Gateway to Exercise Right of First Refusal to Acquire Control of Packard Bell BV; Also In Discussions to Sell Professional Business Segment

    IRVINE, Calif., Aug. 27 /PRNewswire-FirstCall/ -- Gateway, Inc. (NYSE:  
 GTW) today announced that it intends to exercise its right of first refusal
 to acquire from Lap Shun (John) Hui, all of the shares of PB Holding
 Company,, the parent company for Packard Bell BV, a leading European
 PC vendor based in Paris. Mr. Hui sold the privately-held eMachines, Inc.
 to Gateway in March 2004.
     Gateway acquired the right of first refusal as part of a June 2006
 agreement with Mr. Hui that waived certain non-compete arrangements in
 connection with his purchase of Packard Bell BV. Pursuant to the right of
 first refusal, Gateway received a notice from Mr. Hui offering to sell all
 of the shares of PB Holding Company,, to Gateway at a price based on
 an offer received by Mr. Hui from a third party.
     Gateway also disclosed that it is in discussions to sell its U.S.-based
 Professional business to a third party. Gateway's Professional business is
 focused primarily on education, government and business customers.
     The acquisition of Packard Bell BV and the sale of the Professional
 business, if completed, are consistent with Gateway's strategy to focus
 resources on growing its overall consumer business, both in the U.S. and
     No additional details are being provided at this time.
     About Gateway
     Since its founding in 1985, Irvine, Calif.-based Gateway (NYSE:   GTW)
 has been a technology pioneer, offering award-winning PCs and related
 products to consumers, businesses, government agencies and schools. Gateway
 is the fourth largest PC company in the U.S. and among the top ten
 worldwide. The company's value-based eMachines brand is sold exclusively by
 leading retailers worldwide, while the premium Gateway line is available at
 major retailers, over the web and phone, and through its direct and
 indirect sales force. See for more information.
     Special note
     This press release contains forward-looking statements that involve
 risks and uncertainties, as well as assumptions that, if they do not
 materialize or prove incorrect, could cause Gateway's results to differ
 materially from those expressed or implied by such forward-looking
 statements. All statements, other than statements of historical fact, are
 statements that could be forward-looking statements, including any
 projections or preliminary estimates of earnings, revenues, or other
 financial items; any statements of plans, strategies and objectives of
 management for future operations; the extent of seasonal changes in demand;
 any statements regarding proposed new products, services or developments;
 any statements regarding future economic conditions or performance;
 statements of belief and any statement of assumptions underlying any of the
 foregoing. The risks that contribute to the uncertain nature of these
 statements include, among others, risks related to shifting our
 distribution model to third-party retail; competitive factors and pricing
 pressures, including the impact of aggressive pricing cuts by larger
 competitors; general conditions in the personal computing industry,
 including changes in overall demand and average selling prices, shifts from
 desktops to mobile computing products and information appliances and the
 impact of new microprocessors and operating software; the ability to
 simplify the company's business, change its distribution model and
 restructure its operations and cost structure; component supply shortages;
 short product cycles; the ability to access new technology; infrastructure
 requirements; risks of international business; foreign currency
 fluctuations; risks relating to new or acquired businesses, joint ventures
 and strategic alliances; risks related to financing customer orders;
 changes in accounting rules; the impact of litigation and government
 regulation generally; inventory risks due to shifts in market demand; the
 impact of employee reductions and management changes and additions; and
 general economic conditions, and other risks described from time to time in
 Gateway's Securities and Exchange Commission periodic reports and filings.
 Gateway assumes no obligation to update any forward-looking statements to
 reflect events that occur or circumstances that exist after the date on
 which they were made.

SOURCE Gateway, Inc.

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.


PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.