Gateway to Sell Professional Business Segment to MPC Corporation

Gateway to Sell Professional Business Segment to MPC Corporation

Gateway, Inc. (NYSE: GTW) today announced that it has signed a definitive agreement to sell its Professional business segment, including the company’s Nashville-based configuration center, to MPC Corporation (AMEX: MPZ). The transaction, valued at approximately $90 million based on MPC’s closing price on Sept. 4, 2007, is subject to regulatory approval and is anticipated to close early in the fourth quarter.

“Gateway is widely recognized as a leading consumer brand and this enables us to concentrate our efforts on our worldwide consumer channels,” said Ed Coleman, Gateway’s CEO. “While our performance in the highly competitive Professional segment has improved, we believe a more focused approach on the largest segment of our business is in the best interests of investors and consumers alike.”

With double digit-share of the U.S. consumer PC market, and an even stronger share of the retail channel, Gateway embarked on a consumer focused strategy early this year. The sale of its Professional business will simplify the existing business model and enable greater emphasis on growing the company’s overall consumer business, both in the U.S. and internationally.

“This is yet another step in maximizing the importance of Gateway’s powerful foundation as a consumer brand,” continued Coleman. “Coupled with continued product innovation and a strong presence in retail and direct channels, this enables us to further drive a strategy that sharpens our focus, not only in the U.S. but abroad as well.”

Gateway’s Professional business targets businesses, government agencies and educational institutions. Once the deal closes, a significant portion of Gateway’s Professional employees will join MPC and continue to work out of the North Sioux City, SD facility. MPC will assume Gateway’s ownership in its final assembly facility (GCC) located in Nashville, Tenn., and will take full responsibility for this facility, including the assembly of Gateway Professional products produced there. MPC will also acquire the portion of Gateway’s Consumer Direct unit that targets businesses with less than 100 employees.

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