Gateway 2000 developing new computer category; Destination multimedia
theater system to feature 31-inch viewable monitor

The new computer creates a group experience

NORTH SIOUX CITY, SD, February 15, 1996 - Gateway 2000, Inc. (Nasdaq: GATE)
today announced it is developing a new category of computer - the
Destination multimedia theater system - the first computer designed for
group use in the family living room and a large-room environment.

The Destination system will combine all the benefits of a multimedia PC
with the impact of a big-screen television, creating a best of both
worlds' category. This new platform will be uniquely suited to watch
television, surf the Internet, play games and run multimedia
applications.

"The Destination system will move the home computer out of the home office
and into the family room," said Ted Waitt, Gateway chairman and CEO. "It
will bring people together by merging PC applications in a television
environment."

Unlike so-called "network boxes" designed to serve as Internet terminals,
the Destination system is a full-featured PC that will offer consumers the
latest technology, a hallmark of the Gateway 2000 tradition. It is
compatible with all PC and Internet applications. The Destination
multimedia theater system is the result of Gateway research that shows a
strong demand for a new kind of family-room computer system.

The computer and television functions will be controlled through a
touchpad-equipped wireless keyboard and a wireless FieldMouse remote
control/mouse, allowing users to operate the system 10 to 15 feet from its
31-inch viewable screen.

"Multimedia applications run on a Destination system will be like nothing
you've seen before - like the difference between watching a movie on
television and seeing it in a movie theater," said Waitt.

The Destination system's interactive impact, he said, will also make it an
appealing system for corporate, educational and presentation uses. The
system will be available in the spring of 1996.

ABOUT GATEWAY 2000

Gateway 2000, a Fortune 500 company founded in 1985, currently sells more
PC-compatible systems through the direct market channel in the United
States than any other PC manufacturer. Revenues for 1995 were $3.7
billion. Gateway 2000 employs approximately 8,000 people worldwide.
Gateway products and services consistently win top awards from leading
industry publications, and independent surveys show that Gateway customers
are among the most satisfied and brand-loyal PC buyers.
 
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