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Internet Edition, June 27, 2001, Page 1


The National Institute of Allergy and Infectious Diseases picked Ogilvy PR Worldwide to handle a three-year contract to create a PR campaign to promote HIV vaccine research.

The firm's Washington, D.C., office is to educate the public and health community leaders about the progress that has been made to develop a treatment for AIDS.

Tom Beall, co-director of Ogilvy's health and medical unit, said the business is a "wonderful" win, and that finding a vaccine for AIDS is "something we are passionate about."
While Beall said he will be "attached" to the account, SVP Al Hinman will handle day-to-day activities.

Hinman will lead a team of six staffers who will be supported by "specialists" throughout Ogilvy.

The NIAID plans to spend $3.4 million in the first year of the program. It is a unit of National Institutes of Health.


Manning, Selvage & Lee has scooped up its share of the $5 million Georgia Dept. of Industry, Trade and Tourism account as the PR component of Match Team Georgia.

Match Inc., an Atlanta ad agency, and Ant Farm Interactive, the online marketer, are MS&L's partners.
Robert Morris, communications director for GDIT&T, said MTG beat out Fleishman-Hillard, Clarion and Bayless Cronin for the account that drew 11 bidders.

J. Walter Thompson/Hill and Knowlton had the account, but did not pitch.


Alison Canning, who once ran Burson-Marsteller's U.K. unit, joins Edelman PR Worldwide on July 1 as president/international operations. That's when Edelman completes the acquisition of Canning's First&42nd management consultant firm that she founded in 1997.

Canning will remain chairman of First&42nd, and search for a managing director to run the shop that serves clients such as British American Tobacco, Virgin Trains and Coca-Cola.

Canning will oversee Edelman's 30 offices in Europe, Asia-Pacific, Latin America and Canada. She succeeds Mike Morley, deputy chairman, who was Dan Edelman's first overseas hire.


Fleishman-Hillard is helping Mitsubishi Motor Sales of America deal with its PR crisis triggered by Consumer Reports magazine which rated its 2001 Montero Limited SUV as "not acceptable" because it tipped during sharp turns at 37 miles per hour.

"If you're shopping for an SUV, we advise you not to buy the 2001 Montero Limited until the safety problem has been corrected," said CR.

Mitsubishi defended its SUV in a response that ran in the magazine. The company said it spent thousands of hours to design and test the Montero. Those tests validated its "stability and safety," it said.

F-H is distributing a statement by Pierre Gagnon, president at MMSoA, blasting CR's conclusion as false. The conclusion is based on a "widely criticized, unrealistic maneuver that can be used to force vehicles to tip up under extreme conditions."

Mark Barnhill handles the account at F-H/L.A.


Weber Shandwick Worldwide's Grupolink unit has picked up the Dominican Republic's travel PR account, according to Bruce Rubin, CEO of WSW's Latin American region. The account bills in the "healthy six-figure" range. Lou Hammond & Assocs. and Hill and Knowlton also pitched.

Rubin, who described DR as a vacation gem that is largely unknown in this country, said "Our goal is to raise DR's awareness in both the U.S. and Canada."

Burson-Marsteller added Jay Ziegler as managing director/Sacramento responsible for PA operations in California. He managed the Gore-Lieberman campaign in that state. Ziegler also had communications responsibilities at the U.S. Trade Rep.'s office, Interior Dept. and Comsat Corp...Larry Sennett becomes president of Edelman PR Worldwide's technology practice on July 9. The former Ogilvy PR Worldwide high-tech head succeeds Miller Bonner, who becomes a consultant to Edelman. Sennett will be based in San Francisco, and report to Leslie Dach, Edelman's vice chairman.

Internet Edition, June 27, 2001, Page 2


The American Council on Science and Health is warning journalists to beware of accepting misleading information presented by activists protesting the Bio 2001 conference being held in San Diego June 24-27.

Activists will be trying to turn San Diego into another Seattle, Jeff Stier, an ACSH spokesperson, told this NL.

While an image of a 600-pound tomato may make a compelling visual for a TV camera, it's only part of the scaremongering techniques employed by activists, he said.

ACSH wants journalists, instead, to report on what it views as the sound science used by the biotech industry to demonstrate the safety of biofoods.

