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Internet Edition, August 22, 2007, Page 1


Burson-Marsteller has inked an $800K six-month contract with the Abu Dhabi Investment Authority to build and support a corporate communications unit at the $500B investment unit of that Arab emirate.

The WPP Group arm is to position ADIA as a leading global investor among targeted audiences and an “employer of choice” for financial movers and shakers.

B-M is to devise a crisis program and assemble a team of top communicators to advise the client on global trends and developments. The work also includes a “research and perception mapping” component.

Jim Lake, chairman/managing director of B-M’s U.S. public affairs practice, signed the contract with ADIA.

Powell Returns as COO

Rick Powell, the former chief knowledge officer at B-M, has returned to the firm as COO.

Since ’01, Powell served as managing director of Quinn, Gillespie & Assocs. in Washington, D.C., counseling clients such as Hewlett Packard, Bank of America and Zurich Financial Services. Powell, 40, was at B-M from ’92 to ’99.

B-M upped Bill Rylance, currently CEO of Asia Pacific, to vice chairman/global development and Asia chairman. He will handle the transition to a new A-P CEO, expected to be in place by the end of the year.

Powell and Rylance report to CEO Mark Penn.


Ann Moravick, who was U.S. CEO of Publicis Consultants, has taken the top healthcare job at Ketchum.

The 25-year PR veteran spent 18 years at Manning, Selvage & Lee, holding key healthcare posts plus the managing director London slot. She has provided advice to clients such as Johnson & Johnson, Procter & Gamble and Eli Lilly & Co.

As Ketchum’s executive VP and director of global healthcare and brand advocacy, Moravick reports to Dale Bornstein, director of global practices and Barri Rafferty, director of New York.

Michael Deaver, Edelman vice chairman in Washington and the man responsible for the powerful imagery of the Reagan Administration, died Aug. 18 from pancreatic cancer at his home in Bethesda. He was 69. Nancy Reagan issued a statement to say that Deaver was "like a son to Ronnie."

Deaver joined Edelman in `92 and was upped to vice chairman in `95.


Subaru of America has selected Brushfire as its PR firm, Michael McHale, director of corporate communications of the Japanese car importer, told O’Dwyers.

“We haven’t had a PR firm for some time,” said McHale, who joined Subaru from BMW North America in January. Ruder Finn had the account in `03.

McHale considered a number of shops before selecting Brushfire, which is based in Cedar Knolls, N.J.—an hour away from SoA headquarters in Cherry Hill. He declined to name the other firms.

Brushfire will focus its PR efforts on consumer and lifestyle media. McHale is eager to raise the visibility of the Subaru brand as the`08 models arrive in showrooms.

SoA, which has more than 600 dealers, is part of Fuji Heavy Industries.


Jim Bates, a 22-year veteran of the Los Angeles Times business section, is moving to Sitrick & Co.

He was deputy editor of the entertainment/tech desk, and has more bylines than anyone else on staff, according to a memo from Davan Maharaj, editor of the section.

Bates plans to move in a few weeks to allow the LAT some time to replace him. Maharaj told staffers that Bates will always be welcome at the biz section, but advised them to “not fall for his spin,” and “give him a hard time when he calls on behalf of clients.”

Bates’ move to S&C follows the decision of another LAT long-timer, Mark Saylor to exit the crisis firm. The former senior editor at the paper has established his own shop, Saylor Co.


Hill & Knowlton is handling North American PR for Rio Tinto, the London-based mining giant that is in the midst of a $38B friendly takeover of Canada’s Alcan.

Rio Tinto’s acquisition ranks as the largest mining deal ever.

The offer represents a 32 percent premium to what Alcan’s long-time rival, Alcoa, offered in a hostile takeover effort.

Paul Taaffe, CEO of H&K, says his firm is to bolster Rio Tinto’s “visibility and profile” in the U.S. and Canada.

Taaffe called Rio Tinto a global leader that is “widely respected for its environmentally responsible and community-minded approach to mining.”

H&K’s sister firm, Finsbury, works with Rio Tinto in Europe.

Internet Edition, August 22, 2007, Page 2


Powers Fasteners, the Brewster, N.Y.-based company that was indicted this month for “involuntary manslaughter” connected with the death of a woman who died in Boston’s “Big Dig” tunnel ceiling collapse, is using Polaris PR as its PR firm.

Polaris is headed by Karen Schwartzman, a former senior VP at Fleishman-Hillard and BankBoston media relations director who is well-connected in Massachusetts power circles. She spent 13 years working for the Commonwealth, including a two-year stint as assistant press secretary to ex-Governor Mike Dukakis.

Powers is “stunned beyond belief” about the indictment. It supplied $1,288 worth of epoxy to a distributor for use in the tunnel ceiling. It claims the epoxy used was not the one intended for the tunnel.

