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Internet Edition, May 16, 2007, Page 1


The U.S.-led military force in Iraq has moved a multimillion-dollar RFP for PR firms to work in Iraq from a public database to a private system designed for “sensitive but unclassified” acquisition information. Only firms that are cleared beforehand to provide services to the government can view the materials in that database,

Last month, the Multi-National Force-Iraq issued a notice via the public Federal Business Opportunities system, or FedBizOpps, stating that it planned to release an RFP in May to collect proposals from PR firms for a marketing campaign supporting its electrical reconstruction efforts in Iraq. The work was valued from $11M-$25M. Past RFPs for PR work in Iraq were handled in the public FedBizOpps system.

Hill & Knowlton, Jaffe Associates, The Gallup Organization, and Hooah Advertising and Marketing are among firms that have expressed an interest in the RFP. The Lincoln Group has been the Multi-National Force-Iraq’s primary PR firm through the war.


Craig Fuller, former chief of staff to President Bush I, has joined APCO Worldwide as executive VP and a member of the independent firm’s international advisory committee. He also served as chairman of the `92 Republican National Convention.

Fuller made his mark in the corporate world as VP-corporate affairs at Philip Morris and president & CEO at the National Assn. of Chain Drug Stores. He resigned that post in `06. At that time, Fuller was one of the highest paid association executives, pulling in more than $3M a year.

Fuller also held top posts at Hill & Knowlton and Burson-Marsteller. He served in the Reagan White House as assistant to the president for cabinet affairs, and worked at Deaver and Hannaford from `77 to `81. That was the firm of former Reagan advisors Mike Deaver and Peter Hannaford, an APCO advisor.

A federal judge has “certified” the class action securities fraud lawsuit filed against Omnicom over its dot-com investment losses on behalf of those who purchased its stock from Feb. 20, `01 through June 11, ’02.

Judge John Keenan, U.S. Southern District of New York, appointed New Orleans Employees’ Retirement System as the lead plaintiff in the case. It claims that OMC established a shell company, Seneca Investments, to shield its bottom line from losses that occurred during the dot-com bust.


A record 408 PR firms have expanded their entries for the 2007 O’Dwyer’s Directory of PR Firms which will be published in June.

Included in this total are virtually all of the 151 PR firms that documented their fees and employment totals.

The expanded entries display the logos of the firms and provide their own descriptions of their unique philosophies and specialties.

More than 2,000 PR firms are listed in the Directory which has a cross-index to their 10,000+ clients.

Publisher pays shipping for pre-publication orders.


Weber Shandwick is guiding Cerberus Capital Management as it agreed to acquire an 80 percent stake in Chrysler from DaimlerChrysler in a deal worth $7.4B.

The private equity firm, based in New York, will also absorb responsibility for Chrysler’s $18 billion retirement and healthcare obligations.

Peter Duda, executive VP in WS’ corporate/crisis group leads the PR effort. Duda told O’Dwyer’s that his firm has had a previous relationship with Cerberus.

The Interpublic unit, for instance, repped Cerberus in its $14B deal to acquire a 51 percent stake in General Motors Acceptance Corp.

Daimler bought Chrysler in ’98 for $36B in the so-called “merger of equals” that never panned out that way.

The German automaker will change its name to Daimler AG once Chrysler is unloaded to the private equity firm. Cerberus’ auto operation is headed by David Thursfield, a Ford Motor veteran.


Larry Kamer, North America president of Manning, Selvage & Lee, joins Fleishman-Hillard June 18 as western regional practice head and co-chair of its corporate communications group.

Based in San Francisco, Kamer will be in charge of five offices in California and Oregon.

The PR veteran led MS&L’s General Motors account and counseled blue-chips such as Procter & Gamble, Roche, Home Depot and Reebok.

Kamer and Sam Singer founded high-tech firm Kamer/Singer Assocs., which was acquired by GCI Group in ’99. Kamer assumed the presidency of GCI’s PA group following that transaction.

In 25 years, Kamer has tackled crises such as Jack-in-the-Box Restaurants’ food contamination issue, labor strife at General Motors and rumors over AIDS-tainted blood at a San Francisco hospital.

(Continued on page 7)

Internet Edition, May 16, 2007, Page 2


Mark Penn, Burson-Marsteller CEO and Hillary Clinton’s pollster, is profiled in The Nation, which hits the stands on May 16, as “perhaps the most important figure” in the New York Senator’s presidential campaign. [Penn was President Clinton’s pollster.]

Beyond his connections to Clinton, Ari Berman notes that Penn’s firm, Penn, Schoen & Berland, “polls for America’s biggest companies.” PS&B, for instance, has counseled Microsoft, Texaco, Procter and Gamble and Monsanto.

Penn’s double duty “creates a dilemma for Hillary: Penn represents many of the interests whose influence candidate Clinton—in an attempt to appeal to an increasingly populist Democratic electorate—has vowed to curtail.”

