CEA Applauds Vermont Governor Douglas and Georgia Governor Perdue on Creating Sales Tax Holidays for Computer Products.

Business Editors/High-Tech Writers

ARLINGTON, Va.--(BUSINESS WIRE)--June 17, 2003

The Consumer Electronics Association (CEA) praised Vermont Governor James Douglas and Georgia Governor Sonny Perdue today for recently signing into law sales tax holidays for computer purchases within their respective states. Yesterday, Vermont Governor Douglas signed legislation creating Vermont's first-ever sales tax holiday. On June 3rd, Georgia Governor Perdue signed House Bill 43, which renews the sales tax holiday in Georgia for 2003, after a similar sales tax holiday occurred in 2002.

"We commend these states for realizing the importance of computers as a crucial back-to-school item and for working to narrow the digital divide in their states," said Gary Shapiro, president and CEO of CEA. "Our research shows that families without access to technology are more likely to make a purchase during such a holiday. This legislation provides a strong incentive for computer ownership to residents of Georgia and Vermont and provides economic stimulus by boosting sales for local retailers."

The Vermont sales tax holiday will run from August 9 to 11, 2003. During this period, consumers in Vermont will not pay the state sales tax on purchases of personal computers (PCs) and related products. Vermont's Department of Taxes will define the specific rules and regulations of the proposal and determine the scope of covered products. The Georgia sales tax holiday will occur from July 31 to August 3, 2003. Products included in the sales tax holiday are: PCs and PC-related accessories purchased for non-commercial home or personal use, including CPUs and keyboards, PDAs, handheld computers, monitors, other peripheral devices, modems for Internet and network access, and "non-recreational" software, up to $1,500.

Thus far, five states will hold sales tax holidays for 2003. In addition to Georgia and Vermont, North Carolina, South Carolina and West Virginia have sales tax holidays that include computer products.

CEA research shows that computer sales tax holidays are a low-cost, high-return investment. According to CEA, approximately two-thirds of the sales tax revenue forgone during the computer sales tax holiday would return to the state as a result of subsequent computer-related purchases made by consumers during the 12-month period after a tax holiday.

For more information about sales tax holidays for computer products, please visit CEA's website at www.ce.org/taxholiday.

About CEA:

The Consumer Electronics Association (CEA) represents more than 1,000 corporate members involved in the design, development, manufacturing, distribution and integration of audio, video, mobile electronics, wireless and landline communications, information technology, home networking, multimedia and accessory products, as well as related services that are sold through consumer channels. Combined, CEA's members account for more than $85 billion in annual sales. CEA's resources are available online at www.CE.org, the definitive source for information about the consumer electronics industry.

CEA also sponsors and manages the International CES - Defining Technology's Future. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy.

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