The involuntary manslaughter penalty carries a maximum $1,000 fine, an amount that Massachusetts Attorney General Martha Cookery told the Aug. 10 Associated Press “does not seem to be even close to an appropriate punishment.”

Powers, however, could be liable to tens of millions of dollars in civil charges that are being considered against it.

Attorneys for Powers moved Aug. 8 to “disqualify” Cookery and her team from the case because of an “irreconcilable conflict of interest.”

That point is based on Cookery’s role in spearheading the Bay State’s effort to collect as much from Powers and other contractors to cover the cost overruns connected with the Big Dig. The highway project, which opened its final ramp last year, was projected to cost $2.8B in `85.

Nearly $15B has been spent on the network that re-routed traffic from the streets to tunnels under Boston.


WPP Group CEO Martin Sorrell expects a good year in `08, buoyed by the Hill & Knowlton/Beijing Olympics, and heavy U.S. political spending in advance of the U.S. Presidential election.

The British ad/PR combine, according to its first-half earnings release, is especially upbeat about political outlays because the U.S. "may see Hillary Clinton nominated and elected."

A second Clinton Administration may face slower growth in `09 as it "wrestles with the country's fiscal and trade imbalances."

Sorrell warns that though corporate profitability remains strong on both sides of the Atlantic, there is a concern about stagflation as the U.S. and others wrestle with increasing oil prices, twin fiscal and trade deficits and potential impact of change in interest rate policies.

He fears that any cut in consumer spending could mean trouble for marketing services companies because companies have not traditionally picked up the slack.

One reason: "Company boards remain cautious; perhaps cowed by regulatory measures and fear of failure."

WPP notes the average life of a CEO remains around four years, while a chief marketing officer can expect to be around for two.

Sorrell has headed WPP for 21 years.


Ruder Finn is working for American Student Loan Services, a leading Phoenix-based loan consolidator and lender to college students.

Neil Dhillon, who heads RF’s Washington, D.C., office is spearheading the work. He is assisted by Angelo Terrana, VP-media affairs and a former aide to two Republican Representatives from Pennsylvania—Melissa Hart and Bill Shuster.

RF is tackling higher education legislative issues amid calls to tighten federal rules regarding the $85B student loan market.

New York Attorney General Andrew Cuomo, who led a crackdown in the Empire State, branded the Dept. of Education “asleep at the switch” when it comes to probing ties between universities and lenders.

Secretary of Education Margaret Spellings promised Aug. 1 to accept a General Accountability Office recommendation to “update oversight mechanisms to proactively identify possible instances of improper inducements and limitations on borrower choice.”


The State Dept. is looking to hire a firm to plan and run a $25M fund-raising drive to create a permanent exhibition hall for the U.S. Diplomacy Center at the Harry S. Truman Building.

The effort is a joint venture between State and retired members of the Foreign Service who have established the Foreign Affairs Museum Council.

That partnership has so far raised $1.25M from private donors.

The Diplomacy Center is an office within the Bureau of Public Affairs.

The entity’s goal is to increase public awareness of diplomacy via exhibits and innovative programs to inspire future leaders of the diplomatic corps.

The fund-raising contract, which has a base and two option years, also requires the ability to organize high-profile special events.

H. Leo Powell is contract administrator at 703/875-6071 and [email protected].


Thailand, which has trade and political issues with the U.S., has hired Global Communicators for a three-month public awareness program.

Jim Harff, GC CEO, says the Thais want to emphasize their role as a “close friend and ally of the U.S. for nearly 175 years.”

GC’s program is aimed at congressional leaders, executive branch and department people, industry groups, think tanks and reporters.

The goal is to strengthen the overall bilateral relationship between the two countries.

Michiko Morales, senior VP at Global Communicators, heads the work.

Thailand has been involved in a messy fight over intellectual property issues with Abbott Laboratories that centers on licensing issues for Abbott’s AIDS drug.

Thailand’s military junta also is seeking the extradition of ousted Prime Minister Thaksin and held a vote on Aug. 19 that cemented its power.

Internet Edition, August 22, 2007, Page 3


CBS has settled its termination squabble with its former shock jock Don Imus, a dispute that was triggered by the D.J.’s “nappy-headed hos” reference to the Rutgers University women’s basketball team.

“Don Imus and CBS Radio have mutually agreed to settle claims that each had against the other regarding the Imus radio program on CBS. The terms of the settlement are confidential and will not be disclosed,” said a statement from the broadcasting giant.

Imus, prior to his dismissal, had signed a $40M five-year deal with CBS that called for him to be “controversial.”

