Microsoft and Gateway Lay Foundation for Future Cooperation, Resolve Antitrust Claims

Apr 11, 2005, 01:00 ET from Microsoft Corp.

    REDMOND, Wash., and IRVINE, Calif., April 11 /PRNewswire-FirstCall/ --
 Microsoft Corp. (Nasdaq:   MSFT) and Gateway Inc. (NYSE:   GTW) today announced
 that they have entered into an agreement to resolve legal issues between the
 two companies and work together on the marketing and development of Gateway
 personal computing products.
     (Logo: )
     As part of the agreement, Microsoft will provide funds that Gateway
 expects to use for marketing initiatives, including advertising, sales
 training and consulting, as well as the research, development and testing of
 new Gateway products that can run current Microsoft products and Microsoft's
 next-generation operating system and productivity software.
     "Gateway continues to enjoy a strong relationship with Microsoft and we're
 pleased to put these legacy legal issues behind us," said Wayne Inouye,
 president and CEO, Gateway. "We look forward to even greater collaboration
 with Microsoft going forward as we work together towards the future of
     "Our relationships with PC manufacturers are integral to our success, and
 we look forward to working even more closely with Gateway to communicate the
 benefits of its products and our software to consumers," said Rodrigo Costa,
 OEM corporate vice president, Microsoft. "We are very pleased to be able to
 resolve our past differences in a constructive manner that will allow us to
 continue our focus on the interests of our mutual customers."
     The agreement provides for periodic Microsoft payments to Gateway totaling
 an aggregate amount of $150 million over four years. As part of this
 agreement, Gateway will release all antitrust claims against Microsoft based
 on past conduct. Gateway's claims arose from the circumstances of the United
 States v. Microsoft antitrust case in the mid-1990s, where Gateway was
 specifically identified in U.S. District Judge Thomas Penfield Jackson's
 findings of fact as having been impacted in its business by practices on which
 he ruled against Microsoft. Under the statute of limitations, the time period
 for Gateway to bring claims against Microsoft based on these findings of fact
 expired in late 2003. Microsoft and Gateway entered into an agreement before
 that time to extend this period so they could explore an approach that would
 serve their mutual business and customer interests. Today's agreement resulted
 from a recent mediation between the parties. Although Microsoft denies any
 liability to Gateway, the parties are pleased to resolve this dispute and move
 forward to better serve their customers.
     About Gateway
     Since its founding in 1985, Irvine, Calif.-based Gateway has been offering
 award-winning PCs and related products to consumers, businesses, government
 agencies and schools with highest quality and service and best overall value.
 Gateway is now the third largest PC company in the U.S. and among the top ten
 worldwide. See for more information.
     About Microsoft
     Founded in 1975, Microsoft is the worldwide leader in software, services
 and solutions that help people and businesses realize their full potential.
     NOTE:  Microsoft is a registered trademark of Microsoft Corp. in the
 United States and/or other countries.
     The names of actual companies and products mentioned herein may be the
 trademarks of their respective owners.

SOURCE Microsoft Corp.