FOR IMMEDIATE RELEASE

Gateway 2000^® announces Network PC compliant system
Gateway’s E-1000N is designed for enterprise computing

NORTH SIOUX CITY, SD, June 16, 1997 – Gateway 2000, Inc. (NYSE: GTW), one of the world’s largest direct marketers of personal computers, today announced its E-1000N, a Network PC (Net PC) compliant system designed for high-volume network environments. The E-1000N will be compatible with the Network PC System Design Guidelines and will ship in the third quarter of this year.

The E-1000N is based on Gateway’s E-1000 platform with additional modifications to deliver the advanced management capabilities and hardware features specifically called for in the Net PC guidelines. Both systems include high levels of manageability, integrated networking, a space saving form factor, and exceptional price/performance. The E-1000N and the balance of Gateway’s E-series line aim to reduce PC ownership costs by incorporating technologies that allow remote configuration and maintenance and remote software download from a central point. Hardware features also have been added to increase the control that IS managers have over PC implementations. At the same time, the E-1000N maintains critical features of the traditional PC, such as compatibility with existing Windows^® business software.

"Providing the E-1000N as Gateway’s Net PC configuration will help our customers better identify the systems that best meet their specific needs" said Bill Shea, vice president of Gateway 2000 Major Accounts. "This continues our tradition of delivering high-value products with the flexibility needed by organizations in today’s marketplace."

One of the strengths of the Net PC System Design Guidelines is its comprehensive approach to manageability," said Mike Aymar, Intel vice president and general manager of the Desktop Products Group. "Gateway’s E-1000N, by taking advantage of those guidelines, will provide customers with a system designed specifically for centralized administration while still delivering the performance and flexibility they expect from PCs."

"Gateway 2000 customers will benefit from the increased manageability and lower costs of the E-1000N," said Rich Tong, vice president of marketing, personal and business systems group at Microsoft Corp. "When combined with Windows 95 and Windows NT Workstation 4.0, the E-1000N offers a powerful, reliable and solid business computing solution that fits seamlessly into existing customer environments."

Complementing the use of the Net PC guidelines for the E-1000N systems, Gateway is using Intel’s Wired for Management Baseline Specification to guide the management features in its E-1000 system and other business desktops, assuring customers of highly manageable, interoperable systems.

The E-1000N joins the recently announced E-series line from Gateway 2000. The E-series family includes the E-1000, the E-3000 mainstream desktops and E-5000 Pentium II workstations in the future. The dual-mode approach of the E-1000 platform will allow customers to deploy the E-1000N as a Net PC alongside fully featured E-1000 PC’s according to their user needs. At the same time, customers will benefit from maintaining common architecture, common components, and the flexibility to adopt their computing infrastructure to future needs.

"We are pleased with the leadership role that Intel and Microsoft have taken in bringing the Net PC reference specification to the market," said Jim Collas, Gateway 2000 senior vice president of Global Products. "We value our relationships with these global industry leaders."

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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