During the week beginning July 8, US retail desktop shipments fell
             46% yoy.  Sequential data suggests relatively flat shipments month
             on month during June versus the typical end-of-quarter
             acceleration. As we said in a prior PC Beat, Gateway typically
             characterizes the June quarter as the "in like a lamb, out like a
             lion" quarter---the lion is taking a breather this year.

             WEEKLY DESKTOP SHIPMENTS YR/YR GROWTH BY PRICE POINT - U.S RETAIL

       Week Beg.         5/20   5/27    6/3   6/10   6/17   6/24    7/1    7/8
       $599 and below    -53%   -30%   -26%   -49%   -53%   -69%   -30%   -79%
       $600 - $999        66%     8%    -1%    33%    23%    37%    37%    33%
       $1000 - $1499      -2%   -13%    12%   -33%   -41%   -55%   -46%   -53%
       $1500 and above   -55%   -39%   -42%    -6%   -20%   -35%   -67%   -46%
        Market Growth     -5%   -15%    -9%   -15%   -18%   -31%   -24%   -46%
             Source: NPD Intelect and Salomon Smith Barney