PeoplePC Inc. - PEOP- Profile

PeoplePC Inc.. The Group's principal activity is to provide a membership package that includes a brand-name computer, unlimited Internet access, customer support and an in-home warranty. The Group also provides online program to customers who do not wish to purchase a computer. The Group derives revenues from two segments: Membership revenue and Other. Membership revenues include revenues from the sale of membership packages, related shipping charges and PeoplePC Online membership subscription fees. Other segment revenues are derived from the sale of peripherals and the incremental cost of printer and monitor upgrades, related shipping revenues and revenues from merchants and suppliers. Membership revenues accounted for 95% of 2001 revenues and Other, 5%. Membership revenues accounted for 95% of 2001 revenues and Other, 5%.