Netgateway, Inc.
Long Beach, California


February 9, 2000


Gentlemen:

We have been furnished with a copy of Form 10-Q of Netgateway, Inc. for the
three and six months ended December 31, 1999, and have read the Company's
statements contained in Note 3 to the condensed consolidated financial
statements included therein. As stated in Note 3, the Company changed its method
of accounting for contracts from the completed-contract method to the
percentage-of-completion method and states that the newly adopted accounting
principle is preferable in the circumstances because revenue recognition under
the percentage-of-completion method more accurately reflects the current
earnings process under the Company's contracts. In accordance with your request,
we have reviewed and discussed with Company officials the circumstances and
business judgment and planning upon which the decision to make this change in
the method of accounting was based.

We have not audited any consolidated financial statements of Netgateway, Inc. as
of any date or for any period subsequent to June 30, 1999, nor have we audited
the information set forth in the aforementioned Note 3 to the condensed
consolidated financial statements; accordingly, we do not express an opinion
concerning the factual information contained therein.

Under Statement of Position 81-1, Accounting for Performance of
Construction-Type and Certain Production-Type Contracts, issued by the American
Institute of Certified Public Accountants, the use of the
percentage-of-completion method is preferable if reasonably dependable estimates
of the extent of progress toward completion, contract revenues, and contract
costs can be made.

Based on our review and discussion, with reliance on management's business
judgment and planning, we concur that the newly adopted method of accounting is
preferable in the Company's circumstances.

Very truly yours,

KPMG LLP