SOURCE: Gateway International Holdings, Inc.

May 31, 2007 12:45 ET

Gateway International Reports Financial Results for the 9 Months Ended March 31, 2007

ANAHEIM, CA--(Marketwire - May 31, 2007) - Gateway International Holdings, Inc. (PINKSHEETS: GWYI) today announced unaudited financial results for the nine months ended March 31, 2007.

For the 9 months ended March 31, 2007, the Company reported total sales from continuing operations of $11,815,016, gross profit of $3,997,145 or 33.8% of sales and operating profit of $758,162 or 6.4 % of sales.

Pre-tax loss, which included a loss of $2,207,947 on the sales of discontinued operations and a gain on the sale of the Eran building of $681,738, totaled $810,107. The non-cash loss from the sale of discontinued operations was a result of the change in market value of the Company's common stock from $0.73 per share at the date the Company acquired Gledhill/Lyons, Inc (DBA Accurate Technology) and NuTech Industrial Sales, Inc. as compared to the market value at date of sale of $0.58 per share.

Gateway's CEO Tim Consalvi commented on the results, "I am pleased with our results from continuing operations and our operating profit in the first nine months of fiscal 2007. Sales continue to be strong and profitability continues to grow at our operating subsidiaries. I expect this strong growth trend to continue through the fourth quarter of fiscal 2007."

"Once we completed the spin-off of Gledhill/Lyons, Inc. (DBA Accurate Technology) and NuTech Industrial Sales, Inc., we were able to focus on and have made great strides in improving our accounting procedures. We are very encouraged by the results and look forward to continued improvement in the near future," added Mr. Consalvi.

Stephen Kasprisin, Gateway's CFO, commented, "With the completion of the internal review of our nine month results, we are confident that we will close the year strong and continue the process of improving our financial reporting infrastructure. This infrastructure, including the implementation of the SAP Business One ERP suite (NYSE: SAP), will allow us to issue timely and accurate financial reports on a consistent basis in the future. I am very pleased with both our financial results and our progress in building our internal control structure. We are in the process of completing our internal management reports, which we will file on"

Investor information is available on Gateway International Holdings website at Additionally, a free, downloadable Investor Brochure is available at


This press release may contain forward-looking statements. The words 'estimate,' 'possible' and 'seeking' and similar expressions identify forward-looking statements, which speak only as to the date the statement was made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted, or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition and other material risks.

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