FOR IMMEDIATE RELEASE

Gateway 2000 awarded renewed GSA contract

Company hailed by IDC as top direct marketer on GSA Schedule

NORTH SIOUX CITY, SD, May 20, 1996 - Gateway 2000 announced today that the federal government awarded the company the U.S. General Services Administration (GSA) Schedule 70 B/C Contract, effective for the period of April 1, 1996, through March 31, 1997. Gateway 2000 was listed as the leading direct marketer of computers on the GSA Schedule in fiscal year 1995, according to International Data Corporation (IDC) one of the industryís leading research firms.

Gateway 2000 was awarded a GSA schedule less than two years ago, and IDCís figures are based on the companyís first full year as a GSA contract supplier. The GSA schedule enables federal customers to purchase award-winning Gateway 2000 PCs at reduced costs.

"Our success on the GSA schedule is a reflection of the efficiency and acceptance of our direct business model. The Gateway 2000 way of doing business is an excellent match for the government sector," said Bill Shea, Gateway 2000 vice president of major account sales. "Our direct model allows us daily contact with the decision makers in government information technology, as it eliminates distribution tiers that can separate us from our customers."

Part of the success of Gateway 2000ís direct model rests in the build-to-order philosophy of the company. Each system is built to customer specifications, regardless of the size of the order. Gateway 2000 systems available on the GSA schedule for government buyers feature a range of desktop and notebook platforms with Intel Pentium^® processors, Microsoft^TM software and a wide variety of standard and optional components. For further information about Gateway 2000ís GSA contract (number GS-35F-3349D), call 1-800-779-2000.

About Gateway 2000
Gateway 2000, a Fortune 500 company founded in 1985, sells more personal computer systems in the United States through the direct market channel than any other PC manufacturer. In 1995, the company reported revenues of nearly $3.7 billion. Headquartered in North Sioux City, South Dakota, the company has more than 9,000 employees worldwide.

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