Gateway International Holdings Releases Letter to Shareholders

ANAHEIM, CA   June 13, 2006   (MarketWire) - Gateway International
Holdings, Inc. (OTC: GWYI) released a letter today updating its
shareholders to the recent actions of the United States Securities
and Exchange Commission.

My Fellow Shareholders,

I write to inform you that the SEC has ruled against our Company
in our quest to return to a fully reporting status.  On May 31, 2006,
the SEC entered an order imposing remedial sanctions against Gateway
International.

I am sure that many of you are wondering, "What does this mean to
me as a shareholder?"  In order to explain the impact of the Commission's
decision and to describe our objectives going forward, I will address the
most important issues by a series of questions and answers.

Q: Is the SEC shutting down Gateway International?

A: No.  The Company will continue to operate through its subsidiaries just
as it currently does.  We will continue to serve our clients and operate
normally.  The Commission's order only impacts the public trading of the
Company's common stock.

As I discussed in our most recent quarterly letter to shareholders, from
an operational standpoint Gateway International is achieving new heights.
Our sales and manufacturing divisions are performing excellent year-to-date.
For the first half of the year, October 1, 2005   March 31, 2006, our portfolio
of companies has achieved record high revenues and we anticipate continued
growth for the foreseeable future.

Q: What happens to my stock?

A: The result of this order is that the registration of our common stock
has been revoked and our Company has become private.  You still own your
stock in Gateway International; however, it is stock in a private company,
as opposed to being publicly traded.

Q: Will the Company ever be public again?

A: We will take all steps available to us to cause our common stock to
trade publicly again.  We initially fell out of compliance because we could
not obtain the information we needed to complete our annual audited financial
statements or quarterly reports.  We eventually were able to file our Forms
10-KSB for the fiscal years 2004 and 2005 with audited financial statements
and the Form 10-QSB for the first quarter of fiscal year 2006.  We have hired
new auditors and new corporate counsel. We intend to install a computer
accounting system which will enable us to produce accurate financial
information for our Company and its subsidiaries as a group.  In the last
two years we have spent over $1.5 Million to accomplish this.  If and when
the company is able to accomplish a new registration of its common stock
and again become a public company, I believe we will be able to fulfill
our reporting obligations on a timely basis.

Q:  When will the Company be public again?

A: We cannot answer that at this time.  We will contact the SEC's Division
of Corporation Finance concerning the alternatives available to us.  We will
keep our shareholders advised of our progress.

Q: How will I get reports about the Company now?

A: The Company will not be filing quarterly and annual reports with the SEC
unless and until it becomes public again.  Until that time we will keep our
shareholders informed by shareholder letters.  We may from time to time make
press releases and will post important information on our website.

Q: Why was Gateway International's registration revoked?

A: Our registration was revoked because of our failure to file timely quarterly
and annual reports. The principal reason that we were originally unable to meet
our reporting requirements was a result of two acquisitions that were completed
in 2003, Bechler Cams and Nelson Engineering, both of which have since been
rescinded.  One of the subsidiaries sued Gateway, resulting in costly
litigation.  After the legal action was settled, we began trying to address
the accounting issues relating to those companies that became the primary
hurdle for filing updated quarterly and annual reports to bring us back
into compliance.  We finally succeeded in making a late filing of the
missing quarterly reports and annual reports, as well as the first quarter
2006 report.  However, the SEC nevertheless revoked the registration of our
common stock based on the failure to file these reports on a timely basis.

In closing, I would like to let all of our shareholders know that we are doing
everything within our power to resolve this situation as quickly as possible.
We are focused on our shareholders and doing everything that we can to return
the Company to a publicly traded platform.  I am naturally disappointed in the
SEC's ruling, particularly given the Company's extraordinary and expensive
efforts to resolve the accounting issues and return to reporting compliance
The Company remains healthy and we will get through this with time.  I look
forward to the day when we can resurface as a fully reporting company.
Additionally, I am hopeful that we will achieve this goal in an expeditious
manner.


Sincerely,

Larry Consalvi
CEO
Gateway International Holdings, Inc.


"SAFE HARBOR"

This press release contains forward-looking statements within the
definition of Section 27A of the Securities Act of 1933, as amended and such
section 21E of the Securities Act of 1934, amended. These forward-looking
statements should not be used to make an investment decision. 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.

Source: Gateway International Holdings

Investor Contact:
First Capital Investors, Inc.
Trey Meehan
321-221-2910
GWYI@firstcapitalinvestors.com