Press Release

Gateway Brings Directory-Based Networking to Customers With Novell's NetWare 5

SAN DIEGO and PROVO, Utah - Dec. 8, 1999 - Gateway Inc. (NYSE: GTW), along with Novell® (NASDAQ: NOVL), today announced expansion of its system software options for its line of Gateway ™ ALR® servers with the immediate availability of Novell's NetWare® 5 network operating system. In addition, Gateway and Novell will work together to deliver directory-based networking solutions to help customers smoothly extend their businesses to the Internet and exploit the opportunities of e-business.

Gateway's built-to-order model allows customers the flexibility to customize their servers for their individual business needs. The company now will pre-load Novell's NetWare 5 and 4.2 network operating systems as a standard option in its ALR server family. Gateway ALR servers offer broad network operating systems support to meet the mission-critical computing needs of its customers. In addition to Novell, Gateway's network operating system support includes Microsoft* Windows NT*, Unix* and Linux.

"Providing customers with relevant, reliable computing solutions to keep their businesses running is a key focus for Gateway Business," said Chris Norman, director, server product marketing, Gateway Business. "By aligning with Novell we give our customers expanded networking options to meet their business needs today and in the future."

Novell's NetWare 5 delivers a complete foundation of network services to support mission-critical applications, including e-business solutions that span the enterprise and the Internet. Combined with Gateway's ALR series of servers, Novell's NetWare delivers industry leading Novell Directory Services® (NDS®) to provide advanced management and security for enterprise networks.

"Gateway's strategy to guide their business customers with solutions that combine hardware, software and the Internet complements Novell's focus as the broadest supplier of network infrastructure products for the enterprise and the Web " said Bob Page, general manager, Global OEM& Appliance Sales for Novell. "We're excited to work with Gateway to meet the evolving needs of business customers."

Gateway ALR servers offer broad network operating system support including Microsoft Windows NT, Novell NetWare, UNIX and Linux, offering clients the scalability, reliability, serviceability, and manageability required for mission-critical business applications in small business through enterprise environments. Gateway servers are available in tower and rackmount form factors, and are complemented by a wide range of service and support product offerings. The Gateway ALR server family includes the 7000 series dual-processor capable workgroup server, the 8000 series departmental servers and the scalable 9000 series enterprise-class servers.

Gateway provides a complete portfolio of services to support the ALR series of servers. From pre-deployment consulting services, to ongoing 24 by 7 system support, Gateway provides its customers with the ability to choose the level of service that best fit their support requirements.

For more information about Gateway ALR servers and the services to support them please visit www.gateway.com or call 1-800-779-2000.

About Novell

Novell, Inc. (NASDAQ:NOVL) is the world's leading provider of directory-enabled networking software. Novell solutions give businesses total control of their private networks and the Internet, simplifying the management of user access and identity. Novell's worldwide channel, consulting, developer, education and technical support programs are the most extensive in the network computing industry.

For information on Novell's complete range of products and services, contact Novell's Customer Response Center at (888) 321-4CRC (4272), or visit Novell's Web site at http://www.novell.com. Press may access Novell announcements and company information on the World Wide Web at http://www.novell.com/pressroom. In addition, detailed comparisons between Novell products and competitive offerings from other vendors are available on the Web at http://www.novell.com/advantage. For information on the Year 2000 status of Novell products, please access Novell's Year 2000 Web site at http://www.novell.com/year2000 or contact Novell's Customer Response Center at year2000@novell.com.

About Gateway

Gateway (NYSE: GTW), a Fortune 250 company founded in 1985, focuses on building lifelong relationships with consumers and businesses through complete technology personalization. Gateway ranked number one in U.S. consumer PC revenue in the second quarter of 19991 and was rated among the top ten best corporate reputations in America according to a survey conducted in the fall of 1999 by The Wall Street Journal and Harris Interactive, Inc. Gateway employees worldwide serve clients with services and built-to-order computers that consistently win top awards from leading industry publications. Gateway had total global revenue of $7.5 billion in 1998 and shipped 3.54 million systems.

1. According to GartnerGroup/Dataquest US PC Quarterly statistics.

Gateway and the stylized Gateway logo are trademarks of Gateway, Inc. Novell, NetWare, CNE, NDS and Novell Directory Services are registered trademarks of Novell, Inc. in the United States and other countries. Microsoft and Windows NT are registered trademarks of Microsoft Corporation. Unix is a registered trademark of X/Open Company, Ltd. All other brands and product names are the property of their respective owners.

Contact Information:

Sid Dronen
Gateway Business
(605) 232-1730
sid.dronen@gateway.com

John Pilmer
Novell
(801) 222-5109
jpilmer@novell.com