FOR IMMEDIATE RELEASE

Gateway 2000 Introduces DVD on G-Series Desktops

Mpact^TM processor-equipped system offers digital image controls; colorful video and rich sound part of fertile new platform

North Sioux City, S.D.--July 15, 1997 - Gateway 2000, Inc. (NYSE: GTW), a leading direct marketer of personal computers, today announced the availability of DVD on G-Series desktop systems. DVD is standard equipment on the G6-266XL configuration, and is offered as an option on other models of the G-Series line of systems equipped with Pentium^® MMX^TM or Pentium^® II processors. Gateway 2000 is a leader in bringing emerging technology to market at reasonable prices, and continues this tradition with DVD.

With DVD, viewers can expect the latest in outstanding storage capability and video playback technology. A DVD disc holds up to 133 minutes of video or 4.7GB of data, comparable to the capacity of seven compact discs. This large amount of storage capacity allows software developers to create robust multimedia programs containing high-quality audio, video, and 3-D graphics on a single disc.

Gateway’s DVD implementation, which will play DVD, CD-ROMs, as well as conventional audio compact discs, offers control over color, contrast, brightness and tint through the use of the Mpact^TM media processor. The Mpact media processor works in conjunction with Pentium with MMX Technology and Pentium II CPUs to provide smooth, crisp, bright and colorful video, together with rich surround-sound audio. The low-cost, high performance chip performs full-screen, up to 30 frames per second MPEG2 video decoding at a maximum bit rate of 9.8 megabits per second. The processor enhances standard DVD with Chromabright^TM real-time digital brightness control and Chromadjust^TM real-time digital color processing technologies. SRS TruSurround^TM audio technology provides virtual 6-speaker sound from two standard stereo speakers. AVsync^TM technology is utilized for real-time synchronization between DVD audio and video.

"DVD adds a new dimension of multimedia functionality and excitement to the PC, giving customers a unique audio and video experience," said Bart Brown, Vice President of Marketing, Americas. "By introducing DVD systems at affordable prices, we are making it easy for Gateway customers to immediately take advantage of this exciting technology."

DVD, or digital versatile disc, is a natural successor to the CD-ROM. While the media for DVD has the same look and feel as a standard CD, it offers superior storage capacity, multidimensional digital sound, and greater flexibility than current laser discs, CD’s and videotapes. Viewers can count on consistent picture quality from DVD because the disc does not deteriorate over time.

More than 150 DVD titles - including movies and games - are currently available, with the number expected to grow in the next few months. Gateway’s DVD-ROM implementation is flexible to accommodate both PC applications and movie related content. Mpact technology creates a fertile new platform for entertainment software that mixes the highest quality video and audio with the Internet, 3D graphics and interactivity of the PC.

The Mpact media processor was architected by Chromatic Research, Inc., of Sunnyvale, California, and co-developed and sold by Toshiba America Electronic Components, Inc. (TAEC) of San Jose, California

Gateway’s DVD-equipped G-Series PCs powered by Intel’s Pentium II processors start at $2,698 for a G6-233M. The G6-266XL with DVD features Intel’s 266MHz Pentium II Processor, 64MB EDO RAM, 9GB SCSI hard drive, Ensoniq^® wavetable audio, and Boston Acoustics^® Speakers and is priced at $4,599. Each DVD equipped desktop will include a DVD sampler disc with trailers from 18 Warner Brothers movies

For more sales and product information on G-series desktops, call 1-800-846-4875 or visit http://www.gw2k.com/product/pentiumII.htm.

About Gateway
Gateway (NYSE: GTW), a Fortune 500 company founded in 1985, is a leading global manufacturer and direct marketer of PC products. 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 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 income of $67.5 million. For further information, visit Gateway at http://www.gw2k.com.

Copyright © 1996 Gateway 2000 Inc. All rights reserved.
Please see our Legal Information. Please send feedback to Webmaster Central.