MDC Partners Inc. reports record results for the three and six months ended June 30, 2007



    
    QUARTERLY HIGHLIGHTS:

    -   Revenues increased to $135.3 million vs. $100.1 million in Q2 2006,
        an increase of 35.1%
    -   Organic revenue growth of 27.0% for Q2 2007
    -   MDC EBITDA increased to $7.6 million vs. $6.4 million in Q2 2006, an
        increase of 18.8%
    -   MDC Adjusted EBITDA increased to $11.2 million vs. $7.2 million in
        Q2 2006, an increase of 55.6%
    -   Cash EPS of $0.36 vs. $0.25 in Q2 2006, an increase of 44.0%
    -   Adjusted Cash EPS of $0.44 vs. $0.26 in Q2 2006, an increase of 69.2%

    YEAR TO DATE HIGHLIGHTS:

    -   Revenues increased to $254.8 million vs. $198.2 million in the first
        half of 2006, an increase of 28.5%
    -   Organic revenue growth of 21.9% in the first half of 2007
    -   MDC EBITDA of $12.0 million vs. $13.7 million in the first half of
        2006, a decline of 12.4%
    -   MDC Adjusted EBITDA of $17.5 million vs. $10.5 million in the first
        half of 2006, an increase of 66.7%
    -   Cash EPS of $0.55 vs. $0.51 in the first half of 2006, an increase of
        7.8%
    -   Adjusted Cash EPS of $0.68 vs. $0.41 in the first half of 2006, an
        increase of 65.9%
    

    NEW YORK, Aug. 1 /CNW/ - MDC Partners Inc. ("MDC Partners" or the
"Company") today announced record financial results for the three and six
months ended June 30, 2007.
    Consolidated revenues for the three months ended June 30, 2007 were
$135.3 million, an increase of 35.1% compared to $100.1 million in the same
period of 2006. Operating income for the second quarter of 2007 was
$5.2 million versus $2.9 million for the second quarter of 2006, an increase
of 79.3%. Net loss from continuing operations for the quarter ended June 30,
2007 was ($2.6) million versus a loss of ($1.0) million for the same period in
2006. The loss during 2007 included a non-cash unrealized foreign exchange
charge of $2.5 million due to the decline of the U.S. dollar relative to the
Canadian dollar. Diluted loss per share from continuing operations for the
second quarter of 2007 was ($0.11) compared to ($0.04) in the same period last
year.
    MDC Partners' share of EBITDA (as defined) increased to $7.6 million in
the second quarter of 2007 compared with $6.4 million in the second quarter of
2006. Adjusting for unusual or non-recurring items, MDC Adjusted EBITDA (as
defined) is $11.2 million in the quarter compared with $7.2 million last year,
an increase of 55.6%. Cash earnings per share from continuing operations (as
defined) for the second quarter of 2007 increased to $0.36 compared with $0.25
in the second quarter of 2006. Adjusted cash earnings per share (as defined)
increased to $0.44 from $0.26 during the same period last year.
    Consolidated revenues for the six months ended June 30, 2007 were
$254.8 million, an increase of 28.5% compared to $198.2 million in the same
period of 2006. Operating income for the first half of 2007 was $1.6 million
versus $4.7 million during the same period of 2006. Excluding a goodwill
impairment charge, operating income in the first half of the year was $6.0
million or 27.7% better than the same period in 2006. Net loss from continuing
operations for the six months ended June 30, 2007 was ($11.4) million versus a
loss of ($5.4) million for the same period in 2006. The loss during 2007
included a non-cash unrealized foreign exchange charge of $2.9 million due to
the decline of the U.S. dollar relative to the Canadian dollar. Diluted loss
per share from continuing operations for the first half of 2007 was ($0.46)
compared to ($0.23) last year.
    MDC Partners' share of EBITDA (as defined) was $12.0 million in the first
half of 2007 compared with $13.7 million in the same period of 2006. Adjusting
for unusual or non-recurring items, MDC Adjusted EBITDA (as defined) was
$17.5 million in the first six months of 2007, compared with $10.5 in the same
period last year, a 66.7% increase. Year to date cash earnings per share from
continuing operations (as defined) in 2007 increased to $0.55 compared with
$0.51 in 2006. Adjusted cash earnings per share (as defined) increased to
$0.68 from $0.41 during the same period last year.
    "We are very pleased with our second quarter results which significantly
exceeded our internal expectations and we believe that our robust organic
growth is a reflection of the significant investment we have and continue to
make in talent and capabilities across the entire network, especially in the
areas of digital innovation and other non-traditional media services. We are
particularly enthusiastic about our new partnership with Redscout, a brand
strategy and innovation firm who joined the network in June. As clients are
increasingly relying on their marketing partners to implement solutions that
drive growth, we believe that MDC's market positioning as 'The Place Where
Great Talent Lives' and the effectiveness of and results generated by our
Partner's work will continue to attract clients who are looking to work with
firms who know how to drive results for their businesses," said Miles S.
Nadal, Chairman & CEO of MDC Partners.
    The Company affirms it previously issued guidance for 2007 of revenues of
$490 to $500 million, MDC's EBITDA (as defined) of $39 to $41 million and Cash
EPS (as defined) of $1.28 to $1.32.

