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ADAGE FILES 13D ON GATEWAY COMMUNICATIONS; SEEKS DISCUSSIONS OF MERGER POSSIBILITIES

 ADAGE FILES 13D ON GATEWAY COMMUNICATIONS;
 SEEKS DISCUSSIONS OF MERGER POSSIBILITIES
 WEST CHESTER, Pa., Aug. 12 /PRNewswire/ -- Adage, Inc. (NASDAQ: ADGE), a diversified niche manufacturing company with operations in recycled paperboard, cold drawn steel and electronic equipment and systems, in a 13D filing with the Securities and Exchange Commission, disclosed that it presently holds 9.9 percent of the outstanding shares of Gateway Communications, Inc. (NASDAQ: GWAY), Robert H. Cahill, president and CEO of Adage announced today.
 Gateway, based in Irvine, Calif., is a developer and manufacturer of Local Area Network (LAN) adapters sold mainly to value added resellers (VARs) and system integrators worldwide. In the year ended Dec. 31, 1991, Gateway had revenues of $23.5 million, pre-tax operating income of $926,000 and after a $859,000 restructuring charge taken in the fourth quarter, had net income of $57,000, or $.01 per share. In the six months ended June 30, 1992, the company had revenues of $12.0 million and after a second restructuring charge of $206,000, net income was $456,000, or $.09 per share. There are currently 4,740,593 shares outstanding.
 "The LAN industry has experienced dramatic growth in recent years as more and more companies are choosing to replace their computer terminals with LAN-based personal computers (PCs). This rapid growth is forecasted to continue well into the 1990s and beyond," stated Cahill.
 "We believe that a merger of Gateway and Adage would provide excellent synergies when combined with the operations of our RELM Communications subsidiary and would benefit both companies tremendously. In this regard we have initiated discussions with the management of Gateway and are seeking a meeting with its board of directors. In the meantime, we may continue to increase our position in the shares of Gateway through open market purchases," added Cahill.
 Local Area Network adapters, also referred to as network interface cards, are essentially electronic printed circuit boards which, when installed in PCs and used in conjunction with operating system software, allow PC users to share information and peripheral resources.
 "Our plan with Gateway is to bring the manufacturing of these boards, which is currently being handled by outside contract manufacturers, into RELM's 100,000 square foot state-of-the-art manufacturing facility in Melbourne, Fla. This would enable Gateway to produce adapters at Substantial cost savings and allow RELM to utilize additional capacity. RELM already is producing high quality circuit boards used in the automatic overhead garage door openers and gate control systems produced by Adage's Allister Access Controls subsidiary," Cahill said.
 -0- 8/12/92
 /CONTACT: Robert H. Cahill, president, or Robert T. Holland, CFO, of Adage, 215-430-3900/
 (ADGE GWAY) CO: Adage, Inc.; Gateway Communications, Inc. ST: Pennsylvania, California IN: CPR SU:


SH-SM -- NY017 -- 9307 08/12/92 10:07 EDT
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Publication:PR Newswire
Date:Aug 12, 1992
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