Bashes Activists

The Council has issued a three-page press release bashing biotech opponents.

That document is called "Warning: `Biodevastation' Activists Spread False Fears About Safe Foods."

It warns that activists "use products associated with children-like milk and ice cream-and falsely link these products with horrible ills such as cancer to evoke the greatest fear among parents and the consumer public."

The release dredges up the 1989 Alar scare that it blames on Fenton Communications. [ACSH founder Elizabeth Whelan coined the term "Alar hoax."]

It claims that FC is whipping up fears about cows treated with bovine growth hormones to build sales for client Ben & Jerry's and a variety of other organic and natural products companies whose sales benefit from these scares.

David Fenton could not be reached. He is on vacation, said his assistant.

The Council, continuing its attack, warns against "slick public relations professionals" promoting spokespeople who proclaim that BST-treated dairy products "cause cancer, harm cows and hurt small dairy farmers."

It recommends reporters "check the facts from the hundreds of real experts who have published and commented on these issues."

ACSH provides quotes on the safety of bovine hormone growth-laced milk from the American Cancer Society, American Medical Assn., National Institutes of Health and former Surgeon General C. Everett Koop.

The Council is an industry-funded group.

"We are very public about getting money from industry and pesticide makers," said Stier.

BSMG Worldwide, which represents the biotech industry, is one of the Bio 2001 sponsors.


Art Stevens, chairman/CEO of Publicis Group New York, was one of 10 graduates of the City College of New York to be inducted into the school's Communications Hall of Fame.

Stevens, who graduated from CCNY in 1958, was inducted at the 26th annual Communications Alumni Dinner June 5.

Other inductees were: Maury Allen, retired sports writer for The New York Post; Arthur Gelb, retired managing editor of The New York Times; Vivian Gornick, author of seven books; Milton Gralla, former publisher of National Jewelry; A.H. Raskin, retired assistant editor of the editorial page of the NY Times, and Upton Sinclair, writer, whose book, "The Jungle," published in 1906, led to the establishment of the Pure Food and Drug Act of 1906.


Weber Shandwick Worldwide beat nine of Britain's top firms in a heated pitch for the McDonald's PA account.

Contenders included GCI Group's APCO unit, BSMG Worldwide, The Communication Group and Bell Pottinger.

McDonald's has struggled in the U.K. in the aftermath of "Mad Cow" and foot and mouth disease.

CEO Jack Greenberg admitted, in issuing a second quarter update on June 15, that consumer concern over the safety of the European beef supply has persisted longer than the company had anticipated.

WSW will address that food safety issue and how McDonald's will deal with the U.K.'s plan to restructure its agriculture sector.

Colin Byrne, WSW's U.K. CEO, heads the McDonald's account. He is assisted by Jonathan McLeod, senior director, and Peter Bowyer, director.

Their McDonald's counterparts are Mike Love, VP-director of corporate affairs; Eddie Bensilum, head of communications, and Amanda Pierce, media relations manager.


The Financial Action Task Force dropped the Cayman Islands from its list of countries accused of being havens for money launderers.

The FATF, which includes 30 wealthy nations, made that decision following a meeting in Paris on June 22.

Hill and Knowlton had publicized the progress that CI made to restore faith in its banking system since it was cited by the FATF a year ago.

Maria Sheehan, managing director in H&K's Washington, D.C., office, works on the account.

She is also CI's liaison to the powerful D.C. mover and shaker Fred Fielding, a former counsel to Presidents Reagan and Nixon.

The Wiley, Rein & Fielding senior partner billed CI's Office of the Financial Security at a $500 hourly rate, capped at $100,000 per-year. He sent the invoice to Sheehan.

Panama, Bahamas and Liechtenstein also were removed from the FATF's blacklist.

The organization added Egypt, Guatemala, Hungary, Indonesia, Burma and Nigeria to the roster.

It threatened Russia, Philippines and Nauru with sanctions if they don't clean up their financial acts by September.

Internet Edition, June 27, 2001, Page 3


The New York Times is deluged by press releases every day and prime candidates for the wastebasket are releases aimed at an editor when they should have gone to a beat reporter.

