Acer's wholly owned subsidiary, Galaxy Acquisition Corporation, has successfully completed its tender offer for Gateway (GTW).

The offer expired at 5:00 p.m., New York City time, on Wednesday, October 10, 2007. As of the expiration of the offer, a total of approximately 322,931,202 shares of Gateway were validly tendered and not properly withdrawn (including 13,370,772 shares tendered under guaranteed delivery procedures), representing approximately 86.09 percent of Gateway's outstanding common stock on a fully diluted basis. All shares that were validly tendered and not properly withdrawn have been accepted for purchase.

J.T. Wang, Chairman and CEO of Acer stated, "I want to thank all of the teams who have made this such a successful and swift transaction. Because of the friendly and cooperative spirit of this acquisition, we look forward to a seamless integration of Gateway. We welcome Ed Coleman and the talented team at Gateway, into the Acer family, and we are delighted by the enthusiasm with which Gateway employees and clients have reacted to joining our group. Our enhanced global footprint and leading multi-branded strategy will be extremely valuable for our customers and will drive growth for the combined company in the years ahead."

Acer also announced Galaxy's intention to exercise its option, under the terms of the Agreement and Plan of Merger, to purchase directly from Gateway a number of additional shares sufficient to give Galaxy ownership of more than 90% of Gateway's outstanding shares, when combined with the shares purchased by Galaxy in the tender offer.

Following the exercise of the option, it is expected that Galaxy will merge with and into Gateway, with Gateway continuing as the surviving corporation and as an indirect wholly owned subsidiary of Acer.