IRVINE, Calif., Dec. 6 /PRNewswire-FirstCall/ -- Gateway, Inc. (NYSE:
GTW) and an investor group, which is led by Firebrand Partners and owns
approximately 10.7% of the Company's outstanding shares, today announced
that Scott Galloway, a clinical associate professor at NYU's Stern School
of Business and managing member of Firebrand, has joined Gateway's Board of
Directors. Gateway will also appoint an additional independent director,
mutually acceptable to the Company and the investor group, to its Board by
February 28, 2007. Scott Galloway and the additional independent director
will be up for re-election by stockholders in connection with the Company's
2007 Annual Meeting of Stockholders.
These appointments are part of an agreement with the investor group
that will enable Gateway's management to focus its efforts on returning
Gateway to profitability and to avoid a potential proxy contest with the
investor group at or prior to the Company's 2007 Annual Meeting of
Stockholders. With the addition of these new directors, Gateway will expand
its Board to ten directors, nine of whom will be independent.
"We are pleased to welcome Scott to Gateway's Board," said Rick Snyder,
Chairman of Gateway's Board of Directors. "His appointment reflects
productive conversations we have had with our largest stockholders about
the future of the Company. We believe Scott's brand experience will be
particularly helpful toward the development of Gateway's brand. We plan to
continue our ongoing dialogue with Gateway's stockholders as our Board
works to identify an additional independent director and consider
governance matters over the next several months."
"There is nothing wrong with Gateway that can't be fixed with what's
right with Gateway," said Galloway. "I am excited about the opportunity to
partner with the Company to help translate its brand equity and channel
strength into increased margins and a return to profitability."
Scott Galloway is a clinical associate professor at New York
University's Stern School of Business and is the managing member of
investment firm Firebrand Partners LLC. He is also the co-founder and a
director of Red Envelope, a multi-channel retailer, and founder of Prophet,
a brand strategy consultancy operating in the United States, Europe and
Asia. He received a BA from UCLA and an MBA from UC Berkeley.
As part of the agreement, which will be incorporated into a report on
Form 8-K to be filed by Gateway, the investor group has agreed to abide by
certain standstill provisions through December 31, 2007. In addition,
Gateway's Board will undertake a review of the Company's stockholder rights
plan and make associated recommendations prior to the 2007 Annual Meeting.
At the Company's 2007 Annual Meeting, Gateway's Board will also recommend
that stockholders approve a proposal to declassify the Board. If the
proposal is approved, directors will thereafter be up for election at every
annual meeting.
About Gateway
Since its founding in 1985, Irvine, Calif.-based Gateway (NYSE: GTW)
has been a technology pioneer, offering award-winning PCs and related
products to consumers, businesses, government agencies and schools. Gateway
is the third largest PC company in the U.S. and among the top ten
worldwide. The company's value-based eMachines brand is sold exclusively by
leading retailers worldwide, while the premium Gateway line is available at
major retailers, over the web and phone, and through its direct and
indirect sales force. See http://www.gateway.com for more information.
Special note
This press release contains forward-looking statements that involve
risks and uncertainties, as well as assumptions that, if they do not
materialize or prove incorrect, could cause Gateway's results to differ
materially from those expressed or implied by such forward-looking
statements. All statements, other than statements of historical fact, are
statements that could be forward-looking statements, including any
projections or preliminary estimates of earnings, revenues, or other
financial items; any statements of plans, strategies and objectives of
management for future operations; the extent of seasonal changes in demand;
any statements regarding proposed new products, services or developments;
any statements regarding future economic conditions or performance;
statements of belief and any statement of assumptions underlying any of the
foregoing. The risks that contribute to the uncertain nature of these
statements include, among others, risks related to shifting our
distribution model to third-party retail; competitive factors and pricing
pressures, including the impact of aggressive pricing cuts by larger
competitors; general conditions in the personal computing industry,
including changes in overall demand and average selling prices, shifts from
desktops to mobile computing products and information appliances and the
impact of new microprocessors and operating software; the ability to
simplify the Company's business, change its distribution model and
restructure its operations and cost structure; component supply shortages;
short product cycles; the ability to access new technology; infrastructure
requirements; risks of international business; foreign currency
fluctuations; risks relating to new or acquired businesses, joint ventures
and strategic alliances; risks related to financing customer orders;
changes in accounting rules; the impact of litigation and government
regulation generally; inventory risks due to shifts in market demand; the
impact of employee reductions and management changes and additions; and
general economic conditions, and other risks described from time to time in
Gateway's Securities and Exchange Commission periodic reports and filings.
Gateway assumes no obligation to update any forward-looking statements to
reflect events that occur or circumstances that exist after the date on
which they were made.
SOURCE Gateway, Inc.
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Related links:
http://www.gateway.com
CONTACT:
Media, David Hallisey, +1-949-471-7703,
david.hallisey@gateway.com, or Investors, Marlys Johnson,
+1-605-232-2709, marlys.johnson@gateway.com, both of Gateway,
Inc.; or Joele Frank or Barrett Golden, both of Joele Frank,
Wilkinson Brimmer Katcher, +1-212-355-4449, for Gateway, Inc.
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