MDC Partners Inc. reports results for the three and twelve months ended
December 31, 2009

    
    FOURTH QUARTER HIGHLIGHTS:
    -  Revenue increased to $149.7 million vs. $144.7 million in Q4 2008, an
       increase of 3.4%
    -  Organic revenue increased 1.4% for Q4 2009
    -  MDC EBITDA increased to $18.3 million vs. $17.1 million in Q4 2008,
       an increase of 7.0%
    -  Free Cash Flow decreased to $6.4 million vs. $9.2 million in Q4 2008,
       a decrease of 30.1%
    -  Free Cash Flow per Share decreased to $0.23 vs. $0.30 in Q4 2008, a
       decrease of 23.3%
    -  EBITDA margin increased to 13.4% vs. 12.9% in Q4 2008, an increase of
       50 basis points
    -  Net new business wins of $20.8 million for Q4 2009

    YEAR END HIGHLIGHTS:
    -  Revenue decreased to $545.9 million vs. $584.6 million in 2008, a
       decrease of 6.6%
    -  Organic revenue declined 5.5% for 2009
    -  MDC EBITDA increased to $64.8 million vs. $61.0 million in 2008, an
       increase of 6.1%
    -  Free Cash Flow increased to $40.9 million vs. $32.9 million in 2008,
       an increase of 24.4%
    -  Free Cash Flow per Share increased to $1.49 vs. $1.20 in 2008, an
       increase of 24.2%
    -  EBITDA margin increased to 12.9% vs. 11.8% in 2008, an increase of
       110 basis points
    -  Net new business wins of $23.8 million for 2009
    

NEW YORK, Feb. 24 /CNW/ - MDC Partners Inc. ("MDC Partners" or the "Company") today announced financial results for the three and twelve months ended December 31, 2009.

"2009 was an extraordinary year for MDC Partners where we exceeded all of our key financial projections," said Miles S Nadal, Chairman and Chief Executive Officer of MDC Partners. "Not only did we outperform our peers in terms of organic revenue and profitability growth; MDC is the first company to return to growth in the fourth quarter. Our focus on acquiring thought leading talent and expanding our capabilities in digital and data analytics are core to our ability to drive increasing return on marketing investment for our clients and market share gains for MDC. We expect another strong year in 2010."

Consolidated revenue for the fourth quarter of 2009 was $149.7 million, an increase of 3.4% compared to $144.7 million in the fourth quarter of 2008. MDC EBITDA (as defined) for the fourth quarter of 2009 was $18.3 million, an increase of 7.0% compared to $17.1 million in the fourth quarter of 2008. Net income (loss) attributable to MDC Partners Inc. in the fourth quarter was a loss of ($18.5) million compared to income of $4.7 million in the fourth quarter of 2008. Diluted earnings (loss) per share from continuing operations attributable to MDC Partners Inc. common shareholders for the fourth quarter of 2009 was a loss of ($0.65) compared with income of $0.29 per share in the same period of 2008. Free cash flow (as defined) was $6.4 million in the fourth quarter of 2009, compared with $9.2 million in the fourth quarter of 2008.

Consolidated revenue for the twelve months of 2009 was $545.9 million, a decrease of 6.6% compared to $584.6 million in 2008. MDC EBITDA (as defined) for the twelve months of 2009 was $64.8 million, an increase of 6.1% compared to $61.0 million in 2008. Net income (loss) attributable to MDC Partners Inc. in the twelve months was a loss of ($18.3) million compared to income of $0.1 million in the twelve months of 2008. Diluted earnings (loss) per share from continuing operations attributable to MDC Partners Inc. common shareholders for the twelve months of 2009 was a loss of ($0.64) compared with income of $0.37 per share in the same period of 2008. Free cash flow (as defined) was $40.9 million in the twelve months of 2009 compared with $32.9 million in the twelve months of 2008.

"Our efforts to optimize our financial performance are bearing fruit with over $55 million of cash generated in 2009 including working capital improvements and 110 basis points of margin improvement," said David Doft, Chief Financial Officer. "The roughly $100 million of cash we generated in the last two years has put MDC in its strongest financial position ever and as we deploy this capital we believe we can generate significant incremental EBITDA, margin expansion, free cash flow and earnings per share."

Conference Call

Management will host a conference call on February 25, 2010 at 8:30 a.m. (EST) to discuss our results. The conference call will be accessible by dialing 1-647-427-7450 or toll free 1-888-231-8191. An investor presentation has been posted on our website www.mdc-partners.com and will be referred to during the conference call.

