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Free-PC Begins Shipping First 10,000 Machines

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Free-PC is expected to announce today that it has begun shipping its first 10,000 Compaq Presarios to people who agreed to share personal information in exchange for a free computer.

The first recipients--chosen from among more than 1.25 million applicants--include men and women of various age groups, income levels, geographic locations and family types, the company said. PC shipments will continue throughout the month. Ultimately, the company hopes to give away 1 million computers, though the starting date for a second round of giveaways has not yet been set.

Applicants who didn’t get one of the first PCs will remain in Free-PC’s database and be considered in future rounds. Free-PC said their personal information will not be shared with other companies.

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The Pasadena start-up plans to recoup the cost of the PCs--and make a profit--by selling targeted ads that run along the side of the computers’ screens. Participating advertisers include Hewlett-Packard, Citibank, CDNow, EToys and TheStreet.com.

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