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Gateway, EMusic Team Up to Promote MP3 Subscription Service; Free 30-Day Trial Includes 100 MP3 Downloads Without Obligation

    SAN DIEGO, April 29 /PRNewswire-FirstCall/ -- Gateway, Inc. (NYSE: GTW)
has launched a joint marketing program with EMusic.com, the nation's leading
subscription music download service.
    In all Gateway stores, at http://www.gateway.com , and in direct marketing
outreach, Gateway and EMusic will promote EMusic's 30-day trial offer allowing
participants to legally download up to 100 free MP3s, selecting from EMusic's
catalog of more than 215,000 MP3s, representing  approximately 10,000 new and
established artists.  The free MP3s are theirs to keep whether or not they
decide to continue their EMusic subscription after the trial period.
    Consumers who sign up for EMusic's monthly service can choose between two
simple pricing models: either a flat fee of $14.99 per month for a minimum
three-month commitment, or $9.99 per month for a one-year commitment.
    With more than 45,000 subscribers already and a huge selection of
downloads (by album or individual track), EMusic provides an innovative way to
access and discover music via the Internet.  For less than the price of one CD
per month, an EMusic subscription provides fast delivery of near CD-quality
MP3s.  EMusic respects the copyrights of others, employing a combination of
revenue-sharing and royalty payments to compensate all content providers and
rights holders.  Best of all, EMusic uses the industry standard MP3 format,
which gives customers the flexibility to burn the tracks to CDs or listen to
the music using any digital music software or portable music player.

    Gateway's Digital Music Solutions
    Teaming up with EMusic is an exciting addition to Gateway's ability to
give digital music fans the technology solutions they need, including:
    -- The 500X Music PC -- loaded with all the features digital music buffs
       crave, like an Intel Pentium 4 processor 2.0 GHz; 512MB DDR SDRAM; a
       huge 80GB/7200 RPM hard drive; DVD-ROM and CD-RW drives; Boston
       Acoustics speakers with subwoofer; and a 15-inch flat panel display --
       all for just $1,499(1).
    -- An assortment of digital music players and accessories
    -- One of the nation's leading consumer-focused technology learning
       programs, using its nationwide network of Gateway stores to teach
       people how do get more out of digital music technology and other hot PC
       applications.
    -- For a comprehensive look at Gateway's digital music capabilities, visit
       Gateway's Digital Music Zone at http://www.gateway.com and click on the
       Digital Music Zone button.

    About EMusic.com
    EMusic.com ( http://www.EMusic.com ) is a revolutionary new music
discovery service that allows fans to download as much music as they desire
for as little as $9.99 a month.  Through direct relationships with well-known
artists and exclusive licensing agreements with over 700 independent record
labels, EMusic offers an expanding collection of over 200,000 MP3s for
download.  EMusic is part of Vivendi Universal Net USA, the U.S. arm of
Vivendi Universal's Paris-based Internet and technology unit, VUNet.

    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 wrapped in 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.  A Fortune 500(R) company founded in
1985, Gateway is the top brand in customer loyalty and for first-time home
computer purchases of Wintel-based PCs(2).  For more information, visit
Gateway's Web site at http://www.gateway.com .

    (1) Prices and configurations subject to change without notice or
        obligation.  Prices exclude shipping and handling and taxes.

    (2) From the Harris Interactive Consumer TechPoll(SM) study of 140,000 PC
        owners who use the Internet, released March 5, 2001.



SOURCE Gateway, Inc.




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Related links:
  • http://www.gateway.com
    CONTACT:
    Brad Williams, +1-858-848-2511,
    brad.williams@gateway.com, or Greg Lund, +1-858-848-2512,
    greg.lund@gateway.com; or Laurie Rubenstein of Vivendi Universal
    Net USA, +1-917-464-0637, laurie.rubenstein@vunetusa.com