    Conference Call

    Management will host a conference call on August 2, at 8:30 a.m. (EST) to
discuss our results. The conference call will be accessible by dialing
1-416-644-3421 or toll free 1-800-594-3790. An investor presentation has been
posted on our website www.mdc-partners.com and will be referred to during the
conference call.

    About MDC Partners Inc.

    MDC Partners is a leading provider of marketing communications solutions
and services to clients in North America, Europe and Latin America. Through
its partnership of entrepreneurial firms it provides advertising, specialized
communications and consulting services to leading brands. MDC Partners'
philosophy emphasizes the utilization of strategy and creativity to drive
growth for its clients. "MDC Partners is The Place Where Great Talent Lives".
MDC Partners 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 growth. These non-GAAP
financial measures relate to: (1) presenting MDC's share of EBITDA and MDC
Adjusted EBITDA (as defined) for the three and six months ended June 30, 2007
and June 30, 2006; and (2) presenting Cash Earnings per Share from Continuing
Operations and Adjusted Cash Earnings per Share from Continuing Operations (as
defined) for the three and six months ended June 30, 2007 and 2006. 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 effects of national and regional economic
        conditions;

    -   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 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 rights;

    -   the Company's ability to retain and attract key employees;

    -   the successful completion and integration of acquisitions which
        complement and expand the Company's business capabilities;

    -   foreign currency fluctuations; and

    -   risks arising from the Company's historical option grant practices.
    

    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         Six months ended
                                    June 30,                  June 30,
                            -----------------------   -----------------------
                                 2007         2006         2007         2006
    -------------------------------------------------------------------------

    Revenue                  $135,257     $100,138     $254,788     $198,211

    Operating Expenses
      Cost of services sold    87,817       60,900      166,372      120,641
      Office and general
       expenses                35,969       31,185       70,144       61,007
      Depreciation
       and amortization         6,280        5,118       12,245       11,900
      Goodwill impairment           -            -        4,475            -
                            -----------------------   -----------------------
                              130,066       97,203      253,236      193,548
                            -----------------------   -----------------------

    Operating Income            5,191        2,935        1,552        4,663

    Other Income (Expenses)
      Other income (expense)   (1,033)         509       (1,767)       1,073
      Interest expense         (3,768)      (1,996)      (6,491)      (4,894)
      Interest income           1,075          144        1,228          258
                            -----------------------   -----------------------
    Income (Loss) from
     Continuing Operations
     Before Income Taxes,
     Equity in Affiliates
     and Minority Interests     1,465        1,592       (5,478)       1,100

    Income Tax Recovery         1,292          608        3,780        1,176
                            -----------------------   -----------------------

