FOR IMMEDIATE RELEASE

GSA Adds Gateway 2000 Destination^TM Big Screen PC/TV to Multiple Award Schedule

Gateway continues leadership role by being first on Schedule with convergence product

North Sioux City, S.D. - July 16, 1997 - Gateway 2000, Inc. (NYSE: GTW), a leading direct marketer of desktops, portables, and convergence products, announced today that the Destination Big Screen PC/TV is available on the General Services Administration (GSA) Multiple Award Schedule (70B/C). Gateway 2000 was first to market with its revolutionary Destination product line and its placement now on the GSA schedule represents another industry first.

"The PC/TV category has been an exciting one for Gateway to bring into the market," said Bill Shea, vice president of major accounts for Gateway. "Many government agencies have adopted the Destination for training, group-work, presentations and video conferencing. Adding this product to the GSA schedule follows Gateway's tradition of making it easy for the federal government to purchase the latest technology."

The Destination^TM Big Screen PC/TV combines the computing power of a PC with the impact of a big screen TV. It's a natural fit for group training, presentations and collaborative computing, formats typical to the government marketplace. The 31 inch viewable VGA PC monitor allows for relaxed viewing from distances up to 15 - 20 feet away. The high resolution of the monitor delivers to viewers crystal clear text and graphics. The Destination system is an "all-in-one" solution by integrating audio/visual devices common to the group presentation setting. It provides computer functionality while also utilizing a TV/VGA card for easy connection of external video sources such as cable TV, VCR, and camcorder. Accessing the Internet is possible through a PCI 10/100 Mbps twisted pair Ethernet network card or via an optional x2^TM Technology modem. The wireless keyboard and Field Mouse^® remote control allow for mobility and easy multi-user capabilities.

Commitment to Government Marketplace
Gateway 2000's build-to-order model, high-value products and investment in customer service have accelerated the company to a leadership role on the GSA schedule. Gateway was first awarded a GSA contract in 1994. By 1995 and again in 1996, Gateway attained the top spot on the schedule as the leading direct PC supplier according to GSA and International Data Corporation.

Gateway's close relationships with suppliers allow the company to anticipate market trends and assist government buyers in planning technological changes when they need them. Customers placing large volume orders can save time and money through the Custom Integration Services (CIS) program. Through CIS, customers can receive their PCs already installed with hardware and software specific to their operating environments, helping eliminate the need for third party setup. The federal sales team is dedicated exclusively to serve government customers and technical support staff are available seven days a week, 24 hours a day to field questions from users.

How to Order
For more information or to place an order, federal customers can select from a number of options, including:

• Calling Gateway at 1-800-779-2000
• Checking our offering on GSA Schedule #GS-35F-4565G. Visit http://www.gw2k.com/majoract/majoract.htm on Gateway's Internet site or visit the GSA Advantage! Web site (use keyword search "Gateway")
• Faxing an order or request for quote to Gateway at (605) 232-2716
• Choosing from the following payment options: purchase order, wire transfer, IMPAC credit card, blanket purchase agreement

About the Destination Big Screen PC/TV
The Destination line ranges from 166MHz Intel^® Pentium^® processors with MMX^TM technology to 266MHz Pentium^® II processors. Users can purchase high value, standard configured systems at a price point starting as low as $2,904. The Destination Big Screen PC/TV arrives with a minimum of 16MB of memory, Boston Acoustics^® MicroMedia three piece speaker set, 12X min/24X max CD-ROM drive, and a PCI 10/100 Mbps twisted pair Ethernet network card. The Destination line is bundled with Microsoft^® Office 97 Small Business Edition. An upgrade to Office 97 Professional Edition is available.

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.

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