The article, which is currently online, asks: “Is what’s good for Penn and his business good for Hillary’s political career.” It is difficult to “tell where Penn’s corporate life ends and the political one begins.”

Penn has no intention of taking a leave of absence from B-M. President Bush, writes Berman, forced his top advisor Karl Rove to sell his direct mail business in `99.

Howard Paster, who was President Clinton’s lobbyist and B-M chairman, dismisses talk of a potential Penn conflict. “B-M is a lot bigger firm than Senator Clinton. There’s a whole `nother life we live.”


The Hastings Group is providing PR support for a delegation of Appalachia citizen groups calling on the U.N. to ban “radical” forms of surface mining like the removal of mountaintops.

Hastings senior partner Scott Stapf told O’Dwyer’s the non-profit Massachusetts-based think tank Civil Society Institute is a Hastings client that is backing the work of the coalfield delegation.

The Arlington, Va.-based PR firm coordinated a press event in Dag Hammerskojold Plaza Park last week. Representatives from four groups – Save Our Cumberland Mountains (Tenn.); Coal River Mountain Watch (W.Va.); Kentuckians for the Commonwealth (Ky.), and Ohio Valley Environmental Coalition – highlighted coal industry abuses that, the groups say, have destroyed more than one million acres of forests, 500 mountains, and hundreds of miles of streams.


Charles Fremes, CEO of Edelman’s Canadian operation, died of a heart attack on May 7. He was 57.

Fremes joined Edelman a decade ago. He had been VP-corporate affairs at Molson, Canada’s venerable brewer. He launched a drunk driving prevention program there and the country’s first corporate campaign to support HIV/AIDS research.

At Edelman, Fremes counseled the province of Ontario during the SARS crisis and advised companies like Hudson Bay and Canadian Broadcasting.

Richard Edelman remembers Fremes as a “wonderful friend” and “older brother.”

A memorial service is planned for later this month.


Interpublic reported a $133M first-quarter net loss last week, an improvement from the $182M year ago deficit. Revenues inched ahead 2.4 percent to $1.4B.

CEO Michael Roth said the firm must increase the rate of organic growth, while paring staff costs.

IPG’s organic growth posted a solid 4.2 percent increase in both the U.S. and U.K., but tanked in Continental Europe (-5.9 percent) and Asia Pacific (-4.7 percent).

The ad/PR combine posted a 7.5 percent drop in office and general expenses to $495M due to reduced professional fees related to its restructuring efforts.

Roth promises to invest in both emerging markets and the digital category. He believes IPG’s turnaround plan remains on target.

Weber Shandwick, GolinHarris, MWW Group and Rogers & Cowan are IPG’s key PR holdings.


Alex Azar, who until Feb. 3 was deputy secretary of Health and Human Services, has joined Eli Lilly & Co. as senior VP-corporate affairs and communications.

He is responsible for government relations, corporate branding, PR and will spearhead the $16B drug giant’s effort to curb the flow of counterfeit medicines.

At HHS, Azar handled Medicare/Medicaid, disease prevention, research, food/drug regulatory, mental health and emergency preparedness issues.

Previously, he was general counsel at HHS, partner at Wiley, Rein & Fielding and clerk for U.S. Supreme Court Justice Antonin Scalia.

Azar succeeds Anne Nobles, who becomes VP-compliance and enterprise risk management. She is a 16-year veteran of the Indianapolis-based company.


Socialite Paris Hilton has rehired longtime publicist Elliot Mintz five days after firing him for “miscommunicated information” about her right to drive in California with a suspended license.

Mintz told gossip site, TMZ, that they agreed to “continue our professional relationship.” He will “continue to respect and support her as her media rep and friend.”

Hilton is looking at 45 days in jail for violating the terms of her probation in her alcohol-related reckless driving case.

Mintz, in a statement on May 6, said he told Hilton that she could drive on “work-related” matters. That was the impression he got from Hilton’s attorneys.

The publicist was “deeply and profoundly sorry” for telling Hilton it was all right to drive in certain circumstances. He expressed “sadness over the ruling of the judge and the irrational sentence he imposed.”

Hilton is to report to jail on June 5. Her attorneys are appealing the sentence.

The New York Times profiled Mintz in a “Walking Ms. Hilton” profile last August.

The paper called Mintz, who also repped Bob Dylan, John Lennon and Yoko Ono, Hilton’s “press agent, quasi bodyguard and all-around hand-holder.”

Internet Edition, May 16, 2007, Page 3


News Corp.'s Rupert Murdoch would destroy the journalistic integrity of the Wall Street Journal if he acquired control of the paper from Dow Jones & Co., according to Jim Ottaway, who sold his regional newspaper chain to DJ&C in 1970.

