IRVINE, Calif., Dec. 31 /PRNewswire-FirstCall/ -- Gateway, Inc.
(NYSE: GTW) today announced that the initial purchasers of its 1.5 percent
Senior Convertible Notes due 2009 and 2 percent Senior Convertible Notes due
2011 have exercised their option to purchase an additional $12.5 million
aggregate principal amount of notes of each series. The closing in respect of
the additional notes was completed on Dec. 31, 2004.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020930/LAM050LOGO )
The notes will be convertible into shares of Gateway common stock at an
initial conversion rate of 115.8749 shares per $1,000 principal amount of
notes (which is equivalent to a conversion price of approximately $8.63 per
share). Upon the occurrence of certain designated events, holders will have
the right to require Gateway to repurchase the notes at a price equal to 100
percent of their principal amount. Should certain transactions that constitute
a fundamental change in Gateway occur, under certain circumstances the
conversion rate for the notes will be increased.
The notes will be offered only to qualified institutional buyers and other
eligible purchasers in a Rule 144A private placement offering. The notes will
not be registered under the Securities Act of 1933 and may not be offered or
sold in the United States absent registration or an applicable exemption from
registration requirements.
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; 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; the
effects of seasonal changes in demand; 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
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, +1-858-248-0242, or
david.hallisey@gateway.com, or investors, Marlys Johnson,
+1-605-232-2709, or marlys.johnson@gateway.com, both of Gateway,
Inc.
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