IRVINE, Calif., Dec. 22 /PRNewswire-FirstCall/ -- Gateway, Inc.
(NYSE: GTW) announced today that it has closed on its previously announced
agreement with America Online, Inc., a subsidiary of Time Warner, Inc.,
pursuant to which Gateway repurchased all of the Gateway Series A and Series C
preferred stock and approximately 2.7 million shares of Gateway common stock
currently held by AOL for an aggregate purchase price of $315.6 million.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020930/LAM050LOGO)
Consideration paid by Gateway included:
* Approximately $280 million in cash; and,
* A credit of approximately $35.6 million against normal quarterly
payments due from AOL to Gateway under a strategic alliance agreement
that calls for Gateway to offer subscriptions to customers who buy
Gateway's desktop and notebook PCs.
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. Since acquiring
eMachines in early 2004, Gateway is now 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 sales force. See http://www.gateway.com for more
information.
SOURCE Gateway, Inc.
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Related links:
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, photodesk@prnewswire.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.
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