GATEWAY UNVEILS NEW OFFERS AND PRICE REDUCTIONS ON PCS.

Gateway, Inc. (NYSE:GTW) has unveiled new offers and price reductions on notebook and desktop PCs. In addition to great deals on hardware, Gateway also bundles one of two versions of Microsoft Office free of charge with many PCs.

"We're turning up the heat with aggressive offers that combine new technology with the software customers need to get more from their PC investment," said Bart Brown, Gateway senior vice president. "Customers who shop Gateway can feel confident that they are getting more for their money with great products and responsive service at the best values in the industry."

Desktop Deals That Sizzle

Computer users on a budget have two compelling desktop PC options at $599 and $699. The Gateway 300SE desktop PC offers an Intel Celeron processor 1.40GHz, 128MB of memory, 20GB hard drive and free upgrades to CD burner and 17-inch (15.9-inch viewable) CRT monitor (limited time only) for just $599 after $100 mail-in rebate. For customers who need Pentium 4 processing power, a similarly configured Gateway 500SE is available for just $699 after $100 mail-in rebate with an Intel Pentium 4 processor 1.80GHz and free upgrades to CD burner and 17-inch (15.9-inch viewable) CRT monitor (limited time only).

Continuing to make flat panels more affordable for the masses, the Gateway 500S with 17-inch LCD is available for $1,299. This robust configuration also includes an Intel Pentium 4 processor 2.0GHz, 256MB DDR SDRAM memory, 80GB hard drive and CD burner.

Save Money on Mobility

For customers on the go, Gateway delivers great values on its complete line of notebook PCs. For example, the Solo 1450SE is available for $999 after $100 mail-in rebate with a 14.1-inch display and DVD. For just $1,199 after $100 mail- in rebate, customers can move up to a 15-inch display and DVD/CDRW combo drive with the Gateway 1450LS.

Customers looking for a thin and light system can now get the Gateway 450 with 14.1-inch display, Pentium 4 processor 1.60GHz, CD burner and a limited time Microsoft Office promotion for just $1,499.

Software for the Fall Semester

Helping students and teachers ease back into school, Gateway now bundles Microsoft Office XP Standard for Students & Teachers free-of-charge with many notebook and desktop PCs. A $149 value, this special package for students and teachers include s Microsoft Outlook, Word, Excel and PowerPoint.

For small business customers, Gateway also bundles Microsoft Office Small Business edition with many PCs. This version comes with key business applications including Microsoft Outlook, Word, Excel and Publisher.

About Gateway

Gateway, Inc. (NYSE:GTW), a personal technology company, combines the latest hardware, communication tools, applications, training and service, all offered with a custom financing package. The company takes a localized approach, utilizing its Web site, call centers and nationwide network of Gateway retail stores to build direct relationships with consumers, small and medium businesses and government and education institutions. In 2001, Gateway's products and services received more than 45 awards and accolades and the company was ranked number one in repurchase brand loyalty for PCs.

Gateway can be found on the World Wide Web at http://www.gateway.com/

For more information, call 714/283-4086 or 800/846-2106.