The online version of the WSJ posted a statement from Ottaway in which he attacks Murdoch's practice of pushing his "personal, political and business biases through his newspapers and television channels." That's because Murdoch is steeped in the Australian-British media tradition, according to Ottaway.

Murdoch's New York Post, in Ottaway's view, "regularly runs biased news stories and headlines supporting his friends, political candidates and public policies and attacks people he personally opposes."

Ottaway offers News Corp.'s Fox News, which is headed by former Republican strategist Roger Ailes as a "unique example in American broadcasting in which one man's political opinions have become the editorial and news policy of a major national news channel."

Ottaway accuses Murdoch of always putting business before journalism. He charges Murdoch with kowtowing before the Chinese communist government to allow market access for News Corp's Star TV broadcasts. He doubts the WSJ under Murdoch's ownership would be free to criticize China's government.

Ottaway dismisses Murdoch's "charm offensive of public media interviews" designed to woo DJ&C's controlling Bancroft family into approving his $5B takeover offer. He also notes that Murdoch is 76 years old. "His promises no matter how sincere, will not last very long. Who will keep his promises in the future? Rupert Murdoch is a remarkably vigorous man, but he is not immortal."

The Ottaway family controls a 6.2 percent stake in DJ&C.

News Corp. dismisses Ottaway's letter as relying on "tired misconceptions and clichés." Its execs would like to meet with Ottaway to sort things out.


Brunswick Group and Finsbury are guiding the $17.5B merger of Thomson Corp. and Reuters Group to create an entity called Thomson-Reuters, which would be the No. 1 supplier of electronic news and financial data.

The combo is expected to result in $500M in synergy savings over the next three years. The partners remain wary that the merger can be pulled off since it is a "large and complex transaction." There also is a thicket of regulatory issues to overcome.

Thomson CEO Richard Harrington, 60, who guided its transformation to a electronic/software powerhouse, will step down in the aftermath of a completed merger. Reuters chief Tom Glocer, 47, will assume the helm of the combined entity.

Thomson's offer represents a 43 percent premium to what Reuters shares were trading before its announcement of an acquisition interest.

Thomson uses Finsbury's James Leviton to deal with the U.K. press to supplement the work of Jason Stewart (VP-media relations) and Frank Golden (VP-IR), the duo are located in Stamford, Conn.

Brunswick's Nick Claydon is helping Miriam McKay, Reuters' global head of IR, on the transaction.


Chris Albrecht, who is responsible for the rise of cable programmer HBO, has resigned as chairman/CEO of the Time Warner property following his arrest for assaulting a girlfriend in a Las Vegas parking lot earlier this month.

At first, Albrecht planned a leave of absence to deal with alcoholism, but TW announced May 9 that he agreed to "no longer serve as chairman and CEO of HBO effective immediately."

"With great regret," Albrecht honored TW's request that he step down at HBO because he recognized that he could not allow his "personal circumstances" to distract him from business.

TW dismissed Albrecht following a same-day Los Angeles Times report that HBO paid $400K to settle a battery case brought against Albrecht by another girlfriend 16 years ago.

Albrecht became HBO's programming head in `95 and CEO in `02. The 54-year-old executive is credited with the development of "The Sopranos," "Sex and the City" and "Six Feet Under."

HBO's COO Bill Nelson is taking over for Albrecht on a temporary basis.


Harry McCracken, who resigned as editor-in-chief of PC World earlier this month because of editorial differences with management, is back at the magazine.

Colin Crawford, PCW CEO, has returned to a corporate position at parent IDG, where he will concentrate on strategy as executive VP-online.

McCracken, a 16-year veteran of IDG, reportedly stepped down after Crawford tried to kill a story about Apple and its CEO Steve Jobs.

He returns to the e-i-c post after receiving a promise of full editorial autonomy.

IDG is looking for a new CEO of PC World and sister pub, Macworld.


Quadrangle Group, the investment firm of former New York Times reporter Steven Rattner, is the front runner to win the auction for Dennis Publishing.

Women's Wear Daily reports that Quadrangle is leading the bidding contest, which includes offers ranging from $200M to $250M, for the owner of Maxim, Stuff and Blender.

Elevation Partners and Veronis Suhler Stevenson reportedly are among potential bidders for DP. Final bids are expected within a month.

Following the Times, Rattner founded Morgan Stanley's comms. group and was deputy CEO of Lazard Freres.

He launched Quadrangle in ’00. It has a $3B investment in media and communications companies.

(Media news continued on next page)

Internet Edition, May 16, 2007, Page 4


A positive cover story in BusinessWeek, Fortune and Forbes is a good sign that a company's stock will soon lag, according to The Economist.

The British weekly reports "good news" companies lagged "bad news" counterparts by a 12.4 percent to 4.2 percent margin during the 500 trading days after the magazines hit the stands. Stock of the good news companies had outperformed the "baddies" in the 500 trading days prior to the stories.

