Gateway Names Technology Industry Veteran, Dave Russell, to Board of Directors

Gateway Names Technology Industry Veteran, Dave Russell, to Board of Directors

Gateway, Inc. (NYSE: GTW) today announced that Dave Russell, executive vice president and managing director of Avalon Energy, has joined Gateway’s Board of Directors. With Russell’s addition, Gateway has now expanded its Board to ten directors. “We are pleased to add Dave’s expertise to Gateway’s Board,” said Rick Snyder, Chairman of Gateway’s Board of Directors. “An accomplished technology executive, his appointment gives the Board added experience in the critical areas of product development, supply-chain management and logistics.”

Russell, 43, is the executive vice president of Avalon Capital Group, Inc. and managing director of Avalon Energy. Avalon Energy is a division of Avalon Capital Group, Inc., a private company controlled by Ted Waitt, the co-founder and a significant stockholder of Gateway, Inc. From 1988 until he joined Avalon in 2005, Mr. Russell worked in a variety of capacities for Gateway, most notably as general manager of digital television products from June 2003 to June 2004; senior vice president of partner management from January 2001 to May 2003; and vice president of supply management from 1999 to May 2000. Russell is also on the Board of Directors of privately held Amazing Mail.com, a web based direct marketing company located in Scottsdale, Ariz.

Russell was appointed to the Board as part of the previously announced agreement with an investor group led by Firebrand Partners, in which Gateway agreed to appoint an additional director, mutually acceptable to the Company and the investor group, to its Board by February 28, 2007. Russell will be nominated for election by stockholders in connection with the Company’s 2007 Annual Meeting of Stockholders.

The Company also announced that it filed its Annual Report on Form 10-K for the year ended December 31, 2006. Gateway’s final net income was $9.6 million, or 3 cents per diluted share, rather than a net income of $6.9 million, or 2 cents per diluted share, as reported in its preliminary earnings release on February 8, 2007. The increase in net income reflects the final disposition of certain tax matters arising from Gateway’s European operations prior to 2002.

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