Gateway, Inc. plans to open a new U.S. manufacturing facility in 2006 that will
enhance its responsiveness to growing customer demands in the business,
education and government sectors.

The new plant will assemble configure-to-order (CTO) desktops, notebooks
and servers according to customer specifications, as well as provide custom
imaging services and government compliance certification. Gateway executives
are in discussions with potential partners in advance of finalizing a decision
on operating the plant as a company-owned facility or as a joint venture.

“In addition to quality, low total cost of ownership and responsiveness,
our professional, education and government customers value predictability and
localized service, and this new facility will significantly enhance our
ability to meet their needs, thereby improving sharply the attractiveness of
our products to this important sector,” said Wayne Inouye, Gateway president
and CEO. “Based on our long-time experience in this area, we believe this
approach to U.S. manufacturing will allow the company to move forward with
maximum efficiency at a reasoned level of investment.”

This new facility, coupled with significant improvements in the company’s
IT infrastructure, will greatly increase Gateway’s ability to provide
professional customers an excellent full-service experience.

The new facility, scheduled to open at a site yet to be determined, will
employ nearly 300 people in its first year of operation and could scale
significantly in the coming years, Inouye said.

Gateway officials are in discussions with state and local economic
development officials on site locations and have targeted areas that offer
superior in-bound and out-bound logistics and proximity to supplier
warehouses. Gateway expects to select a location during the fourth quarter