The Economist believes the results show that "if news is sufficiently good or bad to catapult a company onto a magazine cover, then it is already reflected in its stock price.

Tom Arnold, John Earl and David North, authors of the survey that studied magazine covers over a 20-year period, surmise: "positive stories generally indicate the end of superior performance and negative news generally indicates the end of poor performance."

Their study, "Are Cover Stories Effective Contrarian Indicators," ran in the Financial Analysts Journal.


Walt Disney Co. has unveiled Disney Xtreme Digital, a social networking site aimed at pre-teens. Users will have access to games, videos and music files, and can establish a personal page similar to MySpace.

Disney promises the site will allow parents to monitor their kids' use and there is also a feature that limits going beyond content that is offered by Disney.

Paul Yanover, executive VP and managing director of Disney Online, told Reuters that he wants “tons of kids immersed in my brands and franchises. What better marketer do I have than a kid?”


TV programs rely on vibrant personalities for success, said an April 19 Publicity Club of New York panel of cable TV producers.

"It's all about client personalities and access," said Jeanne McHale Waite, vice president and general manager for Atlas Media Corp., a New York-based non-fiction television production company that creates shows for many popular cable networks. "You give us a personality and we can find a way to access that expression."

Ideally, McHale Waite said an expert's knowledge combined with a star-like charisma is the personality combo networks look for when coming up with new show ideas.

Though this gimmick may seem simple enough, it's the stuff programming is made of: every show from American Idol to the litany of cooking programs uses a variation of this formula, and a producer's ability to perfect this recipe is a work of art.

"We need experts for absolutely everything," she said. "Pop culture, trend people, futurists, food gadgets – you name it. We're looking for energetic people you can hang your hat on."

Alex Campbell, vice president of development for the Fuse Network, offered a three-part formula for pitching his company. "Does it have a voice, is it rock 'n roll, and will it cut through the cable landscape? These are the questions you need to ask before you come to me with an idea."

Fuse, a music video-oriented channel similar to MTV, produces shows Campbell describes as "smart done stupid, stupid done smart." It's a formula that's often viewed as risqué (or maybe passé) among fellow networks, but it's made a splash among the coveted demographics of teenage viewers, causing the nascent network to grow from its humble beginnings to currently staffing a full-service development department.

"A lot of people are scared of what I do. Ad reps roll their eyes when we have meetings together," he said. "But it works and we have an advertising market to prove it."

Cable TV’s changing landscape

Times have changed for cable television, a fact the panel noted as one of the key reasons PR pros have such a hard time landing successful pitches. Politics, technology, FCC regulations and new business models have vastly transformed the industry, and understanding this new landscape is a vital part of finding success in it.

Steve Schwartz, president of New Harbor Entertainment, offered a brief overview of the TV broadcast industry as a primer for publicists who are new to the medium. Before the advent of cable, all television shows were developed by the networks that hosted them, Schwartz said. Nowadays, it isn't uncommon for cable networks to farm out all of their production duties.

Cable networks are constantly in search of shows to fill timeslots, so publicists with fresh ideas are a vital component to production houses like New Harbor. However, Schwartz warned that pitching production companies who lease out their work means understanding a business model steeped in company politics.

"We're out there hustling and selling and we really need ideas. We're a constant supplier of programming and we look to people like you to do it," Schwartz said.

"But you have to be wary when you pitch something. No matter how good the idea may seem, it may cause some problem between ad sales and the producer.”

Schwartz believes the answer lies in developing a consensus with cable networks to know what ideas would be acceptable for their company.

Michael Kaufman, vice president of development and production for Al Roker Entertainment, said he's used more ideas from PR pros in recent years, and cited the evolution of good pitches in the industry as one of the main reasons for this phenomenon.

"I've been hearing more and more from publicists. Traditionally, our agents will solicit talent, but now I'm noticing more and more publicists coming to our office and they're bringing the talent," he said. "We're seeing really polished pitches.” Kaufman suggested keeping the medium in mind when pitching TV networks and to remain visual.

The panel, hosted by PCNY president Peter Himler, said most cable networks are currently looking to add an online component for many of their shows, and advised PR pros to take advantage of the void in content.

Internet Edition, May 16, 2007, Page 5


Fleishman-Hillard has opened its first office in India for clients based in or doing business in the South Asia country.

Based in Mumbai, the office is lead by senior VP and GM Jack Dougherty, who re-joined the firm this year after running his own shop.

Yusuf Hatia, an India native recently based in London for F-H, is a VP for the new outpost.

The firm’s Asia Pacific senior VP for technology, Tarun Deo, also has extensive experience in the country.

Tata Consultancy Services, a top IT services and outsourcing company based in India, is a client of the Omnicom unit. Info:

Carabiner Communications, Atlanta, and Eastwick Communications, Redwood City, Calif., have embraced social media in recent weeks.

