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: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO )
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
computing."
"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 http://www.gateway.com 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.
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Related links:
http://www.microsoft.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
print and online media only, John Spelich,
+1-949-471-7710, or john.spelich@gateway.com, or David Hallisey,
+1-949-471-7703, or david.hallisey@gateway.com, both of Gateway;
or Rapid Response Team of Waggener Edstrom, +1-503-443-7070,
rrt@wagged.com, for Microsoft; or financial analysts, Marlys
Johnson of Gateway, +1-605-232-2709, or
marlys.johnson@gateway.com; or Curt Anderson of Microsoft
Investor Relations, +1-425-706-3703
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