This was a key point made by three Times editors who spoke before 160 PR people at a Publicity Club of New York luncheon June 20.

They stressed that information about reporters and their beats is available from several sources at the paper. Times editors trust the judgment of beat reporters and are concerned that important materials might be lost in the deluge.

PR people who pitch editors instead of the proper reporter show they're not familiar with the beats, said Glenn Kramon, business editor.

Reporters are "more likely to be your friends than editors," said Rich Meislin, technology news editor.

Jonathan Landman, metropolitan editor, believes most PR people "really don't read the paper."

PR pros who have established relationships with the beat reporters and know "in great detail what they do and how they do it" have the best chance of getting their materials used, said Landman.

He urged the publicists to "follow the bylines" and learn what's in reporters' heads and not to waste their time on routine matters "that will never be covered by our paper." A "good, well-thought out pitch" can result in coverage, he added, but clever pitches cannot help a poor story idea.

He said one PR pro regularly gets through to him because he doesn't directly pitch any clients. "His calls are not pitches at all," said Landman.

Times Is 150 Years Old

Kramon, noting the Times is 150 years old this year, said the paper has the "best and most loyal readership." He touched off laughter when he said the Times heard from one person who said he had read the Times without fail for 60 years even though he "hated it."

Kramon defined the business reader of the Times as someone who is "educated, affluent, self-interested and sometimes public-minded, a generalist who is interested in business and a whole lot more."

He said the Times likes to explore major topics and trends. He looks for stories with "risk and tension" in them rather than "puff" stories. He walked the audience through the many elements of the paper's business coverage.

He described the new feature each Wednesday in which bosses talk in the first person about something personal in their lives.

Welcomes Calls

Meislin said he welcomes newsy calls from PR people but not calls pitching some "mundane" topic that couldn't possibly make the paper. "Watch the material we cover," he urged.

He said e-mail is opened first now, then voice mail, and then regular mail although a year or two ago that order was reversed.
Meislin advised the PR pros not to send an e-mail and then follow it up with a phone call.

Asked about how the Times was doing with advertising, Kramon said it's down but still very high. "Advertising was Mount Everest and now it's Annapurna," he added.

There have been staff cuts at the Times but so far "maybe one percent" of the reportorial staff has been affected, he said.

Asked whether the paper has ever considered a PR column to match the ad column, he replied in the negative. Reporters are assigned to write about PR topics "from time to time," he added.


Howard Bailen, director of media relations, Mercer Management Consulting, has been succeeded as president of Publicity Club of New York by Peter Himler, EVP, managing director of media relations at Burson-Marsteller. Bailen served three years as PCNY president.


Radio food programs have improved as food coverage in general has advanced so far in the last few years, according to Regina Schrambling, who writes for The New York Times.

Schrambling said there is much more culinary programming today, from breezy 60-second segments on all-news stations to hour-long "magazines."

"When food is done well on radio, it can make you pull a pot off the stove and concentrate so you don't miss a word," said Schrambling.

"One reason radio is so effective is that it's impossible to tell when the straight stuff ends and the paid ads begin, if the same voice is doing all the talking," she said.

These are some food programs on radio in the New York area:
-"Dish" with Ed Levine, 7 p.m. Sundays on WNYC-AM (820);
-"Food Talk with Arthur Schwartz," noon to 1 p.m. weekdays on WOR-AM (710);
-"In the Kitchen with Stan and Floss Dworkin," 10 to 11 a.m. Saturdays on WFAS-AM (1230);
-"New York and Company" with Leonard Lopate, 11 a.m. weekdays on WNYC-AM. It's a talk show with food and wine experts as occasional guests.
-"Radio Gourmet," 6:30 to 7 p.m. Mondays on WGBB-AM (1240);
-"The Restaurant, Food, Theater and Travel Show," with Ira Kleinman, 9 to 10 a.m. Sundays on WFAS-AM, and
-"The Splendid Table," with Lynne Rossetto Kasper, Saturdays from 4 to 6 p.m. on WNYC-AM and 5 to 6 p.m. on WCWP-FM (88.1).

(Media news continued on next page)

Internet Edition, June 27, 2001, Page 4


Michael Bloomberg, who started Bloomberg News, told financial journalists that their coverage of the new economy has been misleading investors.

