Media Relations

PeoplePC Announces Partnership With Vivendi Universal and Vivendi Environnement to Offer its 250,000 Employees Affordable Home Computer and Internet Access

12/20/2000 8:09:00 AM

SAN FRANCISCO--(BUSINESS WIRE)--Dec. 20, 2000--

Vivendi Universal and Vivendi Environnement Extend Their Commitment to Net Literacy by Becoming PeoplePC's First European Enterprise Customers

PeoplePC (Nasdaq:PEOP), the global company that packages technology to make it affordable and accessible, announced today that it has entered into an exclusive agreement with Vivendi Universal (NYSE:V), a leading global media and communications company, and Vivendi Environnement, the world leader in environmental services, to offer its PeoplePC Home Connection Program(TM) to the Group's more than 250,000 employees worldwide. Central to this, PeoplePC will be managing the deployment of a bundled computing package consisting of a brand-name home computer, Internet access package, and range of related services. This relationship is the largest employee connectivity program initiated in Europe to date.

The program commences in France where to gain the benefit of the program, French employees will be asked to contribute a nominal monthly payment of 3 Euros per month over a total period of three years. A positive change in French law will go into effect on January 1st, 2001 ensuring that neither companies nor employees will be taxed on home connection programs, coinciding with the commencement of the Vivendi Universal and Vivendi Environnement -- PeoplePC program.

"This is a complex project, but we want to make sure our subsidiaries and employees find it easy to use, which is why we need a specialist team in PeoplePC to manage the whole programme," said Agnes Audier, Vivendi's Executive Vice President of Strategy and Development.

"Our relationship with both Vivendi Universal and Vivendi Environnement effectively showcases the vital role corporations can and should play in helping their employees -- and their families -- to participate in the digital age," said Nick Grouf, CEO and co-founder of PeoplePC. "Our work with other corporations has shown that employee connectivity initiatives are a win-win for all resulting in higher employee morale, productivity and retention as well as happier and, in many cases, smarter, more educated workers."

Additionally, employees will also have access to superior technical support, leading in-country language online training and inclusion in PeoplePC's unique global online community from the comfort and convenience of their homes. Unlike other computer and Internet packages, PeoplePC is not based on an advertising model and delivers communications on an opt-in or member initiated communications exchange only. PeoplePC and both Vivendi Universal and Vivendi Environnement share a dedication to protecting privacy on the Internet.

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.

PeoplePC pioneered its PeoplePC Home Connection program in the U.S. earlier this year and is offering it on a global basis to employees at the Ford Motor Company, Delta Air Lines and the National Trade Union of Singapore. The company is in the process of implementing these corporate connectivity programs in seven countries outside the U.S., including Canada, Singapore, Mexico, the Philippines, the U.K., Venezuela, and France and Germany. The company plans to expand implementation to additional countries over the next year. Each deal that PeoplePC signs continues to build on PeoplePC's aggregated buying power, benefiting every member of PeoplePC.

PeoplePC will be localizing its offer primarily through its regional offices in France, London and Munich and is spearheaded by a seasoned management team based in Europe. The company recently announced the launch of its subsidiary, PeoplePC Europe (see, "PeoplePC Goes Global With Launch of PeoplePC Europe," October 30, 2000) which is funded by a 50 million U.S. dollar investment by @Viso, a joint venture between Vivendi Universal and Softbank.

For more information, visit http://www.peoplepc.com.

This release contains forward-looking statements related to the company's growth in the enterprise channel, product offerings, anticipated participation rates in enterprise programs, and brand development, all which are subject to risks and uncertainties. Actual results may vary from those projected in the forward-looking statements. Potential risks and uncertainties include, without limitation, our ability to obtain financing for the purchase of our products and services, the failure of third parties to provide products and services, meeting our obligations under enterprise agreements, the costs of providing products and services, competition, international expansion, management of growth and our stock price. Further information on potential factors that could affect these forward looking statements and the company's financial results are included in our filings with the Securities and Exchange Commission, including the company's final prospectus filed on August 16, 2000 and the company's Form 10-Q filed on November 14, 2000.

Note to Editors: (c) 2000 PeoplePC, Inc. PeoplePC, its logos and Home Connection Program are among trademarks of PeoplePC, Inc. in the U.S. and other countries. All other trademarks belong to their respective owners.

CONTACT:
Press Contacts:
PeoplePC, Inc. (U.S.)
Jennifer Paperman, 415/901-6862 (Media Relations)
jpaperman@peoplepchq.com
Kelly Close, 415/901-6731 (Investor Relations)
kclose@peoplepchq.com
or
Edelman Public Relations for PeoplePC (U.S.)
Lori Robinson, 212/704-8241 (Media Relations)
lori_robinson@edelman.com
or
For Vivendi
Antoine Lefort, 001 33 1 71 71 11 80