Media Relations

PeoplePC Wins Contract With Powergen to Provide UK Employees With Bundled Computer Packages; PeoplePC's Business Model Continues to Expand in Europe

6/25/2001 12:43:00 PM

SAN FRANCISCO--(BUSINESS WIRE)--June 25, 2001--PeoplePC (Nasdaq:PEOP), the company that makes it easy and affordable to get online, today announced in conjunction with Powergen, a leading UK supplier of gas, electric and telephone services, that it will be providing the company's more than 5,000 employees with all-in-one home computing packages. The Powergen program adds to PeoplePC's growing client roster in Europe.

Powergen will subsidize the `Clicks@Home' program, and employees will pay a minimal monthly fee for the PeoplePC home computing package. The package includes a new, name-brand desktop computer with fully loaded software, unlimited Internet access, round-the-clock customer support, and co-branded online services.

"The Powergen program is the latest example of how the PeoplePC business model is taking hold in Europe and offering companies a great solution for ramping up the technology skills of their workforce and investing in the future of their business," said Nick Grouf, PeoplePC chairman and chief executive officer. "Our UK subsidiary in London will be leveraging our success with Vivendi Universal and other partners to provide Powergen with a seamless, streamlined program for their employees."

PeoplePC's enterprise partnerships in the U.S. include employee connectivity programs with Ford Motor Company, Delta Air Lines, The New York Times Company and Cinergy.

Powergen was the first UK energy company to sell electricity and gas over the Web, the first to become an Internet service provider and one of the first to venture into e-procurement. It is now the first utility company in Europe to wire its workforce.

About PeoplePC

Founded in 1999, PeoplePC (Nasdaq:PEOP) is a company that provides hassle-free digital solutions for people and connects corporations to those who matter most to their business. PeoplePC takes the frustration out of technology by bundling all the compatible components people need in one place, making it quick and easy to get online and add new capabilities to their systems. The pioneer in Custom Connections programs, PeoplePC also works with Fortune 500 companies and other kinds of organizations to create ongoing, relevant digital connections to the people who are important to their success, including employees, partners, customers, salespeople, members, and constituents of all sorts. A global company with offices in the US, Europe, and Asia, PeoplePC provides complete, simple, and affordable digital solutions so people around the world can enjoy everything technology has to offer without any of the worry. For more information about PeoplePC, visit www.peoplepc.com.

About Powergen

Powergen is an anglo-american integrated energy company. In the it UK Powergen is a leading UK supplier of electricity, gas and telephone services to domestic and small business customers. With 3.2 million customer accounts it is the fastest growing of the major suppliers. In the UK, Powergen is the major energy supplier to industry, and its power stations generate enough electricity to power the homes of around 8 million people. The company also owns East Midlands Electricity, which distributes electricity to some 2.3 million homes throughout the East Midlands via 67,000km of overhead lines and underground cables. Powergen web site: www.powergenplc.com.

Note to Editors: 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 holders.