In his keynote address at the annual awards dinner of the New York Financial Writers' Assn., Bloomberg questioned why reporters did not make more of an issue of the young ages and relative lack of experience of many of the chief executives of the dot-com companies. How to run a company "cannot be learned overnight," said Bloomberg, who is 59.

Overall, the business press "is to be commended,"he said, saying most financial reporters are "smart and honest"-something he "did not recognize" until he started to be covered by political reporters. Bloomberg is seeking the GOP's nomination as its candidate for Mayor of New York.

Wolman Wins Highest Award

William Wolman, who is chief economist at Business Week, received the NYFWA's Elliott V. Bell award for his contribution to the profession of financial journalism. He is the 26th recipient of the group's highest award.

The wife and family of Jeff Cole, who died in a small-plane crash in January, on assignment for The Wall Street Journal, were presented a memorial plaque by Paul Steiger, managing editor, who said Cole's tragic death is "a loss to journalism and humanity."


Financial columnist John Crudele said the media should be charged along with Wall Street with "duping the public during the stock market bubble."

"Wall Street is guilty, but the media is an accomplice," said Crudele.

"Most of us who are covering the stock market during these bubble times-and, yes, the hype is continuing-know what is going on. And very few of my colleagues had the guts to write anything that might offend Wall Street," he wrote in his June 19 syndicated column.

"For the most part, newspapers, magazines and TV were compliant with Wall Street's wishes for nothing but rosy coverage of the bubble. And they were complicit in the crime of suckering unsophisticated investors," said Crudele.

PEOPLE _________________________

Bill Keller, currently managing editor of The New York Times, will become a columnist for the paper's Op-Ed page and a senior writer for the Sunday magazine section.

Daniel Altman, 26, who has been reporting on international trade and other economic issues for The Economist since June 2000, has joined the Times' editorial board as an editorial writer.

Maria Baugh was promoted to executive editor of Teen People magazine to oversee all aspects of the magazine-from story concepts to editing final copy.

Deborah Kong, a freelance writer who worked for USA Today, was named a national writer for The Associated Press, specializing in minority issues.

Tim Carvell and Tish Hamilton have joined Sports Illustrated for Women as senior editors.

PLACEMENT TIPS ____________________

Short films, which are being used by corporations to attact visitors to their websites, are being picked up by online film sites, according to Industry Standard magazine.

IS said BMW, Diet Coke, Ford and Volkswagen have paid for the production of several short films in the past 18 months.

Some of the short films feature the company's offers, while others downplay the product placement.

"For advertisers, it's the latest attempt to keep their brands in front of consumers-even as traditional ads are increasingly muted, channel-surfed and TiVo-ed into oblivion," said IS., the Internet bookseller, welcomes positive book reviews, even if they are written by an author's friends or family.

Kristen Schaefer, who is's PR spokesperson, told Nara Schoenberg of The Chicago Tribune, that reviews by people who know the author do not break any company rules. "We completely encourage anyone and everyone to write customer reviews," said Schaefer.

"From a privacy standpoint, customers shouldn't be required to tell us (whether the author is a friend or relative) if they post a review," Schaefer told Schoenberg, who noted three of the four positive reviews for "Drowning in Hot Water" on the bookseller's site were written by the author's sister and two friends, who did not indicate their relationship with the author.

"No one really knows how many of the tens of thousands of customer book reviews at are written by the authors' friends and family members. But some book industry insiders say a significant number do come from those who know (and love) the author best," said Schoenberg.

"Some afficionados claim they can detect patterns suggesting author-reviewer ties: the very early, very positive review is suspect in some circles, as is the stream of positive reviews that follows a negative one," said Schoenberg.

Vogue covergirl Angela Lindvall, 22, is planning to start a new magazine with partner Dustin Yellin, who is a New York artist.

Called Collage, the magazine will focus on science, fashion and art. The preview issue will be published in September in time for Fashion Week.

Ryle Mayberry is editor-in-chief of the magazine, whose offices are on Greenwich st. in New York.

Internet Edition, June 27, 2001, Page 7


The Securities and Exchange Commission is investigating four companies it suspects tried to deceive investors by issuing so-called pro forma earnings, according to Dow Jones News Service.

