Public Relations and the Advertising Industry The public relations industry, the same as advertising, is concentrated in the hands of few dominant firms. Still, the striking element about corporate public relations is that PR firms are tightly related to advertising companies. Nine out of the ten biggest international PR agencies have close ties with the advertising industry. Also, looking at the largest acquisitions involving U.S. PR firms from 1997 to 1999 it is apparent that money coming from advertising agencies has played an important role. Table: Top 10 PR Firms 1998 Rank 1998 PR Firm Advertising Agency Related 1998 Net Fees (in U.S. $) 1997 - 1998 % Change 1 Burson-Marsteller yes 258,417,000 4.2 2 Hill and Knowlton yes 206,000,000 8.9 3 Porter Novelli Int. yes 183,050,000 23.6 4 Shandwick yes 170,300,000 7.3 5 Fleishman-Hillard yes 160,692,000 19.1. 6 Edelman PR Worldwide no 157,840,530 18.1 7 Ketchum yes 125,248,000 29.6 8 BSMG Worldwide yes 118,963,000 93.0 9 Weber PR Worldwide yes 83,166,000 36.2 10 GCI/APCO yes 79,667,957 28.4 With many PR agencies sold to advertising companies, the advertising industry's influence further increases; enabling them to offer their clients not only advertising services, but also know-how in marketing, public opinion, crisis and issues management and political lobbying. Table: Acquisition of PR Agencies (1997 - 1999) Acquired Company Buyer Buyers Industry Estimated Purchase Price (in millions of U.S. $) International PR Interpublic Group of Cos. Advertising 230 Fleishman-Hillard Omicom Group Advertising 85 Ketchum Omnicom Group Advertising 60 Dewe Rogerson Incepta Advertising 40 Financial Rel. Bd. BSMG/TN Public Relations 33 Weber PR Interpublic Group of Cos. Advertising 15 Alexander WPP Group Advertising 15 Charles Barker BSMG/TN Public Relations 15 Source: Odwyerpr.com.

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ECHELON Main Stations Location Country Target/Task Relations MORWENSTOW UK INTELSAT, Atlantic, Europe, Indian Ocean NSA, GCHQ SUGAR GROVE USA INTELSAT, Atlantic, North and South America NSA YAKIMA FIRING CENTER USA INTELSAT, Pacific NSA WAIHOPAI NEW ZEALAND INTELSAT, Pacific NSA, GCSB GERALDTON AUSTRALIA INTELSAT, Pacific NSA, DSD MENWITH HILL UK Sat, Groundstation, Microwave(land based) NSA, GCHQ SHOAL BAY AUSTRALIA Indonesian Sat NSA, DSD LEITRIM CANADA Latin American Sat NSA, CSE BAD AIBLING GERMANY Sat, Groundstation NSA MISAWA JAPAN Sat NSA PINE GAP AUSTRALIA Groundstation CIA FORT MEADE USA Dictionary Processing NSA Headquarters WASHINGTON USA Dictionary Processing NSA OTTAWA CANADA Dictionary Processing CSE CHELTENHAM UK Dictionary Processing GCHQ CANBERRA AUSTRALIA Dictionary Processing DSD WELLINGTON NEW ZEALAND Dictionary Processing GCSB Headquarters

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Defense Advanced Research Project Agency (DARPA) DARPA (Defense Advanced Research Projects Agency) is the independent research branch of the U.S. Department of Defense that, among its other accomplishments, funded a project that in time was to lead to the creation of the Internet. Originally called ARPA (the "D" was added to its name later), DARPA came into being in 1958 as a reaction to the success of Sputnik, Russia's first manned satellite. DARPA's explicit mission was (and still is) to think independently of the rest of the military and to respond quickly and innovatively to national defense challenges. In the late 1960s, DARPA provided funds and oversight for a project aimed at interconnecting computers at four university research sites. By 1972, this initial network, now called the ARPAnet, had grown to 37 computers. ARPANet and the technologies that went into it, including the evolving Internet Protocol (IP) and the Transmission Control Protocol (TCP), led to the Internet that we know today. http://www.darpa.mil

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National Association of Securities Dealers Automated Quotation (NASDAQ) Incepted in 1971, The NASDAQ Stock Market was the world's first electronic stock market and has since attracted many technology companies from countries all over the world, some of them as legendary as Apple, Inc. and Microsoft, Inc., e.g., to go public. NASDAQ is the largest stock market in the world. http://www.nasdaq.com http://www.nasdaq.com/

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