Early Bird Special (EBS)

[trading4art]

ECGI- Envoy's Watt International secures landmark private label project in South America

Monday , December 13, 2004 08:30 ET

TORONTO, Dec 13, 2004 /PRNewswire-FirstCall via COMTEX/ --Watt International, a wholly- owned subsidiary of the Envoy Communications Group (NASDAQ: ECGI/TSE: ECG), today announced that it has been selected by Carulla Vivero S.A. to re-define its private label program. Carulla Vivero is the second largest retailer in Colombia, operating a chain of 154 supermarkets, hypermarkets and discount stores throughout the country.

The two companies partnered in 2003 to re-position and design Vivero, the retailer's hypermarket banner, and Watt continues to help roll out the new concept in various locations. In August 2004, Watt and Carulla Vivero broadened their relationship re-designing the latter's supermarket chain, Carulla. This latest initiative will ensure continuity of the Carulla Vivero brand across all banners: Carulla, Vivero, Frescampo, Surtimax and Merquefacil.

Private label penetration continues to grow globally. In Colombia, private label accounts for two per cent of retail sales and is estimated to be growing at 31 per cent annually, making Colombia one of the fastest growing private label markets worldwide, according to ACNielsen.

"Twenty-five years ago, our company changed the private label landscape in North America, working with Loblaws on the creation of No Name and President's Choice. Today the private label industry remains vastly underdeveloped in South America. I'm very pleased that our global development strategy to provide private label expertise in this market is being realized through the tremendous efforts of our team, and the commitment to market leadership demonstrated by Carulla Vivero," said Patrick Rodmell, Managing Director, Watt International.

"Over the last two years, Watt has played an integral role in helping us achieve our business objectives," said Pedro Pablo Cuevas, Executive Vice President, Carulla Vivero S.A. "Known for their experience designing world- class private label programs, Watt was the obvious choice to partner with on the strategic roll out of our private label program."

About Carulla Vivero

Carulla Vivero S.A. has embarked on a large-scale growth strategy to cement its position as a homegrown leader and innovator in retail. It currently operates 83 Carulla supermarkets, 14 Vivero hypermarkets, 1 Frescampo supermarket with a "plaza look" and 20 Surtimax cash & carry, and 36 Merquefaciles discount supermarkets.

About Watt International

Watt International Inc. (www.wattinternational.com) is one of the world's largest brand strategy and design consultancies, with offices in North America and the United Kingdom. Watt has applied its strategies to drive client profitability in more than two dozen industries, spanning 35 countries. Watt is a member of the Envoy Group of Companies (NASDAQ: ECGI/TSX: ECG).

About Envoy

Envoy Communications Group is a marketing and international consumer and retail branding company with offices throughout North America and Europe. Combining strategy, creativity and innovation, Envoy's interconnected network of companies delivers business-building solutions to over 200 leading global brands and has successfully completed assignments in more than 40 countries around the world.

Cautionary Statement

Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of Section 21E(i)(1) of the United States Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Envoy's actual results to be materially different from any future results expressed or implied by these statements. Such factors include the following: general economic and business conditions, changes in demand for Envoy's services, changes in competition, the ability of Envoy to integrate acquisitions or complete future acquisitions, interest rate fluctuations, currency exchange rate fluctuations, dependence upon and availability of qualified personnel and changes in government regulation. In light of these and other uncertainties, the forward-looking statements included in this press release should not be regarded as a representation by Envoy that Envoy's plans and objectives will be achieved.

SOURCE Watt International; Envoy Communications Group Inc.

Jennifer Brooks, Watt International, [phone] ext. 221,
[e-mail]
(ECG. ECGI)

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