Gateway Selects New Manufacturing Facility May 17, 2006

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Gateway, Inc. selected Nashville, Tennessee, U.S. as the site for a manufacturing facility scheduled to open by October 2006. First-year employment in the facility is expected to be more than 300 people with an annual payroll of about U.S. $8 million. The Nashville facility will allow the company to enhance its responsiveness to customer demands in the business, education, government, and consumer market segments.

The new plant will assemble configure-to-order (CTO) desktops, notebooks, servers, and storage arrays, as well as provide custom integration and software imaging services. The presence of available space in Nashville, together with leveraging the infrastructure of one of Gateway's existing suppliers, which will own a minority interest in the operation, is expected to allow for an efficient and timely start up of the facility.

"This facility will support Gateway's Professional and Consumer Direct business units from an operational perspective in order to improve the entire customer experience, including quality, cost and delivery," said Rick Snyder, Gateway's chairman and CEO.

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