FOR IMMEDIATE RELEASE

Gateway 2000’s E-1000 Now Listed on GSA Schedule

E-Series system is a low cost network ready PC for high volume users

NORTH SIOUX CITY, S.D. - August 6, 1997 - Gateway 2000, Inc. (NYSE: GTW), a global leader in the direct marketing of PCs, today announced the addition of the E-1000 to the General Services Administration (GSA) Multiple Award Schedule (70B/C). The E-1000 is a member of the company’s newly announced E-series product line for enterprise computing. It is Gateway’s answer to the federal governments’ call for a low-cost, stable, flexible networked PC. The E-1000 is based upon a stable core platform and features a scalable design to meet users’ increased demands.

"There has been a lot of talk about low cost network PCs," said Bill Shea, vice president of major accounts. "The Gateway E-1000 represents flexibility, connectivity, and manageability at effective price points. This addition to our product line, along with our award-winning service and support and Custom Integration Services, provides a complete solution for government users."

The E-1000 will help IS managers balance the challenge of overseeing low-cost, stable systems and keeping up-to-date with technological improvements. It also embraces manageability features designed to lower the cost of ownership for federal users. The low profile desktop case, featuring an Intel^® Pentium^® processor, incorporates Desktop Management Interface (DMI) compliancy to allow for remote handling of routine administrative tasks. LM 78 hardware management ASIC (Application Specific Integrated Circuit) monitors such aspects as fan speed, CPU and internal chassis temperature and unauthorized intrusion into the chassis. SMART^TM Drive indicators track disk drive error rates and permit network managers to replace bad drives before data is lost. Intel’s LANDesk^® Client Manager v3.01 simplifies local and network management by both identifying problems and offering suggestions for resolving those problems. The management software gives customers local and remote alerts and views of any problem and performs automatic polling and alerting for memory and hardware conditions. That, in turn, helps reduce downtime and facilitate more effective troubleshooting.

Commitment to Government Marketplace
Gateway 2000’s success with federal buyers is rooted in its direct business model and notable service and support. Gateway rose to number one direct PC supplier status on theGSA schedule for 1995 and 1996 according to GSA and International Data Corporation (IDC). 1996 sales shot up a remarkable 133% over 1995 levels and represented the largest sales growth of any GSA contract supplier.

The direct business model translates into efficiency, responsiveness and savings for customers. Gateway’s serious investment in the federal marketplace includes assigning teams to specifically serve government buyers.

How to Order
For more information or to place an order, federal customers can select from a number of custom options, including:

• Calling Gateway at 1-800-779-2000
• Checking 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")
• Faxing an order or request for quote to Gateway at (605) 232-2716
• Choosing from the following payment options: purchase order, wire transfer, IMPAC credit card, blanket purchase agreement
• For a complete copy of Gateway’s GSA schedule, call 1-800-779-2000, extension 25491

About the E-1000
The E-1000 offers a small footprint case with two full-length expansion slots, one of which is a shared ISA/PCI slot. Pricing for the system, including monitor, starts at $1,222 delivered. The configuration for federal customers includes a 166MHz Intel Pentium processor, 16MB of RAM, 1.2GB hard disk drive, a 3.5-inch floppy drive, 64-bit video with 2MB Video RAM, 16-bit Sound Blaster^® compatible audio, integrated PCI 10/100 Mbps twisted pair Ethernet network and a high quality 15-inch (13.9-inch viewable) monitor. The CD-ROM drive is optional.

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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