The settlement deal precludes 66-year-old Imus from making disparaging remarks against CBS, and paves the way for his return to the air. WABC, which features conservatives Sean Hannity and Rush Limbaugh, is among potential employers of Imus.

WFAN, the New York flagship station of CBS that was home to Imus, announced that former NFL quarterback Boomer Esiason and Craig Carton, a New Jersey radio personality, will replace the I-Man.

“Boomer and Carton in the Morning” debuts on the sports radio station on Sept. 4.


Time’s circulation plummeted 17 percent to 3.4M this year compared to the first-half of ’06, according to figures from the Audit Bureau of Circulations.

John Squires, executive VP of Time-Warner’s Time Inc. group, says the poor showing was part of the planned retrenchment and cut in promotional sales.

Newsweek and U.S. News & World Report posted flat circ figures. They had 3.1M and 2M readers, respectively.

The Big Three business mags also turned in flat results. Forbes surpassed BusinessWeek, taking the No. 1 spot with a circulation of 925K. BW, which had 930K readers last year, has 919K in ’07. Fortune has 865K readers.

The North American edition of The Economist continued its hot streak. The British mag enjoyed a 16% rise in readership to 694K


The Philadelphia Inquirer has assigned Mike Leary and Sandra Long as managing editors.

Leary rejoins the paper from the Baltimore Sun, where he was assistant managing editor. He will oversee news gathering operations.

Leary was an investigative reporter for the Philadelphia paper during the ’80s and partnered then with the paper’s now-editor William Marimow. They exited the Inquirer for the Sun.

Long, a 24-year veteran of the Inquirer is upped from deputy managing editor. She takes over production and serves as newspaper liaison with business operations.

Long is a founding member of the National Assn. of Black Journalists.

Both replace Ann Gordon who left the Inky on April 30.


Linda Greenhouse, the longtime New York Times Supreme Court reporter, told organizers of a “Covering the Court(s): Reporters on the Supreme Court Beat” panel to get rid of C-Span’s cameras or else she wasn’t going to appear as planned.

Greenhouse, according to a posting by the Columbia Journalism Review, felt she couldn’t speak candidly if the TV cameras were there.

She was prepared to speak to a “room of academics” so she “didn’t want to modulate her comments for a national audience.”

The organizer, fearing the loss of a “marquee attraction,” had C-Span turn off its cameras. Greenhouse did not demand that the proceeding be “off-the-record.”

Greenhouse’s move led Terence Murphy, VP–programming at C-Span, to fire off a letter to the Assn of Education in Journalism and Mass Communications, which put on the event. His concern: “If professors of journalism and working journalists taking part in a journalism education conference don’t stand up for open media access to public policy discussions, who will.”

He also noted that Greenhouse has been covered by C-Span more than 50 times. CJR referred to Greenhouse as “Hurricane Linda.”


Hearst Corp. has acquired Kaboodle, which is the MySpace of the social shopping place, according to Kenneth Bronfin, president of Hearst Interactive Media.

Kaboodle, which has more than two million unique visitors a-month, connects people with similar tastes and takes them on a shopping adventure.

Hearst sees synergies between Kaboodle and brands in its fashion, beauty and consumer technology categories. Cathy Black, head of Hearst Magazines, believes readers will be able to “find the products featured in our magazines, shop electronically with friends and get their feedback.”

The deal is another means to make sure “readers stay engaged in today’s saturated media landscape,” she said in a statement.


The San Jose Mercury News has upped its VP-advertising Jeff Kiel to the publisher slot. He succeeds George Riggs, who served double-duty as CEO of the California Newspaper Partnership, the unit that is responsible for MediaNews’ Golden State holdings.

Kiel was CFO of the Miami Herald before heading west.


Organize, the magazine to put your house and mind in order, is out with its second issue on Aug. 29. Its 98 pages are 36 more than the debut issue. The circ has doubled to 80K.

Editor-in-chief Joyce Dorny says the next number with have a 150K circ, bolstered by a distribution deal with CVS Pharmacies. Borders and Barnes & Noble also carry the mag.

(Media news continued on next page)

Internet Edition, August 22, 2007, Page 4


TV networks have spent millions to cover the war in Iraq, but are getting scant return for their dollars, according to a report in Broadcasting & Cable.

While Iraq remains the biggest news story, the constant drumbeat of suicide attacks and daily pictures of carnage is turning off viewers.

Andrew Tyndall of the Tyndall Report believes Iraq is no longer a headline news story. “There are no new things happening there; it’s just more of the same,” he said. He believes media face a period of “prolonged news doldrums.”

B&C reports that news organizations spend up to $10M a year to cover Iraq; a large portion of that amount goes for security. The Committee to Protect Journalists reports that at least 112 reporters, cameramen and engineers have been killed in Iraq since the war invasion was launched in `03.

