Media Relations

PeoplePC and Terra Lycos Deepen Relationship with New ISP Offer

12/13/2000 6:39:00 AM

SAN FRANCISCO, Calif. and WALTHAM, Mass.--(BUSINESS WIRE)--Dec. 13, 2000--PeoplePC (Nasdaq:PEOP), the company that makes it easy and affordable to get online, and Terra Lycos (Nasdaq:TRLY) (Madrid Exchange: TRR), the largest global Internet network, today announced a marketing alliance to offer PeoplePC's Internet service, PeoplePC Online, to Lycos' ISP users. This offer is an extension of the relationship announced in October in which Lycos was named PeoplePC's preferred "portal partner" and a co-branded "My Lycos" start page became the default start page for PeoplePC members.

PeoplePC and Lycos have worked together to create a seamless way for existing Lycos Internet access users to transition to PeoplePC's Internet service, while keeping the same features to which Lycos users are accustomed, such as a customized My Lycos start page, Lycos email accounts, and any other services users have registered for on the Lycos Network. Lycos members who sign up for a year of PeoplePC Online's $9.95 monthly Internet service will receive their first two months free.

"Lycos is pleased to further extend its relationship with PeoplePC," said Tom Murphy, vice president of business development at Terra Lycos. "We have put together an ISP solution that is not only a great value for our users, but also tremendously convenient because users' preferences and registration information will remain intact. A user who takes advantage of this special PeoplePC offer will find their same customized My Lycos page at the start of their Internet session."

"This was an obvious opportunity to expand our relationship with Lycos," said PeoplePC CEO Nick Grouf. "We're glad we could help bridge the gap and simultaneously expand our member base cost-effectively. We look forward to introducing the new Lycos users to the PeoplePC member experience."

PeoplePC Online offers speedy and reliable connections, expert 24x7 support, a free personal home page, and two email addresses. The PeoplePC Online product offer supplements PeoplePC's bundled computer packages, which include a new, brand-name computer, unlimited Internet access, round-the-clock customer care and technical support, and member access to online and offline deals. Lycos members will also have the opportunity to upgrade to PeoplePC's bundled computer packages, currently priced between $24.95/month and $49.95/month.

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 Terra Lycos

Terra Lycos is the new global Internet network operating in 41 countries in 20 languages, reaching 91 million unique monthly visitors worldwide. Created by the combination of Terra Networks, S.A. and Lycos, Inc., in October 2000, Terra Lycos is one of the most popular Internet networks in the U.S., Europe, Asia and Latin America, and is the third largest Internet access provider in the world. The Terra Lycos network of sites includes Lycos.com, Terra.com, AnimationExpress.com, Angelfire.com, ATuHora.com, Gamesville.com, HotBot.com, htmlGEAR.com, Invertia.com, Lycos Zone, Matchmaker.com, Quote.com, Rumbo.com, Sonique, Tripod.com, Webmonkey.com, WhoWhere.com and Wired News (Wired.com).

Terra Lycos, which is headquartered in Barcelona with operating centers in Waltham, Mass. (U.S.) and Madrid, Spain, among others, is listed on NASDAQ (TRLY) and the Madrid stock exchange (TRR).

Note to Editors: PeoplePC and its logos are among trademarks of PeoplePC, Inc. in the U.S. and other countries. All other trademarks belong to their respective owners.

Lycos(R)is a registered trademark of Carnegie Mellon. All other product or service marks mentioned herein are those of Terra Lycos or their respective owners. All rights reserved.

CONTACT:
Edelman Public Relations for PeoplePC
Lori Robinson, 212/704-8241
lori_robinson@edelman.com
or
PeoplePC
Jennifer Paperman, 415/901-6862
jpaperman@peoplepchq.com
or
Terra Lycos
Kirsten Rankin, 781/370-2691
krankin@lycos.com
or
Investor Relations Contact for PeoplePC
Kelly Close, 415/901-6731
kelly.close@peoplepchq.com