InvestorsHub Logo
Followers 25
Posts 348
Boards Moderated 0
Alias Born 07/22/2003

Re: None

Monday, 03/31/2008 11:37:57 AM

Monday, March 31, 2008 11:37:57 AM

Post# of 249374
MPC Computers Wins Defense Logistics Agency Contract

NAMPA, Idaho, March 25, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- MPC Corporation (Amex: MPZ) today announced that it has been awarded a government contract to supply the Defense Logistics Agency (DLA) with desktop, notebook and tablet computers. The contract award positions MPC as a sole-source OEM supporting DLA users in the US and abroad.

The DLA contract is set up as an IDIQ (Indefinite Delivery, Indefinite Quantity) with additional one-year options, and is currently anticipated to average approximately $10 million a year in purchases. The computer products to be delivered include desktop and portable PCs from both the MPC and Gateway Pro product lines. MPC acquired Gateway's professional business in October 2007.

"This contract speaks to the strength of the relationships that both MPC and Gateway have formed throughout the government sector," noted Mark Cox, MPC Computer's sales area vice president of federal sales. "As a combined entity, we look forward to better serving our government customers through an even broader set of products and services."
About MPC Corporation

MPC Corporation (Amex: MPZ), a major US PC vendor since 1991, provides enterprise IT hardware solutions to mid-size businesses, government agencies and education organizations. With its October 2007 acquisition of Gateway's Professional business, MPC became the only top-10 US PC vendor focused exclusively on the $20 billion Professional PC market. For more information, visit MPC online at http://www.mpccorp.com.

Gateway Business, Government and Education Lines Transitioning to MPC

Gateway has sold its Small Business, Mid & Large Business, Government and Education operations to MPC Corporation as of October 1, 2007. Similar to Gateway's efforts in those segments, MPC targets customers in government, business and education and provides customized solutions including PCs, peripherals and services. The combined company will have a particular emphasis in mobile products, all-in-one desktops, servers and storage.

Headquartered in Nampa, Idaho and originally known as Micron Computers, MPC now owns the entire catalog of products and services of Gateway's professional segments and is making them available to both Gateway and MPC professional customers. Within one year, MPC will migrate products that are Gateway branded to the MPC brand as the company consolidates its notebook, desktop and server offerings; MPC will assume supplier relationships for unique Gateway products such as tablets. Gateway professional customers will be able to purchase from the entire catalog of MPC products and services.

Gateway professional-unit managers are already playing key roles in the new company, and virtually all members of the Gateway pro team have transitioned to MPC to continue their customer relationships. Also, all Gateway warranties and service agreements will continue forward without change and are now being administered in full by MPC.

Combining Gateway's professional business unit with MPC has created a powerful PC company with sales of more than $1.1 billion and 1,000 employees, including a force of 430 sales representatives—310 inside reps in two call centers and 120 field reps located across the country. This staffing will provide exceptional responsiveness, increased flexibility and a singular focus on the IT needs of the business, government and education segments. More information is available at the MPC website.

FAQ's

Q) Why is this merger occurring?
A) Like MPC, Gateway's professional unit targeted the business, government and education sectors. Gateway's strongest pro segments were education and state/local government; MPC's largest emphasis has been on the federal and business segments. The combined company has a larger overall footprint and a more balanced portfolio in the professional marketplace, allowing it to compete at a larger scale in the PC industry. For its part, Gateway will now be able to focus on its original core business of serving consumer needs with its award-winning line of home and home office computers, displays and accessories.

Q) What can I as a Gateway pro customer expect of MPC?
A) It was important to Gateway that we find a good home for our valued professional customers. Like Gateway, MPC takes pride in a history of excellence, as it has routinely won industry awards and accolades for the quality of its products and services. The collaboration between Gateway and MPC over the first year will further assure that the transition is smooth for Gateway's pro customers. And, because Gateway's pro sales and service people are moving over to MPC as part of the merger, you can expect virtually all your company contacts to remain the same.

The Defense Logistics Agency (DLA) is the largest agency in the United States Department of Defense, with about 22,000 civilian and military personnel throughout the world. The agency provides supplies to the military services and supports their acquisition of weapons and other materiel. http://www.pentagon.gov/dbt/priorities_dla.html

Through its contracting offices, DLA buys more than four million different items for Department of Defense (DoD) activities. However, DLA does not review or evaluate new items for possible use by the military Services nor does it issue research and development (R&D) contracts. http://www.dla.mil/db/
Join InvestorsHub

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.