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Gateway Says More PCs Available at Office Depot


08/19/2004

SAN FRANCISCO (Reuters) - Gateway Inc. said on Wednesday its personal computers would be widely available at Office Depot. in the latest move by the PC maker to broaden distribution at retail stores since acquiring rival eMachines this year.

Gateway also announced two new desktop PCs -- with DVD burners and massive hard drives -- that it said were designed specifically for retail consumers who are important to reach in Gateway's aim to return to sustained profits.

Southern California-based Gateway said its new desktop PCs will be available at all of Office Depot's 867 stores in the United States starting this weekend.

Earlier this month, Gateway said it will begin selling desktops at CompUSA Inc.'s outlets and last month it struck an agreement with Best Buy Co Inc. to begin carrying Gateway-branded notebooks and desktop PCs in the third quarter.

"Office Depot's sales expertise is valuable to Gateway, as it includes every distribution channel, including stores, contract delivery, and consumer and business-to-business electronic commerce," said Gateway Chief Executive and President Wayne Inouye.

Gateway recently closed its remaining 188 stores to focus on third-party retailers to sell its computers, following a string of quarterly losses, partly fueled by the expensive and money-losing stores.

The new desktop PCs, the 500GR and 550GR, are the first to use Intel Corp.'s high-end 915G chipset, which is aimed at digital entertainment and gives higher performance than its other chipsets meant for desktop PCs.

The new PCs start at $849.99 and include Microsoft Corp.'s Windows XP Home Edition operating system software.


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