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Gateway Named Fastest Growing Among Top 15 Volume Server Vendors in IDC's Server Year in Review Report Preliminary IDC Data Shows Gateway's Revenue Percentage Growth Outpaced Volume Category Overall POWAY, Calif., Feb. 6 /PRNewswire-FirstCall/ -- Gateway, Inc. posted the highest annual percentage revenue growth in the volume server market among the top 15 volume server vendors, according to preliminary results released this week in IDC's "Worldwide Server Market Review, 2003." (Logo: http://www.newscom.com/cgi-bin/prnh/20020930/LAM050LOGO ) Gateway's revenue from sales of its server products in the volume market spiked more than 50 percent(1) in 2003, the leading percentage increase in a field that included Hewlett-Packard, Dell, IBM and others. Gateway also handily outpaced the volume server market(2) as a whole, which grew at a rate of 9.7 percent year-over-year -- the fastest growing size class of the worldwide server market(3), according to IDC. In addition, Gateway embraced many of the report's recommendations in providing server systems to small- and medium-sized businesses (SMBs), government agencies and educational institutions. Gateway's emphasis on industry standards, focus on single- and dual-processor systems, and ability to remove complexity from its products were in line with IDC suggestions for server vendors. "Gateway continues to make progress in executing its enterprise systems strategy, and we see the company as a viable, competitive option for businesses seeking another vendor in the server marketplace," said Lloyd Cohen, IDC's Director of Worldwide Market Analysis. Gateway made significant progress in executing its server systems strategy in 2003 -- all to better serve its business customers. In fact, Gateway's rapid percentage growth in the volume server market can be attributed several factors, including: * An expanded portfolio of products -- At the start of 2002, Gateway offered business customers a minimal line of five tower servers. As of the end of 2003, Gateway had launched more than 15 server-related products for SMBs and enterprise-class customers, including full- featured tower servers (Gateway 920, 960, 980), ultra-dense rackmount servers (Gateway 955, 975 and 995), and several related storage and networking products. * Innovation in a commodity market -- While several vendors continued to take a low-value, commodity approach to the market, Gateway built several unique features into its server product line in 2003 to provide added value to customers. For example, Gateway's 995 four-way server brought mainframe features into a mainstream appliance, such as Single Device Data Correction (a.k.a., ChipKill(TM)), Memory Scrubbing, Light Guided Diagnostics and dual-channel Ultra320 SCSI. * Key strategic relationships -- To offer its customers best-in-breed services, software and support for its server line, Gateway forged several key strategic relationships in 2003. These included alliances with IBM Global Services (for two- and four-hour response, among other services)(4), Hitachi (storage area networks), SUSE (Linux operating system support) and LANDesk (systems management software). * Experienced management -- Gateway's growth in the server market in 2003 can be directly attributed to significant company investments in the Enterprise Systems Division and in the hiring of a seasoned management team led by Scott Weinbrandt -- a former Dell executive who now serves as Gateway's senior vice president of enterprise systems and services. "Gateway is gratified that customers continue to choose our award-winning products and services in our systems and networking family," said Weinbrandt. "Our commitment to customers is to continue to drive innovation and high- quality customer service in 2004 to maintain our rapid growth in the server marketplace." Gateway is a leading branded integrator of technology solutions. From high-end servers and storage products to market-leading plasma displays to comprehensive services, Gateway delivers whole-office technology solutions, coupled with high-touch customer service. Serving businesses, schools and government agencies for more than 15 years, Gateway makes the purchase, use and support of technology simple. Gateway customers include many of the world's leading organizations, such as the U.S. Defense Logistics Agency, University of Arizona and others. For more information on Gateway Professional solutions, visit http://www.gateway.com/business. 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 a branded integrator of personalized technology solutions, Gateway offers consumers, businesses and schools a wide range of thin TVs, digital cameras, connected DVD players, enterprise systems and other products, which work together seamlessly with its award-winning line of PCs. Gateway is America's second most admired computer company, according to Fortune magazine(5), and its products and services received nearly 130 awards and honors last year. Visit http://www.gateway.com/ for more information. (1) Percentage growth cited was 50.4 percent on sales of approximately $52 million; source: IDC's "2003 Worldwide Server Market Review" (2) Volume server market includes systems priced at less than $25,000; source: IDC's "2003 Worldwide Server Market Review" (3) Worldwide server market includes volume market, midrange market and high-end market; source: IDC's "2003 Worldwide Server Market Review" (4) Limited warranties and service agreements apply; visit gateway.com or call 1-800-846-2000 for a free copy. May not be available in all states. (5) Source: Fortune magazine, March 3, 2003 issue http://www.newscom.com/cgi-bin/prnh/20020930/LAM050LOGO http://photoarchive.ap.org/ DATASOURCE: Gateway, Inc. CONTACT: Ted Ladd of Gateway, Inc., +1-858-848-2515, or Web site: http://www.gateway.com/ http://www.gateway.com/business

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