A recording of the conference call will be available until Thursday, March 11, 2010 by dialing 1-416-849-0833 or toll free 1-800-642-1687 (passcode 4175719 followed by the number sign) or by visiting our website.

About MDC Partners Inc.

MDC Partners is a progressive Marketing and Communications Network, championing the most innovative entrepreneurial talent. MDC Partners provides strategic solutions and services to multinational clients in North America, Europe and Latin America. Our philosophy emphasizes the utilization of Strategy and High Value Creativity to drive growth and measurable impact for our clients. "MDC Partners is The Place Where Great Talent Lives." The company's Class A shares are publicly traded on the NASDAQ under the symbol "MDCA" and on the Toronto Stock Exchange under the symbol "MDZ.A".

Non-GAAP Financial Measures

In addition to its reported results, MDC Partners has included in this earnings release certain financial results that the Securities and Exchange Commission defines as "non-GAAP financial measures." Management believes that such non-GAAP financial measures, when read in conjunction with the Company's reported results, can provide useful supplemental information for investors analyzing period to period comparisons of the Company's results. These non-GAAP financial measures relate to: (1) presenting MDC's share of EBITDA and EBITDA margin (as defined) for the three and twelve months ended December 31, 2009 and 2008; and (2) presenting Free Cash Flow and Free Cash Flow per Share (as defined) for the three and twelve months ended December 31, 2009 and 2008. Included in this earnings release are tables reconciling MDC's reported results to arrive at these non-GAAP financial measures.

    
    This press release contains forward-looking statements. The Company's
representatives may also make forward-looking statements orally from time to
time. Statements in this press release that are not historical facts,
including statements about the Company's beliefs and expectations, recent
business and economic trends, potential acquisitions, estimates of amounts for
deferred acquisition consideration and "put" option rights, constitute
forward-looking statements. These statements are based on current plans,
estimates and projections, and are subject to change based on a number of
factors, including those outlined in this section. Forward-looking statements
speak only as of the date they are made, and the Company undertakes no
obligation to update publicly any of them in light of new information or
future events, if any.
    Forward-looking statements involve inherent risks and uncertainties. A
number of important factors could cause actual results to differ materially
from those contained in any forward-looking statements. Such risk factors
include, but are not limited to, the following:

    -   risks associated with severe effects of national and regional
        economic downturn;
    -   the Company's ability to attract new clients and retain existing
        clients;
    -   the financial success of the Company's clients;
    -   the Company's ability to retain and attract key employees;
    -   the Company's ability to remain in compliance with its debt
        agreements and the Company's ability to finance its contingent
        payment obligations when due and payable, including but not limited
        to those relating to "put" option right and deferred acquisition
        consideration;
    -   the successful completion and integration of acquisitions which
        complement and expand the Company's business capabilities; and
    -   foreign currency fluctuations.

    In addition to improving organic growth for its existing operations, the
Company's business strategy includes ongoing efforts to engage in material
acquisitions of ownership interests in entities in the marketing
communications services industry. The Company intends to finance these
acquisitions by using available cash from operations and through incurrence of
bridge or other debt financing, either of which may increase the Company's
leverage ratios, or by issuing equity, which may have a dilutive impact on
existing shareholders proportionate ownership. At any given time the Company
may be engaged in a number of discussions that may result in one or more
material acquisitions. These opportunities require confidentiality and may
involve negotiations that require quick responses by the Company. Although
there is uncertainty that any of these discussions will result in definitive
agreements or the completion of any transactions, the announcement of any such
transaction may lead to increased volatility in the trading price of the
Company's securities.
    Investors should carefully consider these risk factors and the additional
risk factors outlined in more detail in the Annual Report on Form 10-K under
the caption "Risk Factors" and in the Company's other SEC filings.
    
    
                                 SCHEDULE 1

                              MDC PARTNERS INC.
                    CONSOLIDATED STATEMENTS OF OPERATIONS
              (US$ in 000s, except share and per share amounts)

                                Three Months Ended     Twelve Months Ended
                                   December 31,            December 31,
                              ----------------------- -----------------------
                                 2009        2008        2009        2008
    -------------------------------------------------------------------------

    Revenue                     $149,678    $144,708    $545,924    $584,648

    Operating Expenses:
      Cost of services sold       94,668      99,735     354,312     392,145
      Office and general
       expenses                   44,171      35,001     136,897     137,755
      Depreciation and
       amortization               11,760       8,615      34,471      34,404
                              ----------------------- -----------------------
                              ----------------------- -----------------------
                                 150,599     143,351     525,680     564,304
                              ----------------------- -----------------------

