Computers Now Seen as One of the Most Important Items On Shopping Lists - New Survey Highlights Trends in Back-to-School Shopping.

Business Editors/Hi-Tech Writers

ARLINGTON, Va.--(BUSINESS WIRE)--July 31, 2002

Upcoming Wave of State Sales Tax Holidays to Make Many Back-to-School

Items More Affordable

Seventy-three percent of Americans consider home computers to be an important back-to-school item for schoolchildren, with half rating access to home computers "very important," according to a national survey released today by the Consumer Electronics Association (CEA).

Home computers ranked just behind traditional school supplies, such as pens and notebooks, and ahead of new clothes and shoes in terms of importance, signaling the growing emphasis Americans are placing on the role of computers in education.

Nearly nine out of ten respondents believed traditional school supplies were important, while only 53 percent thought new clothes and shoes were important purchases. The survey was conducted via telephone to a random sample of 1,000 U.S. adults during July 2002, and it has a margin of error of +/- 3.1 percent for aggregate results.

"These survey results indicate that home computers have certainly become a back-to-school necessity," said Gary Shapiro, president and CEO of CEA. "Nearly three out of four Americans believe it is important for students to have a computer when they return to school in the fall."

The survey also found that while most respondents felt that school supplies and reference books were affordable (88 percent), less than one-third (31 percent) felt that computers were an affordable item for families with schoolchildren. Only 40 percent believed new clothes and shoes were affordable.

Sales Tax Holidays for Computers Growing in Popularity Among Consumers and Retailers

The CEA survey findings coincide with the upcoming "sales tax holidays," or temporary sales tax exemptions, for back-to-school items that are taking place in four states during the first weekend in August this year.

For the first time ever, four states - Georgia, North Carolina, South Carolina and West Virginia - will allow consumers to purchase tax-free computer products, school supplies and clothing during August 2 - 4. The CEA survey found that more than half of respondents (51 percent) would be more likely to purchase a computer during a sales tax holiday period.

Between 50 and 60 percent of respondents also said they would be more likely to purchase traditional school supplies, as well as clothing and shoes, during a sales tax holiday.

"Although prices of computers continue to drop, computers remain a significant investment for many families," said Shapiro. "Fortunately, this wave of sales tax holidays, which appear to be growing in popularity, makes back-to-school shopping more affordable."

Sales tax holidays, which are well-liked by consumers and retailers, offer families the opportunity to purchase a range of consumer goods without having to pay state and, in some cases, local sales taxes. The resulting savings amounts to between four and eight percent of the total product cost.

In addition, many retailers offer additional discounts and promotions during the sales tax holiday time period.

Since early 2000, five states have enacted sales tax holidays that include computer products. Similar holidays have been considered in at least eight other states and are likely to be brought up in those state legislatures again in 2003.

Additional information about this initiative can be found on the CEA website at www.ce.org/taxholiday.

About CEA:

The Consumer Electronics Association (CEA) represents more than 1000 corporate members involved in the design, development, manufacturing and distribution of audio, video, mobile electronics, wireless and landline communications, information technology, multimedia and accessory products, as well as related services that are sold through consumer channels.

Combined, CEA's members account for more than $80 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 represents the consumer electronics industry in association with the Electronic Industries Alliance (EIA).

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.

UPCOMING EVENTS

    --  CEA Fall Conference and Industry Forum
        October 13-16, 2002, San Francisco, CA

    --  Electronic House Expo - Fall
        November 12-14, 2002, Long Beach, CA

    --  2003 International CES - Defining Technology's Future
        January 9-12, 2003, Las Vegas, NV

    --  Electronic House Expo - Spring
        February 27-March 1, 2003, Orlando, FL

    --  2003 CEA Winter Summit
        March 4-6, 2003, St. Regis Aspen, Aspen, CO