SOURCE: Gateway International Holdings, Inc.

March 29, 2007 09:05 ET

Gateway International Reports Divestiture of Accurate Technology and NuTech Industrial Sales

ANAHEIM, CA -- (MARKET WIRE) -- March 29, 2007 -- Gateway International Holdings, Inc. (PINKSHEETS: GWYI) announced today that it has transferred ownership of its subsidiaries Gledhill/Lyons, Inc., DBA Accurate Technology ("Accurate") and NuTech Industrial Sales, Inc. ("NuTech") back to their original owners. Gateway International acquired ownership of Accurate in 2004 and NuTech in 2005 in return for 12,000,000 and 2,500,000 shares of Gateway International common stock, respectively. The divestiture was accomplished by the exchange of the Gateway International stock owned by the shareholders of Accurate and NuTech in exchange for the stock of Accurate and NuTech owned by Gateway International. As part of the divestiture Accurate and NuTech assumed certain liabilities related to those companies.

Gateway International's CEO, Tim Consalvi, commented, "I am pleased that we have completed these transactions with Accurate and NuTech. Gateway International's strategic direction, as determined by our Board of Directors, is to expand our precision manufacturing operations through our Eran Engineering operation. This was reiterated when we recently sold the Eran Engineering facility and secured a new location with a 400% increase in floor space. As a result, both Accurate's manufacturing and NuTech's distribution operations were considered to be a non-core focuses going forward. In order to focus our efforts, we felt that divesting these subsidiaries was in the best interest of our shareholders at this time."

Gateway's CFO, Steve Kasprisin, added, "A primary benefit of the spin-offs of Accurate and NuTech revolves around difficulties in consolidating these firms into our corporate financial statements. With these divisions being removed, we can now complete the consolidation of financial operations on a timely basis, allowing us to continue the process of registering Gateway International with the SEC in the near future. Once we have completed the financial consolidation, we will have the foundation to once again grow through the acquisition of profitable manufacturing operations."

Investors that would like to review the financial impact of this transaction can review pro forma operating results for nine months ended June 30, 2006 at: The pro forma operating results demonstrate trailing results assuming the spin-off of Accurate and NuTech as of the beginning of the fiscal period.

Investor information is available on Gateway International Holdings website at Additionally, a downloadable Investor Fact Sheet 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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