SOURCE: Gateway International Holdings, Inc.

April 03, 2007 11:00 ET

Gateway International Reports Financial Results

ANAHEIM, CA -- (MARKET WIRE) -- April 3, 2007 -- Gateway International Holdings, Inc. (PINKSHEETS: GWYI) announced today that it has filed interim financial statements at and Standard & Poor's for the 6 month period ending December 31, 2006. The complete filing can be found at and, and then proceed to the Financial Reports tab.

On March 27, 2007, the Company announced the divestiture of two of its operating subsidiaries. The following information excludes the operating results of the discontinued operations from the beginning of the fiscal year.

For the six months ended December 31, 2006, Gateway reported net revenues of $7,669,788, versus $5,018,260 for the 6 months ended December 31, 2005, representing a 52.8% increase. Gross profit came in at $2,226,948, a Gross Margin of 29.1% as compared to $1,134,366 or 22.6% for the same period of 2005. Operating Expenses totaled $1,830,006 or 23.9% as compared to $3,472,942 or 69.2% in 2005. Operating expenses in the 6 months ended December 31, 2005 included $1,065,134 in one-time professional fees related to the company's negotiations with the Securities and Exchange Commission and related accounting fees. Net income totaled $227,513 as compared to a net loss of $(1,894,293) for the same period in 2005. Net income included a net loss from discontinued operations of $159,047 in 2006 and $125,483 in 2005.

Gateway's CFO, Steve Kasprisin, commented, "We are happy that we continue to see improvement in operating efficiencies and increased profits from our core companies. Now that we have divested our non-core companies, we can focus on continuing the growth we have seen over the past 6 months and complete the consolidation of our back office support functions. One of the primary reasons that the Company had difficulties meeting reporting requirements was due to difficulties of our multiple subsidiaries to close their books in a timely fashion. We now have much stronger controls and expect to be able to report accurate results on a timely basis going forward."

Investor information is available on Gateway International Holdings website 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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