The SEC did not identify the companies.

Lynn Turner, who is the SEC's chief accountant, said it appears as if some companies are intentionally issuing press releases showing pro forma earnings to "spin investors." He said pro forma earnings tend to omit items that would reduce reported earnings and jokingly called them "everything but the bad stuff."

In addition to investigating possible abuses, Turner said the SEC is looking to combat the problem by reducing the time that elapses after a company issues a press release announcing earnings and the day it releases the actual earnings report.

Press release announcements of corporate earnings typically highlight key items and may include pro forma results that cannot be reported under Generally Accepted Accounting Principles.

There may be up to a three-week gap between issuing a press release and filing a full-blown quarterly or annual earnings report with the SEC, Turner noted.

"I think you could probably get it down to three to seven days," he said.


Public companies are being terrorized by the quarterly earnings report, according to The Harvard Business Review.

The magazine's June issue said quarterly reports "dominate and distort the decisions of executives, analysts, investors and auditors."

"Even economists are unanimous in their view that these numbers say next to nothing about a company's prospects beyond the next quarter," writes Harris Collingwood, senior editor.

The process is called "meeting analysts expectations," and it has become "a game whose imperatives override even the imperative to deliver the highest possible return to shareholders."


Digital:Convergence, which once envisioned millions of magazine readers navigating the web with its :CueCat device, has laid off the "majority of its employees," says Ethan Rasiel, who handles the account at Edelman PR Worldwide.

Dallas-based DC's website puts employment at 240 people.

Rasiel told this NL that DC will honor all its commitments and business obligations.

DC hopes to get more funding and re-hire staffers. "The company is not going away," he added.

The scanning device has been criticized for privacy concerns and its complicated installation software.

Others questioned the very need for a scanner to click on a magazine ad for more information.

Burson-Marsteller launched the :CueCat with much fanfare, but Edelman took over the account in April.

Among Digital:Convergence partners are Belo, NBC, RadioShack, E.W. Scripps Co. and Young & Rubicam.


Gossip columnist Liz Smith praises Lizzie Grubman/Peggy Siegel PR as a "dynamic organizing PR firm" in a June 21 column for putting together a Time Warner party at Le Cirque for the screening of the movie "James Dean" that airs Aug. 5 on TNT.

The event drew a gala crowd (e.g., Bette Midler, Charlie Rose, Elaine May, Ellen Burstyn, Jeff Greenfield, Don Hewitt, Mary McFadden and Gerry Levin).

The audience sat in riveted silence during the show then exploded into applause once it was over, according to Smith.

At the party, Siegel "masterminded seating," and circled the room "looking like a star herself."

Wrote Smith: "Is hype and promotion a bad thing? I say not when it is accompanied by high-quality product. Then the hype oils the way for something of quality to reach the public."

As the columnist sat at an elegant table "eating things she didn't even know existed while growing up in Texas," Smith decided, "I'm all for hype. At least this time!"


Black, Kelly, Scruggs and Healey's Charlie Black, a key Republican operative, has relinquished the CEO reins to Scott Pastrick, at Burson-Marsteller's lobbying wing.

Black, who remains chairman, was senior advisor to Presidents Reagan and Bush. He consulted Republican Senators Jesse Helms, Bob Dole, Phil Gramm and Dave Durenberger.

Pastrick, with BKS&H since 1985, gets promoted from the managing director slot. He was treasurer and on the executive committee of the Democratic National Committee.

The executive switch comes as the Democrats assume control of the Senate following the decision of Vermont's Jim Jeffords to bolt the GOP.


Rabbi Ezra Finkelstein has been appointed as ethics advisor to Ruder Finn's ethics committee.

CEO David Finn expects Finkelstein to help the firm grapple with the "ethical dilemmas" that it is "constantly facing."

He is Rabbi Emeritus at the Midway Jewish Center in Syosset, N.Y., and a member of the Interfaith Clergy of Syosset-Woodbury.

Finkelstein was ordained in 1961.

RF established its ethics panel in the early 1950s.

Rev. James Parks Morton, former dean at the Cathedral of St. John the Divine, was the last clergyman to serve on RF's committee.

