Gateway to Exercise Right of First Refusal to Acquire Control of Packard Bell BV; Also In Discussions to Sell Professional Busin
August 27 2007 - 4:34AM
PR Newswire (US)
IRVINE, Calif., Aug. 27 /PRNewswire-FirstCall/ -- Gateway, Inc.
(NYSE:GTW) today announced that it intends to exercise its right of
first refusal to acquire from Lap Shun (John) Hui, all of the
shares of PB Holding Company, S.ar.l, the parent company for
Packard Bell BV, a leading European PC vendor based in Paris. Mr.
Hui sold the privately-held eMachines, Inc. to Gateway in March
2004. Gateway acquired the right of first refusal as part of a June
2006 agreement with Mr. Hui that waived certain non-compete
arrangements in connection with his purchase of Packard Bell BV.
Pursuant to the right of first refusal, Gateway received a notice
from Mr. Hui offering to sell all of the shares of PB Holding
Company, S.ar.l, to Gateway at a price based on an offer received
by Mr. Hui from a third party. Gateway also disclosed that it is in
discussions to sell its U.S.-based Professional business to a third
party. Gateway's Professional business is focused primarily on
education, government and business customers. The acquisition of
Packard Bell BV and the sale of the Professional business, if
completed, are consistent with Gateway's strategy to focus
resources on growing its overall consumer business, both in the
U.S. and internationally. No additional details are being provided
at this time. 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 fourth
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 investors, Marlys Johnson,
+1-605-232-2709 Web site: http://www.gateway.com/
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