Gateway Introduces the New Gateway ALR 9250R Server.

SAN DIEGO--(BUSINESS WIRE)--June 7, 1999--

Four Way Xeon platform offers high performance, low profile solution

Gateway (NYSE: GTW) today announced the introduction of its new quad processor rackmount server. The Gateway ALR(R) 9250R was designed to offer a powerful, reliable and manageable server all in a low-profile rack optimized chassis. The Gateway ALR 9250R provides all the features and functionality of Gateway's ALR 9200 Quad Xeon tower in a rack optimized 4U (7") tall chassis.

"We want to provide our Gateway Business clients with systems that meet their needs and demands. The Gateway ALR 9250R incorporates state-of-the-art rackmount server technology providing Gateway clients all the benefits and performance found in Intel's highly scalable Xeon processor, in the smallest form factor available for a quad Xeon processor server," explained Keith Karlsen, director of marketing, Gateway Business Products. "The Gateway ALR 9250R offers clients in a space-constrained environment the opportunity to take advantage of quad processor technology."

The Gateway ALR 9250R will accept up to four Intel(tm) 500 MHz Pentium(R) III Xeon(tm) processors. It comes standard with a single PIII 500 MHz Xeon processor, 4GB ultra2 SCSI hard drive, 256MB DRAM and a 10/100 Network card all packaged in a low-profile 4U form factor with a very low entry price of $6599.

"We designed the Gateway ALR 9250R because our server clients liked the size and functionality of our Gateway ALR 8200R and 8300R servers, but they needed the power and performance of a quad processor server," said Ray Hebert, senior product manager for Gateway servers. "Gateway now offers a complete line of servers in a rack optimized 4U (7") tall chassis. We offer the ALR 8200R, the ALR 8300R, and now the ALR 9250R."

Gateway Business Products

Gateway Business, based in Orange County, California, provides business, education and government customers with technology solutions for their unique industries. From the classroom to the corporate workspace, Gateway delivers the personalized technology required to succeed in today's marketplace. Gateway combines the strengths of the direct model, Gateway Country and Gateway Partners to offer business solutions the way clients want to see them.

Gateway Business products include high performance computing systems featuring the innovative Gateway(TM) ALR(R) product line of workgroup-class servers, a line of award-winning Solo(R) portable PCs, the GP-Series of small business desktops, and the E-Series managed desktop family including network-ready technical workstations. For more information, please contact www.gateway.com.

About Gateway

Gateway (NYSE: GTW), a Fortune 250 company founded in 1985, focuses on building lifelong relationships with consumers and businesses through complete technology personalization. Gateway ranked number one in U.S. consumer desktop PC sales in the first quarter of 1999(1). Our 19,000 employees worldwide serve clients with services and built-to-order computers that consistently win top awards from leading industry publications. Gateway had total global revenue of $7.5 billion in 1998 and shipped 3.54 million systems. For more information, visit our Web site at www.gateway.com.

(1). According to Gartner Group/Dataquest US PC Quarterly statistics.

Gateway and the stylized Gateway logo are trademarks, and ALR and Solo are registered trademarks, of Gateway 2000, Inc. All other brands and product names are the property of their respective owners.