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Dell and WPP Group Form Ad Agency

ROUND ROCK, Tex., Dec. 2 (AP) — Dell Inc. announced Sunday that it would team up with the WPP Group, the advertising giant, to create a marketing agency to handle $4.5 billion in Dell accounts over three years.

Dell’s advertising and marketing business had been spread among 800 companies worldwide.

“We are making a mutual investment in people, processes and technology to provide greater continuity of the Dell brand globally,” said Casey Jones, vice president for global brand marketing at Dell. “And we will operate together as one marketing and communications team.”

It has been a rough time for Dell since August 2006, when it first disclosed an internal accounting investigation and issued a wide recall on notebook batteries. A few months later, Dell lost the No. 1 position in the personal computer market to the Hewlett-Packard Company.

Extensive changes have followed, including the return of Michael Dell as chief executive. The company also said it planned to lay off 10 percent of its work force.

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