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, S.ar.l, 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, S.ar.l, 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.
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 http://www.gateway.com for more information.
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.