    Operating profit (loss)         (921)      1,357      20,244      20,344

    Other Income (Expenses):
      Other income (expense)         953       7,698      (2,038)     13,243
      Interest expense and
       finance charges           (10,822)     (3,858)    (22,098)    (14,998)
      Interest income                 55         393         344       1,743
                              ----------------------- -----------------------

    Income (loss) from
     continuing operations
     before income taxes and
     equity in affiliates        (10,735)      5,590      (3,548)     20,332

    Income tax expense
     (recovery)                    5,163      (4,018)      8,536       2,397
                              ----------------------- -----------------------

    Income (loss) from
     continuing operations
     before equity in
     affiliates                  (15,898)      9,608     (12,084)     17,935
    Equity in earnings of
     non-consolidated
     affiliates                     (266)         59          (8)        349
                              ----------------------- -----------------------
                              ----------------------- -----------------------

    Income (loss) from
     continuing operations       (16,164)      9,667     (12,092)     18,284
    Loss from discontinued
     operations, net of taxes       (515)     (3,317)       (876)    (10,015)
                              ----------------------- -----------------------
    Net income (loss)            (16,679)      6,350     (12,968)      8,269
    Net income attributable
     to the noncontrolling
     interests                    (1,787)     (1,601)     (5,356)     (8,136)
                              ----------------------- -----------------------
                              ----------------------- -----------------------
    Net income (loss)
     attributable to MDC
     Partners Inc.              ($18,466)     $4,749    ($18,324)       $133
                              ----------------------- -----------------------
                              ----------------------- -----------------------

    Income (Loss) Per Common
     Share:
      Basic:
        Income (loss) from
         continuing
         operations
         attributable to MDC
         Partners Inc.
         common shareholders      ($0.65)      $0.30      ($0.64)      $0.38
        Discontinued
         operations               ($0.02)     ($0.12)     ($0.03)     ($0.37)
                              -----------------------------------------------
                              -----------------------------------------------
      Net income (loss)
       attributable to MDC
       Partners Inc. common
       shareholders               ($0.67)      $0.18      ($0.67)      $0.01
                              ----------------------- -----------------------
                              ----------------------- -----------------------

    Income (Loss) Per Common
     Share:
      Diluted:
        Income (loss) from
         continuing
         operations
         attributable to MDC
          Partners Inc. common
          shareholders            ($0.65)      $0.29      ($0.64)      $0.37
        Discontinued
         operations               ($0.02)     ($0.11)     ($0.03)     ($0.36)
                              -----------------------------------------------
                              -----------------------------------------------
        Net income (loss)
         attributable to MDC
         Partners Inc. common
          shareholders            ($0.67)      $0.18      ($0.67)      $0.01
                              ----------------------- -----------------------
                              ----------------------- -----------------------

    Weighted Average Number of
     Common Shares:
      Basic                   27,553,402  26,896,938  27,396,463  26,765,839
      Diluted                 27,553,402  30,111,225  27,396,463  27,430,162
    -------------------------------------------------------------------------



                                 SCHEDULE 2

                              MDC PARTNERS INC.
             RECONCILIATION OF OPERATING INCOME (LOSS) TO EBITDA
                      (US$ in 000s, except percentages)

    For the Three Months Ended December 31, 2009

                               Strategic Performance
                               Marketing   Marketing
                                Services    Services   Corporate       Total
    -------------------------------------------------------------------------

    Revenue                     $106,006     $43,672           -    $149,678
                              -----------------------------------------------
                              -----------------------------------------------

    Operating income (loss)
     as reported                  $3,443      $1,098     ($5,462)      ($921)

    Add:
      Depreciation and
       amortization                9,338       2,282         140      11,760
      Stock-based compensation     7,233         202       1,836       9,271
                              -----------------------------------------------

    EBITDA*                     20,014       3,582      (3,486)     20,110
    margin                         18.9%        8.2%                   13.4%

    Less income attributable to
     noncontrolling interests       (914)       (873)          -      (1,787)
                              -----------------------------------------------

    MDC's Share of EBITDA(xx)    $19,100      $2,709     ($3,486)    $18,323
    -------------------------------------------------------------------------
    *  EBITDA is a non-GAAP measure, but as shown above it represents
         operating income (loss) plus depreciation and amortization, and
         stock-based compensation.
    (xx) MDC's Share of EBITDA is a non-GAAP measure, but as shown above it
         represents operating income (loss) plus depreciation and
         amortization and stock-based compensation less net income
         attributable to noncontrolling interests.



