Retired Americans Bought PCs at Record Pace in 1998; Surprised Even Themselves; INTECO Survey Shows.

NORWALK, Conn--(BUSINESS WIRE)--March 25, 1999--

In Total, Home PC Growth in last 8 Months of 1998 Equals

That of Previous Two Years, Firm Finds

Americans welcomed PCs into their homes during 1998 at the fastest rate in history, according to market researcher INTECO Corporation. From May 1998 to the end of the year, home PC penetration soared from 43 to 49 percent, growing in eight months as much as it had in the previous two years.

INTECO's research, based on 16,500 interviews conducted in December, 1998, suggested that sub-$1,000 PCs fueled much of the growth, and showed that household PC growth extended even into low income households while continuing an aggressive upward trend in both middle and high-income households.

Retirees surprised even themselves, with actual sales reflected in the December research results far exceeding the number who said they "anticipated" buying a PC in an April survey. "Typically, only a fraction of those who say they expect to buy a PC in the near future actually do so," said INTECO Senior Analyst Mark Snowden. "This behavior changed drastically in the last half of 1998."

INTECO figures showed that in almost every type of household and income category, sales were greater than anticipated. In all the "retired" and "active" categories, actual penetration in December 1998 was greater than consumers themselves had expected in April. -0-

Comparison of home-PC
buying intentions and penetration (1998)

(% of households; vertical %s)

                                        ------------------------------
                                        Total  Retired Active Families
All households         Anticipated        47     18     46       61
                            Actual        49     24     50       60

Low income             Anticipated        21      7     21       35
(under $25,000)             Actual        24     12     26       34

Middle income          Anticipated        48     24     45       57
($25,000-$49,999)           Actual        52     29     51       58

High income            Anticipated        72     44     68       85
($50,000 or more)           Actual        72     49     70       82
                                        ------------------------------

Anticipated: household penetration in April 1998 plus purchase intentions for the next nine months Actual: household penetration in December 1998 Families: households with children under 18 Retired: head of household retired

Base: all households; April 1998 & December 1998

About INTECO

INTECO Corporation is a market intelligence firm that forecasts consumer-level actions and attitudes relative to PCs, the Internet, online services, interactive TV and other similar technologies. Based on detailed interviews with thousands of households every year, INTECO projects consumer acceptance of emerging technologies for up to five years into the future.