Gateway and Investor Group Reach Agreement to Expand Board of Directors

Gateway and Investor Group Reach Agreement to Expand Board of Directors

Gateway, Inc. (NYSE: GTW) and an investor group, which is led by Firebrand Partners and owns approximately 10.7% of the Company’s outstanding shares, today announced that Scott Galloway, a clinical associate professor at NYU’s Stern School of Business and managing member of Firebrand, has joined Gateway’s Board of Directors. Gateway will also appoint an additional independent director, mutually acceptable to the Company and the investor group, to its Board by February 28, 2007. Scott Galloway and the additional independent director will be up for re-election by stockholders in connection with the Company’s 2007 Annual Meeting of Stockholders.

These appointments are part of an agreement with the investor group that will enable Gateway’s management to focus its efforts on returning Gateway to profitability and to avoid a potential proxy contest with the investor group at or prior to the Company’s 2007 Annual Meeting of Stockholders. With the addition of these new directors, Gateway will expand its Board to ten directors, nine of whom will be independent.

“We are pleased to welcome Scott to Gateway’s Board,” said Rick Snyder, Chairman of Gateway’s Board of Directors. “His appointment reflects productive conversations we have had with our largest stockholders about the future of the Company. We believe Scott’s brand experience will be particularly helpful toward the development of Gateway’s brand. We plan to continue our ongoing dialogue with Gateway’s stockholders as our Board works to identify an additional independent director and consider governance matters over the next several months.” “There is nothing wrong with Gateway that can’t be fixed with what’s right with Gateway,” said Galloway. “I am excited about the opportunity to partner with the Company to help translate its brand equity and channel strength into increased margins and a return to profitability.”

Scott Galloway is a clinical associate professor at New York University’s Stern School of Business and is the managing member of investment firm Firebrand Partners LLC. He is also the co-founder and a director of Red Envelope, a multi-channel retailer, and founder of Prophet, a brand strategy consultancy operating in the United States, Europe and Asia. He received a BA from UCLA and an MBA from UC Berkeley.

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