Jeremy Hillman, editor of the BBC, says his organization has relatively few reporters in Iraq.

There is however a “massive investment” for security. That investment is a “significant percentage” of what the BBC spends on foreign news. “It’s completely out of proportion with what we spend to send foreign correspondents to other places,” Hillman told the weekly mag. A security worker receives about $1,000 a-day.

It’s a game of “diminishing returns,” wrote B&C’s Marisa Guthrie. As Iraq becomes more dangerous, more cash must be spent for security and the harder it becomes for reporters to move around the country.

Since Iraq has more than 160K U.S. soldiers, abandoning coverage is not an option.

Lara Logan, CBS News’ chief foreign correspondent, had a bomb explode on the floor below her hotel room. She said the networks can’t pull out just “because people back home are tired of hearing about the war.” Her job is to come up with more compelling stories.


David Blum, a former editor of the Village Voice, has been named editor-in-chief of Manhattan Media’s community newspaper group. That puts him in position to compete with the VV.

MM purchased the New York Press from Denver-based Avalon Equity Fund earlier this month. It was launched in `89 to compete with the Voice as the alternative paper of NYC. MM also publishes free newspapers such as Our Town, West Side Spirit, Chelsea Clinton News and Westsider.

Blum takes his new post on Sept. 5. Village Voice Media is based in Phoenix.


Yahoo! is adding more city specific information in a bid to better compete with Google for local advertisers. Brian Gill, senior product manager at Yahoo, said the effort is to “generate more active engagement from users,” according to Bloomberg.

Yahoo Local will have weekend pages to help users in cities like San Francisco and New York to make better use of their free time. There are neighborhood reviews that let Yahoo users comment on local stores and entertainment venues.


Stuff, a “lad” magazine launched in ’98, is no more following the publication of the October issue. It is being “stuffed” into its bigger brother, Maxim, as a special section.

Stuff has a circulation of more than 1.3M and revenues in the $65M. Its website will continue.

The end of the printed Stuff follows the completion of Quadrangle Capital Partners’ acquisition of Dennis Publishing, which now is called Alpha Media Group.

AMG CEO Kent Brownridge believes his company has among the best assets in the publishing industry.

AMG’s holdings are led by men’s lifestyle mag Maxim, which reaches more than 12.4M readers each month, and music mag Blender, which reaches another two million. Their combined websites reach 5.2M unique visitors monthly.


Jim Impoco, deputy editor at Portfolio, exited just before the Aug. 15 publication of the second issue of the Conde Nast business magazine.

The former editor of the Sunday New York Times business section was No. 2 to editor-in-chief Joanne Lipman.


Time Warner Cable will launch “Look Back” in October, a free digital recording service, to subscribers in South Carolina.

The service allows users to record programs for later viewing, but does not give them a way to zap commercials. LB’s “fast-forwarding function will be disabled. TWC’s competitors sell a DVR service to subscribers for about $10 a-month. DVRs are in 17 percent of U.S. households.

Charter Communications, the big St. Louis cable combine controlled by Microsoft co-founder Paul Allen, mulls a buyout or restructuring program. Charter has more than 5.6M subscribers, and may attract suitors like Time-Warner Cable, which has properties near Charter’s New York and California holdings….Ziff Davis Media is skipping an interest payment as CEO Jason Young explores options. He says ZDM has been hurt by a challenging print environment, though its digital and event operations are thriving….CNET reporters Stephen Shankland, Dawn Kawamoto and Tom Krazit are suing Hewlett-Packard for violating their privacy in the infamous “spying” case that led to the downfall of H-P chairwoman Patricia Dunn. H-P obtained phone records of the reporters in an effort to root out boardroom leaks. It is disappointed with the suit, according to spokesperson Ryan Donavon. The high-tech company has apologized and made a “substantial settlement offer” to the trio….Bruce Wolmer, long-time editor and publisher of Art and Auction magazine died at 59. He stepped down as editor-in-chief due to health reasons.

Internet Edition, August 22, 2007, Page 5


Washington's Rowan & Blewitt officially shut its doors July 31 after a 23-year run. A notice posted on the Interpublic unit's site by Ford Rowan and Rich Blewitt says "it is time to make a change."

They are "believers in life having different seasons" and "had a great run in our consulting niche."

Though the R&B brand was "still sought in the marketplace," they "never planned for this business to be generational."

Rowan and Blewitt "always admired those who could leave a career while still considered to be at the top of his or her game."

Rowan told O'Dwyer's he plans to do religious work in the Kairos prison ministry in Maryland.

Blewitt is active in The Blewitt Foundation, a group that provides enrichment for U.S. military families especially those who have had a loved one killed or are experiencing economic hardships.

