PeoplePC and Patelco Credit Union Partner to Offer Members Complete Internet Access Solution

SAN FRANCISCO--

Credit Union Takes First Step in Migrating Its 190,000 Members

to an Online Banking Relationship

PeoplePC, Inc. (Nasdaq:PEOP), the leading global provider of complete Internet access solutions, today announced a partnership with San Francisco-based Patelco Credit Union, one of the nation's largest credit unions, to offer its complete turnkey solution to Patelco's 190,000 members. Patelco is the first credit union to offer its members an Internet access solution as part of its effort to migrate them to an online banking relationship.

Under the terms of the agreement, Patelco will market the program through direct channels including direct mail, its monthly newsletter and Website, www.patelco.org. Patelco will also begin to feature interactive PeoplePC kiosks in-house where customers can sign up for or receive more information about PeoplePC's Internet access solutions.

"Patelco is a frontrunner for financial service organizations looking to deepen their relationships with customers and employees," said Nick Grouf, president and chief executive officer, PeoplePC. "Using the PeoplePC platform, Patelco will be able to aggressively manage their customer acquisition costs while dramatically improving the quality and frequency of their communications."

"We see the move to online banking as vital for the credit union and its members," said Andy Hunter, president and chief operating officer, Patelco. "We chose PeoplePC because they are a service-oriented organization -- they understand our needs and, at the same time, can offer a compelling product to our members."

Patelco will also participate in a promotion to its members of PeoplePC's bundled solution and Internet access. Patelco has pre-approved some members for financing of the purchase price of the packages, and those members who sign up for the PeoplePC bundled solution will receive a free printer and free shipping.

About Patelco

San Francisco-based Patelco Credit Union is a nationally-recognized credit union serving over 190,000 members. With more than $2.3 billion in assets, Patelco is ranked fourth largest in California and 11th in the nation. Due to its superior customer service and emphasis on technology, Patelco is regarded as a leader in the credit union industry.

About PeoplePC

PeoplePC is the leading global provider of complete Internet access solutions, enabling its partners to reduce costs, generate revenues and deepen relationships with their constituencies. It works with ISPs, employers, membership organizations and individuals. PeoplePC's Custom Connections service is built on a high-quality dial-up network, aggregated through relationships with a dozen major telecommunications providers. The service has a number of tiers of customization: I) billing management and customer care; II) branded or private label email and online experience; III) a suite of Customer Relationship Management tools; IV) PC and other hardware options. PeoplePC's clients include some of the world's largest corporations such as The Ford Motor Company, Delta Air Lines, Vivendi Universal; and some of the most powerful affinity groups including AAA and VFW.

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

(c)2001 PeoplePC, Inc. PeoplePC, PeopleShop, and their respective logos, are among the trademarks and/or service marks of PeoplePC, Inc. in the U.S. and other countries. All other trademarks belong to their respective holders.

COPYRIGHT 2002 Business Wire

COPYRIGHT 2002 Gale Group

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.