V - )/56K: Gateway Enhances Client Experience with Introduction of Latest Communication Technology. First PC company to offer complete V.90 solution

Edge: Work-Group Computing Report, July 13, 1998

Gateway, Tuesday announced that all modems shipping with Gateway G-Series, GP-Series, E-Series and Destination digital media computer systems now conform to the new V.90 standard. In addition, Gateway's gateway.net Internet service has been upgraded to the new communications standard. Modems on the Solo portable lines will be V.90 compliant by the end of August.

"Gateway is proud to be the first PC manufacturer to offer the V.90 standard on its systems as well as via its Internet service, gateway.net," said Jim Collas, Gateway's senior vice president of product development and management. "By making our modems V.90 compliant, Gateway continues its leadership role in the areas of the Internet and communications - and emphasizes our commitment to make the Internet experience a rich and rewarding one for our clients."

V.90 is the new ITU standard for 56K connectivity. Before V.90, two non-compatible technologies -- x2 Technology and K56 Flex -- were available. Gateway previously shipped x2 modems manufactured by 3Com and now offers modems with the new standard from both 3Com and Lucent. To ensure compatibility, Gateway has qualified its modems to different V.90 solutions.

Clients who have already purchased a Gateway system that includes a TelePath modem with x2 technology will be able to download an upgrade to the new standard from Gateway's Web site, gateway.com, in the coming months. Gateway clients can find more information about the upgrade by visiting www.gateway.com/home/support/faq/v90/

Gateway is the first OEM to provide a true Internet service to its clients and offers unlimited Internet access through gateway.net for $17.95 per month, or $14.95 per month when committing to the service for six months.(a) Gateway.net is an all-digital V.90 network with local telephone access numbers available in 85% of the U.S. The service is available to all Gateway clients who purchase a new modem-equipped PC.

"In a recent Media Metrix, Inc. study, PCs owned by Gateway's installed base of clients were reported to have 23% more overall technology power than the average PCs found in U.S. households," said Collas. "Gateway's delivery of the latest technologies, like the V.90 standard, contribute to the power and efficiency our clients enjoy in their computing and Internet experiences."

Gateway, a Fortune 500 company founded in 1985, is a leading global direct marketer of PC products. The company has manufacturing facilities in the United States, Ireland and Malaysia, and employs more than 13,000 people worldwide. Gateway products and services consistently win top awards from leading industry publications. Revenue for the year 1997 was $6.3 billion. For further information, visit Gateway at www.gateway.com.

The Media Metrix Convergence Index uses the following 10 installed base technology elements that the Media Metrix Technology Division tracks for U.S. consumer PCs: processor type, processor speed, RAM size, hard disk storage, optical drive speed, graphics resolution, color depth, audio processor, external communications speed and operating system. Each category has a weight applied to its importance, e.g., communications speed is rated higher than CD-ROM speed. In addition, a rating is applied to the installed base of each technology sub-segment, e.g., 200MHz Pentium processors are rated higher than 100MHz Pentium processors.

(a) gateway.net pricing based on 6-month commitment. $15 fee for early cancellation. Telephone line charges may apply. Not available in all areas.