"We were frozen," the principal tells PEOPLE. "We literally could not move"

The Story Behind Michelle Obama (and Ellen!) Surprising an Elementary School in D.C. with Gifts & $100K

As the unsuspecting principal at Randle Highlands Elementary School in Washington, D.C., Kristie Edwards thought Ellen DeGeneres was simply sending a crew to the school to tape a day-in-the-life docuseries. Randle Highlands had been featured on a local station for Teacher Appreciation Day last May, so Edwards figured producers had seen the clip and were intrigued.

One October day, she toured the crew around the school and was showing them the outdated equipment in the computer lab when a surprise guest appeared — and the trip’s real purpose started to become clear.

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“As we’re standing there, in walks Michelle Obama,” Edwards tells PEOPLE. “A student yelled ‘Obama!’ I’m still looking at a computer, and I look up and it’s really her. We were frozen. We literally could not move. I finally started moving toward her to give her a hug. She tells us that Ellen heard that we need some things for our school, and she presents us with a box.”

The kids in the computer lab counted down for the opening of what was inside: $100,000 in wrapped sets of $100 bills. The principal was shocked.

DeGeneres’ producer had asked what Edwards would put on her wish list for the school, but months went by and she’d forgotten about it. She says she never expected to receive anything on the list, let alone imagine that her school might be featured on NBC’s Ellen’s Greatest Night of Giveaways.

“We do what we can with what we have here,” Edwards says. It was a very exciting surprise. “They are the best storytellers ever because we had no idea.”

Randle Highlands is located off Pennsylvania Avenue, less than 10 miles from the White House, but in the less fortunate part of town. All 356 pre-K to fifth-grade students, whom the principal refers to as “scholars,” receive free breakfast and lunch and 65 percent come from families that receive government financial assistance, are in foster care or are homeless.

“It’s about what my scholars in this building need to set them up for success — that’s what I care about,” says Edwards. Obama could see her dedication.

Image zoom Students at Randle Highlands Elementary School during Michelle Obama’s visit The Ellen Show

Edwards says the former first lady told her, “Just keep doing what you’re doing, I’m so proud of you.” It’s feedback she will cherish forever. “I was like, she’s actually talking to me, she said words to me, no one else, just separately to me. I said, ‘Yes, I will, I will.’ ”

From the computer lab, Obama, 55, walked into the main office (stunning the office staff) and got on the loud speaker to ask the students and teachers to come to the gymnasium. She stood on the stage and addressed the assembled group.

“Now I bet you guys are wondering what I’m doing here,” she said. “Are you? Are you wondering that?” The children were rapt, their mouths agape.

“Well, you guys know Ellen DeGeneres, don’t you? She’s that funny lady on TV who always cheats at push-ups. And trust me, she is a nightmare to go shopping with. Anyway, what you guys don’t know is, I’m here because it’s Ellen’s Greatest Night of Giveaways. For starters, when I drove in today I didn’t see a basketball court outside. Is that right? Well, guess what, you’re going to have one now!”

Obama then showed them a rendering of the new court. The students screamed and danced.

But she wasn’t done.

“I also took a peek at your computer lab and it seemed like the computers were a little outdated,” she said. “Well, when I look out at all of you, I see a room full of future doctors and teachers and engineers and presidents and I want to make sure you have the tools you need right now. To help make that happen, your school is getting brand new computers and your teachers are getting brand new laptops.”

With game show-style flair, curtains were pulled back to reveal the computers. Mouths fell open and teachers hugged.

Image zoom The crowd at Randle Highlands Elementary School during Michelle Obama’s visit The Ellen Show

“I actually have one more thing,” Obama said. “This one is for the students. We want to make sure you all can learn and explore on your own, too. We’re giving the school enough iPads for every single one of you students.”

While the kids celebrated, adults dressed as elves wheeled in carts of wrapped boxes and handed them out. Confetti fell from the ceiling and Obama herself seemed overjoyed, hugging the teachers.

“I had so much fun putting a smile on all of these little faces…” she tweeted. On the show, Ellen said the computers were donated by Apple and joked, “Michelle Obama, I love you so much — even though you called me a cheater.”

The new basketball court has the school logo in the middle and the school name on both sides. After the ribbon cutting next week, the court will be used by the older students and for family events. The students will produce a new school song on the iPads, learn robotics, virtually dissect a frog and create comic books, music, and art and photography that they can print out and sell at auction.

Parents, teachers and older students will discuss the best use of the generous cash gift.

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Image zoom The crowd at Randle Highlands Elementary School during Michelle Obama’s visit The Ellen Show

“The students could not stop screaming about the fact that the first lady was here to see them, that meant so much,” Edwards tells PEOPLE. “I had students crying. I had adults crying. It was just it was so crazy to look around and see the expression on my staff and students that day.”

Since leaving the White House, Obama has made girls’ education a major priority. In Vietnam this week, she told PEOPLE it was “my life’s work now … to keep traveling the world to show what happens when we give a girl an education.”

Edwards plans to frame several photos of herself with the former first lady for her office, her home — and one for her mother. Edwards has worked in education for two decades, and she says this was the pinnacle of her career.