Media Relations

PeoplePC Selected to Wire 11,000 Bertelsmann Employees; PeoplePC to Provide Leading Global Media Company with Co-Branded ISP Service

7/25/2001 8:39:00 AM

SAN FRANCISCO--(BUSINESS WIRE)--July 25, 2001--PeoplePC, Inc. (Nasdaq:PEOP), the company that makes it easy and affordable to get online, today announced it has been selected by Bertelsmann, the world's most international media company and corporate parent of BMG Entertainment (RCA, Arista, Ariola), Random House, and over 40 other media properties, to provide 11,000 of the company's U.S. and Canadian employees with unlimited Internet access at home.

Bertelsmann will provide PeoplePC Online(TM) to employees free of charge as part of its "PC/Web Offer for All" program. PeoplePC will build a customized, co-branded welcome page that gives Bertelsmann a daily presence in front of employees through the company's new website, Planet B. This employee connectivity solution is consistent with those PeoplePC has developed for other large enterprise clients. In addition to Internet access, PeoplePC will provide toll-free customer service to address technical support questions related to the installation and activation of employees' Internet accounts.

"PeoplePC is pleased to have been chosen by Bertelsmann to help move the company's North American workforce to a unified communications platform," said Wayne Gattinella, executive vice president and chief marketing officer, PeoplePC, Inc. "Our flexible technology and online tools will enable Bertelsmann to consistently connect with all of their employees in a personalized and secure digital environment."

"We chose to partner with PeoplePC because of their broad Internet access and management expertise in executing complex and seamlessly integrated employee connectivity programs around the world," said Detlef Hunsdiek, executive vice president, human resources, Bertelsmann AG. "PeoplePC's customized ISP product is a perfect complement to our 'PC/Web Offer for All' program and makes it possible for us to communicate in creative and targeted ways with our employees."

PeoplePC pioneered the employee connectivity solution and is already wiring the workforces of Ford Motor Company (NYSE: F), Delta Air Lines (NYSE: DAL), Vivendi Universal Group (NYSE: V), the New York Times Company (NYSE: NYT), Cinergy, and others.

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 Bertelsmann AG (www.bertelsmann.com)

Bertelsmann commands leading positions in the global media and entertainment industries. The Bertelsmann Group consists of publishing and music companies, book and music clubs, magazines and newspapers, television and radio stations, print and media service providers, as well as multimedia and professional information companies -- including such brands as Random House, BMG (RCA, Arista, Ariola), Gruner + Jahr (Stern, Geo, Capital) and RTL -- with strong appeal for readers, listeners, viewers and Internet surfers. Bertelsmann is the world's largest general-interest book publisher and the biggest English-language book-publishing house worldwide. Its 41 million members make the Bertelsmann book and music clubs the global No. 1, both internationally and in all regional markets. With RTL Group, the company is the European market leader in broadcasting. The Gruner + Jahr publishing house occupies a top position in the European and US magazine business. Bertelsmann is also a leading media company on the Internet and the world's No.2 in media e-commerce. The group employs more than 81,000 people in 60 countries and posted total revenues of 16.5 billion Euro in the 1999/00 business year ended June 30, 2000. In the first six months of the current business year 2000/2001, revenues rose by nearly 40 percent over the same period last year, to 10.4 billion Euro.

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 holders.