    Income (Loss) from
     Continuing Operations
     Before Equity in
     Affiliates and
     Minority Interests         2,757        2,200       (1,698)       2,276
    Equity in Earnings
     of Non-consolidated
     Affiliates                    61          227           11          501
    Minority Interests in
     Income of Consolidated
     Entities                  (5,419)      (3,434)      (9,710)      (8,185)
                            -----------------------   -----------------------

    Loss From Continuing
     Operations                (2,601)      (1,007)     (11,397)      (5,408)
    Loss from Discontinued
     Operations                     -       (9,496)           -      (10,228)
                            -----------------------   -----------------------
    Net Loss                  ($2,601)    ($10,503)    ($11,397)    ($15,636)
                            -----------------------   -----------------------
                            -----------------------   -----------------------

    Loss Per Common Share
      Basic:
        Continuing
         Operations            ($0.11)      ($0.04)      ($0.46)      ($0.23)
        Discontinued
         Operations                 -        (0.40)           -        (0.43)
                            -----------------------   -----------------------
        Net Loss               ($0.11)      ($0.44)      ($0.46)      ($0.66)
                            -----------------------   -----------------------
                            -----------------------   -----------------------

      Diluted:
        Continuing
         Operations            ($0.11)      ($0.04)      ($0.46)      ($0.23)
        Discontinued
         Operations                 -        (0.40)           -        (0.43)
                            -----------------------   -----------------------
        Net Loss               ($0.11)      ($0.44)      ($0.46)      ($0.66)
                            -----------------------   -----------------------
                            -----------------------   -----------------------

    Weighted Average
     Number of Common
     Shares:
      Basic                24,752,472   23,858,327   24,514,954   23,818,182
      Diluted              24,752,472   23,858,327   24,514,954   23,818,182
    -------------------------------------------------------------------------



                                 SCHEDULE 2

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

    For the Three Months Ended June 30, 2007


                                Customer Specialized
                   Strategic    Relation-    Communi-  Corporate
                   Marketing        ship      cation           &
                    Services  Management    Services       Other       Total
    -------------------------------------------------------------------------
    Revenue          $78,445     $25,681     $31,131           -    $135,257
                  -----------------------------------------------------------
                  -----------------------------------------------------------

    Operating
     Income (Loss)
     as Reported      $9,449        $532      $1,778     ($6,568)     $5,191

    Add:
      Depreciation
       and amorti-
       zation          3,853       1,530         802          95       6,280
      Stock-based
       compensation      242           -           3       1,308       1,553
                  -----------------------------------------------------------

    EBITDA (*)        13,544       2,062       2,583      (5,165)     13,024

    Less: Minority
     Interests        (4,250)        (13)     (1,156)          -      (5,419)
                  -----------------------------------------------------------

    MDC's Share of
     EBITDA(xx)       $9,294      $2,049      $1,427     ($5,165)     $7,605
    -------------------------------------------------------------------------
    (*)  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 minority interests.



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

    For the Three Months Ended June 30, 2006

                                Customer Specialized
                   Strategic    Relation-    Communi-  Corporate
                   Marketing        ship      cation           &
                    Services  Management    Services       Other       Total
    -------------------------------------------------------------------------
    Revenue          $55,634     $20,906     $23,598           -    $100,138
                  -----------------------------------------------------------
                  -----------------------------------------------------------

    Operating
     Income (Loss)
     as Reported      $6,665        $313      $2,340     ($6,383)     $2,935

    Add:
      Depreciation
       and amorti-
       zation          3,493       1,125         437          63       5,118
      Stock-based
       compensation      271           6           -       1,530       1,807
                  -----------------------------------------------------------

    EBITDA(*)         10,429       1,444       2,777      (4,790)      9,860

    Less:  Minority
     Interests        (2,723)         (8)       (703)          -      (3,434)
                  -----------------------------------------------------------

    MDC's Share
     of EBITDA(xx)    $7,706      $1,436      $2,074     ($4,790)     $6,426
    -------------------------------------------------------------------------
    (*)  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 minority interests.



