Gateway 2000 ships first Destination big screen TV-PCs

Company is first to put breakthrough entertainment system in consumers'
hands

NORTH SIOUX CITY, S.D., April 29, 1996 - Gateway 2000 today shipped its
first Destination big screen TV-PC, the product one financial analyst said
may "replace the television."

The system offers consumers the first Pentium processor based convergence
product that combines state-of-the-art multimedia computing with the
visual impact of big-screen home theater.

"We're pleased to be the first to deliver this breakthrough entertainment
and communications platform to consumers," said Gateway 2000 chairman and
CEO Ted Waitt. "In the two weeks since Destination went on sale, almost
10,000 people have called us to talk about our system because they realize
it will change the way their families use computers and television."

The Destination big screen TV-PC allows users to easily watch television,
surf the Internet, shop at home and play games on the 31 inch viewable
monitor. The system also delivers American business a dramatic new
presentation package as well as providing schools with a cost effective
interactive instruction tool.

Unlike current personal computers, the Gateway 2000 Destination system is
designed to let multiple users spread out in a family room or office
setting. The computer and television functions are controlled through a
touchpad-equipped wireless keyboard and a wireless Field Mouse.

The system is compatible with consumer electronics components such as VCRs,
stereo systems and laser disc players. The Destination big screen TV-PC
can take video feeds from cable television systems, traditional antennas
or other video devices. Audio output can be run through existing home
stereo configurations or the system is available with a harman/kardon
seven-piece Dolby Prologic Surround Sound system upgrade.

The Destination big screen TV-PC brings the interactive power of computers
to the world of consumer electronics, giving consumers more options for
home entertainment, education and communications. The system offers
consumers more flexibility than traditional single-function consumer
electronic device and, because the system is based on standard PC
architecture, it can be upgraded as technology changes.

For ease of use, the Destination system comes with Microsoft Windows 95.
Another innovative feature is Harman Interactive SmartTVTM software, which
includes the electronic TV Guide that enables people to easily review and
select television programs.

BUILD-TO-ORDER

Prices for the Destination big screen TV-PC range from $3,499 to $4,699,
depending on configuration. Customers can place orders by calling (800)
846-2000.

The Gateway 2000 build-to-order capability lets customers specify what they
want on their systems. Gateway offers a wide selection of software,
service and hardware upgrades, including faster processors, additional
memory, larger hard drives, and faster CD-ROM drives.

They can also get more information from the Gateway 2000 Internet site at
http://www.gw2k.com/destination.

ABOUT GATEWAY 2000

Gateway 2000, a Fortune 500 company founded in 1985 and based in North
Sioux City, S.D., sells more PC-compatible systems through the direct
market channel in the U.S. than any other PC manufacturer. 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. The company's 1995 sales
were $3.7 billion. Gateway 2000 is listed on the NASDAQ market as GATE.

GATEWAY 2000 ON THE INTERNET: http://www.gw2k.com
GATEWAY 2000: Craig Nyreen (605) 232-2728
HILL & KNOWLTON: Barnaby Dinges (312) 255-3036
 
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