Models Range From a Mini 2-Megapixel Camera at $129 to a Sleek, Compact 5-Megapixel Camera for Just $399 POWAY, Calif., Aug. 28 Gateway's direct model again makes the customer the winner with the company's first line of Gateway branded digital cameras priced up to 40 percent less than other 4 and 5 megapixel cameras. Gateway is entering the fast-growing digital camera market with the same break-through pricing that made its 42-inch plasma TV the best seller in its category.(1) The new offerings advance the company's goal of launching 50 new Gateway-branded products in 15 categories this year and mark another milestone toward Gateway's evolution into a branded integrator -- a marketer of digital gear that works together. The new digital cameras include two sleek, compact models that fit snugly in a pocket or purse so consumers are always ready to capture memories. Priced at only $129.99,(2) the Gateway(TM) DC-T20 delivers 2-megapixel image quality in an ultra-compact form factor that is just slightly thicker than a deck of
cards.

The Gateway DC-T50 combines performance in a stylish compact design, delivering 5-megapixel, film-quality prints at a price of $399.99.(2)

Gateway is also offering two standard-size models that provide superior
4-and 5- megapixel image quality at prices of $199.99(2) and $299.99(2).
Because of their generous configurations, the cameras produce stunning film-quality prints and large images up to 11 by 14 inches with the 5-megapixel offering and up to 8 by 10 inches with the 4-megapixel camera.

Both products are perfect for photographers who desire robust performance and advanced features at a great value.

"Gateway's rapidly expanding portfolio of competitively priced digital
electronics is starting to speed consumer adoption -- Gateway is putting cutting-edge technology in more people's hands," said Matt Milne, Gateway's vice president and general manager of digital solutions. "These digital cameras reach a new pinnacle -- they deliver incredible performance, image quality and features at prices that will allow more people to embrace the benefits of digital photography." Lose the Film, Gain the Fun Gateway has designed the digital cameras for the 69 percent of consumers who do not currently own one but are considering such a purchase(3). The Consumer Electronics Association says that digital camera sales are expected to jump 20 percent in 2004 to more than 12 million units(3). In addition,Gateway's internal research reveals that a digital camera is the top consumer electronics product its customers plan to purchase in the next year(4)."Digital photography is clearly replacing film in the market, but the rate
of this change has been limited because the cost of quality digital cameras has exceeded what most people were willing to pay," said Rob Enderle, principle analyst for the Enderle Group. "These new cameras from Gateway close this 'value' gap and provide one of the strongest arguments for going digital that we have yet seen." The cameras will appeal to a wide range of photographers, from enthusiasts to beginners, who want a compact, easy-to-use camera at a great price. The cameras are also great for business professionals such as human resources
managers for company outings and informal newsletters, realtors who need to
share images with clients, and those in the travel and tourism industry.
The four new cameras boast a feature set at prices that set new standards
for value -- from 20 to 40 percent less than competitive offerings. They are
easy to use and connect to a PC or Mac for printing, sharing and saving
precious memories. The cameras' USB connections make downloading images quick
and easy -- so photographers can get back to capturing the fun.
The four new Gateway digital cameras are available for immediate purchase
in Gateway(R) stores nationwide.

