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Gateway wins chunk of $250 mln Calif. state deal SAN FRANCISCO (Reuters) - Gateway Inc. (GTW.N: Quote, Profile, Research) on Friday said it had been selected as a primary supplier of personal computers for the State of California in a deal that amounts to Gateway's biggest-ever government contract. The Irvine, California-based company has been chosen to act as one of two approved suppliers for desktop and notebook computers as well as exclusive vendor of PC displays under the California Strategic Sourcing Initiative (CSSI). The state technology buying plan has a computer purchasing budget estimated at around $250 million over the next three to four years, Gateway spokeswoman Lisa Emard said. "We expect to get a substantial portion of this business," Emard said. Lenovo Group (0992.HK: Quote, Profile, Research) of China, which in May acquired the PC business of International Business Machines Corp. (IBM.N: Quote, Profile, Research), was named as a second source of notebook PCs with its "Think" brand of products. Hewlett-Packard Co. (HPQ.N: Quote, Profile, Research) of Palo Alto, California will act as a second supplier of desktops, a Gateway spokeswoman said. Gateway was named the exclusive supplier of PC displays. Starting July 1, Gateway has won what is known in the industry as a "hunting license" to win business from California state government departments looking to buy PCs or monitors. The deal is a two-year agreement and has an option to be extended for three additional one-year terms, Gateway said. Consolidated purchasing of computer hardware is part of a bid by the budget-strapped state to slash costs. A spokesman for the State of California was not immediately available to comment.
http://www.microsite.reuters.com
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