                                 SCHEDULE 3

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

    For the Six Months Ended June 30, 2007

                                Customer Specialized
                   Strategic    Relation-    Communi-  Corporate
                   Marketing        ship      cation           &
                    Services  Management    Services       Other       Total
    -------------------------------------------------------------------------

    Revenue         $149,008     $49,249     $56,531           -    $254,788
                  -----------------------------------------------------------
                  -----------------------------------------------------------

    Operating
     Income (Loss)
     as Reported     $16,007      $1,093     ($2,273)   ($13,275)     $1,552

    Add:
      Depreciation
       and amorti-
       zation          7,597       3,080       1,383         185      12,245
      Stock-based
       compensation      491           5           7       2,966       3,469
      Impairment
       charges             -           -       4,475           -       4,475
                  -----------------------------------------------------------

    EBITDA(*)         24,095       4,178       3,592     (10,124)     21,741

    Less: Minority
     Interests        (7,966)        (27)     (1,717)          -      (9,710)
                  -----------------------------------------------------------

    MDC's Share
     of EBITDA(xx)   $16,129      $4,151      $1,875    ($10,124)    $12,031
    -------------------------------------------------------------------------
    (*)  EBITDA is a non-GAAP measure, but as shown above it represents
         operating income (loss) plus depreciation and amortization,
         stock-based compensation and impairment charges.
    (xx) MDC's Share of EBITDA is a non-GAAP measure, but as shown above it
         represents operating income (loss) plus depreciation and
         amortization, stock-based compensation and impairment charges less
         minority interests.



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

    For the Six Months Ended June 30, 2006

                                Customer Specialized
                   Strategic    Relation-    Communi-  Corporate
                   Marketing        ship      cation           &
                    Services  Management    Services       Other       Total
    -------------------------------------------------------------------------
    Revenue         $112,525     $39,812     $45,874           -    $198,211
                  -----------------------------------------------------------
                  -----------------------------------------------------------

    Operating
     Income (Loss)
     as Reported     $13,251        $883      $3,013    ($12,484)     $4,663

    Add:
      Depreciation
       and amorti-
       zation          8,753       2,189         861          97      11,900
      Stock-based
       compensation      491          12       2,338       2,491       5,332
                  -----------------------------------------------------------

    EBITDA(*)         22,495       3,084       6,212      (9,896)     21,895

    Less: Minority
     Interests        (6,676)        (38)     (1,471)          -      (8,185)
                  -----------------------------------------------------------

    MDC's Share
     of EBITDA(xx)   $15,819      $3,046      $4,741     ($9,896)    $13,710
    -------------------------------------------------------------------------
    (*)  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 minority interests.



                                 SCHEDULE 4

                              MDC PARTNERS INC.
             RECONCILIATION OF MDC EBITDA TO MDC ADJUSTED EBITDA
                                (US$ in 000s)

    For the Three Months Ended June 30, 2007

                                Customer Specialized
                   Strategic    Relation-    Communi-  Corporate
                   Marketing        ship      cation           &
                    Services  Management    Services       Other       Total
    -------------------------------------------------------------------------
    MDC's Share
     of EBITDA(*)     $9,294      $2,049      $1,427     ($5,165)     $7,605
      Losses from
       Margeotes
       Fertitta
       Powell
       (ceased
       operations)         -           -       1,925           -       1,925
      Retention
       payments          875           -           -         823       1,698
                  -----------------------------------------------------------
    MDC Adjusted
     EBITDA(xx)      $10,169      $2,049      $3,352     ($4,342)    $11,228
    -------------------------------------------------------------------------
    (*)  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 minority interests.
    (xx) MDC's Adjusted EBITDA is a non-GAAP measure, but as shown above it
         represents MDC's Share of EBITDA plus unusual and non-recurring
         charges during the quarter.



