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Joint PEP/WPP statement

8 November, 2009

WPP and PEP have resolved the dispute between them arising from the sale of the remaining shares in The Communications Group (TCG) to WPP in 2005. The dispute related to agreements under which PEP made payments to two TCG employees that were conditional on the employees not resigning for 12 months after the sale. PEP accepts that WPP and its representatives including Mr Hamish McLennan were not aware of the agreements. PEP maintains that it acted in good faith and on the basis of Clayton Utz's legal advice that the agreements did not need to be disclosed to WPP.

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