Internet Edition, June 27, 2001, Page 8


ExxonMobil, which ranks among the world's most tight-lipped companies, has become a global punching bag for activists. It stands in the cross-hairs of the trend in the activist community to target corporations-rather than governments-to promote the activists' political agendas. The International Labor Rights Fund, Washington, D.C., sued ExxonMobil last week alleging that the oil giant aided and abetted security forces in Indonesia in wiping out guerrilla forces. The military, in return, protected a large natural gas field owned by ExxonMobil, according to the lawsuit. ExxonMobil issued a statement condemning "violation of human rights in any form." The company categorically denied that it had anything to do with any abuses by the Indonesian forces.

ExxonMobil is also a target of environmental groups that are trying to build worldwide support for the global warming treaty. The company is being boycotted in the U.K. as a way to encourage the U.S. backing for the Kyoto Treaty. "Stop Esso" campaigners have singled out ExxonMobil because they claim it was a major supporter of President Bush, who opposes Kyoto. A report in London's Guardian newspaper says ExxonMobil may start to fight back on the PR front as the boycott spreads to Germany, Norway and New Zealand. The newspaper obtained a leaked document of a plan prepared for ExxonMobil to gauge public opinion about the depth of anger against it. An ExxonMobil spokesperson admitted the company is concerned about the boycott and wants to make its position on global warming clearer... McDonald's plans to educate consumers about the safety of British beef. That's one of the jobs of Weber Shandwick Worldwide, which won McDonald's PA account in a heated competition among London's top firms. McDonald's sales have suffered following the Mad Cow and foot and mouth scares...Coca-Cola Co. earns PR points and praise from Secretary of State Colin Powell for its plan to use its huge distribution network in Africa to distribute AIDS education and prevention materials. That involvement by Coca-Cola, which is Africa's biggest employer, is probably as valuable as a financial contribution, according to Powell. Coca-Cola, in the U.S., has been sued by employees and former workers for race discrimination.

True North CEO David Bell says he agreed to be acquired by Interpublic because the company was not in a position to be a "consolidator in a consolidating" industry following the loss of the Chrysler account. Interpublic is now the world's biggest ad agency following the June 22 approval of its TN takeover by the European Union, which said the deal "does not raise any competition concerns." TN shareholders okayed the deal on June 19. Interpublic's stock hit a 52-week low of $26.98 on June 25.

Give Bush a break. The New York Times toasted the President with a withering front page June 21 report of its poll with CBS showing that Bush's job approval rating dropped seven percent since March to 53 percent. The paper editorialized that the "White House is increasingly and alarmingly out of touch with what Americans are thinking." It blasted Bush as being "increasingly perceived as both the servant and captive of moneyed interests." No less interesting, to the Times, "was the revelation that despite a huge White House public relations blitz the public, by a 2-to-1 margin doubts whether an energy crisis even exists." The rightly went to bat for the President. The site said it's "a slow news day when the top story in the New York Times is a presidential poll, especially a trumped-up one saying George W. Bush's popularity has 'diminished considerably' when in fact it's down only seven points in three months." Though the Times may feel Bush is out of touch, the President scored a monumental victory in getting his tax bill passed. That's a victory the Times has found hard to swallow.

Congressman Richard Baker wants the financial media to stop treating analysts as celebrities. "It is irresponsible reporting to quote unquestioningly irresponsible analysts and place them on magazine covers and turn them into rock stars," said the Louisiana Republican, who is probing conflicts on Wall Street. The Securities Industry Assn. hopes its voluntary guidelines will help investors lose their "perception" that there are conflicts on the Street. Former Securities and Exchange Commission chief Arthur Levitt dismissed the group's guidelines as "fuzzy and vague."

In a blow to large publishers, the U.S. Supreme Court ruled 7-2 Monday that freelance writers control whether articles they sold for print publication are reproduced electronically.

Compilation in an electronic database is different from traditional library storage of works that appeared in print, the Court ruled.

The decision mainly affects articles, photos and artwork produced before freelance contracts began providing for electronic use a decade ago.

Six freelancers originally sued The New York Times, Newsday, Time Inc. and other publishers in New York Times v. Tasini over inclusion of their work in electronic databases.



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