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Gateway and pressplay Unveil Innovative New Way to Deliver Music to Consumers: On the PC's Hard Drive

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Gateway, Inc. logo. (PRNewsFoto)[TK]
POWAY, CA USA
      Groundbreaking Gateway Music Vault(SM) by pressplay Launches Today

    LOS ANGELES, Dec. 6 /PRNewswire-FirstCall/ -- Gateway, Inc. (NYSE: GTW)
and pressplay are giving consumers a better way to experience digital music.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/20020930/LAM050LOGO )
    The Gateway Music Vault by pressplay breaks new ground by giving consumers
the opportunity to buy a PC that's pre-loaded with up to 2,000 hit songs from
the most popular music genres -- an instant, comprehensive library that can be
enjoyed online or offline upon signing up for the service.  And consumers have
the option of broadening their personal music collection by joining the
service and easily streaming, downloading or making portable copies of more
than 200,000 songs from the world's top artists.
    Starting today, all Gateway consumer desktop PCs will be pre-loaded and
shipped with the Gateway Music Vault by pressplay application.  Consumers can
purchase a Mega Pack or Genre Pack of pre-loaded songs (see details below) as
an upgrade to a new Gateway desktop PC, or as an add-on item to a PC they
already own.
    The service includes easy-to-use software to play and access content from
all five major record labels plus many leading independent labels.  Most
importantly, the Gateway Music Vault by pressplay can save users literally
weeks of downloading time:  to individually download the 8.5 gigabytes or
2,000 songs included in the service's Mega Pack, for example, a PC user with a
constant 56 Kbps dial-up connection working eight hours a day would require
approximately 60 days.  And the Gateway Music Vault by pressplay legally
delivers excellent audio quality from top artists with no concerns about
viruses or spyware.
    "Gateway has emerged as a key supporter of consumers' right to enjoy
digital music legally," said Ted Waitt, Gateway chairman and CEO.  "The
Gateway Music Vault by pressplay is a great example of the technology and
recording industries working together to drive innovation and ultimately serve
consumer demand for legitimate digital music.  And we're now making it
possible for people without a broadband Internet connection to get in on the
fun of digital music by delivering it to them in a whole new way.  People who
do have broadband will enjoy the Gateway Music Vault by pressplay even more."
    "We're excited to bring Gateway users a new way to experience digital
music through pressplay," said Michael Bebel, president and chief executive
officer of pressplay.  "By pre-loading thousands of hit songs onto Gateway
PCs, we are able to offer music fans immediate access to an entire collection
of great music.  This partnership breaks new ground for the music fans and
marks the expansion of the traditional delivery of the pressplay service."
    The Gateway Music Vault by pressplay gives music fans access to a growing
catalog of 200,000 songs -- including rock, pop, jazz, hip-hop, alternative,
R&B and country -- that can be enjoyed while online or offline, streamed,
downloaded, burned to CDs, transferred to portable devices, or kept on the PC.
Users will discover new music and old favorites through features including
more than 30 pre-programmed music stations on Radio pressplay, exclusive
tracks, recommendations and community features.

    Consumers can purchase Gateway Music Vault by pressplay in three basic
ways:
    -- Mega Pack - Music fans receive a 90-day free subscription to the
       service(1), which includes 2,000 hit songs pre-loaded and available
       instantly for unlimited streaming and downloading(2), as well as 20
       free portable downloads.  The Mega Pack is available through two
       different options:  pre-loaded on a Gateway PC, or sold separately as
       part of a 40 GB hard drive package that costs $149.99;

    -- Genre Pack - Consumers receive a 30-day free subscription to the
       service(1) including instant access to 150 pre-loaded hit songs(2) from
       one of seven music genres of the consumer's choice, the ability to
       easily stream, downloading or make portable copies of more than 200,000
       songs from the world's top artists, and 10 free portable downloads that
       can be burned to CDs, transferred to portable devices, and stored on
       the PC.  The Genre Pack is available through two different options:
       pre-loaded on a Gateway PC or sold separately for $29.99.

    -- Basic Pack - From any new Gateway consumer PC, customers can easily
       register for a three-day free trial of the service(1), which includes
       unlimited streaming and downloading(2) of the entire pressplay music
       catalog.  The Basic Service Pack does not include any pre-loaded
       content.

    Following the free trials, consumers can continue to enjoy the pressplay
music service with subscription pricing options starting from $9.95 per month.
Members can also purchase an unlimited number of portable download packs
ranging from $5.95 for five portable downloads, up to $18.95 for 20.
    Gateway will implement a multi-faceted marketing campaign to support the
Gateway Music Vault by pressplay.  The new service is planned to be featured
within Gateway's national television advertising as well as in Web, catalog
and e-mail marketing campaigns.  On the Gateway Web site, consumers will be
able to choose a pressplay music pre-load option when configuring a new
Gateway PC.  The pressplay offer also will be merchandised in Gateway's 272
stores.
    Gateway offers PCs that are optimized for enjoying digital music.  For
example, the Gateway 500S Digital Music PC includes an Intel Pentium 4
processor 2.0 GHz; 256MB SDRAM; a 60GB/7200 rpm primary hard drive; a 40GB
music hard drive with 90 days of Gateway Music Vault by pressplay service; a
15-inch flat panel display; a CD burner; premium Boston Acoustics speakers and
more for just $1,199.(3)
    Full details on Gateway Music Vault by pressplay options and pricing are
available at http://www.gateway.com/pressplay or by visiting a Gateway store or by
calling 1-800-GATEWAY.

    About pressplay
    pressplay is the leading online music subscription service that offers
music fans a wide variety of music, unlimited listening and broad portability
options.  Launched in December 2001, pressplay is an equally held joint
venture between Sony Music Entertainment and Universal Music Group (a unit of
Vivendi Universal), and has offices in Los Angeles and New York City.  Music
companies, including BMG, EMI Recorded Music, Sony Music Entertainment,
Universal Music Group and Warner Music Group, as well as numerous independent
labels, separately provide their content to pressplay on a non-exclusive
basis.  Pressplay is marketed to consumers through relationships with Gateway,
MP3.com, MSN Music, Roxio, Sony Music Club and Yahoo!.  For more information,
visit pressplay at http://www.pressplay.com .

    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(4).  For more information,
visit Gateway's Web site at http://www.gateway.com .

    (1) To activate trial accounts, an Internet connection and credit card are
        required.
    (2) Pre-loaded tracks and downloads are not automatically portable and
        expire when free or paid subscription period concludes.
    (3) Prices and configurations exclude shipping & handling and taxes.
    (4) Source: MetaFacts Technology User Profile, 2001 Annual Edition. Based
        on a survey of 6,799 home PC owners.



SOURCE Gateway, Inc.




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Related links:
  • http://www.gateway.com/pressplay
  • http://www.pressplay.com
  • http://www.gateway.com
    Photo Notes:
    NewsCom: 
    http://www.newscom.com/cgi-bin/prnh/20020930/LAM050LOGO
    AP Archive: http://photoarchive.ap.org
    PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840
    CONTACT:
    Dana Harris of Fleishman Hillard,
    +1-212-453-2309, harrisd@fleishman.com , for pressplay; or Seth
    Oster of pressplay, +1-310-281-5027, seth.oster@pressplay.com ;
    or Brad Williams of Gateway, +1-858-232-7319,
    brad.williams@gateway.com