Gateway and Cobalt Networks Team to Deliver Internet Connectivity Solutions to Small-to-Medium Sized Organizations - Company Business and Marketing

Edge: Work-Group Computing Report, Oct 18, 1999

Gateway Inc., and Cobalt Networks Inc., Tuesday announced an agreement under which Cobalt will supply server appliance technologies that enable Gateway to expand its capabilities to provide small-to-medium sized organizations with affordable and turnkey technology solutions designed to leverage the Internet.

"Internet usage is evolving from a competitive advantage to a business necessity for companies of all sizes," said Van Andrews, senior vice president, Gateway Business. "Combining the strength of Cobalt's server appliance technology with Gateway's growing Internet services will give our customers easy access to technology solutions to leverage the Internet for their business. Teaming with Cobalt complements our increasing efforts to deliver simple, reliable and affordable computing solutions to our business, education and government customers."

Cobalt server appliances give users the power of standard Web applications without the complexity or the requirement of technical system knowledge. Based on the Linux operating system and designed for simplicity, the products are online in minutes enabling small businesses, educational organizations and government agencies the ability to establish business on the Web quickly and affordably.

"Gateway's entry into the server appliance space helps to validate the demand for flexible, open and scalable solutions. This partnership leverages the strengths of the two companies and their commitment to developing life long relationships with their customers," said Stephen DeWitt, president and chief executive officer, Cobalt Networks Inc. "Gateway has a tradition of leadership in bringing high-value products and services to market. We believe the relationship with Cobalt will enrich that tradition."

Cobalt Networks Inc. is a developer of server appliances that enable organizations to establish an online presence easily, cost effectively, and reliably. Cobalt's product lines -- the Cobalt Qube, Cobalt Cache, Cobalt RaQ, and Cobalt NASRaQ -- are widely used as Internet and Web hosting server appliances at businesses, Internet Service Providers, and educational institutions. Cobalt's solutions are delivered through a global network of distributors, value-added resellers and ISPs. Founded in 1996, Cobalt Networks Inc. (http://www.cobaltnet.com) is located in Mountain View, Calif. -- the heart of Silicon Valley -- with international offices in Germany, Japan, the United Kingdom, and the Netherlands.

Gateway, a Fortune 250 company founded in 1985, focuses on building lifelong relationships with consumers and businesses through complete technology personalization. Gateway ranked number one in U.S. consumer PC revenue in the second quarter of 1999(a) and was rated among the top ten best corporate reputations in America according to a survey conducted in the fall of 1999 by The Wall Street Journal and Harris Interactive Inc. Gateway employees worldwide serve clients with services and built-to-order computers that consistently win top awards from leading industry publications. Gateway had total global revenue of $7.5 billion in 1998 and shipped 3.54 million systems. For more information, visit our Web site at www.gateway.com.

(a) According to GartnerGroup/Dataquest US PC Quarterly statistics.