                              MDC PARTNERS INC.
             RECONCILIATION OF MDC EBITDA TO MDC ADJUSTED EBITDA
                                (US$ in 000s)

    For the Three Months Ended June 30, 2006

                                Customer Specialized
                   Strategic    Relation-    Communi-  Corporate
                   Marketing        ship      cation           &
                    Services  Management    Services       Other       Total
    -------------------------------------------------------------------------
    MDC's Share
     of EBITDA(*)     $7,706      $1,436      $2,074     ($4,790)     $6,426
      Losses from
       Margeotes
       Fertitta
       Powell
       (ceased
       operations)         -           -       1,125           -       1,125
      Client
       Termination
       Payment          (750)          -           -           -        (750)
      Consolidation
       of Equity
       Affiliates        329           -          75           -         404
                  -----------------------------------------------------------
    MDC Adjusted
     EBITDA(xx)       $7,285      $1,436      $3,274     ($4,790)     $7,205
    -------------------------------------------------------------------------
    (*)  MDC's Share of EBITDA is a non-GAAP measure, but as shown above it
         represents operating income (loss) plus depreciation and
         amortization, stock-based compensation and impairment charges
         less minority interests.
    (xx) MDC's Adjusted EBITDA is a non-GAAP measure, but as shown above it
         represents MDC's Share of EBITDA plus unusual and non-recurring
         charges during the quarter.



                                 SCHEDULE 5

                              MDC PARTNERS INC.
             RECONCILIATION OF MDC EBITDA TO MDC ADJUSTED EBITDA
                                (US$ in 000s)

    For the Six Months Ended June 30, 2007

                                Customer Specialized
                   Strategic    Relation-    Communi-  Corporate
                   Marketing        ship      cation           &
                    Services  Management    Services       Other       Total
    -------------------------------------------------------------------------
    MDC's Share
     of EBITDA(xx)   $16,129      $4,151      $1,875    ($10,124)    $12,031
      Losses from
       Margeotes
       Fertitta
       Powell
       (ceased
       operations)         -           -       2,935           -       2,935
      Retention
       payments        1,750           -           -         823       2,573
                  -----------------------------------------------------------
    MDC Adjusted
     EBITDA(xx)      $17,879      $4,151      $4,810     ($9,301)    $17,539
    -------------------------------------------------------------------------
    (*)  MDC's Share of EBITDA is a non-GAAP measure, but as shown above it
         represents operating income (loss) plus depreciation and
         amortization, stock-based compensation and impairment charges less
         minority interests.
    (xx) MDC's Adjusted EBITDA is a non-GAAP measure, but as shown above it
         represents MDC's Share of EBITDA plus unusual and non-recurring
         charges during the period.



                              MDC PARTNERS INC.
             RECONCILIATION OF MDC EBITDA TO MDC ADJUSTED EBITDA
                                (US$ in 000s)

    For the Six Months Ended June 30, 2006

                                Customer Specialized
                   Strategic    Relation-    Communi-  Corporate
                   Marketing        ship      cation           &
                    Services  Management    Services       Other       Total
    -------------------------------------------------------------------------
    MDC's Share
     of EBITDA(xx)   $15,819      $3,046      $4,741     ($9,896)    $13,710
      Losses from
       Margeotes
       Fertitta
       Powell
       (ceased
       operations)         -           -       1,300           -       1,300
      Client
       Termination
       Payment        (5,250)          -           -           -      (5,250)
      Consolidation
       of Equity
       Affiliates        597           -         130           -         727
                  -----------------------------------------------------------
    MDC Adjusted
     EBITDA(xx)      $11,166      $3,046      $6,171     ($9,896)    $10,487
    -------------------------------------------------------------------------
    (*)  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 minority interests.
    (xx) MDC's Adjusted EBITDA is a non-GAAP measure, but as shown above it
         represents MDC's Share of EBITDA plus unusual and non-recurring
         charges during the period.



