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 NORTH SIOUX CITY, S.D., Aug. 2 /PRNewswire/ -- Gateway 2000 and Microsoft Corp. (NASDAQ-NMS: MSFT) today announced the release of the premier edition of Gateway's Store-on-a-Disc(TM), an innovative new form of software retailing that combines the storage capacity of a CD-ROM drive and leading-edge encryption technology with the efficiency of the direct market model. With the Store-on-a-Disc, Gateway's CD customers can browse through an on-screen catalog of 33 Microsoft products, select any of these for purchase, and have that title installed in just moments. And the service is available 24 hours a day.
 "We are excited and proud to be the first in the industry to deliver this type of innovative service. As a company with a leadership position in multimedia and a large installed base of CD systems, the Store-on-a-Disc concept is a natural extension to our product offerings. And by teaming with Microsoft, we are able to leverage this position and establish a new way of doing business," said Gateway 2000 President and CEO Ted Waitt.
 Gateway's Store-on-a-Disc is being distributed free of charge to a sample group consisting of 25,000 Gateway customers who own systems equipped with CD-ROM drives. Product information on the disc is organized by application type with products grouped in departments. The menu-driven presentation software included on the disc enables the user to browse through information on Microsoft applications such as Money, the new Publisher 2.0, Office, Word, Golf, and the MS-DOS 6.0 upgrade. An on-line version of the MS-DOS 6 user's guide is also included.
 After the user makes a selection, he/she calls a 1-800 number to place the order, which is billed to a credit card. The operator verifies the order information and gives the user the key sequences that "unlocks" or decodes the selection(s) which are subsequently installed on the system's hard drive. And unlike programs hinted at by other companies, Store-on-a-Disc customers will also be mailed a set of master disks and printed documentation for the application.
 "Gateway's solid relationship with Microsoft and substantial installed base of CD systems is key to development of new ways of distributing software," said Microsoft's Vice President of Worldwide OEM Sales Joachim Kempin. "We are pleased to be able to partner with them in this effort."
 Gateway 2000 and Microsoft will use this pilot program to understand more about the market's acceptance of an encrypted CD as a software distribution medium, and plan to expand the offering base in the near future.
 Gateway 2000 currently sells more IBM-compatible personal computers through the direct market channel in this country than any other PC manufacturer. The company's 1992 sales exceeded $1.1 billion, nearly doubling 1991's $626 million figure.
 Founded in 1985, Gateway 2000 is located in North Sioux City, and employs over 2,500.
 Gateway 2000, 610 Gateway Drive, North Sioux City, S.D., 57049, 605/232-2000 or 800/846-2000.
 Products mentioned herein may be trademarks and/or registered trademarks of their respective companies
 -0- 8/2/93
 /CONTACT: Glynis Gibson of Gibson Communications, 312-868-9400/

CO: Gateway 2000; Microsoft Corporation ST: South Dakota IN: CPR REA SU: PDT

SM -- NY026 -- 8239 08/02/93 09:39 EDT
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Publication:PR Newswire
Date:Aug 2, 1993

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