                              MDC PARTNERS INC.
             RECONCILIATION OF OPERATING INCOME (LOSS) TO EBITDA
                      (US$ in 000s, except percentages)

    For the Three Months Ended December 31, 2008

                               Strategic Performance
                               Marketing   Marketing
                                Services    Services   Corporate       Total
    -------------------------------------------------------------------------

    Revenue                      $92,783     $51,925           -    $144,708
                              -----------------------------------------------
                              -----------------------------------------------

    Operating income (loss)
     as reported                  $7,107        ($58)    ($5,692)     $1,357

    Add:
      Depreciation and
       amortization                6,175       2,243         197       8,615
      Stock-based compensation     4,670       2,951       1,126       8,747
                              -----------------------------------------------
                              -----------------------------------------------

    EBITDA*                     17,952       5,136      (4,369)     18,719
    margin                         19.3%        9.9%                   12.9%

    Less income attributable to
     noncontrolling interests     (1,081)       (520)          -      (1,601)
                              -----------------------------------------------
                              -----------------------------------------------

    MDC's Share of EBITDA(xx)    $16,871      $4,616     ($4,369)    $17,118
    -------------------------------------------------------------------------
    *  EBITDA is a non-GAAP measure, but as shown above it represents
         operating income (loss) plus depreciation and amortization, and
         stock-based compensation.
    (xx) MDC's Share of EBITDA is a non-GAAP measure, but as shown above it
         represents operating income (loss) plus depreciation and
         amortization and stock-based compensation less net income
         attributable to noncontrolling interests.



                                 SCHEDULE 3

                              MDC PARTNERS INC.
             RECONCILIATION OF OPERATING INCOME (LOSS) TO EBITDA
                      (US$ in 000s, except percentages)

    For the Twelve Months Ended December 31, 2009

                               Strategic Performance
                               Marketing   Marketing
                                Services    Services   Corporate       Total
    -------------------------------------------------------------------------
    Revenue                     $371,398    $174,526           -    $545,924
                            -------------------------------------------------
                            -------------------------------------------------

    Operating income (loss)
     as reported                 $35,898      $2,865    ($18,519)    $20,244

    Add:
      Depreciation and
       amortization               25,577       8,466         428      34,471
      Stock-based
       compensation                8,742         868       5,834      15,444
                            -------------------------------------------------

    EBITDA*                     70,217      12,199     (12,257)      70,159
    margin                         18.9%        7.0%                   12.9%

    Less income attributable
     to noncontrolling
     interests                    (4,641)       (715)          -      (5,356)
                            -------------------------------------------------

    MDC's Share of
     EBITDA(xx)                  $65,576     $11,484    ($12,257)    $64,803
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    * EBITDA is a non-GAAP measure, but as shown above it represents
        operating income (loss) plus depreciation and amortization, and
        stock-based compensation.
    (xx) MDC's Share of EBITDA is a non-GAAP measure, but as shown above it
         represents operating income (loss) plus depreciation and
         amortization and stock-based compensation less net income
         attributable to noncontrolling interests.



                              MDC PARTNERS INC.
             RECONCILIATION OF OPERATING INCOME (LOSS) TO EBITDA
                      (US$ in 000s, except percentages)

    For the Twelve Months Ended December 31, 2008

                               Strategic Performance
                               Marketing   Marketing
                                Services    Services   Corporate       Total
    -------------------------------------------------------------------------
    Revenue                     $363,580    $221,068           -    $584,648
                            -------------------------------------------------
                            -------------------------------------------------

    Operating income (loss)
     as reported                 $27,659     $10,708    ($18,023)    $20,344

    Add:
      Depreciation and
       amortization               24,814       9,189         401      34,404
      Stock-based
       compensation                6,162       3,697       4,578      14,437
                            -------------------------------------------------

    EBITDA*                     58,635      23,594     (13,044)     69,185
    margin                         16.1%       10.7%                   11.8%

    Less income attributable
     to noncontrolling
     interests                    (5,302)     (2,834)          -      (8,136)
                            -------------------------------------------------

    MDC's Share of EBITDA(xx)    $53,333     $20,760    ($13,044)    $61,049
    -------------------------------------------------------------------------
    * EBITDA is a non-GAAP measure, but as shown above it represents
        operating income (loss) plus depreciation and amortization, and
        stock-based compensation.
    (xx) MDC's Share of EBITDA is a non-GAAP measure, but as shown above it
         represents operating income (loss) plus depreciation
         and amortization and stock-based compensation less net income
         attributale to noncontrolling interests.



