Gateway 2000 awarded renewed GSA contract

Company hailed by IDC as top direct marketer on GSA Schedule

NORTH SIOUX CITY, S.D., May 20, 1996 - Gateway 2000 announced today that
the federal government awarded the company the U.S. General Services
Administration (GSA) Schedule 70 B/C Contract, effective for the period of
April 1, 1996, through March 31, 1997. Gateway 2000 was listed as the
leading direct marketer of computers on the GSA Schedule in fiscal year
1995, according to International Data Corporation (IDC) one of the
industry's leading research firms.

Gateway 2000 was awarded a GSA schedule less than two years ago, and IDC's
figures are based on the company's first full year as a GSA contract
supplier. The GSA schedule enables federal customers to purchase
award-winning Gateway 2000 PCs at reduced costs.

"Our success on the GSA schedule is a reflection of the efficiency and
acceptance of our direct business model. The Gateway 2000 way of doing
business is an excellent match for the government sector," said Bill Shea,
Gateway 2000 vice president of major account sales. "Our direct model
allows us daily contact with the decision makers in government information
technology, as it eliminates distribution tiers that can separate us from
our customers."

Part of the success of Gateway 2000's direct model rests in the
build-to-order philosophy of the company. Each system is built to customer
specifications, regardless of the size of the order. Gateway 2000 systems
available on the GSA schedule for government buyers feature a range of
desktop and notebook platforms with Intel Pentium" processors, MicrosoftTM
software and a wide variety of standard and optional components. For
further information about Gateway 2000's GSA contract (number
GS-35F-3349D), call 1-800-779-2000.

ABOUT GATEWAY 2000

Gateway 2000, a Fortune 500 company founded in 1985, sells more personal
computer systems in the United States through the direct market channel
than any other PC manufacturer. In 1995, the company reported revenues of
nearly $3.7 billion. Headquartered in North Sioux City, South Dakota, the
company has more than 9,000 employees worldwide.
 
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