Media Relations

PeoplePC Expands Product Line With PeopleShop, Selling Peripherals Direct to Consumers; PeoplePC Moves to Capture Greater Share of Members' Peripheral Purchases

3/12/2001 8:36:00 AM

SAN FRANCISCO--(BUSINESS WIRE)--March 12, 2001--PeoplePC (Nasdaq:PEOP), the company that makes it easy and affordable to get online, today debuted PeopleShop, an online store that sells a comprehensive selection of computer-related merchandise directly to PeoplePC members. With this launch, PeoplePC is significantly expanding its product line, taking the PeoplePC experience beyond the PC and enhancing the value members get from their computers.

PeopleShop takes a unique approach to online retailing in that it simplifies members' shopping experience by selecting products for quality and testing them for compatibility with PeoplePC machines. The online store will carry a variety of PC accessories, from scanners to color printers to MP3 players, along with software, books, and supplies.

The impetus to create PeopleShop came from demand on the part of PeoplePC members themselves, who are increasingly tech-savvy and eager to get even more out of their PCs. PeoplePC found that over 70% of members surveyed said they trusted the company to select quality peripheral products for them, giving PeoplePC the mandate to launch this major initiative.

"We've had great success selling peripherals at point of purchase. PeopleShop allows us to continue to meet our members' technology needs after they unpack their computer and figure out all that they want to do with it," said Mark Barden, vice president of marketing, PeoplePC, Inc. "We hope to capture the majority of our members' peripheral purchases by making it easy and safe to buy add-ons from a source they trust -- us."

Select products will have the PeoplePC Smile of Approval icon(TM), which will let members know that PeoplePC technicians have carefully selected products for quality and tested them for compatibility with PeoplePC machines. In giving its stamp of approval, PeoplePC serves as a personal shopping assistant for its members, saving them time and guesswork and helping them navigate the vast terrain of PC add-ons and accessories.

Vitessa Corp., the leading Commerce Service Provider and the outsource partner for the PeopleShop commerce functionality, has built a customized online store under the PeoplePC brand name. Vitessa contributes its ecommerce expertise to PeopleShop, providing access to and fulfillment of goods through a virtual supply chain as well as providing a full suite of merchandising capabilities and management tools. Vitessa has relationships with 11 of the nation's biggest suppliers of goods and a warehouse of more than eight million items from books to office supplies.

In addition to the services available through PeopleShop, PeoplePC offers consumers bundled PC packages that include a brand-name new computer, fully loaded software, unlimited Internet access, two email accounts, 24/7 customer support, and membership in a unique online community.

About PeoplePC

PeoplePC (Nasdaq:PEOP) is a company that makes it easy and affordable 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 consumers and to corporations interested in wiring their workforces and creating deeper relationships with customers. 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 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 Vitessa

Vitessa is the leading provider of outsourced ecommerce solutions enabling high traffic, content-rich, Global 2000 branded sites to sell products directly to their audiences. Vitessa solutions are built on Vitessa's proven ecommerce infrastructure that combines a world-class transaction-processing engine, a dynamic supplier integrated virtual supply chain enabling virtual consignment, and the patent-pending Vitessa Internet Product Code(TM) (VIPC) providing distributed commerce wherever HTML is supported.

Vitessa is a privately held company headquartered in Seattle with regional sales offices nationwide. For more information visit www.vitessa.net.

Note to Editors: PeoplePC, Inc. 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.

CONTACT:
PeoplePC Inc., San Francisco
Jennifer Paperman, 415/901-6862 (Media)
jpaperman@peoplepchq.com
or
Edelman Public Relations for PeoplePC
Melissa Yoblon, 212/704-4505 (Media)
Melissa.Yoblon@edelman.com
Torie Pennington, 212/704-4528 (Investor Relations)
Torie.Pennington@edelman.com