GTW Gateway

Gateway CFO Updates Investors POWAY, Calif., March 2 /PRNewswire-FirstCall/ -- At the Morgan Stanley Semiconductor & Systems Conference held yesterday, Gateway CFO Rod Sherwood provided an update on the company's performance and its previously announced merger with eMachines, Inc. Mr. Sherwood said that the company expects the agreement to close by the end of next week, subject to final regulatory approvals. (Logo: http://www.newscom.com/cgi-bin/prnh/20020930/LAM050LOGO) During the question and answer portion of the presentation, Mr. Sherwood provided an update on the company's ongoing restructuring efforts, which were announced in the third quarter of 2003. He explained that Gateway's employee levels were at about 7,400 at the end of 2003, and that that number was projected to go down to the mid-5,000 range over the next few months. He reiterated that these reductions were a part of the "ongoing evolution of outsourcing started in Q3 and Q4" of 2003. Many of these reductions have already taken place and the company's current headcount is approximately 6,500 employees. The company said that no decisions have yet been made regarding possible headcount impacts related to its integration with eMachines. Mr. Sherwood's Morgan Stanley Conference presentation was webcast live at 4:45pm PST/7:45pm EST on March 1,2004. A replay of the presentation will be available at http://www.gateway.com/ for 30 days. 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 seamlessly with its award-winning line of PCs. Gateway products and services received more than 130 awards and honors last year. Visit 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 forward-looking information related to results is subject to finalization of results, including appropriate adjustments to returns and inventory, and completion of its year-end audit. All statements, other than statements of historical fact, are statements that could be forward-looking statements, including any projections or preliminary estimates of future financial and operating performance; any statements of plans,strategies and objectives of management for future operations; any statements regarding proposed new products, services or developments; 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, the risk that the transaction will not close; that the businesses will not be integrated successfully to achieve the expected results; disruption from the merger that could adversely impact relationships with customers, suppliers and employees; 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 transform the company to a technology solutions provider 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; ability to grow in e-commerce; risks of minority equity investments; 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; changes in product, customer or geographic sales mix; 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. 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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