Media Relations

PeoplePC Goes Global With Launch of PeoplePC Europe; VIVENDI and SOFTBANK'S @viso Invest $50 Million In PeoplePC Europe

10/30/2000 8:22:00 AM

SAN FRANCISCO--(BUSINESS WIRE)--Oct. 30, 2000--PeoplePC (Nasdaq:PEOP) today announced it will take its mission of "democratizing" technology to the European continent with the launch of its new subsidiary, PeoplePC Europe -- enabling Europeans to take advantage of PeoplePC's product and service offerings. PeoplePC makes it easy and affordable for people to get online and participate in the digital economy by offering the PeoplePC package: a brand-name new computer, software, unlimited Internet access, online training, superior technical support, and membership in a unique global online community. At launch, PeoplePC Europe has offices in London, Munich and Paris and is led by a seasoned management team with executives from Apple Computer, Reuters, Walkers Snack Foods, and other premier global businesses.

VIVENDI, a leading global media and communications company for the wired and wireless world, and SOFTBANK, the global venture capital company that works to create the most powerful companies of the Internet economy -- through the shared incubation arm @viso -- invested $50 million U.S. dollars in PeoplePC Europe in exchange for a 35 percent stake in the European subsidiary.

The international expansion will bring PeoplePC's renowned "Wired Workforce" programs to Europe, initially providing corporations and governments with the ability to equip their employees and citizens with home computer access by offering them the complete PeoplePC membership experience at an affordable price. PeoplePC offers its members a trusted global brand-community by leveraging its partnerships with Compaq, Hewlett-Packard, IBM, Intel, Microsoft and Toshiba, to name a few. PeoplePC plans to offer its all-inclusive computing package to individuals in the near future.

According to leading analyst firm Jupiter Research in a report issued this month, there are currently 94 million European households who are not equipped with PCs, compared to 39 million in the United States, and 123 million European households who are not yet connected to the Internet, compared to 51 million households in the U.S.

"Many citizens of Europe remain unconnected, and we want to facilitate their inclusion in the digital economy. Computing can be complicated and PeoplePC believes it doesn't have to be," said Nick Grouf, chairman and CEO, PeoplePC. "PeoplePC is committed to removing the barriers of entry to participation in the digital revolution on a global basis."

PeoplePC pioneered the Wired Workforce program in the U.S. earlier this year and is offering its complete computing solution to employees at Ford Motor Company, Delta Air Lines, the New York Times Company and the National Trade Union of Singapore. The company is unique in coordinating these programs on an international basis, having already begun implementation in four countries outside the U.S., including Singapore, the Philippines, Venezuela, and France. The company plans to increase this number to over six countries over the next year.

"PeoplePC has a creative business-to-business and business-to-consumer model that has been very successful in the United States," said Pierre Liautaud, CEO, @viso. "We're very excited to provide our Pan-European business acceleration services to PeoplePC Europe and help to make it as great a success in Europe as it has been in the U.S."

"PeoplePC has experience in managing highly complex, customized employee connectivity programs on a global scale, enabling corporations to help their employees gain the tangible business and personal benefits of e-literacy," said David Waxman, co-founder, PeoplePC. "We are leveraging our strong global partners such as Vivendi and Softbank to replicate the solid back-end infrastructure PeoplePC has built in the U.S., while also localizing our services to meet the specific needs of the various European markets."

PeoplePC today also named key strategic hires to the seasoned team of PeoplePC Europe. Marion King brings 15 years of high-level management experience at Reuters to her role as general manager, where she oversees the overall business of PeoplePC Europe. At Reuters, Ms. King most recently held the position of managing director, transaction services, where she was responsible for one-third of Reuters' 300 million pounds in profits in 1999. Former Apple Computer executive Stephen Glover adds over 20 years experience in operations and supply chain functions to his role as senior vice president of European operations. Additionally, Tony O'Neill has been named senior vice president of finance, contributing his 25 years of expertise in finance from Walkers Snack Foods and other premier companies. And, with vast experience in global account management, Adam Sutner, formerly of TBWA Chiat/Day, Inc., serves as vice president of global accounts, Europe, ensuring consistency of the end-user PeoplePC experience across disparate national environments.

About PeoplePC

PeoplePC (NASDAQ: PEOP), launched in October 1999, provides a hassle-free and more affordable way to get online so that everyone can have access to and participate in the digital economy. PeoplePC offers its unique end-to-end solution both to individual consumers and to major corporations interested in wiring their workforces and creating deeper relationships with customers through PeoplePC real estate. A PeoplePC membership comes complete with a new, brand-name computer system, unlimited Internet access, and high-quality customer support and service. There's also a unique, customizable online community that fosters long-term, substantive connections with PeoplePC members and ongoing revenue possibilities. PeoplePC offers its services on a global basis, allowing people across the world to reap the rewards of the digital age. For more information, visit http://www.peoplepc.com.

About @viso

@viso, a joint venture between Vivendi and Softbank was launched in October 1999. It helps established Internet companies launch and gain rapid traction in European markets. @viso delivers all the keys necessary for a successful business in Europe from financing to business model adaptation, technology transfer, launch planning, accelerated pan-European access, strategic and management consulting, human resources, marketing and communications, business development connections, logistical support, technical consulting and support. @viso also offers, through Vivendi and Softbank, access to high-level strategic partnerships. Within the structure of VivendiNet, companies incubated by @viso will be preferred partners of "Vizzavi," the European Multi-Access Portal of VivendiNet and Vodafone AirTouch. @viso is a founding member of BIA, Business Incubator Association Europe, set up to promote pan-european entrepreneurship in the Internet world. For more information, visit http://www.atviso.com (c) PeoplePC is a trademark of PeoplePC, Inc. All other products or brands as they appear in this release are trademarks or registered trademarks of their respective owners.

CONTACT:

Press Contacts:

Media Contacts for PeoplePC, Inc. (U.S.)
Serena Tesler
Edelman Public Relations
serena_tesler@edelman.com
01 212 704 4545

Jennifer Paperman
PeoplePC, Inc.
jpaperman@peoplepchq.com
+01 415 901 6862

Investor Relations Contact for PeoplePC, Inc. (U.S.)
Kelly Close
PeoplePC, Inc.
kelly.close@peoplepchq.com
+01 415 901 6731

Media Contact for PeoplePC Europe
Anne-Carole Pyard
anne-carole.pyard@atviso.com
011 33 171 77 36 46

Public Relations Contact for @viso
Nathalie Bernard, Pascale Boissier
Hopscotch
+33 1 58 65 00 00
nbernard@net-hospcotch.com
pboissier@net-hopscotch.com