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SEC Closes Investigation of Gateway No Fines or Penalties Are Levied Against Company POWAY, Calif., Nov. 13 /PRNewswire-FirstCall/ -- Gateway, Inc. today announced that the U.S. Securities and Exchange Commission (SEC) has concluded its investigation of Gateway, enabling the company to focus fully on its transformation from a PC company to a branded integrator of personalized technology solutions. (Logo: http://www.newscom.com/cgi-bin/prnh/20020930/LAM050LOGO ) The SEC and Gateway have reached a final agreement to settle the investigation, pursuant to which Gateway neither admitted nor denied any wrongdoing, and the SEC assessed no penalty or fine against the company. Gateway agreed to the entry of an administrative order prohibiting any future violations of U.S. securities laws. The SEC's investigation focused principally on the company's accounting of various transactions in 2000. Gateway's board of directors replaced the company's top management in the first quarter of 2001 and authorized in February 2001 and April 2003 the restatement of financials related to those transactions. Gateway announced late last year the resolution of related shareholder litigation. In announcing its agreement to the resolution, the SEC acknowledged the remedial measures undertaken by Gateway's current management and board of directors, including substantial actions taken to enhance internal controls and corporate governance policies. No member of current management was ever a target of the SEC's investigation. "We are very pleased to put this issue from our past behind us," said Gateway chairman and CEO Ted Waitt, who had relinquished his management role at the company in late 1999 and returned as CEO in early 2001. "We are a completely new Gateway, and bringing this issue to closure allows us to now focus completely on serving our customers." About Gateway Since its founding in 1985, Gateway (NYSE:GTW) has been a technology and direct-marketing pioneer, using its call centers, web site and retail network to build direct customer relationships. As it transforms itself from being a leading PC company into a branded integrator of personalized technology solutions, the company's line of Gateway-branded products is expanding to include digital TVs, DLP projectors, tablet PCs and systems and networking products and services. Gateway is America's second most admired computer company, according to Fortune magazine(1), and its products and services received more than 125 awards and honors last year. For more information, visit http://www.gateway.com/ . (1) Source: Fortune magazine, March 3, 2003 issue. Special Note This press release contains certain forward-looking statements based on management's current expectations and are subject to risks and uncertainties that could cause results to differ materially from expectations. The risks that contribute to the uncertain nature of these statements are described in Gateway's periodic filings with the Securities and Exchange Commission. Gateway assumes no obligation to update any forward-looking statement based on events or circumstances that arise after the date on which they were made. http://www.newscom.com/cgi-bin/prnh/20020930/LAM050LOGO http://photoarchive.ap.org/ DATASOURCE: Gateway, Inc. CONTACT: Bob Sherbin of Gateway, Inc., +1-858-848-3886, Web site: http://www.gateway.com/

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