EFTA02332712

To: From: Ted Waitt Sent Tue 3/30/2004 3:31:40 PM Subject: GMAX Thought you'd get a kick out of this. The following is excerpts from an email I received. We have a product line that uses your moniker. We also have the trademark on GMAX, so we can discuss licensing terms tomorrow : ) See you tomorrow, god that sounds good to me. Enter the GMAX 2100. During the development of the 2100, Rikki and I coined the term GMAX (Gateway Maximum Audio eXperience) as a way of describing to the public the advantage of Gateway Audio. Since the launch of the GMAX 2.1, we have gone from a 22% attach on 2.0 to 2.1 speaker upgrades to a 38% attach on 2.0 to 2.1 speaker upgrades, and we have done this with no advertising to speak of. This product has a cost of $29 and sells for $99. Following the successful reception for the GMAX 2.1, we began development of the GMAX 5100, a 5.1 surround product with unbelievable sound and value. Great brand touches for GTW, while promoting the GMAX name. This is an exciting time, and I look forward to the challenge of growing Gateway GMAX Audio to a $200 million dollar business by this time next year. PS, I listened to the GMAX 5.1's last week, and they really were incredible. EFTA_R1_01278866 EFTA02332712