Media Relations

PeoplePC Selects Gateway as Preferred Computing Solutions Provider

Gateway PC's now available to PeoplePC Members at great savings

POWAY, Calif. (Dec. 2, 2002) - Gateway, Inc. (NYSE: GTW) and PeoplePC Inc. today announced a strategic alliance making Gateway the preferred provider for PeoplePC's 550,000 existing and new members. PeoplePC members will be able to choose a computer bundle comprised of one of several Gateway desktop PCs, or Gateway notebooks and PeoplePC's Internet service. PeoplePC members will also be able to choose from a host of peripherals including printers, cameras and software packages.

"PeoplePC's members will now have the ability to renew their membership and upgrade their technology with new Gateway PCs," said Jay Lambke, Gateway's vice president of institutional markets. "Our industry leading value and expertise in providing technology solutions for affinity partners and their consumers make Gateway an ideal resource for PeoplePC's members."

"Our partnership with Gateway allows us to fulfill our mission of providing our members with the most current technology at the best value from a recognized industry leader," said Julian King, vice president of marketing, PeoplePC. "We believe Gateway's computer configurations bundled with PeoplePC's Internet service create a very compelling offer for our current and prospective members."

PeoplePC members will be able to choose from Gateway's most popular systems including the Gateway 300S, 300X and 500X desktops and the Gateway 1450SE notebook. Prices range from as low as $24.95 per month to as low as $44.95 per month depending on the system and include four years of Internet access. In addition, customers can choose from a host of peripheral products ranging from digital cameras to MP3 players to software and a selection of Gateway training packages.

Current PeoplePC members can now renew their memberships by purchasing a computer bundle including the Gateway computer of their choice and PeoplePC Internet service. New members should visit PeoplePC at: www.peoplepc.com or call 1-800-PeoplePC to learn more about the Computer Bundles.

About Gateway

Gateway, Inc. (NYSE: GTW), a personal technology company, improves people's lives through a combination of the latest and best hardware, communication tools, applications, training and service, all offered with a custom financing package. The company takes a localized approach, utilizing its Web site, call centers and nationwide network of Gateway retail stores to build direct relationships with consumers, small and medium businesses and government and education institutions. In 2001, Gateway's products and services received more than 45 awards and accolades and the company was ranked number one in repurchase brand loyalty for PCs(1). For more information, visit Gateway's Web site at www.gateway.com.

(1) Source: MetaFacts Technology User Profile, 2001 Annual Edition. Based on a survey of 6,799 home PC owners.

About PeoplePC

PeoplePC provides individuals, companies and organizations with high quality, reliable and low cost Internet service. The PeoplePC platform aggregates the networks of over a dozen telecommunications providers to ensure quality connections and fewer busy signals for our customers. PeoplePC provides a range of products and services, all stemming from the belief that getting online should be easy and affordable. PeoplePC's 550,000 global subscribers came to us from companies such as Ford Motor Company and Delta Airlines, organizations such as the Veterans of Foreign Wars and the National Organization for Women and individually, as everyday consumers.