Media Relations

PeoplePC and Larry Ellison's New Internet Computer Company Team Up to Provide Internet Appliance Solution to Corporations Nationwide

8/16/2001 12:52:00 PM

SAN FRANCISCO, Aug 16, 2001 (BUSINESS WIRE) -- PeoplePC, Inc. (NASDAQ: PEOP), the company that makes it easy and affordable to get online, and Larry Ellison's New Internet Computer Company, the nation's fastest-growing Internet appliance company and manufacturer of the NIC, the industry's most innovative Internet access device, today announced they have signed a co-marketing agreement.

In the agreement, the two firms will provide a new computing solution for companies that wish to provide their employees with simple and economical Internet access.

NIC Internet appliance combined with PeoplePC's unlimited Internet service will cost under $20 per month. That's less than what consumers pay AOL or MSN for the Internet service alone.

PeoplePC pioneered the employee connectivity solution, and has already delivered more than 550,000 PeoplePC-equipped personal computers to customers including employees of The Ford Motor Company (NYSE: F), Delta Airlines (NYSE: DAL), Vivendi Universal (NYSE: V), BertelsmannAG, Cinergy Corp.and The New York Times (NYSE: NYT).

In addition to PCs, PeoplePC will now feature the NIC as its exclusive Internet appliance offering - allowing corporations to offer inexpensive and easy-to-maintain systems to their employees.

"The NIC Company's hassle-free and cost-effective hardware, combined with our customized and co-branded ISP software, results in an exciting and remarkably affordable option for our enterprise customers interested in moving employees and customers to a digital communications platform," said Nick Grouf, chairman and chief executive officer, PeoplePC, Inc. "Our two core competencies meld together perfectly to provide a highly efficient and economical way for our corporate partners to develop deeper relationships with key constituents."

"There is a clear and undeniable need for simple, low-maintenance and affordable Internet computing solutions," adds NIC Company CEO Gina Smith. "We believe it will happen in stages, market by market. And with PeoplePC as the leader in the employee benefits programs, we are proud to be part of such an exciting effort."

As part of the agreement, PeoplePC and The NIC Company will work aggressively together to reach enterprise partners looking to give a company-branded Internet access and email solution to employees and customers. PeoplePC will market The NIC Company's Internet computer device to its corporate and affinity partners for new employee and customer connectivity programs. The NIC Company will exclusively promote PeoplePC to enterprise employee connectivity programs. In addition, PeoplePC will be a preferred Internet service provider for The NIC Company's consumer customers.

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(c)2001 PeoplePC, Inc. All Rights Reserved. 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.

CONTACT:          Media:
                  Michael Salort
                  212-319-3692
                  646-245-3588
                  mike@thinknic.com
                  or
                  Wendy Sachs
                  917-270-5112
                  212-678-5410
                  wendy@thinknic.com
                  or
                  Lisa Murray
                  415-901-6987
                  415-254-7850
                  lmurray@peoplepchq.com