Gateway Determines Expression of Interest for Retail Operations From Mr. Hui Not in Best Interest of Shareholders
September 01 2006 - 11:30AM
PR Newswire (US)
IRVINE, Calif., Sept. 1 /PRNewswire-FirstCall/ -- Gateway, Inc.
(NYSE:GTW) today announced that its Board of Directors, after
careful consideration and in consultation with its financial and
legal advisors, has determined that the unsolicited expression of
interest from Lap Shun (John) Hui to acquire Gateway's retail
operations is not in the best interest of shareholders. Gateway's
Board of Directors and management team remain committed to taking
the appropriate steps to enhance shareholder value. Goldman, Sachs
& Co. is serving as financial advisor to Gateway, and Skadden,
Arps, Slate, Meagher & Flom LLP is legal counsel. 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. Gateway is 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. Special note This
press release contains forward-looking statements that involve
risks and uncertainties, as well as assumptions that, if they do
not materialize or prove incorrect, could cause Gateway's results
to differ materially from those expressed or implied by such
forward-looking statements. All statements, other than statements
of historical fact, are statements that could be forward- looking
statements, including any projections or preliminary estimates of
earnings, revenues, or other financial items; any statements of
plans, strategies and objectives of management for future
operations; the extent of seasonal changes in demand; any
statements regarding proposed new products, services or
developments; any statements regarding future economic conditions
or performance; statements of belief and any statement of
assumptions underlying any of the foregoing. The risks that
contribute to the uncertain nature of these statements include,
among others, risks related to shifting our distribution model to
third-party retail; competitive factors and pricing pressures,
including the impact of aggressive pricing cuts by larger
competitors; general conditions in the personal computing industry,
including changes in overall demand and average selling prices,
shifts from desktops to mobile computing products and information
appliances and the impact of new microprocessors and operating
software; the ability to simplify the company's business, change
its distribution model and restructure its operations and cost
structure; component supply shortages; short product cycles; the
ability to access new technology; infrastructure requirements;
risks of international business; foreign currency fluctuations;
risks relating to new or acquired businesses, joint ventures and
strategic alliances; risks related to financing customer orders;
changes in accounting rules; the impact of litigation and
government regulation generally; inventory risks due to shifts in
market demand; the impact of employee reductions and management
changes and additions; and general economic conditions, and other
risks described from time to time in Gateway's Securities and
Exchange Commission periodic reports and filings. Gateway assumes
no obligation to update any forward-looking statements to reflect
events that occur or circumstances that exist after the date on
which they were made. DATASOURCE: Gateway, Inc. CONTACT: media,
David Hallisey, +1-949-471-7703, or , or investors, Marlys Johnson,
+1-605-232-2709, or , both of Gateway; or Joele Frank or Barrett
Golden, both of Joele Frank, Wilkinson Brimmer Katcher,
+1-212-355-4449, for Gateway Web site: http://www.gateway.com/
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