Media Relations

PeoplePC Announces New Corporate Alignment

3/21/2001 8:33:00 PM

SAN FRANCISCO--(BUSINESS WIRE)--March 21, 2001--PeoplePC Inc. (Nasdaq:PEOP), the company that makes it easy and affordable to get online, today outlined a new organizational alignment designed to grow the business more effectively and support its goal of turning cash-flow positive in the second half of 2001.

The changes will allow the company to respond more quickly to customer demand by streamlining its business processes and operations. The following employees have been promoted and given greater responsibility:

• Mary Humiston, formerly Vice President of Human Resources, has been promoted to the new position of Chief Administrative Officer, responsible for the company's Human Resources and Administrative functions worldwide.

• Mark Barden, formerly Vice President of Marketing, has been promoted to the new position of Senior Vice President of Product Management, responsible for the company's product strategy and services initiatives worldwide.

• Andrew Wait, formerly Director of Marketing, has been promoted to the position of Vice President of Marketing Services, responsible for company communications and implementation of PeoplePC's marketing programs.

• Julian King, formerly Director of Product Marketing, has been promoted to the position of Vice President of Product Management, responsible for the company's PC and digital product solutions.

• Michael Glogowsky has been appointed acting Chief Financial Officer. Mr. Glogowsky replaces John Adams, the company's previous Chief Financial Officer, who has been on personal leave and has recently left his position with the company.

• Laura King, formerly Director of Global Accounts, has been promoted to the position of Vice President of Program Development, responsible for the management of the PeoplePC Enterprise client base in North America.

• Yann Connan, formerly Director of Member Services, has been promoted to the position of Vice President of Member Commerce, responsible for development of commerce programs directed to the PeoplePC member base.

The company's new alignment also resulted in certain reductions in its workforce, primarily in its San Francisco-based headquarters and Asian operations groups.

"As our business scales rapidly, it is critical that we continue to build the leadership and structure in the company necessary to maintain our current momentum," said Nick Grouf, Chief Executive Officer, PeoplePC Inc. "These structural changes and delegation of key managerial responsibilities should enable us to achieve our revenue objectives and keep us on track with our plan to turn cash-positive in the second half of this year."

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.

CONTACT:
PeoplePC, Inc.
Lisa Murray, 415/901-6987 (Media)
lmurray@peoplepchq.com
Denise Ganz, 415/732-4400 (Investor Relations)
ganz@peoplepchq.com
or
Edelman Public Relations
Ed Bisno, 212/704-4545 (Media)
ed.bisno@edelman.com