up £508 million to £1,955 million, compared to £1,447 million in 2007, at 2008 exchange rates.

Net debt at 30 September 2008 up £85 million to £2,172 million, compared to £2,087 million last year, at 2008 exchange rates.

Operating cash flow in the last 12 months was £940 million. In the same period, cash outflow on capital expenditure, acquisitions, share repurchases and dividends was £838 million.

Third Quarter 2008Uses of Cashflow

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In the first nine months 18.8 million ordinary shares, equivalent to 1.6% of the share capital, were purchased at an average price of £5.96 per share and total cost of £112.2 million.

No further shares have been repurchased as the Group was required to withdraw from the market during the TNS bid.

The TNS offer became wholly unconditional on 29 October 2008.

Based on the WPP closing share price on 29 October of £3.325 per share, WPP’s offer values a TNS share at £2.358 and values the TNS equity at approximately £1.0 billion.

Third Quarter 2008Uses of Cashflow

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Agency Account Office Billings ($m)

mec Novartis³ USA 300

MediaCom Time Warner USA 250

MindShare Estee Lauder¹ Worldwide 200

Ogilvy Motorola EMEA 200

JWT Microsoft Worldwide 200

Ogilvy Wachovia USA 145

mec Orange UK 138

Y&R Office Depot USA 120

MindShare Nippon Paint Asia 96

MindShare American Family Insurance USA 90

Grey/ MindShare Hong Kong Tourist Board Asia 84

JWT Diageo Worldwide 80

MediaCom Procter & Gamble Asia Pacific 80

Y&R/Maxus Cellular South USA 60

mec Playtex² USA 60

MediaCom E.ON UK 60

Third Quarter 2008Trade Estimates of Major New Business Wins – Year to Date

¹ Estee Lauder transferred from Maxus to MindShare Underlined figures are Q3 wins² Playtex transferred from MediaCom to mec ³ Novartis transferred from MindShare to mec

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Agency Account Office Billings ($m)

MindShare Novartis³ Worldwide 300

MediaCom Eli Lilly USA 250

Maxus Estee Lauder¹ USA 200

mec Cadbury Schweppes USA 140

mec Payless Shoes USA 90

mec TD AMERITRADE USA 75

MediaCom Playtex² USA 60

JWT Unilever Worldwide 60

MindShare Kraft Asia 60

Y&R Miller Brewing USA 50

Third Quarter 2008Trade Estimates of Major New Business Losses – Year to Date

¹ Estee Lauder transferred from Maxus to MindShare Underlined figures are Q3 wins² Playtex transferred from MediaCom to mec ³ Novartis transferred from MindShare to mec

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Billings ($m) Creative Media Total

Advertising 1,341 2,043 3,384

Other Businesses 861

- 861

Total 2,202 2,043 4,245

Third Quarter 2008Internal Estimates of Net New Business Wins – Year to Date

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ADVERTURES (Czech)

ACTIS (Russia) Data Intelligence³ (Denmark)

Agenda (Asia) DESIGNKITCHEN (USA)

Evision (China) HeathWallace (UK)

10AM (Singapore) HDT² (China) immi² (USA)

Encompass (India) IGA² (China) JUMP TAP² (USA)

Rikes (Hong Kong) NuConomy (Israel) KASSIUS (Denmark)

Team Y&R (Middle East) RAMS (India) Lluminari (USA)

SCANGROUP (Kenya) MEDIA RIGHTS CAPITALl² (USA)

Sharp Shooters³ (India) PROCLIVITY² (USA)

Smollan³ (S. Africa) Realtime World² (USA)

VAC (China) Tagora (Belgium)

YUMES (Argentina) Yankelovich (USA)

Zdology (China) Yield Software² (USA)

Faster Growing Markets

Quantitative and Digital

¹ Excludes equity step ups ² Investment ³ October 2008 acquisitions CAPITALS ARE Q3 ACQUISITIONS

Third Quarter 2008Acquisitions¹ and Investments – Year to Date

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Advertising and Media Investment Management

AdPeople (Denmark)

LaComunidad (Netherlands)

Public Relations and Public Affairs

Axicom (UK)

Healthcare

Osprey (USA)

Third Quarter 2008Acquisitions¹ - Year to Date

¹ Excludes equity step ups

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Maturity Total

Credit

Total Drawn

2009 2010 2011 2012 2013 2014 2015 2016 2017 . 2020

£ bonds £200m (6.375% ’20) 200 200 200

£ bonds £400m (6% ’17) 400 400 400

Eurobonds €750m (6.625% ’16) 593 593 593

Eurobonds €500m (5.25% ’15) 395 395 395

US bond $650m (5.875% ’14) 365 365 365

Eurobonds €600m (4.375% ’13) 474 474 474

Bank revolver 1 899 250 250

Net cash & overdrafts (505)

3,326 2,172 250 474 365 395 593 400 200

TNS acquisition facilities1

Bridge facility 650 650

Revolving credit facility 600 200 200 200

Total 4,576 200 850 200 250 474 365 395 593 400 . 200

1

These instruments are subject to financial covenants

Third Quarter 2008 Debt Maturity Profile £m

As at 30 September 2008

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Third Quarter 2008Banking Facility Covenants

No covenants or ratings triggers on public bonds (of which only 30% is swapped into variable rates).Bank Revolver and new TNS facilities subject to the following covenants:– Net Debt/EBITDA ≤ 3.5 measured half yearly– EBITDA/net interest ≥ 5.0 measured half yearly– The covenant definitions for EBITDA and net interest exclude non-cash and non-

operating items. In 2007 the bank covenant ratio for EBITDA/net interest was 10.8x compared to 9.7x on a reported basis

On a proforma basis at current rates, including TNS at 31st December 2008, based on analysts’ forecasts, the ratios indicated are– Net Debt/EBITDA ≤ 2.5– EBITDA/interest ≥ 6.0 - 7.0x

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WPPTrading Statement for the ThirdQuarter 2008

October 2008