FOR IMMEDIATE RELEASE

Gateway 2000^® introduces new high value, low priced computer system
Computer, monitor and color printer available now

NORTH SIOUX CITY, SD, June 12, 1997 - Gateway 2000, Inc. (NYSE: GTW), a global leader in the direct marketing of PCs, today introduced the new G5-166SE computer system that company officials say offers a complete computing solution for a great low price. The new system, available now, is priced at $1,499 and includes a monitor and color printer.

"This is a computer that you would recommend to a friend," said Robert Spears, senior vice president, Americas Group. "Gateway 2000 did not follow the industry trend of cutting corners just to hit a price point. Instead, we brought Gateway's traditional quality and performance to market with a special price."

The G5-166-SE features an Intel^® 166MHz Pentium^® Processor, 16Mb SDRAM, 256K Pipelined Burst Cache, 2Mb 3D 64-bit PCI Graphics, 1.2GB EIDE Hard Drive, 12X CD ROM, 16-bit Gateway Sound, Altec ACS 41 Speakers, Telepath^® Fax Modems for Windows with x2^TM Technology including Speakerphone, Crystal Scan^®500 Monitor (13.9" viewable), Desktop Case, 104+ keyboard, and Canon^® BJC-240 Color Bubble Jet Printer. The system also includes MS Mouse and Gateway Mouse Pad, Microsoft Windows^® 95, Microsoft Encarta^® 97, Microsoft Works 95, MS Money 97, Quicken^® SE and Best of the Microsoft Entertainment Pack, Internet Connectivity Software, McAfee^® Anti Virus Software and Gateway Gold Service and Support.

"This is a great system for those customers just starting out, and an awesome machine for those looking for a second computer," continued Spears. "The G5-166SE provides great value and is what you'd expect from your friend in the business."

About Gateway 2000, Inc.
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 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. Revenue for the first quarter of 1997 was $1.4 billion with net incomes of $67.5 million.

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