GTW Gateway

Gateway Provides Third Quarter Update NEW YORK, Sept. 13 /PRNewswire-FirstCall/ -- Gateway, Inc. said today that it expects to report revenue and operating loss for the quarter ending September 30, 2004 that are on track with previous guidance, provided with its second quarter results on July 22. (Logo: http://www.newscom.com/cgi-bin/prnh/20020930/LAM050LOGO ) The company reiterated that it anticipates revenue of $900 million to $950 million in the third quarter. Including restructuring, transformation and integration costs, which are expected at approximately $60 million in the quarter, the EPS loss is anticipated to be between 22 to 24 cents. Excluding these costs, the loss is anticipated at 7 cents to 9 cents per share. The company also communicated its internal operating model target for the 4th quarter of a breakeven-to-positive earnings per share position excluding restructuring, transformation and integration costs. The company is currently finalizing the actions associated with the remaining $12 million of previously announced restructuring, transformation and integration costs. These costs are likely to be incurred in the fourth quarter and early 2005. Gateway's CEO Wayne Inouye and Chief Financial Officer Rod Sherwood, will address the company's strategy for returning to profitability at the company's analyst meeting later today in New York, which will be webcast live at 6:00 a.m. PDT/9:00 a.m. EDT on http://www.gateway.com/, where a replay will be available approximately 24 hours after the presentation for 30 days. 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 and indirect sales force. eMachines products are sold by major retailers. See http://www.gateway.com/ for more information. Certain non-GAAP financial information This press release contains certain non-GAAP financial information, including disclosure of the portion of the company's net loss relating to, or affected by, certain restructuring charges, transformation expenses and tax provisions. This non-GAAP financial information is provided as supplementary information and is not an alternative to GAAP. This non-GAAP financial information is used by management to analyze the company's baseline performance before charges and expenses that are considered by management to be outside of Gateway's core operating results, notwithstanding the fact that such restructuring charges and transformation expenses may be recurring. This non-GAAP information is among the primary indicators management uses as a basis for evaluating Gateway's financial performance as well as for forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for reported results determined in accordance with GAAP. 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 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, sales levels during the balance of the third and fourth quarters of 2004, completion of preparation of final financial results for the third and fourth quarters of 2004 and resulting adjustments, 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/LAM050LOGODATASOURCE: Gateway, Inc. CONTACT: Media Contact: David Hallisey, +1-858-248-0242, ; or Investor Contact: Marlys Johnson, +1-605-232-2709, Web site: http://www.gateway.com/

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