Eastwick is pitching a “social media newsroom” that embraces technology like blogs, tagging, RSS, and rich media to better align its clients (and their news) with bloggers, journalists, and consumers.

“Many clients told us they wanted the benefits of social media but needed a way to get started,” said EVP, emerging media, Joel Postman.

Carabiner has added search engine optimization and social media communications like wiki management, blogging, and podcasting to its offerings.

KCSA Worldwide, New York, has formalized an alternative energy practice for companies in that sector planning new product launches or looking to reach investors.

Lewis Goldberg, managing partner, heads the group. He said he wants clients in sectors like geothermal, solar, biomass, and wind-to-energy to be “thought of in the same light as traditional market peers.”

The firm already counts several clients like Keyspan Energy, ConsumerPowerline, and Lighting Science Group.

BRIEFS: Ketchum’s Stromberg Consulting unit has opened its first European office in London. The management consulting firm is headed in the U.K. by Victoria Brown, who has recently been based in New York handling FedEx and Baxter Pharmaceuticals. Manning Selvage and Lee’s “Intern Challenge,” a competition for an internship at the PR firm similar to the NBC program “The Apprentice,” was featured recently in the New York Post. The firm is holding the competition for the second year, narrowing down a field of 200 applicants to 30 to compete for a $10-an-hour internship at the firm. A brainstorming session, writing and current events tests, and a one-on-one interview are part of the selection process. ...Rev Interactive, the tech division of Charles Ryan and Associates, picked up two awards – a Mercury Award from the Travel Industry Assn., and a Gold Adrian Award – for online tourism marketing for the West Virginia Division of Tourism and the Virginia Tourism Corp.


New York Area

Articulate Communications, New York/Antenna Software, mobile enterprise technology, as AOR following a review.

Creative Marketing Plus, New York/Le Chateau, fashion retailer.

Peppercom and WestGlen Communications, New York/International Fund for Animal Welfare, for a comm. and education campaign to save whales.

Vineberg Communications, Westhampton, N.Y./Jaiku, for U.S. and international PR for the Finland-based company’s microblogging platform.


Pan Communications, Andover, Mass./
Commonwealth Worldwide Chauffeured Transportation, for PR.

Schubert Communications, Downington, Pa./Kleerdex Co., thermoplastic sheet maker; LP Innovations, retail loss prevention solutions, and Strongarm Designs, machine operator interface systems, for B2B comms.

MGH, Baltimore/Meritain Health, self-funded health and wellness plans, as AOR for PR.

Strategic Communications Group, Silver Spring, Md./
Senforce Technologies, IT security mgmt., for PR.

Creating Results, Woodbridge, Va./Montecito Property Co.; Bozzuto Management at The Four Winds Oakton Apartments; Greentree Homes; Sorensen Homes; The Engineering Groupe; McShea Management, and Providence of Brookfield.

Eric Mower and Associates, Charlotte, N.C./Infinity Partners, luxury real estate developer, as AOR for advertising, PR and interactive. The firm’s Albany, N.Y., office picked up BernzOmatic, an affiliate of Newell Rubbermaid, for PR.

French/West/Vaughan, Raleigh, N.C./Triangle Orthopedic Associates, for an integrated PR and marketing comms. campaign for its recent merger and expansion.

Trevelino/Keller Communications Group, Atlanta/
MarketSquare, message technology for online broadcast comm., as AOR for PR to support its broadcast platform and the launch of and

Tara, Ink., Miami/David Manero Restaurants, for launch of DeVito South Beach, an eatery backed by restaurateur David Manero and actor Danny DeVito, and for ongoing PR for Vic & Angelo’s, a Palm Beach Manero restaurant.


GolinHarris, Chicago/Florida Dept. of Citrus, as AOR for PR in the U.S., Canada and Europe, a successful re-bid as the firm marks 12 years on the account.


Michael A. Burns & Associates, Dallas/Assa Abloy Hospitality, electronic locks and safes for hotels, as AOR for PR.


Politis Communications, Draper, Utah/United First Financial, as AOR for PR and marcom work.

Edelman, Los Angeles/”The Secret,” a bestselling film and book, for an international comms. program.

Internet Edition, May 16, 2007, Page 6


PR Society of America/N.Y. said Ken Makovsky of Makovsky & Co., Emmanuel Tchividjian of Ruder Finn, and Jeanne Salvatore of the Insurance Information Institute will receive the chapter’s top honors at its annual Big Apple gala later this month.

Makovsky, who founded his firm in 1979 and serves as president, is set to receive the John W. Hill Award, considered the chapter’s most prestigious honor, for leadership in the practice of PR, ethics, and public service.

Tchividjian is RF’s chief ethics officer and senior VP. He is set to receive the Philip Dorf Award for mentoring.

