CompUSA to Sell Gateway Desktops Gateway Continues to Increase Distribution With the Nation's Largest Retailers POWAY, Calif. and IRVINE, Calif., Aug. 16 /PRNewswire-FirstCall/ -- Gateway, Inc. today announced that CompUSA, Inc., the nation's second-largest retailer of PCs, will begin selling Gateway-branded desktops later this week. (Logo: http://www.newscom.com/cgi-bin/prnh/20020930/LAM050LOGO) The systems will be sold across CompUSA's retail network of 226 stores nationwide and through the company's web site. The availability of Gateway PCs at major retailers -- in addition to Gateway's traditional direct channels of web and phone -- follows the closure of its 188 retail stores in April. Gateway adopted this strategy following its merger in March with eMachines, Inc., whose eMachines-branded products are sold through major retailers in the U.S., Japan and the UK. "This represents another significant step forward in ensuring that the Gateway brand is widely available at the retail outlets where our customers shop," said Wayne Inouye, Gateway's president and CEO. "CompUSA is an excellent distribution channel for us and we look forward to working with them to make our desktops available to their millions of customers." "Gateway is one of the most popular PC brands on the market today," said Gary Bale, CompUSA's Vice President, Hardware Divisional Merchandise Manager. "One of CompUSA's goals is to provide our customers with the widest range of choices available, so we're pleased to be adding Gateway PCs to our shelves." Details about the Gateway desktops carried by CompUSA will be available when the systems are ready for sale later this week. About Gateway Since its founding in 1985, Gateway (NYSE:GTW) has been a technology pioneer, offering award-winning PCs and related products to consumers, businesses, government offices and schools. With its acquisition of eMachines now complete, Gateway is the third largest PC company in the U.S. and among the top ten worldwide. Its products under both brands received more than 150 awards and honors last year. Gateway products are offered at major retailers, over the web and phone, and through its direct sales force. eMachines products are sold by major retailers. 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; any statements regarding sales by third-parties of Gateway products; 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, our inability to control the sales, plans and strategies of third-party retailers, 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; 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. http://www.newscom.com/cgi-bin/prnh/20020930/LAM050LOGO http://photoarchive.ap.org/ DATASOURCE: Gateway, Inc. CONTACT: Lisa Emard of Gateway, Inc., +1-858-848-3886, Web site: http://www.gateway.com/

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