GTW Gateway

Company in Discussions With Potential Partners in Advance of Deciding Whether to Open/Operate Plant as Company-Owned Facility or Joint Venture IRVINE, Calif., Aug. 23 /PRNewswire-FirstCall/ -- Gateway, Inc. (NYSE:GTW) plans to open a new U.S. manufacturing facility in 2006 that will enhance its responsiveness to growing customer demands in the business, education and government sectors. The new plant will assemble configure-to-order (CTO) desktops, notebooks and servers according to customer specifications, as well as provide custom imaging services and government compliance certification. Gateway executives are in discussions with potential partners in advance of finalizing a decision on operating the plant as a company-owned facility or as a joint venture. "In addition to quality, low total cost of ownership and responsiveness, our professional, education and government customers value predictability and localized service, and this new facility will significantly enhance our ability to meet their needs, thereby improving sharply the attractiveness of our products to this important sector," said Wayne Inouye, Gateway president and CEO. "Based on our long-time experience in this area, we believe this approach to U.S. manufacturing will allow the company to move forward with maximum efficiency at a reasoned level of investment." This new facility, coupled with significant improvements in the company's IT infrastructure, will greatly increase Gateway's ability to provide professional customers an excellent full-service experience. The new facility, scheduled to open at a site yet to be determined, will employ nearly 300 people in its first year of operation and could scale significantly in the coming years, Inouye said. Gateway officials are in discussions with state and local economic development officials on site locations and have targeted areas that offer superior in-bound and out-bound logistics and proximity to supplier warehouses. Gateway expects to select a location during the fourth quarter 2005. About Gateway Since its founding in 1985, Irvine, Calif.-based Gateway (NYSE:GTW) has been a technology pioneer, offering award-winning PCs and related products to consumers, businesses, government agencies and schools. After acquiring eMachines in early 2004, Gateway is now the third largest PC company in the U.S. and among the top ten worldwide. The company's value-based eMachines brand is sold exclusively by leading retailers worldwide, while the premium Gateway line is available at major retailers, over the web and phone, and through its direct and indirect sales force. See http://www.gateway.com/ for more information. DATASOURCE: Gateway, Inc. CONTACT: Media, David Hallisey, +1-949-471-7703, , or John W. Spelich, +1-949-471-7710, , or Investors, Marlys Johnson, +1-605-232-2709, , all of Gateway, Inc. Web site: http://www.gateway.com/

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