Gateway, Inc
Industry: Computer Hardware

Gateway, Inc. (NYSE: GTW), a personal technology company, improves people's lives through a combination of the latest and best hardware,communication tools, applications, training and service, all offered with a custom financing package. The company takes a localized approach, utilizing its Web site, call centers and nationwide network of Gateway retail stores to build direct relationships with consumers, small and medium businesses and government and education institutions. In 2001, Gateway's products and services received more than 45 awards and accolades and the company was ranked number one in repurchase brand loyalty for PCs(1).

Business Summary
Gateway, Inc. (Gateway) directly and indirectly sells personal computers (PCs) and notebook computers and servers, PC-related products and services that are enabled by or connect with PCs (convergence/non-PC) to third-party retailers, consumers, businesses, government agencies and educational institutions. Convergence/non-PC products and services consist of all products and services other than the PC, such as plasma and liquid crystal display (LCD) televisions, digital music players, peripherals, software, accessories, extended warranty services, training, Internet access and enterprise system and networking products and services. The Company has four operating segments: Direct, Professional, Retail and International. On March 11, 2004, the Company acquired eMachines, Inc. (eMachines), a PC company in the United States.

Financial Summary
Gateway, Inc. develops, markets, manufactures and supports a broad line of desktop and portable PCs and PC- related products used by individuals, businesses, government agencies & educational institutions. For the 6 months ended 6/30/05, net sales rose less than 1% to $1.71B. Net income applicable to Com. totaled $12M vs.a loss of $510.1M. Revenues reflect increased PC unit sales. Earnings also reflect a $15.1M Microsoft Benefit.