Hank Boerner, who ran R&B's New York office, has his own issues management firm with the idea of trying to "help others to do the right thing for the right reasons."


GolinHarris has launched a travel practice for its Greater China region because more Chinese are traveling abroad, and China is attracting more visitors. Nikki Lin directs the practice from Beijing.

Lin says people outside China don't appreciate the nuances between those on the mainland, and in Hong Kong or Taiwan.

Mainland Chinese, for instance, prefer group trips, while Hong Kongers like independent travel.

GH has prepared a 20-page glossy travel brochure that is modeled on a travel magazine to officially launch the venture.


Herman Assocs. has spun off its PR business into a new entity, Herman & Almonte PR.

Paula and Stu Herman say the move in part is to reward PR head Mario Almonte, a 15-year veteran of the New York-based shop.

He will have an equal share in the ownership and management of HAPR.


FD has recruited Jack Gutt for the managing director slot in the firm’s special situations group. He is a founding partner of Vistance Group, a corporate and financial communications firm in New York.

Gutt worked for Hill & Knowlton in New York and Florida, and has counseled clients in the professional services, financial, tourism, energy and healthcare categories.

Prior to H&K, Gutt counseled the President of Ecuador on privatization and modernization issues.

At the former Financial Dynamics, Gutt also will advance its Latin American strategy, which got a shot in the arm with the acquisition of Gravitas, a specialist firm based in Colombia with operations in Panama.


New York Area

Sloane & Co., New York/infoUSA, $700M business/consumer database marketer, to counter attacks by hedge funds and false information in the press about its consumer-friendly marketing practices. A Delaware court refused to dismiss a complaint by shareholders last week that accuses infoUSA of squandering corporate assets. Portions of the suit were dismissed, such as the one dealing with a consulting pact with former President Clinton.

HiTechPR, Rye, N.Y./International Science and Technology Center in Moscow, to promote its effort to direct Russian weapons scientists to more peaceful pursuits. Galorath Inc., process management software, and Safety Management, health and environmental software.

SRB Marketing, Denville, N.J./E The Environmental Magazine, for online marketing aimed at boosting subscriber base.


Digital Influence Group, Waltham, Mass./Genzyme, for corporate social responsibility program. The effort focuses on Genzyme's dedication to providing products to developing nations, conserving natural resources, reducing environmental impact and fostering a positive work culture. DIG is part of Larry Weber's W2 Group.


Weber Shandwick, Chicago/McCormick & Co. for strategic communications program development and execution for several brands. Cathy Calhoun, who heads the Interpublic unit's Chicago office, said the world's No. 1 spice company is in the "forefront of flavor innovation."

Liggett Stashower, Cleveland/Blaklader, to develop and support brand position as the Swedish working garment and shoemaker launches in the U.S., and ForTecMedical, surgical laser rentals for hospitals and doctors.


M/C/C, Dallas/SensorLogic, intelligent asset management solutions. New SensorLogic CEO Dale Booth hired M/C/C because he worked with it before.


Rogers Group, Los Angeles/J. Paul Getty Trust; Junior Blind of America; Los Angeles Unified School District, the largest school district in the U.S.; 211 LA County, referral service for health and human services; Museum of Contemporary Art; Moveon, online resources for household moving; Public Storage Inc.; Watt Commercial Properties; Park Fifth, a $1B luxury condo and hotel development in downtown LA., and Whyville, virtual village for young people. Ron Rogers said that collection of clients is worth $2M in annual fee income.

Bateman Group, San Francisco/KickApps Corp., integrator of social media capabilities into existing websites. The N.Y.-based company has worked with Arena Football League and HBO. It reviewed S.F. and Silicon Valley shops for the business that will be headed by BG managing directors Tyler Lewis Perry (N.Y) and Bill Bourdon (S.F.).

Internet Edition, August 22, 2007, Page 6


Medialink Worldwide posted a $1.7M net loss for the second-quarter on a 9.6 percent rise in revenues to $8.3M. It lost $1.6M for the year-earlier period.

CEO Larry Moskowitz says Medialink's Teletrax digital video tracking service did not meet growth expectations during the first-half of the year.

Teletrax recorded a $936K operating loss during the second quarter on $800K service revenues. It lost $797K in last year's quarter.

Moskowitz is buoyed that Associated Press signed a contract to convert Teletrax use from a month-to-month basis.

Though a revenue neutral move, Moskowitz believes AP's long-term commitment is an example of the value that Teletrax offers "content owners in protecting the value of their video assets and enabling them to better evaluate return on investment."

Medialink has appointed Don Michels to the chief technology officer spot.

He will direct this fall's launch of Mediaseed, the web content management and distribution platform, and handle enhancements to Teletrax.

Michels was VP-technology at The Feedroom, and held tech posts at The Environmental Co. and SNL Securities.


