GTW Gateway

Gateway Repurchases Stock From America Online IRVINE, Calif., Dec. 22 /PRNewswire-FirstCall/ -- Gateway, Inc. (NYSE:GTW) announced today that it has closed on its previously announced agreement with America Online, Inc., a subsidiary of Time Warner, Inc., pursuant to which Gateway repurchased all of the Gateway Series A and Series C preferred stock and approximately 2.7 million shares of Gateway common stock currently held by AOL for an aggregate purchase price of $315.6 million. (Logo: http://www.newscom.com/cgi-bin/prnh/20020930/LAM050LOGO) Consideration paid by Gateway included: * Approximately $280 million in cash; and, * A credit of approximately $35.6 million against normal quarterly payments due from AOL to Gateway under a strategic alliance agreement that calls for Gateway to offer subscriptions to customers who buy Gateway's desktop and notebook PCs. About Gateway Since its founding in 1985, Irvine, Calif.-based Gateway (NYSE:GTW) has been a technology pioneer, offering award-winning PCs and related products to consumers, businesses, government agencies and schools. Since acquiring eMachines in early 2004, Gateway is now the third largest PC company in the U.S. and among the top ten worldwide. The company's value-based eMachines brand is sold exclusively by leading retailers worldwide, while the premium Gateway line is available at major retailers, over the web and phone, and through its direct sales force. See http://www.gateway.com/ for more information. http://www.newscom.com/cgi-bin/prnh/20020930/LAM050LOGO http://photoarchive.ap.org/ DATASOURCE: Gateway, Inc. CONTACT: Media, David Hallisey, +1-949-471-7703, , or Investors, Marlys Johnson, +1-605-232-2709, , both of Gateway, Inc. Web site: http://www.gateway.com/

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