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October 28, 1999

Micron Strikes Another Massive Memory Deal With Gateway

By CBR Staff Writer

Just days after cutting a massive memory supply deal with Compaq Computer Corp, Micron Technology Inc has signed a similar deal with Gateway Inc. The companies are not giving any financial details of the five-year deal, but the Compaq deal was said to be worth $20bn, and this agreement will be in the same ballpark. The Boise, Idaho-based company will supply a major chunk of Gateway’s DRAM requirements for the next five years, although exact amounts are not being specified. Micron is already a major source of memory chips for Gateway. Gateway and Compaq see these kinds of deals as offering a well- priced and steady supply of memory against the backdrop of a volatile market for DRAM chips. However, both are free to source their chips from other suppliers. á

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