FOR IMMEDIATE RELEASE

Gateway 2000 Announces Product Line for the High-Performance Workstation Market

Custom-built Systems Will Leverage Support of Independent Software Vendors

NORTH SIOUX CITY, S.D. - August 5, 1997 - Gateway 2000, Inc. (NYSE: GTW), a global leader in the direct marketing of PCs, today announced intentions to provide high-performance, aggressively priced solutions for the workstation marketplace. The workstation systems will be the high-end of the Gateway E-Series line introduced earlier this year and will incorporate Intel’s latest Pentium® II processor configured with support for dual 266MHz or 300MHz processors, and pre-loaded with the Microsoft Windows NT® workstation operating system. They will also support the Accelerated Graphics Port (AGP), an open interface specification designed by Intel to boost computer graphics performance.

The combination of these powerful Intel processors and the Windows NT operating system gives workstation users the price/performance needed to migrate to PC solutions. Following the traditional Gateway value model, we will provide the latest technology at an aggressive price. Gateway’s workstations will be available in Q4 and more details regarding exact price, configuration, and availability will be made available in the near future.

"Workstation products complement our E-Series PC product lines and enable us to offer more complete solutions to our customers," said Jim Collas, senior VP, Global Product Organization. "We will be entering the workstation market in traditional Gateway fashion by offering our customers the best value in high-performance products."

Graphics Vendor Support
Gateway 2000 is teaming up with AccelGraphics, Inc. to provide its latest high-performance graphics solutions based upon the Accelerated Graphics Port (AGP) from

Intel. AccelGraphics is recognized for its high-performance, cost-effective, 2D and 3D graphics subsystem hardware accelerators and application utility software products for the professional Microsoft® Windows NT® and Windows® 95 markets.

Jeffrey Dunn, president and CEO of AccelGraphics, stated, "We are delighted that Gateway 2000 has chosen AccelGraphics to bring high-performance 3-D/2-D workstation capabilities to a broader spectrum of professionals. Armed with the latest technologies from AccelGraphics and Gateway 2000, these new workstations provide leadership, performance and functionality to the marketplace."

Workstations Part of the Gateway 2000 E-Series Family
The workstations will incorporate design themes common to the E-Series family, such as a stable platform focus for ease of integration and interoperability, full support for the Desktop Management Interface (DMI) and total cost of ownership (TCO) reduction, manageability with Intel’s LANDesk® Client Manager, connectivity through an Ethernet networking solution, and serviceability with easy access cases, color coded I/O cables and case security options. As does the balance of the E-Series product line, the workstations will be custom-built to meet the specific needs of the business environment. The power-packed PCs will be configured to handle the range of requirements found in the workstation environment, from the 2D and entry-level 3D markets to the graphics-intensive demands of CAD/CAM, animation and visualization applications.

"As an increasing number of applications are migrating to the Windows NT operating system, Gateway is determined to be a leader in this growing market by providing high performance workstation platforms," said Bart Brown, VP of product marketing, Americas.

"We are excited about Gateway 2000’s entry into the marketplace and their teaming with AccelGraphics," said Pat Gelsinger, vice president and general manager of Intel’s desktop products group. "Gateway 2000’s ability to deliver custom-built systems and unique distribution model combined with the power of the Pentium II processor bring value and performance to workstation users."

Independent Software Vendor Relationships
The workstations will not only tout outstanding levels of manageability and performance, but will also support software applications from a number of leading ISVs. Gateway will be aggressively recruiting top tier ISVs in both the 2D and 3D application markets to get their applications qualified on Gateway workstations. During the SIGGRAPH 97 trade show at the Los Angeles Convention Center from August 3 - 8, software vendors will be showing their applications on a Gateway desktop system. The vendors include: auto·des·sys, Inc.; Caligari Corporation, Kinetix; Electric Image, Inc.; Lightscape Technologies, Inc.; NewTek; Nichimen Graphics; Softimage; Strata, Inc.; Superscape; Template Graphics; and Virtue Ltd. Gateway will provide technology demonstrations in the AccelGraphics and Intel booths.

Service and Support
Gateway’s commitment to its customers does not end when the PCs leave the company door. The direct marketer backs all of its products with award-winning service and support. Most recently, PC World, an industry-leading publication, honored Gateway with a World Class award for Best Hardware Support.

"With the Windows NT workstation market growing rapidly, there is an opportunity for distribution-focused companies like Gateway 2000 to gain significant business by identifying customers who have a clear understanding of their needs and are looking for a well-engineered and supported product at an attractive price," said Peter Ffoulkes, principal analyst with Dataquest.

For more information about other Gateway 2000 products, please call 1-800-846-4875 or visit http://www.gateway.com

About Gateway
Gateway (NYSE: GTW), a Fortune 500 company founded in 1985, is a leading global 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.gateway.com.

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