SAN DIEGO and PHOENIX, March 30 /PRNewswire/ -- Gateway (NYSE: GTW), as
part of a continuing effort to expand aggressively its industry-first
marketing push into the U.S. Latino community, is buying a stake in
quepasa.com (Nasdaq: PASA), the premier online community for U.S. Hispanics.
Under the agreement, Gateway will invest $10 million cash in exchange for
7.6% of quepasa.com's outstanding stock and will utilize quepasa.com's premier
positioning in the U.S. Hispanic community as part of its Spanish-language
initiative.
"Quepasa.com has always recognized the need to have a strong alliance with
a leading computer manufacturer, and we are pleased that Gateway, the
country's premier computer maker and marketer, is that partner," said Gary L.
Trujillo, quepasa.com's Chairman and Chief Executive Officer. "Gateway made a
very public commitment to our community when it announced its Spanish-language
initiative in September 1999 and now the company is further expanding that
commitment by investing in the only publicly traded online community that
solely serves the US Latino community and the only online community to do so
in both English and Spanish."
"Gateway and quepasa.com share a common vision -- to bring computers and
the Internet to the U.S. Latino community in a way they prefer," said Todd
Bradley, Gateway executive vice president. "Gateway made this equity
investment in quepasa.com because we believe in their strategy and their
business model."
Quepasa.com will use a substantial portion of the proceeds of Gateway's
investment to further its community and educational initiative program, which
will include distributing computers purchased from Gateway accompanied with
Spanish language technical support, providing Internet access, and training
quepasa.com subscribers. Gateway and quepasa.com will engage in joint
marketing and promotional programs in connection with the initiative, which
was launched in October 1999 in New York's Spanish Harlem with GRAMMY(R) Award
winner and quepasa.com partner Gloria Estefan. This joint effort by Gateway
and quepasa.com will significantly advance both companies' goals of promoting
computer usage and Internet access in the U.S. Hispanic community.
This investment provides a number of very significant opportunities for
both companies. Gateway will be the exclusive provider of computer products
to the quepasa.com community of users and to the community and education
initiative, and quepasa.com will share in the revenue stream generated when
Gateway's products are purchased through the Site. In addition, Gateway will
sponsor a channel on the quepasa.com Site.
About Gateway
Gateway (NYSE: GTW), a Fortune 250 company founded in 1985, focuses on
building lifelong relationships with consumers and businesses through complete
technology personalization. Gateway ranked number one in U.S. consumer PC
revenue in 1999(1) and was rated among the top ten best corporate reputations
in America according to a survey conducted in August of 1999 by Harris
Interactive and the Reputation Institute and published in The Wall Street
Journal. Gateway employees worldwide provide clients with services and
built-to-order computers that consistently win top awards from leading
industry publications. Gateway had total global revenue of $8.65 billion in
1999 and shipped 4.68 million systems. More information about Gateway is
available on their Web site at http://www.gateway.com.
(1) According to GartnerGroup/Dataquest US PC quarterly statistics.
About quepasa.com
quepasa.com provides the rapidly growing U.S. Hispanic market with
information and interactive content available in both Spanish and English.
The site was founded in 1998 and includes a search engine, free e-mail,
Spanish-language news feeds, worldwide weather information, chat rooms, games,
maps and message boards. quepasa.com has entered into strategic alliances
with leading providers of media, content and technology, including NetZero,
Inc.; Reuters NewMedia Inc.; Associated Press; Agencia EFE, Hispanic Business
Magazine; AutoNation, Inc.; Net2Phone, Inc.; X:drive; Telemundo Network Group;
WeatherLabs, Inc.; e-lingo; WorldGate Communications, Inc.; Inktomi;
Salud.com; Egreetings Network; CriticalPath and GTE Internetworking.
The above statements include forward-looking statements based on current
Gateway management expectations. Factors that could cause future results to
differ from these expectations include the following: general economic
conditions; growth in the personal computer industry; competitive factors and
pricing pressures; component supply shortages; risks relating to new or
acquired businesses and joint ventures; and inventory risks due to shifts in
market demand. Additional factors are described in the Company's reports
filed with the Securities and Exchange Commission.
Certain statements in this release regarding quepasa.com's expected future
business and prospects constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are based upon current expectations and involve
certain risks and uncertainties that could cause actual results to differ
materially from any such statement. Potential risks and uncertainties include
but are not limited to quepasa.com's unproven business model and limited
operating history; quepasa.com's ability to grow its user base and generate
revenue; risks associated with new or acquired businesses and joint ventures;
technological problems or developments; competitive factors; and general
market and economic conditions. Additional factors are discussed in the
Annual Report of quepasa.com, and in any additional filings made with the
Securities and Exchange Commission.
SOURCE Gateway
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Related links:
http://www.gateway.com
CONTACT:
Ken Juarez of PepperCom,
kjuarez@peppercom.com; Michele Vahsen of quepasa.com,
602-716-0100, Ext. 259, mvahsen@quepasa.com; or John W. Spelich
of Gateway, 858-799-2657, john.spelich@gateway.com
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