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Press Release

MDC Partners Announces Exchange Event on Adjustable Rate Exchangeable Securities Due December 31, 2028 and Intention to Redeem Securities for Units Of Custom Direct Income Fund

TORONTO, Ontario (January 27, 2004) – MDC Partners Inc. (“MDC”) of Toronto announced today that based on the financial results of Custom Direct Income Fund (the “Fund”) for the period ended December 31, 2003, the subordination conditions attached to MDC’s shares of Custom Direct, Inc. are removed. As a result, MDC’s shares of Custom Direct, Inc. are exchangeable into units of the Fund. Holders of MDC’s Adjustable Rate Exchangeable Securities due December 31, 2028 (the “Exchangeable Securities”) are now entitled to exercise their exchange right. MDC intends to provide notice of redemption to redeem the Exchangeable Securities for units of the Fund on February 3, 2004. Closing will be scheduled for February 13, 2004, coinciding with the interest payment date for securityholders of record on January 31, 2004. As a result, without holders of Exchangeable Securities taking any further action, securityholders will receive units of the Fund on February 13, 2004.

About MDC Partners Inc.

MDC Partners is one of the world’s leading marketing communications firms. Through its partnership of entrepreneurial firms, MDC provides advertising and specialized communication services to leading brands throughout the United States, Canada and the United Kingdom. MDC Class A shares are publicly traded on the Toronto Stock Exchange under the symbol MDZ.A and on the NASDAQ under the symbol MDCA. The Exchangeable Securities are publicly traded on the Toronto Stock Exchange under the symbol MDZ.N.

This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve risks and uncertainties which may cause the actual results or objectives to be materially different from those expressed or implied by such forward-looking statements. Such factors include, among other things, the Company’s financial performance; changes in the competitive environment; adverse changes in the economy; ability to maintain long-term relationships with customers; financing requirements and other factors set forth in the Company’s Form 40-F for its fiscal year ended December 31, 2002 and subsequent SEC filings.