FOR IMMEDIATE RELEASE

GATEWAY 2000 E-Series desktops and Gateway Solo mobile products now on GSA Schedule

Expanded offering of groundbreaking product line on schedule complements Gateway's role as leading direct PC supplier

NORTH SIOUX CITY, SD, July 2, 1997 - Gateway 2000, Inc. (NYSE: GTW), the leading direct marketer of PCs to the General Services Administration*, announced today that the GSA has added models from the company's E-Series' desktop line and the Gateway^TM Solo^TM notebook line to its Multiple Award Schedule (70B/C). These products are available immediately.

The recently announced Gateway E-Series product line offers cost-effective desktop networking solutions for organizational users. The line includes the E-3000 featuring PentiumÒ and Pentium with MMX^TM processors and the E-3100 which features the Pentium Pro^® and Pentium II^® processors. The Gateway Solo family includes the just announced Gateway Solo 2300 and Gateway Solo 9100 systems which employ an advanced level of technology and share a number of common components. They include a 12-cell lithium ion battery and SDRAM memory support, expandable up to 192MB, for maximum system performance. Customers of both product lines can leverage Gateway's build-to-order model to reduce costs of managing large deployments of systems with consistent, compatible products.

Commitment to Government Marketplace
For the past two years Gateway 2000 has been the leading direct PC supplier on the GSA schedule according to the GSA and International Data Corporation (IDC). IDC figures indicated Gateway's 1996 sales from the GSA schedule surpassed $191 million. This rapid growth is testament to Gateway's customer-centric business model and tradition of bringing high-value products and services to the marketplace. Last year's sales represented a 133% increase over 1995 levels and marked the largest dollar sales growth of any GSA contract supplier. The addition of the E-Series Desktops, and the Gateway Solo notebooks to the GSA schedule is part of Gateway's commitment to the federal government marketplace. Gateway's Federal Sales Team is specifically designated to work with government purchasers, and federal customers can access toll-free technical support seven days a week, 24 hours a day from dedicated large site account representatives.

How to Order
Gateway makes it easy for federal customers to find out more information or place an order. Custom Options include:

• Call Gateway at 1-800-779-2000
• Check our offering on GSA Schedule #GS-35F-4565G
  Visit http://www.gw2k.com/majoract/majoract.htm on Gateway's Internet site or visit the GSA Advantage! Web site (use keyword search "Gateway")
• Fax an order or request for quote to Gateway at (605) 232-2716
• Choose from the following payment options: purchase order, government VISA (through Rocky Mountain Bankcard System of Denver, Colorado), wire transfer, IMPAC credit card, blanket purchase agreement

  About Gateway's E-3000 and E-3100 Series Products
  The E-3000 and E-3100 are stable computing platforms that will assume new technologies at a controlled pace. They are network ready and share product features common across E-Series product line platforms. Intel's LanDESK^® Client Manager v3.01 helps keep low the cost of system management through local and remote access to system information and event notification. E-Series systems, designed for high performance, feature easy access cases for low service costs and color-coded I/O cables for simple setup and service. The E-3000 is a Pentium powered system featuring the latest Intel^® 430 TX chipset. This chipset enables Ultra ATA drive access, SDRAM memory support and it optimizes the performance of Pentium based MMX processors. The E-3100 features Intel's 440 TX chipset and can be configured with Pentium Pro and Pentium II processors. The E-3100 systems also come with Ultra ATA drives and a wide variety of video, networking, and storage options.

  "The E-Series design themes are qualities that are essential to IS managers - manageability, serviceability, connectivity," said Bill Shea, vice president of major accounts. "Add those to our dedicated Federal Government Sales team, excellent service and support as well as the options available through Custom Integration Services, and Gateway truly is a one-stop shop for the government's technology needs. The best part of these manageability features is that they are available now from Gateway with the E-Series product line."

  About the Gateway Solo 2300 and Gateway Solo 9100 Notebooks
  These members of the Gateway Solo family boast industry-leading technology, high performance and value. The multimedia notebooks share components such as mini and full docking stations, Lithium ion batteries, memory modules, 12.7mm hard disk drives, Auto/Airline Adapter s and AC adapters. The value class Gateway Solo 2300 notebook incorporates the Intel 430TX core logic chipset, fast NeoMagicä 128-bit graphic accelerator video subsystem, SDRAM modules with capacity up to 192MB of memory, 12-cell lithium ion battery, and a modular option bay for an interchangeable CD-ROM or floppy disk drive. The premium, no compromise Gateway Solo 9100 notebook is equipped with an Intel Pentium processor with MMX technology, 13.3 inch XGA active matrix TFT display, combination CD-ROM and floppy disk drive, 4MB of SDRAM video memory, 3 GB hard drive, USB and NTSC in and out ports.

  "Depending on employee classification or job functions, notebook functionality needs can be vastly different," said Shea. "This creates challenges for departments as a whole trying to meet individual needs. The Gateway Solo line, with its build to order model and modular components, has the flexibility and power to meet a wide range of needs at great price points, lowering the total cost of ownership."

  About Gateway
  Gateway (NYSE: GTW), a Fortune 500 company founded in 1985, is a leading global manufacturer and direct marketer of PC products. The company, headquartered in North Sioux City, South Dakota, has manufacturing facilities in the United States, Ireland and Malaysia and employs over 10,000 people worldwide. Gateway products and services consistently win top awards from leading industry publications. In 1996, the company shipped 1.9 million systems and reported revenues of $5 billion. Revenue for the first quarter of 1997 was $1.4 billion with net income of $67.5 million. For further information, visit Gateway at http://www.gw2k.com.

  
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