Salvatore, who is senior VP for public affairs at the III, will get the group’s President’s Award, for contributions to the chapter which she headed in 2000.
PRSA/N.Y.’s Big Apple Awards ceremony will be May 23 at the Rainbow Room. Info:


The African-American PR Collective will launch a series of seminars on May 19 with a panel of book publishing executives at the National Academy of Recording Arts and Sciences in New York.

The series will continue with an event in June, before breaking for the summer and returning in September, October, and November.

The inaugural event, “The Write Stuff: Public Relations and Book Publishing,” will feature Tara Brown, VP of sales, marketing and publicity for Hilton Publishing; Gilda Squire, director of publicity of Harper Collins’ Amistad Imprint; Linda Duggins, director of multicultural publicity at Hachette Book Group, USA, and Candace Sandy, an author and comms. pro.

The Collective says it wants to fill a gap in the networking potential among African-American PR and media pros. The group plans to launch a podcast in the fall called the “Global Communicator Lounge,” including 30-minute interviews with members.


Sylvan Solloway has been promoted to director of multicultural services at D S Simon Productions in New York.

Solloway, who was a senior producer in nearly three years with Simon, is charged with expanding the broadcast PR company’s multicultural and multilingual offerings beyond SMTs, RMTs, VNRs and corporate videos.

BRIEFS: is hosting a contest open to the public to select the next director of a national TV spot. The travel site has teamed with the CineVegas Film Festival. Contestants must produce a 30- or 60-second spot and upload it to the website by May 25. Winner gets $5,000 and the change to direct a national TV spot. PJ Inc. PR in New York is handling the competition. ...Video search engine Blinx has formed a content partnership with Medialink to transcribe and index video from the broadcast PR company.



Mary Osako, VP of corporate comms. for Yahoo!, has moved up the Bay to for a senior VP post. Osako, who recently headed global policy communications and PR for Yahoo!, is charged with setting's global communications strategy., formerly Ask Jeeves, is part of IAC/InteractiveCorp., based in Oakland, Calif. Osako brings media relations and PR experience from Sprint Corp.

Kim Newman, who handled media relations at Dentsu Communications, to Krupp Kommunications, New York, as publicity manager. Newman handles senior level account planning and media relations for Weight Watchers and Taste of Home.

Michael McDougall, director of worldwide PR for Eastman Kodak’s consumer digital group, to Bausch & Lomb, Rochester, N.Y., as director of corporate comms. He was formerly director of PR and operations for Buck & Pulleyn.

Karen Brandon, VP of comms. at the International Youth Foundation, to The WadeGroup, Washington, D.C., as a VP. She was previously at Burson-Marsteller for 12 years and press secretary to the chairman of the Navajo Nation. Nancy Mayes, who ran her own firm and was previously comms. director at advocacy group ITS America, joins The WadeGroup as an associate.

James Ratchford has joined the Information Technology Industry Council, Washington, D.C., the “voice of the high-tech community.” The former FD senior VP handles PR for the organization that counts Apple, IBM, Microsoft, Intel, Hewlett-Packard, Dell and Time Warner as members. The ITIC says its goal is to build “understanding of the digital world” and the challenges that abound there among Congress, media, consumers and opinion leaders. The National Journal billed the ITIC as “one of Washington’s most effective lobbying groups.”

Alyssa Gold, PR specialist, ICF International, to Environics Communications, Washington, D.C., as an A/E. She earlier worked in the Environmental Protection Agency’s Office of Children’s Health Protection Outreach Program.

Mike Weiner, president of Art of Fact Media, to Maccabee Group PR, Minneapolis, as an A/E. He was previously with Karwoski & Courage and Tunheim Partners.

Lowell Singer, senior research analyst and managing director, Cowen and Co., to The Walt Disney Co., Burbank, Calif., as senior VP of investor relations.

Fernando Chavez, district representative for former California state senator Hilda Solis, to Cerrell Associates, Los Angeles, as an A/E.


Nick Colucci to president/CEO, Publicis Healthcare Communications Group, New York.

Tara Hunter to director of PR for QVC, West Chester, Pa. She joined the shopping network in 2004 as PR manager and earlier was a VP for LaForce + Stevens.

Travis York to president and principal partner, Griffin York & Krause, Manchester, N.H.

Internet Edition, May 16, 2007, Page 7


Christopher Buckley, whose latest books are Florence of Arabia and Boomsday, and Matthew Bishop, U.S. editor of The Economist, are among speakers at the 56th annual PR Seminar May 23-26 at the Bacara Resort & Spa, Santa Barbara, Calif.

Buckley's Thank You for Smoking was made into a movie. Florence of Arabia is described as “a Middle East comedy” while Boomsday is about Social Security reform.

Buckley is also the founder and editor-in-chief of Forbes FYI Magazine.

