Gateway Rocks the House With Rhapsody Digital Music Service

Nov. 19 /PRNewswire-FirstCall/ -- Delivering on its promise to give customers easy ways to find and enjoy their favorite digital music, Gateway, Inc. (NYSE:GTW) today begins shipping all its consumer desktop PCs with Gateway Rhapsody installed. Gateway Rhapsody is a music subscription service that gives customers the power to find and listen to the music they love, discover new artists and musical genres, and burn favorite tracks to CD while they're online. Gateway is the first PC maker to offer the Rhapsody music service.

Powered by Listen.com , Gateway Rhapsody puts an entire record store's worth of music at subscribers' fingertips for a low fee of $9.95 per month. Subscribers can enjoy unlimited access to the world's largest legal library of digital music, create their own custom Internet radio stations and listen to more than 50 professionally programmed, commercial-free Internet radio stations. Their Gateway Rhapsody music collections, playlists and radio stations are available from any computer with an Internet Connection, and they can even take their music on the go by burning selected tracks on custom CDs for just 99 cents per track.

In addition to Gateway Rhapsody software, Gateway desktop PCs for consumers now will be shipped with an interactive demonstration of the Rhapsody service installed. With a few mouse clicks, customers can easily preview and sign up for the service online using their new PC. Buyers of Gateway desktop PCs also receive a coupon code for one free month of Gateway Rhapsody service(1). Music fans can also sign up for Gateway Rhapsody service via the Gateway Digital Music Zone at http://www.gateway.com/digitalzone/music , which highlights Gateway's digital music capabilities as well as other digital entertainment products and services.

"The popularity of digital music is exploding, and Gateway has been a leader in helping people tap into the world of online music in ways that are exciting for them and fair to recording artists," said Greg van den Dries, Gateway senior vice president of digital solutions. "With Gateway Rhapsody, we're taking it a step further by giving our customers access to the world's largest selection of digital music, and the software to make finding, listening to and burning that music as simple and fun as possible."

Consumers who sign up for Gateway Rhapsody get unlimited access to a library of music that includes more than 250,000 tracks from all five of the world's largest music companies, including BMG, EMI Recorded Music, Sony Music Entertainment, Universal Music Group and Warner Music Group, and more than 100 independent labels. Gateway has emerged as a leader in helping consumers enjoy digital music technology. Since April, Gateway has offered free, legal music downloads on http://www.gateway.com/ , in addition to acting as a proponent of the legal uses of digital media technology.

Gateway will utilize its national network of nearly 300 Gateway retail stores from Alaska to Florida to demonstrate Gateway Rhapsody to consumers. Gateway stores soon will feature stations where consumers can preview the service, assisted by the company's staff of friendly, trained sales representatives, and get a postcard with a promotional code good for a free 30 day trial of the Rhapsody service.(1) Gateway stores already serve as destinations for cutting-edge Gateway PCs, plasma TVs, digital cameras, MP3 players, digital video gear, software and other digital media products.

"We're excited to be working with Gateway, which leads the technology industry in giving customers the tools they need to access the digital music they want while respecting the rights of artists and copyright holders," said Sean Ryan, president and chief executive officer for Listen.com. "Gateway is making it just as easy to sign up for Rhapsody as it is to buy Gateway's award-winning PCs, offering the service with all new desktop PCs, through its retail stores and via the Digital Zone of its Web site. Now, an entirely new group of consumers can enjoy their favorite music through Rhapsody."

More information about Gateway's products and services is available by calling 800-221-9616, via the company's Web site at www.gateway.com or at one of the Gateway stores nationwide.

(1) Limited time only. Major credit card required. 30 day promotional period begins from date of sign up. To avoid being charged a monthly fee, cancel before promotional period ends. At the end of the 30-day trial period, Rhapsody will charge $9.95 per month. For details please log onto www.gateway.com/rhapsody .

(2) Source: MetaFacts Technology User Profile, 2001 Annual Edition. Based on a survey of 6,799 home PC owners.

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Source: Gateway, Inc.