Acer Commences Cash Tender Offer For Gateway

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Acer Inc aannounced that Galaxy Acquisition Corp., has commenced its tender offer for all the outstanding shares at a price of US$1.90 per share.

Acer Inc aannounced that its wholly owned subsidiary, Galaxy Acquisition Corp., has commenced its tender offer for all the outstanding shares of Gateway, Inc., at a price of US$1.90 per share. On August 27, 2007, Acer announced it had signed a definitive agreement to acquire Gateway.

In addition, Gateway announced that it has signed a definitive agreement to sell its Professional business segment, including the Company's Nashville-based configuration center, to MPC Corporation. The transaction is subject to regulatory approval and is anticipated to close early in the fourth quarter. Please refer to Gateway's press release attached.

The acquisition of Gateway by Acer has been unanimously approved by the boards of directors of both Gateway and Acer. The tender offer is subject to standard closing conditions set forth in the Offer to Purchase referenced below, including a minimum share tender condition, regulatory approvals under Hart-Scott-Rodino, Exon-Florio a

nd similar laws outside the U.S., and other customary conditions, as set forth in the Offer to Purchase.

The tender offer and withdrawal rights will expire at 12:00 midnight, New York City time, on October 1, 2007 (end of the day on October 1, 2007) unless the tender offer is extended. Following the acceptance for payment of shares in the tender offer and completion of the transactions contemplated in the merger agreement, Gateway will become a wholly-owned subsidiary of Acer.

The terms and conditions of the tender offer are set forth in the Offer to Purchase, Letter of Transmittal and other related materials filed by Acer and Galaxy Acquisition Corp. with the SEC on September 4, 2007. Citibank, N.A. is acting as depositary for the tender offer.