Jack Hilton, one of the pioneers in broadcast PR and considered by some as the greatest media trainer, died Aug. 9 after a brief illness. He was 70.

Hilton, who founded Jack Hilton Inc. in 1976, quickly made his mark on the national scene by counseling President Kennedy during his famous debates with Richard Nixon in 1960.

After receiving a degree from Northwestern University in speech and communications in 1959, Hilton worked at WGN-TV and WBBM in Chicago before joining Group W in 1964.

He moved into the ad/PR sphere when he joined J. Walter Thompson and rose to the head of its PR division and left in 1976 as president of its telecommunications unit.

Hilton counseled countless CEOs on how to handle the media. He is the author of "Behind the Scenes," "How to Meet the Press," "Straight Talk About Video Conferencing," and "On Television."

His firm is shutting down.


Web-based broadcast monitoring company Critical Mention has unveiled a “real-time” radio offering which processes audio streams into text transcripts seconds after broadcast.

Sean Morgan, CEO of CM, noted the importance of radio as “maintaining a steady presence as the most popular source of news during the day.”

Real-Time Radio allows users to “gather up-to-the-minute business intelligence to stay ahead of their competition.”

A beta version of R-TR is available. Oct. 1 is the slated general availability date.



Robert Ricci, has moved to Taylor for the senior VP-digital and emerging media post. He spent the past four years at Weber Shandwick, handling interactive/social media campaigns for Mars Inc., Coca-Cola and got milk?. Dana Jasilli, who worked with Ricci at WS, also is new at Taylor. She is director-digital and emerging media.

John Ullyot is joining Hill and Knowlton’s Washington office as senior VP-media relations and issues. He is communications director for Virginia's Republican Senator John Warner. He also was deputy chief of staff for Pennsylvania’s Republican Senator Arlen Specter.

Todd Gleason, is VP-investor relations at Pentair, the $3.5B industrial conglomerate based in Golden Valley, Minn. He had been at American Standard and Honeywell International.

Gillian Pommerehn, has joined Annapolis-based Crosby Marketing Communications as PR director. She is a six-year veteran of Stanton Communications and former PR & IR manager for Caliber Learning Network.

Matt Barclay, has shifted to the Neiman Group as senior art director. He had been at Kirshenbaum & Bond, working on business like Citibank, Liberty Mutual Insurance, and Mohegan Sun Resort and Casino.


Robert Dowling to global manager of the North American region of Weber Shandwick’s global technology practice. He directed the New York office’s tech operations for the past three years.

Kathy Cosgrove, to managing director of GolinHarris, Atlanta. She assumes Mitch Head's duties. He will concentrate on client work. In a six-year stint at GH, Cosgrove led work for Georgia’s Division of Public Health's Chronic Disease Prevention and Health Promotion Branch.

Christopher Bast, to IR director at Diebold Inc. He was director of the company’s treasury and payment operations.

Robyn Fink, to account supervisor in MWW Group’s New York office. The consumer lifestyle specialist handles Samsung Electronics.

Kathleen Ramirez, to executive VP at Fahlgren Inc. She has counseled Cooper Tires and Ohio Travel & Tourism.

Lucien Vallun, to managing director of Fleishman-Hillard's Johannesburg office, is now in charge of the London operation. He is a former journalist at the Pretoria News and Thomson Publications. Kevin Welman, who joined F-H as an intern in ’96, assumes Vallun’s spot.

Heather Mikes to VP/regional operations at Wragg & Casas PR. She adds central and northern Florida duties to her southwest territory.

Christian Munson and Travis Parrish to account supervisors at CRT/tanaka’s Richmond office.

Jessica Edwards, to VP at Murphy PR, which does work for the History Channel and Rialto Pictures. Prior to Murphy, she was at mPRm.

Internet Edition, August 22, 2007, Page 7


The Coca-Cola system, which operates more than 800 plants and thousands of distribution centers in 200+ countries, employing more than 700,000, is focusing on conserving and protecting the water supply, senior VP Tom Mattia told 160 at the Aug. 8 meeting of the Georgia chapter of the PR Society, second biggest chapter in PRS.

Water is the main ingredient in nearly every beverage marketed by Coke and “without access to safe water our business simply cannot exist,” he said.

Mattia noted that the company announced at the World Wildlife Fund annual meeting in Beijing in June that it is working to replace “every drop of water we use in our beverages and in their production.”

Reduce, Recycle, Replenish

The Coca-Cola program has three main components—reduce (build on improvements already made in water efficiency); recycle (return all water used in manufacturing to the environment at a level that supports aquatic life), and replenish (provide support for healthy watersheds and sustainable community water programs).