Packed with Pixels at a Petite Size and Price
Gateway's two new compact digital cameras catch all the action with sleek
single-handed operation for great point-and-shoot photo-taking.
The ultra-portable Gateway(TM) DC-T20 is the ideal camera for anyone who
wants a compact, affordable camera to have on hand in a backpack or purse to
catch the action. At only $129.99, the camera's price matches its small size,
but it still delivers big on quality. The 2MP camera provides up to 1600x1200
image quality for JPEG still photos and can take up to 47 seconds of motion
JPEG video at 320x240 resolution. The DC-T20 provides 2X digital zoom,
multiple flash modes and 1.5-inch TFT display. The new camera measures only
82 (W) x 60 (H) x 24 (T) mm and weighs only 3.9 ounces(5).
Photography enthusiasts who want great image quality and flexibility in a
compact form factor need look no further than the Gateway DC-T50. The 5MP
camera boasts an f/2.8 to f/4.5 aperture for rich, accurate colors in a range
of light conditions. The slim 6.3-ounce(5) camera boasts advanced features --
including 3X optical zoom for close-ups and auto, fill, off and red-eye
reduction flash modes. Photos can be taken in enhanced resolutions of up to
2560x1920 in JPEG, DCF or DPOF format. In movie-mode, the camera can also
record up to 60-second clips of motion JPEG in 320x240 @15 frames per second.
Even in the small form factor of only 93 (W) x 35 (H) x 58 (T) mm, the camera
still provides a large 1.6-inch TFT display for previewing photos.
Both the Gateway DC-T20 and DC-T50 cameras use convenient, affordable SD
Memory. The DC-T20 comes with two AA alkaline batteries and 8MB of internal
memory while the DC-T50 comes with a rechargeable Lithium Ion battery, charger
and a 32MB SD memory card. The cameras also come with software that makes
editing, cropping, enlarging and adding effects fun and easy. Gateway offers
several options for the new cameras, including rechargeable batteries, high-
capacity SD memory and camera carrying cases.

Shoot Away! Advanced Features at a Great Value
In addition to the two compact cameras, Gateway now offers two standard-
sized cameras that combine advanced features including high image resolution,
3x optical zoom and fast shutter speeds. The cameras are ideal for families or
small businesses looking for a value-based offering with a rich feature set to
use as their main digital camera.
The Gateway(TM) DC-M50 delivers the ultimate in photo taking at a price of
only $299.99 -- up to $200 less than comparable offerings. The 5MP camera has
an f/3.4 to 3.6 maximum aperture and 3X optical zoom to take the best photos
in various conditions, which can then be viewed on the huge 1.8 inch TFT
display. The fast shutter speed of up to 1/2600 seconds lets photographers
freeze fast-moving subjects, while the longer shutter speed up to eight
seconds enables the capture of brilliant landscape and architectural shots.
Priced at only $199.99, the Gateway DC-M40 provides 4MP photo quality for
crisp, vibrant photos. With f/2.6 - 4.5 maximum aperture, 3X optical zoom and
a fast shutter speed of two to 1/2000 seconds, the camera can take true-to-
life photos in various conditions. Also, the Gateway DC-M40's 1.6-inch TFT
allows picture review so photos can be immediately retaken or discarded if the
subject blinks.
Both the Gateway DC-M50 and DC-M40 can be used to enjoy very high quality
large prints thanks to the enhanced image resolution for still photos (DC-M50:
2560x1920 and DC-M40: 2272x1704) in JPEG, DCT or DPOF formats. In movie mode,
both new cameras take brief video clips at up to 320 x 240 resolution motion
JPEG at 15 frames per second. The cameras also offer auto, fill, off, red-eye
reduction and slow-sync flash modes to give additional options when shooting
photos of people, architecture or scenic venues.
Both the Gateway DC-M50 and DC-M40 cameras use industry-standard,
affordable compact flash memory and run on four AA alkaline batteries. The
cameras come with advanced photo editing software; the DC-M50 with ArcSoft
Imaging Software and the DC-M40 with Adobe PhotoShop 5.0 LE, so photographers
have a range of ways to easily perfect their photos, including editing,
cropping, enlarging and adding special effects. Gateway offers several options
including rechargeable batteries and high-capacity compact flash memory cards.

Availability and Warranty
The new Gateway(TM) digital cameras are available now by phone, on
gateway.com or at Gateway(R) stores. All of the cameras are supported by
Gateway's standard one-year limited warranty(6). 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(7), and its products and services
received more than 125 awards and honors last year. For more information,
visit http://www.gateway.com.