FOR IMMEDIATE RELEASE

Promotional Videotapes Recalled By Gateway 2000

NORTH SIOUX CITY, S.D., January 13, 1997 - Gateway 2000^® , Inc. (NYSE: GTW) today announced a recall of its promotional videotapes produced between December 20, 1996 and January 6, 1997. An unknown number of the tapes were apparently tampered with by the addition of approximately 30 seconds of sexually-explicit video. Gateway’s general product video is known to have been affected. As a precaution, Gateway is also recalling its Destination promotional video. Individuals who received these videos from Gateway over the holiday period are advised to destroy the tape or return it to Gateway at the company’s expense.

Gateway officials indicated that the offensive material was apparently inserted by a disgruntled employee of a video reproduction supplier, although an investigation continues. Gateway was alerted to the problem by recipients who had viewed the video and the objectionable material. Gateway has contacted both local and federal authorities about this tampering and is cooperating fully with those agencies in their investigations.

Gateway believes that the objectionable tapes were limited to a single shipment occurring in the week following Christmas. However, as a precaution all tapes produced during that period are being recalled. All recipients of tapes from this batch are being individually contacted. Gateway has made arrangements to retrieve these tapes and offered support to any family adversely affected by the tapes, or inconvenienced by the recall. In its message to these households, Gateway warned consumers not to watch the video and provided a special phone line for those wishing to discuss their experience with company representatives.

"Our main concern right now is protecting our customers" said Dr. James A. Taylor, Senior Vice President of Gateway 2000. "We stopped mailing tapes as soon as we learned about this and the company is now shipping tapes produced under strict controls. We apologize to our customers and are doing everything possible to minimize any discomfort or inconvenience."

"We’re outraged that this could occur," Taylor said. "Gateway 2000 is a family-oriented company, and we feel as victimized by this incident as the people who have seen this ugly material."

Taylor indicated that the new, replacement tapes are being produced under the strictest security, and have been shrink-wrapped with anti-tampering labels. He also indicated that any customer who has received a Gateway promotional videotape should feel free to ask for a replacement if they have any concerns.

About Gateway 2000

Gateway 2000, Inc. a Fortune 500 company founded in 1985, is a global leader in the direct marketing of PCs. The company, headquartered in North Sioux City, South Dakota, has manufacturing facilities in the United States, Ireland and Malaysia, and employs over 9,000 people worldwide. Gateway 2000 products and services consistently win top awards from leading industry publications. For the first nine months of 1996, the company has reported revenues of approximately $3.5 billion.

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