KPMG Combining Firms in Americas, Europe to Form

Regions, Serve Global Clients / Moves Seen as Integral to Firm'sGlobalization Blueprint NEW YORK (ots-PRNewswire) - In its drive toward an integratedclient service structure, KPMG, the global accounting, tax andconsulting firm, announced today that it is moving to strengthenits service strategy by combining member firms in North and SouthAmerica -- as well as national practices in Europe -- to createglobal operating regions, according to Colin M. Sharman,chairman, KPMG International. "KPMG's 19 member firms throughout Latin America, Mexico andthe Caribbean have unanimously agreed to combine operations withthe United States firm, KPMG LLP. KPMG's national practice inAustralia and New Zealand is also combining with the UnitedStates, to form the new regional KPMG 'Americas' body," Sharmansaid.

"In the first step toward regionalization in Europe, KPMGwill combine its national practices in the United Kingdom,Germany, France and the Netherlands, and operate there as the'EMA' (Europe, Middle East and Africa) regional practice," headded. Other KPMG practices are expected to join as well.

The KPMG "Americas" firms have combined annual revenues ofmore than $5 billion. In addition, the United States firm has25,000 partners and professionals; the Latin America, Mexico andCaribbean firms have more than 5,000 partners and professionals.There are 4,300 partners and professionals at KPMG in Australiaand New Zealand.

The four European national practices in the United Kingdom,Germany, France and the Netherlands had total revenues of $3.5billion in 1998, representing about one-third of KPMG's globalrevenues.

Stephen G. Butler, chairman and CEO of KPMG LLP, who willlead the new regional KPMG "Americas" body, commented, "This ishow we're going to remove national barriers to serving globalclients and realize KPMG's unique vision for the future. It is avision focused on a globally managed product line organizationthat serves multinational clients wherever they operate. Thisstructure aligns us with how our global clients operate, but alsoallows us to recognize individual country cultural issues andnational client bases. In sum, it will enable KPMG to furtherrefine its global capabilities," Butler said.

"KPMG regions in the Americas, Europe and eventually Asia-Pacific will give the worldwide firm the ability to deliver on aconsistent global basis the products and services clients need tosolve their problems," said Mike Rake, KPMG senior partner in theUnited Kingdom. "Achieving true globalization will enable KPMG todeliver its best worldwide resources -- the high quality productsour clients need to the world class product experts who implementour services regardless of their country of origin."

"Achieving our vision also means being the leader in ourchosen markets," the U.S.' Butler pointed out. "We'll continue toplace major emphasis on lines of business, targeting industriesin which our professionals have exceptional expertise and areable to provide the most value for our clients." In the KPMGglobal model, market leaders will team with chief executiveofficers of assurance, tax, consulting and financial advisoryservices to apply resources, ensuring that global clients receivethe service their size and dominance demands, he said.

Butler added that today's announcements are the outcome of aconsidered globalization strategy announced at KPMG'sinternational partners meeting in September 1998, which also ledto the creation of an international executive team last year.Driven by its global business strategy and gains in systemsconsulting, KPMG is continuing to pursue an Initial PublicOffering for a portion of its consulting business. KPMG LLPannounced last year it was evaluating opportunities to raiseoutside capital to further develop its consulting business in theAmericas. Butler pointed out that the United States firm isworking closely with KPMG International, EMA and Asia-Pacificmember firms to ensure that the Americas consulting practice isfully integrated with KPMG's global consulting business. KPMG isin ongoing discussions with the Securities and ExchangeCommission about the intended IPO.

As a further sign of KPMG's worldwide consolidation, a globalbranding campaign to position KPMG as a source of understandableand "actionable" business advice was launched in 1998 in theUnited States, and has since been adopted on a national and pan-regional basis in Europe and Asia. The campaign tag line, "It'stime for clarity," was chosen because corporate leaders worldwideare charged with bringing clarity to their shareholders andemployees. The campaign promises that KPMG helps clients analyzetheir businesses with true clarity -- raising their level ofperformance, achieving growth and enhancing shareholder value asa result.

"Being global also means being capable of accessing the sameinformation at the same time, regardless of whether you're in NewYork or New Delhi," Butler added, referring to KWorld, a leading-edge knowledge management system currently being deployedglobally. KPMG is moving to link the entire firm in real timewith a single, scalable, Internet-based knowledge-sharingnetwork.

"This knowledge management system is transforming KPMG'sembedded intellectual capital into a global strategic asset --and it is enhancing KPMG's ability to collaborate with otherorganizations, irrespective of their messaging environments. Asingle knowledge repository allows us to access global sources ofinformation, limit redundant information searches, and streamlinethe development of client deliverables anywhere," he said.

KPMG International's member firms have more than 6,700partners and 92,000 professionals in 157 countries. KPMG's Website is http://www.kpmg.com. ots Original Text Service: KPMGInternational LLP Internet: http://www.newsaktuell.de Contact:George Ledwith of KPMG LLP, 201-505-3543

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