Micron Electronics Announces "Free PC for Life" With Its Full-featured Intel Based Free PC Through Micronfreeware.com.

NAMPA, Idaho--(BUSINESS WIRE)--July 9, 1999--

-- Bold new program restructures economics of the PC industry as Micron is the first major PC brand to deliver full computing services to consumers for "about a dollar a day." Micron gives customers a free

PC when they subscribe to the Premium Internet Services package from Micron PC and when they re-subscribe after three years, they get a new

free PC and get to keep the first PC --

Micron Electronics, a leading direct vendor of computing solutions and services, today announced a dramatic solution that revolutionizes the way consumers purchase computers and Internet services.

Micron is now giving a free PC to consumers who subscribe to the Premium Internet Services package from Micron PC. Premium Internet Services is a package of valuable Web-based services, providing customers with another free Micron PC every three years as they renew their service subscriptions.

"We are in the midst of a transformation in the way technology companies must service the computing needs of consumers. Consumer behavior is changing the economics of our industry every day. We are responding by giving them a sub dollar a day computing solution, with a free PC for life," said Joel Kocher, Micron's Chairman and Chief Executive.

If amortized, the cost of the prepaid services over three years comes in at less than a dollar a day. The Premium Internet Services package from Micron PC is also available for monthly payments on a thirty-six month plan. For details or to personalize your free Micron PC go to www.micronfreeware.com.

Micron's new solution eclipses the "free PC" offerings already on the market, providing a high-quality, high-performance free Intel-based PC which Micron will replace every three years when customers renew their services subscriptions. This new PC comes from a company with a legacy of award-winning systems and a reputation for dependable, around-the-clock service and technical support. Micron's Millennia product line has swept virtually every industry award during 1999, including PC Magazine Editor's Choice, PC World World Class Award and PC Computing "A- List." Micron's newest PC, the Micron Millennia Vx, shares the heritage of these systems with high performance and reliable, bulletproof service and technical support.

Micron's "beyond the box" approach provides consumers and small business customers the web-based services they need to leverage their hardware in today's Internet economy. The Premium Internet Services package includes: -- A three-year subscription to an award-winning Internet service.

Sold separately, this service is valued at $790 over three years,

or $21.95 per month, excluding any sign-on fees. -- A three-year on-site hardware warranty backed up by Micron's

award-winning technical support staff. Bought separately, this

service is valued at $99 over three years. -- A one-year subscription to Micron University, Micron's exclusive

on-line training and education resource. -- Microsoft Works productivity software application, which is

valued at $99 when purchased at retail. -- A three-year subscription to Micron's dynamic new Web service

e-additions @Club, where customers can purchase computer

peripherals, software and supplies at deeply discounted prices.

Sold separately, e-additions @Club membership is valued at $99

for a three-year subscription.

The total value of all of these services is $1,087 when sold separately. When these Premium Internet Services are purchased together, Micron adds a free full-featured, Millennia Vx personal computer. The Millennia Vx offers the following features, making it a great choice for Internet use and productivity applications: -- Award-winning Micron Millennia design o Intel Celeron processor

running at 400MHz -- 32MB RAM (combined system and video memory) -- 4.3GB HD -- 40X variable-speed CD-ROM -- 15" color monitor (13.8" viewable) -- Speakers

Customers can order their free PC and the Premium Internet Services package by visiting www.micronfreeware.com or calling 888/256-9461. The price for the total solution is $1,087 plus a $49 activation fee, which is waived if customers purchase the solution on-line. Customers can also upgrade a full set of features and processor at additional cost. This amount can be paid up front or financed through the Micron Consumer Credit Card.

Micron has also introduced several enhancements to Micron University, its unique online training resource for users and IT staff. Ten new Micron University courses have been added, including: Introduction to Web Design, Network Fundamentals, General and Advanced Systems Integration and Upgrading from Window NT 4.0. In addition, the customer site navigation experience has been enhanced. The expanded curriculum of over 250 courses is divided into libraries appropriate for different types of users, such as home users, business-application users, and technology staff. Micron University provides complete user training on business applications. It also offers up-to-date skills development for IT staffs on operating systems, Internet technologies and programming (see separate press release). By increasing user proficiency with applications, user productivity can climb as training and helpdesk costs decline.

As part of its ongoing strategy to target small and mid-size business users by combining cutting-edge PC products with valuable services, Micron Electronics has introduced its e-additions online store for purchasing software, peripherals and computer supplies. e-additions is an online membership store that provides Micron's customers with significant discounts -- including pricing "@Cost" for leasing customers -- and convenient access to more than 60,000 add-on products.

e-additions offers Micron small business customers two ways to receive significant discounts on third-party products:

e-additions @ Cost

The first option, e-additions @Cost, is for customers who lease a product from Micron. This option entitles a customer to purchase peripherals, software and supplies @Cost at the e-additions online store, in an amount equal to the dollar amount of the customer's lease purchase. For example, if a lease purchase equals $2,000, a customer can then purchase up to an additional $2,000 of products through e-additions, @Cost, which can provide a savings of up to 23%. Once customers make purchases in an amount equal to the amount of the lease purchase, they can convert to e-additions Club Member status. @Cost is defined as the price Micron pays for products plus the program's overhead cost which currently runs around four percent. Certain Micron products and services, and the shipping of products are excluded from the @Cost program.

e-additions Club Member

e-additions Club Member status entitles customers to receive significant discounts on retail prices on e-additions merchandise. Discounts typically range from five to seven percent, saving a customer hundreds of dollars when purchasing peripherals and other computer equipment. Club members also receive email notices of additional specials and discounts, informational email on products that fit their profile, as well as a monthly record of purchase history.

Micron Electronics, Inc. (Nasdaq:MUEI), a recognized industry leader and direct vendor known for its award-winning products and services, develops, manufactures and markets high-performance, competitively priced computing solutions to consumers, small businesses, commercial and public sector buyers. Its superior customer service and toll-free hardware technical support is available to customers 24 hours a day, seven days a week. Micron offers value and convenience through direct sales via the Internet (www.micronpc.com), by phone 800/249-1179 or by fax 208/893-7240.