Mattia, who joined Coke 18 months ago after executive PR posts at EDS, Ford Motor, Hill & Knowlton and IBM, described the World PA and Communications function that he now heads.

It has about 70 PAC pros at h.q. in Atlanta and 320 colleagues worldwide in corporate communications functions that include internal and external; government relations; shareowner affairs and issues management; archives, digital and executive communications, and corporate reputation.

Engage, Energize, Enhance

He said priorities are built around three “E’s.” First is engaging employees to “build a winning culture,” requiring a “fundamental shift in employee communication and engagement.”

Employee participation rates have risen from 83% to 88% between 2004 and 2006 and overall engagement score from 74 to 79.

Another priority is energizing the system to drive growth and productivity. PAC pros help promote relationships with bottler partners, suppliers and customers, promoting brands, categories and company in a way that “drives brand affinity, acceptability and consumer leadership.”

Enhancing reputation is also a major priority. “Gone are the days when our company could quietly carry out its good deeds in the communities and hope to be discovered, by accident, in the act of doing good,” said Mattia.

This is not possible, he said, “In an increasingly interconnected society where Internet use and the existence of NGOs has boomed, where no media story is local and politics has become global.”

Mattia quoted Coke chairman and CEO Neville Isdell as saying:

“From the products we serve, to the jobs we create, to the imprint we have on local environments, our aim is to build sustainable communities…communities where economic, social and environmental considerations are not only balanced but help build better lives and businesses.”


Edelman is handling the recasting of Diebold Election Systems to Premier Election Solutions as parent Diebold Inc. fails in its effort to unload the voting machine maker.

Diebold anticipates that PES, which will have its own management team and board of directors, will have a more concentrated focus on the election business. It blames a “rapidly changing political environment and pending legislative initiatives” for the postponement of orders for new voting machines to ’08 and beyond. That led Diebold to cut full-year ’07 voting machine revenue projections by $120M.

PES customers use more than 25K optical scanning units and 125K touch-screen voting stations. The company recently launched “VoteRemote,” an absentee system that promises automated signature verification.

PES is based in Allen, Tex., while Diebold is headquartered in North Canton, Ohio.

Edelman’s Martin Machowsky (Washington, D.C.) handles the PES business.


Jeremy Walker + Assocs. (New York) and mPRm PR (Los Angeles) are handling Leonardo DiCaprio’s “The 11th Hour” film about the various crises faced by the earth.

Global warming, drought, famine, deforestation, hurricanes, species extinction, acid rain and severe flooding are among “stars” of the show. Narrated and produced by DiCaprio, the film features commentary from more than 50 world leaders and scientists.

That roster includes former Soviet Union president Mikhail Gorbachev, physicist Stephen Hawking, ex-Central Intelligence Agency chief Jim Woolsey and sustainable design expert Bruce Mau. The film’s point: mankind must move quickly in order to head off environmental collapse.

The 11th Hour, a Warner Independent Pictures project, opened Aug. 17 in New York and Los Angeles and goes wide Aug. 24.

The film is getting a boost from “green groups,” such as the Natural Resources Defense Council, which is a partner of The DiCaprio Foundation.

Frances Beinecke, president of NRDC, calls the flick a “powerful environmental film” that ends with a “call for restorative action through reshaping human activity.” DiCaprio is an NRDC trustee.


Chuck Brooks, who was a legislative director in the Dept. of Homeland Security, has shifted to SRA International, the $1.2B defense/technology consulting company in Fairfax, Va. He served Homeland Security’s science & technology directorate, handling budgeting and managing relations with Capitol Hill.

Earlier, he ran Brooks Consulting Int’l, a PA and investment banking outfit, and was senior legislative asst. for defense, int’l business and foreign affairs for Pennsylvania’s Republican Senator Arlen Specter.

Brooks reports to SRA president Stan Sloane. SRA earned $63M during the fiscal year ended June, and has a backlog of $1.6B.

Internet Edition, August 22, 2007, Page 8




A startling statement about ad/PR agencies, the media and awards is in the WPP Group's 2006 annual report. It says: “If you drew a graph plotting creative awards as a proxy for creativity against [profit] margins for any group of agencies, there would be a very strong correlation. The more awards, the stronger the margins.”

In other words, awards = profits.

Awards to WPP units from the Wall Street Journal, AdWeek, PR Week, the “prestigious” Holmes Report and Gunn Report (compilation of ad winners), and various programs (Effies, Caples, One Show, Clios) are cited.

Instead of reporting revenues of its ad/PR units (which it stopped doing five years ago), WPP reports the number of awards won. For instance, the JWT group won 35 “Lions” at the Cannes Ad Festival in 2006, up from 17 in 2005 and five in 2004. OgilvyOne Worldwide “won 595 local and international awards, topping 2005’s stellar total by 20,” says WPP. JWT “rocketed up” the GunnReport from ninth place to fourth.