                                 SCHEDULE 6

                              MDC PARTNERS INC.
                   RECONCILIATION OF LOSS FROM CONTINUING
                    OPERATIONS TO CASH EARNINGS PER SHARE
                   (US$ in 000s, except per share amounts)



                               Three months ended         Six months ended
                                    June 30,                  June 30,
                            -----------------------   -----------------------
                                 2007         2006         2007         2006
    -------------------------------------------------------------------------
    Loss from Continuing
     Operations               ($2,601)     ($1,007)    ($11,397)     ($5,408)
    Depreciation &
     Amortization               7,361        5,531       13,904       12,724
    Stock-Based
     Compensation               1,553        1,807        3,469        5,332
    Non-cash Unrealized
     Foreign Exchange           2,489         (441)       2,893         (498)
    Impairment Charges              -            -        4,550            -
                            -----------------------   -----------------------
    Cash Earnings              $8,802       $5,890      $13,419      $12,150

    Diluted Shares             24,752       23,858       24,515       23,818

    Cash EPS                    $0.36        $0.25        $0.55        $0.51



                              MDC PARTNERS INC.
                     RECONCILIATION OF CASH EARNINGS TO
                       ADJUSTED CASH EARNINGS PER SHARE
                   (US$ in 000s, except per share amounts)


                               Three months ended         Six months ended
                                    June 30,                  June 30,
                            -----------------------   -----------------------
                                 2007         2006         2007         2006
    -------------------------------------------------------------------------
    Cash Earnings              $8,802       $5,890      $13,419      $12,150
      Losses from
       Margeotes
       Fertitta
       Powell
       (ceased
       operations)              1,925        1,125        2,935        1,300
      Retention payments        1,698            -        2,573            -
      Client termination
       payment                      -         (750)           -       (5,250)
      Tax Effect on
       Adjustments             (1,449)        (150)      (2,203)       1,580
                            -----------------------   -----------------------
    Adjusted Cash
     Earnings                 $10,976       $6,115      $16,724       $9,780

    Adjusted Cash EPS           $0.44        $0.26        $0.68        $0.41



                                 SCHEDULE 7

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

                                                    (unaudited)
                                                       June 30,  December 31,
                                                          2007          2006
    -------------------------------------------------------------------------
    Assets
      Current Assets:
        Cash and cash equivalents                  $     9,359   $     6,591
        Accounts receivable, net                       143,733       125,744
        Expenditures billable to clients                19,655        28,077
        Prepaid expenses                                 8,635         4,816
        Other current assets                             3,912         1,248
                                                  ---------------------------
      Total Current Assets                             185,295       166,476

      Fixed assets                                      42,594        44,425
      Investment in affiliates                             861         2,058
      Goodwill                                         207,924       203,693
      Other intangible assets, net                      49,955        48,933
      Deferred tax assets                               13,563        13,332
      Other assets                                      17,704        14,584
                                                  ---------------------------
    Total Assets                                   $   517,896   $   493,501
                                                  ---------------------------
                                                  ---------------------------


    Liabilities and Shareholders' Equity
      Current Liabilities:
        Short-term debt                            $         -   $     4,910
        Revolving credit facility                            -        45,000
        Accounts payable                                97,224        90,588
        Accrued and other liabilities                   62,853        75,315
        Advance billings                                52,039        51,804
        Current portion of long term debt                  704         1,177
        Deferred acquisition consideration               1,359         2,721
                                                  ---------------------------
      Total Current Liabilities                        214,179       271,515

      Revolving credit facility                         22,215             -
      Long-term debt                                    62,162         5,754
      Convertible notes                                 42,238        38,613
      Other liabilities                                  6,239         5,512
      Deferred tax liabilities                           1,148         1,140
                                                  ---------------------------
      Total Liabilities                                348,181       322,534
                                                  ---------------------------

      Minority Interests                                48,125        46,553
                                                  ---------------------------

      Shareholders' Equity:
        Common stock                                   189,204       184,699
        Share capital to be issued                         346             -
        Additional paid in capital                      27,421        26,216
        Accumulated deficit                            (98,011)      (86,614)
        Treasury stock                                    (660)            -
        Stock subscription receivable                     (373)         (643)
        Accumulated other comprehensive income           3,663           756
                                                  ---------------------------
      Total Shareholders' Equity                       121,590       124,414
                                                  ---------------------------

    Total Liabilities and Shareholders' Equity     $   517,896   $   493,501
                                                  ---------------------------
                                                  ---------------------------
    





For further information:

For further information: Donna Granato, Director, Finance & Investor
Relations, (646) 429-1809, dgranato@mdc-partners.com


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