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DDB Needham Worldwide, Dallas, will discontinue its six-year affiliation with Ornelas & Associates effective Jan. 1 and begin a new arrangement with start-up shop Dieste & Partners, both Dallas.

Principals of the new shop will be President Tony Dieste, who comes from partner and senior VP-account management at Ornelas, and Managing Partner Warren Harmel, from senior VP-business development and strategy, also at Ornelas.

The new shop, which will be housed short-term in DDB affiliate Tracy-Locke's Dallas offices until new space is acquired, starts without clients, said Mr. Dieste. The agency's address is 200 Crescent Court, Dallas 75201; phone: (213) 696-9000.

No word on what will become of Mobil Corp., PepsiCo and GTE, Ornelas' three DDB Needham-affiliated clients.

Ornelas had been the nation's 10th-largest Hispanic ad agency, with $24.2 million in billings in 1994, according to Hispanic Business, Santa Barbara, Calif.

DDB Needham Dallas President Michael Rawlings said the two shops decided it "was in the best interests not to pursue the agreement" beyond the contract's Dec. 31 expiration date.

"There's really no reason why we can't be as good as general market agencies," Mr. Harmel said. "There is an opportunity for an Hispanic agency to come in and raise the bar."

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