Advertising Age columnist Al Ries has noted that awards are so effective in pitches that the big ad agencies have given up running corporate ads in the ad media (PR media have such ads).

The ad industry, says Ries, "is the only industry that apparently doesn’t believe in advertising…what it believes in is PR." Most agencies "spend a lot of money promoting their awards to potential clients," he says.

One problem with ad industry awards, he adds, is that creatives are judges and the awards "are almost never based on results." Entry forms ignore this aspect.

"Nor are there any consumers on the judging panels-that's the real tragedy about the awards," he adds.

Our question is how credible are these awards if some agencies deluge the contests with entries, paying considerable fees; if they buy full-page ads in some of the publications, and/or spend tens of thousands on award banquet tables and travel to such banquets? Subjective judgments determine winners rather than verifiable dollar and employment figures. Contests are subject to political and financial pressures especially with contestants like WPP putting so much emphasis on winning awards.

While WPP and the other conglomerates have turned their backs on objective measurements, others have not. The 140 independent firms in the O'Dwyer rankings have supplied top pages of income tax returns, W-3s, lists of staffers and other proofs and are reaping as much visibility and more credibility at a fraction of the cost of those proliferating awards programs. We don't think clients are being fooled by the "awards game." Ad Age this year named Omnicom's John Wren as "Agency Executive of the Year," noting OMC had reached $100 (although OMC was $107 in 1999). The New York Times has yet to explore OMC's beleaguered stock.

News item: Mary Barber, nominee for secretary of the PR Society, after seven years on her own, took a PR job at the Alaska Community Foundation, saying she wasn't looking for a change but the ACF was "the perfect combination of PR skills, giving back to the community, and providing my family some stability while my husband changes careers." Many other PRS leaders have recently made changes. Mike Cherenson, nominee for chair-elect, sold his father's PR firm in early 2006 to an ad agency; Rosanna Fiske, treasurer nominee, closed her firm to teach; Kathy Hubbell, N. Pacific nominee and owner of Adscripts, is moving from Montana to Oregon in search of a PR teaching job; Judith Phair, 2005 president, left her firm for the Graduate Mgmt. Admission Council; Cheryl Procter-Rogers, 2006 president, left HBO in mid-term for her own firm; the agency of 2004 president Del Galloway (Husk Jennings Galloway) was bought by On Ideas in 2005 and Galloway joined the Corp. for Public Broadcasting; Cathryn Harris, 2004 director who was dir. of comms., W. Va. American Water, went to her own firm after that job was eliminated (a "specialist" PR job remains open); Steve Lubetkin, 2004 director, left Fleet Bank for his own firm after the bank merged; 2006 director Dave Rickey went from AmSouth Bank, now part of one of the ten largest bank holding companies after acquisition by Regions Financial, to Alfa Corp., Montgomery, Ala., insurance company; Art Stevens, 2003 secretary, went from CEO of Publicis Dialog New York to Stevens/Gould/Pincus, and Reed Byrum, 2003 president, went from Trilogy to his own firm. Only two of the past 12 presidents had significant jobs and stayed in them through and after the presidency-Mary Cusick (1998) of Bob Evans Farms and Kathy Lewton (2001) of Fleishman-Hillard and H&K. Others were in small firms, academia or nonprofit.

The rejection of Ray Crockett of Coca-Cola as S.E. director of PRS is symptomatic of PRS's alienation from corporate PR. There are no corporate reps on the Ethics Board (seven counselors--Linda Cohen, Jim Lukaszewski, Bob Frause, Patrick McLaughlin, Keith Mabee, Emmanuel Tchividjian, Tom Duke) and four academics (Dean Kruckeberg, Patricia Whalen, Patti Grey, Francis MacDonald)…PRS's bulging payroll of $5.28M (46.3% of revenues of $11.4M) contrasts with the payroll of the Council on Foundations ($6.6M or 36% of income of $18M). The ACF, which Mary Barber has joined, follows the guidelines for "transparency" of the Council. This includes putting the full audit and IRS Form 990 on the website. PRS does neither. Does ACF want its name associated with such practices? Still being withheld are the names of the 250 chapter Assembly delegates…Debbie Girard, now on PR for PRS under VP-PR Janet Troy, as a freelancer for PRS in 2004 authored "Tale of a Turnaround" for the magazine of ASAE/D.C. It said PRS was beset with "money woes, eroded credibility with members, low employee morale and a less-than-desirable working relationship with the board" but this was reversed by COO Catherine Bolton with the help of 2001 pres. Kathy Lewton and 2003 pres. Reed Byrum (2002 pres. Joann Killeen was not mentioned).

--Jack O'Dwyer


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