Top PR Execs Gather

PRS is the annual gathering of mostly corporate PR executives and about a dozen heads of the largest PR firms. Attendance is usually 160 executives and their spouses and companions.

Although still called "PR Seminar," almost none of the corporate attendees has "PR" as part of his or her title.

The most popular titles are corporate communications, communications by itself, public affairs, and marketing communications.

Other speakers signed up so far are Arthur Levine, Ph.D., president of the Woodrow Wilson National Fellowship Foundation, and Carolyn Porco, Ph.D., imaging team leader, the Cassini Mission to Saturn of the Space Science Institute.

Jon Iwata of IBM is chairman of PRS. Stephen Johnson is program chair and Charlotte Otto is secretary/treasurer.

Thirty or more "freshmen" are usually inducted.

Turnover High in Recent Years

Turnover at PRS has risen in recent years due to high turnover in CEO jobs. Several decades ago, only 5-7 new members were accepted each year. Members could go as long as they didn't skip two years in a row. Current policy is to drop anyone from membership who has lost his or her job and fails to get another one with a major company.

"PR" as such is almost never discussed at PR Seminar.

"The goal of the Seminar," says a mailing, "is to provide a 'big picture' look at the trends and issues shaping the world in which we operate."

The programs are designed to foster dialogue and networking.

Those accepted as members of PRS are told the invitation "is in recognition of your leadership in the communications will be joining the most senior PR, communications and public affairs officers of major corporations and agency heads in the world."

Promised are "fresh, provocative insights from recognized leaders in a number of fields including health, science, politics, technology and the media."

PRS does not "focus on the tactical aspects" of PR, since there are "other organizations covering this role," says PRS literature.

Speeches and debate are all "off the record" although some speakers have provided texts at rare intervals in the past.


Stick and Move, a Philadelphia marcom firm, is guiding PR for Redux Beverages’ withdrawal of the controversial energy drink Cocaine.

Account director Jared Scott told O’Dwyer’s that his firm is handling both PR and advertising amid a “lot of correspondence” over the energy drink. Redux’ advertising – a tagline describes the drink as “the legal alternative” – has fueled the controversy, although the company calls its marketing “tongue-in-cheek.”

Redux said on May 8 that it was responding to “political threats” by the Food and Drug Administration and several attorneys general by halting distribution of Cocaine until the legality of the name can be “firmly established.”

The FDA has claimed the company is “illegally marketing the drink as a street drug alternative” and set a May 4 deadline for Redux to pull it from shelves.

The Las Vegas-based company said it has received “tens of thousands” of emails and calls from consumers who are outraged by the FDA’s action. A Myspace page has also been bombarded with comments in support of Cocaine’s sale. Redux plans to re-name the drink “Censored” this spring.


Integrated Corporate Relations, the fastest growing firm among O’Dwyer’s top 15 ranking, is repping Armor Holdings Inc., which has received a $4.1B buyout offer from Britain’s BAE Systems.

Armor was No. 3 on Fortune’s list of the 100 fastest growing firms in `06, fueled by robust demand for its plating for U.S. military vehicles in Iraq and Afghanistan.

Michael Fox, president of ICR’s corporate communications group and Ogilvy PR Worldwide veteran, handles media on the proposed acquisition.

James Palczynski, ICR principal, is working Wall Street. He was at Salomon Smith Barney before joining the Westport, Conn., financial specialist.

ICR registered a 52 percent growth in `06 fees to $17.5M.


Veteran PR pro Jeff Davis has scheduled Food Fete `07 for July 9 at Splashlight Studios, which is near New York’s Jacob Javits convention center.

The invitation-only press event will feature specialty food, beverage and gourmet kitchenware products.

The past two events have attracted writers from Bon Appetit, Food & Wine, BusinessWeek, Martha Stewart Living, Time, Saveur, Business Week, Gourmet and Better Homes & Gardens.

Edelman, Weber Shandwick, Porter Novelli, Cone, Hill & Knowlton and CRT/Tanaka are firms that have showcased clients at the two earlier Food Fetes.

Davis has three levels of participation: “networking: ($300 per-person to mingle with journalists), “gift bags” ($950) and “exhibitor ($2,250).

He promises an intimate and lively setting that is packed with interaction opportunities. Info: 404/812-0111 and [email protected].

Internet Edition, May 16, 2007, Page 8




Financial reports loaded with spin and sell were put out last week for Omnicom and PRSA.

There are many positives in both reports but the exclusion of important negatives makes them false and misleading.

Omnicom, whose PR firms (Fleishman-Hillard, Ketchum, Porter Novelli, etc.) had $1.2 billion in fees in 2006, had a great first quarter and its finances for calendar 2006 were just fine, according to analysts who track the stock. All of them are doing business of one sort or another with OMC.

OMC delivered a “blowout” Q1 with organic revenues up 7.3%, said Merrill Lynch. It called OMC the “High Quality Leader” and said some of its peers had “weaker U.S. organic growth” in Q1.