                                 SCHEDULE 4

                              MDC PARTNERS INC.
                               FREE CASH FLOW
              (US$ in 000s, except share and per share amounts)

                                 Three Months Ended     Twelve Months Ended
                                     December 31,            December 31,
                                --------------------- -----------------------
                                   2009        2008        2009        2008
    -------------------------------------------------------------------------
    MDC EBITDA                   $18,323     $17,118     $64,803     $61,049
    Capital Expenditures          (2,924)     (3,963)     (6,212)    (14,395)
    Cash Taxes                       103        (101)       (384)     (1,037)
    Cash Interest, net & Other    (9,086)     (3,874)    (17,290)    (12,724)
                                --------------------- -----------------------
    Free Cash Flow*             $6,416      $9,180     $40,917     $32,893
                                --------------------- -----------------------
                                --------------------- -----------------------


    Diluted Common Shares
     Outstanding              27,553,402  30,111,225  27,396,463  27,430,162

    Free Cash Flow per Share       $0.23       $0.30       $1.49       $1.20
                                --------------------- -----------------------
                                --------------------- -----------------------
    * As defined by MDC Partners



                                 SCHEDULE 5

                              MDC PARTNERS INC.
                         CONSOLIDATED BALANCE SHEETS
                                (US$ in 000s)

                                                    December 31, December 31,
                                                        2009         2008
    -------------------------------------------------------------------------
    Assets
      Current Assets:
        Cash and cash equivalents                      $51,926       $41,331
        Accounts receivable, net                       118,211       106,954
        Expenditures billable to clients                24,003        16,949
        Prepaid expenses                                 4,942         5,240
        Other current assets                             3,163         5,270
                                                    -------------------------
      Total Current Assets                             202,245       175,744

      Fixed assets, net                                 35,375        44,021
      Investment in affiliates                           1,547         1,593
      Goodwill                                         301,632       238,214
      Other intangible assets, net                      34,715        46,852
      Deferred tax assets                                8,736        11,926
      Other assets                                      16,462        10,889
                                                    -------------------------
    Total Assets                                      $600,712      $529,239
                                                    -------------------------
                                                    -------------------------

    Liabilities and Shareholders' Equity
      Current Liabilities:
        Accounts payable                               $77,450       $75,360
        Accrued and other liabilities                   66,967        55,338
        Advance billings                                65,879        50,053
        Current portion of long term debt                1,456         1,546
        Deferred acquisition consideration              30,645         5,538
                                                    -------------------------
    Total Current Liabilities                          242,397       187,835

      Long-term debt                                   216,490       133,305
      Revolving credit facility                              -         9,701
      Convertible notes                                      -        36,946
      Other liabilities                                  8,707         6,949
      Deferred tax liabilities                           3,118         4,700
                                                    -------------------------
                                                    -------------------------
      Total Liabilities                                470,712       379,436
                                                    -------------------------

    Redeemable Noncontrolling Interests                 36,860        21,751
                                                    -------------------------
      Shareholders' Equity:
        Common shares                                  218,533       213,534
        Additional paid in capital                       6,553        33,470
        Accumulated deficit                           (131,160)     (112,836)
        Stock subscription receivable                     (341)         (354)
        Accumulated other comprehensive loss            (4,265)       (6,633)
                                                    -------------------------
        MDC Partners Inc. Shareholders' Equity          89,320       127,181
        Noncontrolling Interests                         3,820           871
                                                    -------------------------
      Total Equity                                      93,140       128,052
                                                    -------------------------

    Total Liabilities, Redeemable Noncontrolling
      Interests and Equity                            $600,712      $529,239
                                                    -------------------------
                                                    -------------------------



                                 SCHEDULE 6

                              MDC PARTNERS INC.
                           SUMMARY CASH FLOW DATA
                                (US$ in 000s)


                                             Twelve Months Ended December 31,
                                           ----------------------------------
                                                        2009         2008
    -------------------------------------------------------------------------
    Cash flows provided by continuing
     operating activities                               $60,708      $60,945

      Discontinued operations                              (805)      (3,499)
                                                    -------------------------
                                                    -------------------------
    Net cash provided by operating activities            59,903       57,446
                                                    -------------------------
                                                    -------------------------
    Net cash used in continuing
     investing activities                               (66,199)     (49,639)
      Discontinued operations                                 -         (547)
                                                    -------------------------
    Net cash used in investing activities               (66,199)     (50,186)

    Net cash provided by continuing
     financing activities                                20,037       23,510

    Effect of exchange rate changes on
     cash and cash equivalents                           (3,146)         151
                                                    -------------------------
                                                    -------------------------

    Net increase in cash and cash equivalents           $10,595      $30,921
                                                    -------------------------
    

SOURCE MDC Partners Inc.

For further information: For further information: Donna Granato, VP, Finance & Corporate Development, (646) 429-1809, dgranato@mdc-partners.com


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