FOR IMMEDIATE RELEASE

Gateway 2000 survey shows Destination Big Screen PC/TV has profound impact on the family

Company celebrates first year of shipments

North Sioux City, S.D., April 28, 1997 - Survey results released today by Gateway 2000 show that the Destination Big Screen PC/TV has made a profound impact on how families spend time together. Destination, the first product to marry the power of a personal computer with a big screen television and high-fidelity surround sound, marked its first year of shipments today.

"The Destination system defined a totally new category of computing," said Ted Waitt, chairman and CEO of Gateway 2000. "We are extremely pleased with the response to the product. Our customers have found that Destination is a great tool for bringing people together for work or play."

The survey also shows that Destination customers are:

• Recommending the system to others (75%)
• Spending more time with their families using Destination (61%)
• Using Destination together with friends and family (60% of time in households)
• Doing more socializing with friends at home (29%)
• Showing Destination to friends, colleagues and clients (91% households)
• Surfing the Internet more as a result of Destination (62%)
• Watching TV less since they've had a Big Screen PC/TV (55%) ·
• Sometimes replacing their TV with Destination (Primary TV in 45% of households)
• Keeping Destination in the living room (40%)

"Destination has really changed the way our family interacts at home," says Diane Crocker of Lake Charles, Louisiana. "We're spending more time together, helping the kids with homework, surfing the Net, even playing games. And with four people in the house, quality time is tough to come by."

The survey also showed that businesses who use Destination are:

• Using Destination at work with a group 85% of the time
• Showing Destination to friends, colleagues and clients (81% businesses)
• Keeping Destination in the conference room (34%) and in the office (28%)

"Our business customers told us they use Destination at work to give presentations, access the Internet and to conduct training," said Dave Berger, director of product marketing, Americas. "They've also told us the 31" monitor, combo PC/TV and wireless remote are their favorite features."

Destination has also won recognition from industry analysts. "Gateway's Destination is the pioneer of the emerging PC/TV category. After its first year, Destination is clearly the leader and has definite advantages moving forward with new initiatives," said Aaron Goldberg, Executive Vice President, Computer Intelligence Infocorp.

Tim Bajarin, president of Creative Strategies says, "Gateway 2000 has positioned itself as the clear leader in the PC/TV category, and with its direct-model, they can maintain that lead by transitioning quickly to newer technology."

Destination's leadership role has also been recognized with awards from a variety of top ranked publications including Popular Science magazine's distinguished "Best of What's New" award, an "Editor's Choice" by PC Magazine, Business Week magazine's "Top New Products of the Year", Computer Shopper's Top 100 Award, and as a finalist in PC Computing magazine's 1996 MVP Award.

Destination systems are priced from $2,999, and customers can learn more about the Gateway 2000 Destination Big Screen PC/TV by calling 1-800-846-2000, or by visiting Gateway's web-site at www.destination.com.

About Gateway 2000
Gateway 2000, Inc.(NYSE: GTW), 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 10,000 people worldwide. Gateway 2000 products and services consistently win top awards from leading industry publications. In 1996, the company shipped 1.9 million systems and reported revenues of $5 billion and net income of $250 million.

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