SOURCE: Gateway International Holdings, Inc.

August 17, 2007 08:05 ET

Gateway International Holdings, Inc. Issues Shareholder Letter

ANAHEIM, CA--(Marketwire - August 17, 2007) - Gateway International Holdings, Inc. (PINKSHEETS: GWYI) released a letter to shareholders.

Gateway International Holdings, Inc. ("Gateway" or "the Company") recently became aware that shares of its common stock were no longer being quoted electronically via the Pink Sheets. The Company determined that the shares were recently removed from this electronic quotation medium as a result of the Securities and Exchange Commission (the "SEC") order dated May 31, 2006 revoking the registration of the Company's securities.

On June 13, 2006, the Company issued a letter to shareholders of record and issued a press release describing the SEC's order and discussing the effects of the order and what actions the Company was taking in response. It is important that the shareholders of Gateway understand that the cessation of electronic quotation of the Company's securities by the Pink Sheets is in direct response to the May 31, 2006 SEC order and is not related to any new development.

The Company continues to operate and grow and has taken and will continue to implement corrective action related to the revocation of its registration imposed on May 31, 2006. It is the intention of management to take the necessary steps required to return the Company's stock to electronic quotation as soon as possible.

The following is a summary of the action steps completed and being undertaken by the Company and an estimated timeline as to their completion:

Action Steps Competed to Date:

  1.  The Company hired McKennon, Wilson & Morgan as independent Certified
      Public Accountants in June 2006.
  2.  The Company hired Stephen M. Kasprisin in November 2006, as its Chief
      Financial Officer.  Mr. Kasprisin has extensive public company
  3.  The Company hired James Cassidy, an experienced securities attorney,
      as its general and securities counsel in May 2006.
  4.  Gateway completed a reorganization of its management and Board of
      Directors electing Tim Consalvi as President and CEO.
  5.  The Board of Directors appointed Mr. Cassidy and Mr. Kasprisin to the
  6.  The Company completed its June 30, 2006 year-end audit and was issued
      a clean, unqualified audit opinion by its independent auditors.
  7.  The Company posted annual financial results for June 30, 2006 and
      interim results for the 6 months ended December 31, 2006 and 9 months
      ended March 31, 2007 on
  8.  The Company completed an extensive review of internal controls and
      developed standard policies and procedures for financial reporting
      and operations.
  9.  The Company purchased the SAP Business One computer system to upgrade
      financial reporting and internal controls.

Action Steps Currently In Process:

  1.  Gateway is currently completing an internal review of annual
      financial statements for the year ended June 30, 2007 in preparation
      for its annual audit.
  2.  McKennon, Wilson & Morgan began the annual audit of Gateway's
      financial statements on August 6, 2007.
  3.  The Company is finalizing the preparation of a Form 10-SB for
      submission to the SEC upon completion of the annual audit.  This
      submission will start the registration process of the Company's
  4.  Upon completion of the filing of the Form 10-SB, the Company will
      cause an application to be filed for the quotation of the Company's
      securities on the NASD OTC Bulletin Board.

The Company anticipates meeting its self-imposed deadlines for the required filings, but will be subject to customary SEC comments related to its Form 10-SB filings and acceptance of its application for quotation on the OTC Bulletin Board. The Company is hopeful that this process will be successfully concluded by the spring of 2008.

In summary, the Company is doing everything it can, in as timely a fashion as possible, to register its securities and resume the electronic quotation of its common stock. As we work through this process over the next couple of months, we will make every effort to keep you informed of our progress. We appreciate the patience our shareholders have demonstrated during this period and we are confident that our significant efforts to return to a reporting status will justify that patience.


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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