BANGALORE, February 2, 2006 ? Acer India, one of the world's top four branded PC vendors, announced their latest quarterly Retail Mega Scheme, "Race 2 Glory", aimed at rewarding their partners and encouraging them to expand their reach and product portfolio. The new retail scheme has been created to help the Acer retail channels avail maximum benefits from associating with brand Acer. Through this exclusive retail scheme, Acer plans to encourage and motivate its retail partners to reach bigger heights, as the company goes for an aggressive push through its retail channel.

The Acer "Race 2 Glory" is a scheme meant exclusively for the retail
channel and would be applicable for all purchases made between January 16, 2006 to April 15, 2006. It would comprise of 3 key sub-contests based on quantitative parameters and two special sub categories that will reward retailers on the qualitative aspects of retailing . The retail partners
comprising of Acer Malls (Exclusive brand shops) and Acer Points
(multibrand alignments) are divided into A, B, C and D category on the
basis of their geographical location. Each category of retailers based on
their geographical location and outlet type (Mall or Point) is then given
various types of targets like quarterly revenue targets, targets on product
categories etc.

During the period of the scheme, partners are expected to maintain Acer's
high standard of quality and operate within the market operating price
band. Special price and demo units are not included within the parameters
of this mega contest meant exclusively for this elite channel. To avail of
the benefits of the scheme partners are also required to follow certain
processes like filling in sell-out data in the Daily Sales Feedback System
on a daily basis as a way for Acer to track the product movement from the
retail counter which is an important method of gauging the pulse of the
market.

Mr. S. Rajendran, GM Sales & Marketing, Mobile & Display Products Group, Acer India, said, " The Acer "Race 2 Glory Road Ahead" is an exciting way to encourage our retail partners and involve them with Acer's long term goal of reaching out to our customers. The main objective of this program is to recognize performance across product portfolios and reward partners who have gone all out during the quarter and invested the most into our business. Our presence in the retail space has grown to over 200 outlets comprising of Acer Malls and Acer Points across the country in 2005. Today our retail channel reaches out to over 80 cities and towns. We have drawn out detailed plans to aggressively ramp up the retail footprint this year and we will be sharing these plans very shortly. With the present retail program we hope to further encourage existing partners to take the next step forward along with Acer in our quest for another big year for the company."

The Acer "Race 2 Glory Road Ahead" has four main contests:

'The Big Apple' , focuses purely on revenue achieved by retailers at the end of the quarter. Each category of partner for both Acer Malls and Acer Points will have a specific quarterly revenue target based on the total
addressable market in each of the geographical locations. There are two
levels of achievement for the partner to benefit from. In level one, upon
reaching 100% of the target revenue, the partner will win a full board
holiday package. In level 2, upon on achieving the 200%, 250% and 300% target revenue slabs, the partner will receive additional cash benefits. 'Kaun Banega Product ? Pati' rewards partners for achieving the monthly target in each product category. Based only on the sale of stock and sell models, there are 3 levels of achievement. 100%, 200% and 300% for Acer Malls and 100%, 150% and 200% for Acer Points. The products included in this category are Acer notebooks (All models except premium notebooks), Desktops (All desktops including Aspire and Acer Power series), TFTs (All models including 15" TFTs) and Projectors (SVGA models). In the LCD monitors category the 100% slab can be reached by 100% achievement on any of the 3 TFT product categories (15", 17" and 19"). The 200% rewards slab can be achieved only on one single category of LCD monitors.

'Digital Lifestyle Evangelist' is targeted at the premium products category
including Notebooks (Ferrari, Tablet PC and Ultraportable), Desktops (E
500), TFTs (20" and 24") and Projectors (only XGA models PD300 series, PD500 series and PD700 series). This contest aims to help the retailer cater to the needs of the digital age customer. The partner can win the cash incentives by meeting the target required on the collective sales of
the products mentioned.

'The Quality of Output' contest is designed to reward partners for their
excellence in the qualitative aspects of retailing. There are two awards
being given "The Best of the Best" and "Unique Marketing Initiative". The
winner of both these categories will receive a special trophy and a cash
award of Rs 10,000. The results will be decided at the end of scheme
period, through a carefully assessed audit conducted by the Acer
headquarters and recommendations of quality, initiative and performance
from regional managers.

The 'Best of the Best ' determines the top Acer outlet in the country. The
winner will be chosen based on the variety of models on display in the Acer Malls and Acer Points across partner categories, the variety of
complementary product offerings for a walk in customer, and the display/
look and feel of the outlet. ' The Unique Marketing Initiative' award
recognizes the partner's innovative marketing strategies, out of the box
ideas and exciting demo initiatives, along with meaningful customer
relationship management.

The quarterly retail scheme is Acer's initiative to embolden its retail
partners to grow their own business through the various opportunities
provided by Acer. Thus, expanding Acer's reach to their customers across the country and providing a key engine for growth for the company.

About Acer
Acer ranks among the world's top four branded PC vendors, designing and marketing easy, dependable IT solutions that empower people to reach their goals and enhance their lives. In 2000, Acer spun-off its manufacturing operation to focus on globally marketing its brand-name products: desktop and mobile PCs, servers and storage, displays, peripherals, and e-business solutions for business, government, education, and home users. Established in 1976, Acer Inc. employs 5,600 people supporting dealers and distributors in more than 100 countries. Revenues in 2004 reached US$7 billion. Please visit www.acer.com for more information. Acer and the Acer logo are registered trademarks of Acer Incorporated. Other trademarks, registered trademarks and/or service marks, indicated or otherwise, are the properties of their respective owners.