3DsoundSurge Press Release: Gateway Converts the Living Room Into a Surround-Sound Movie Theater

Gateway Converts the Living Room Into a Surround-Sound Movie Theater

Gateway Expands Home Entertainment Line-Up With Home Theater Systems

POWAY, Calif., July 1 /PRNewswire-FirstCall/-- Building on the success of its entry into the digital television market, Gateway, Inc. today introduced two home theater systems that bring the dynamic impact of multi-channel surround sound to the comfort of home. Simple and affordable, Gateway's home theater systems are complete with DVD player/receivers, powerful speakers and subwoofers that replicate the excitement of live concerts and movies with incredibly realistic sound. These high-performance audio-visual packages, with prices ranging from $499 to $699(2), are an exceptional value.

This product is being launched in tandem with the revolutionary Gateway(TM) Connected DVD Player, a cutting-edge progressive-scan DVD player offering wireless PC connectivity for just $249(2). (See other Gateway news release issued today.) Both new products are the perfect fit for Gateway's plasma TV, which quickly became the best-selling plasma TV in the nation last year.

On May 8, Gateway announced an ambitious plan to launch 50 new Gateway- branded products in 15 consumer electronics and technology categories by the end of 2003. The new Gateway(TM) home theater systems and Gateway Connected DVD Player represent two milestones in Gateway's transformation from a PC company into a branded integrator of personalized technology solutions.

"Gateway's entry into the home theater market means more consumers can experience the thrill and drama of high-quality surround sound when watching movies and listening to music in their homes," said Dave Russell, Gateway's general manager of digital television. "By offering dynamic sound and DVD capabilities in a simple, high value package, these home theaters bring movies and music to life at prices people can afford."

The all-in-one, intuitive design makes the Gateway(TM) home theater systems easy to set up and use. With satellite and center channel speakers for vibrant sound and advanced Hsu Research-engineered subwoofers for powerful amplification and superior mid- and deep base performance, these home theaters with 5.1 receivers intensify special effects for movies and music. The center channel speaker and subwoofer work together to reproduce very natural sound. Integrated Dolby Digital Decoder, DTS Decoder and Dolby Pro Logic II take the high fidelity of surround sound to a new level for this price range. And all speakers are video-shielded for placement near the television without picture-distortion.

Enhancing the movie viewing experience, the progressive-scan DVD player delivers sharper image quality than conventional DVD players. It also reads multiple formats, including photo CDs, DVD movies and music CDs, so consumers can enjoy various types of media in the living room.

The Gateway home theater systems connect quickly and easily to a variety of video sources including component, s-video and composite. They come with a pre-programmed remote control, 40 pre-set options for AM/FM stereo channels as well as headphone jacks, so customers can enjoy movies and music without disturbing others.

KAS-103 -- Gateway Home Theater System: Modern Features, Maximum Value

This home theater not only boasts four two-way satellite speakers, but a center channel speaker and a Hsu Research-engineered subwoofer. Typically, center channel speakers are not offered in this price range. Combined with the powerful subwoofer, the dynamic yet balanced sound quality elevates the excitement of movies and music. The Gateway Home Theater System -- KAS-103 is just $499(2).

KAS-203 -- Gateway Home Theater System: Surreal Surround Sound

In comparison to the KAS-103, this Gateway home theater has a significantly enhanced bass and center channel solution for a cinematic experience that makes customers feel that they're living within the movie. This system includes four higher performance full-range satellite speakers, a Hsu Research-engineered subwoofer and Ventriloquist center channel speaker, which deliver deep base to further amplify the vibrant sound quality. The Gateway Home Theater System -- KAS-203 is $699(2).

Warranty, Service and Options

Gateway stands behind its home theater solutions with a one-year limited warranty(3). As with other Gateway products, additional service and support options are available.

About Gateway

Since its founding in 1985, Gateway (NYSE: GTW) has been a technology and direct-marketing pioneer, using its call centers, web site and retail network to build direct customer relationships. As it transforms itself from being a leading PC company into a branded integrator of personalized technology solutions, the company's line of Gateway-branded products is expanding to include digital TVs, DLP projectors, tablet PCs and systems and networking products and services. Gateway is America's second most admired computer company, according to Fortune magazine(1), and its products and services received more than 125 awards and honors last year. For more information, visit www.gateway.com .

     (1) Source: Fortune magazine, March 3, 2003.
     (2) All offers subject to change without notice or obligation and may not
         be available through all sales channels. Unless noted, prices exclude
         shipping and handling. New consumer desktop and laptop prices include
         shipping and handling charges for Continental US (except AK) orders
         only. Applicable taxes extra.
     (3) Limited warranties and service agreements apply; visit gateway.com or
         call 1-800-846-2000 for a free copy.

Source: Gateway, Inc.