Net new business was up 30% in Q1 to $1.3 billion and Q2 has started out “strong.”

ML expects OMC, currently $104, to hit $117 based on expected growth of about 10% in 2007.

Equally enthusiastic was Lehman Brothers, which raised its “target price” from $120 to $123. OMC has met or topped Wall St. expectations of earnings-per-share in 18 of the last 20 quarters, it notes.

All of the above is true but analysts we pay to help us understand OMC, WPP, etc., (because they don’t discuss their finances with the press) made some different observations. “OMC has a lot of’s probably paying its vendors at the last minute,” said one. Payables rose more than $1 billion to $7.3B as of Dec. 31, 2006 and exceed receivables by $1.3B. OMC has negative working capital of $649M. Long term debt was up $995M to about $3.1B. Shareholders’ equity fell $77M to $3.87B. It cost OMC $5.6M in interest and penalties for tax positions that were disallowed. How much in earnings were involved is not told.

OMC carries $6.85B in “goodwill,” meaning the amount it paid for acquisitions above cash and other assets. It says, as usual, that there has been no impairment of these assets. Theoretically, it could sell some of the acquisitions and cash out. Since “shareholders’ equity” of $3.87B includes the $6.85B in goodwill, OMC has negative “tangible net worth” of minus $2.9B. To keep the stock above $98 and discourage bondholders from converting to stock, it spent $1.34B in 2006 to buy back 14.8M of its own shares. The float is now down to about 167M from 187M. Lehman expects share buybacks to cost $826M in 2007 and $874M in 2008. It spent $451M for 4.3M shares in Q1, surprising Lehman which expected the total to be 1.75M. Despite the steady growth, OMC stock is still below its high of $107 on Dec. 17, 1999. CEO John Wren, who was paid $13.2M last year, owns 486,086 shares worth $50M and has options exercisable within 60 days on 3,700,000 shares worth (in total) about $377M.

Wren’s costs per share vary from $24 to $91 and include 1.5M in options at $79.50 that vested in full on April 4, 2007 (worth a net of $30M to Wren). He’s well paid for a CEO whose stock is below its 1999 high.

PRSA CEO Rhoda Weiss announced that net assets rose 7% to $2.82M, “the highest level in the Society’s 60-year history.” Revenues grew 12% to $11.46M. Seminar income spurted 38% to $1.13M while costs rose only 11% to $300,470. The annual conference grossed $1,361,738 and “netted” $283,925. Cash/investments rose 54% to $4.52M.

Weiss stressed such positives but left out the fact that payables rose 76% to $1.36M. PRSA simply didn’t pay a lot of its bills and hung onto the cash, which is what OMC does. Bragging about “record” net assets is uncalled for since PRSA is counting as assets about $2M in dues it has received but hasn’t yet earned. Real net assets (as almost all other groups count them) are about $800K which is very thin for a group with expenses of $11.2M. The net on $11.46M in revenues, which Weiss doesn’t mention in her statement, was $195,429 or 1.7%.

The conference did not “net” $283K because PRSA has again left out staff costs of more than $1.5M. “Administration” costs of 13 programs are now lumped together and rose to $3.18M in 2006 from $2.65M in 2005. Thus far, the complete audit, which includes a detailed look at spending in 17 categories, is being withheld from members. We asked a couple of directors to help us get this but they refused to buck leadership.

Some senior PRSA members at the May 4 lunch for COO Bill Murray in D.C. (4/9 NL) were astounded that not a single question came from the 60 members present. Murray, who was making his first public appearance, read from a text while the members were eating and finished well before lunch was completed. Only silence came from the audience for the next half hour. Nor did he ask for questions. Here’s the explanation: Reporter Christine O’Dwyer was in the audience taking notes and recording the speech (although a member asked her not to). Her presence “froze” the audience and Murray. Neither could handle being “on the record.” At last year’s Assembly, our presence “froze” the delegates when bylaw changes came up for discussion on the COO being president and more power being given to the Assembly. There was no debate at all and two brief comments on the CM proposal. A long debate took place in the a.m. when proxy voting came up and we were not present...more than 1,000 journalists have been killed in the past ten years while on duty but we don’t hear this issue being taken up by either U.S. or international PR groups, although their members work with journalists. Many journalists face tyrannical regimes that can’t tolerate criticism. Business organizations often behave the same way...Fortune mag is preparing a feature on the 25th anniversary of the Tylenol murders that we hear will support Tylenol as “PR’s No. 1 crisis success story.” ...the final years of PR queen Denny Griswold, who was blocked from seeing friends in the last years of her life, may be made into a movie. PR friends were unable to get through to her. She was heartbroken that her friends had apparently deserted her.

They hadn’t but they didn’t have the drive to get through to her, either.

--Jack O'Dwyer


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