DIGITAS LOWERS REVENUE EXPECTATIONS FOR SECOND QUARTER

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(June 12, 2001) -- Interactive agency Digitas, Boston, said financial results for the quarter ending June 30 will be below its expectations due to a slowdown in spending from its financial services clients, which include American Express, FleetBoston and Charles Schwab.

Digitas said it now expects revenue for the second quarter to be between $60 million to $63 million, compared with $70 million for the second quarter of 2000, and less than management's earlier expectation that second-quarter revenue growth would be between 0% and 6%.

The company also revised its revenue forecast for the third and fourth quarters, indicating that it now expects revenue to be in a range of $60 million to $70 million during each quarter.

It expects a pro-forma cash loss for the quarter, before a restructuring charge, to be between 6 cents and 8 cents per diluted share, and after the restructuring charge, of 18 cents to 20 cents per diluted share, compared to pro-forma cash earnings of 7 cents per diluted share in the second quarter 2000. It added that third-quarter revenues at the mid-point of that range would result in a pro-forma cash loss in the range of 1 cent to 3 cents per diluted share. -- Adrienne Mand

Copyright June 2001, Crain Communications Inc.

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