Exhibit 99.1



Wednesday July 25, 2001  11:17 am Eastern Time


Netgateway, Inc. Announces Conversion of King
William Debt to Common Stock

Agreement Eliminates $2.2 Million in Debt And Risk of Substantial
Future Dilution

OREM,  Utah,  July 25  /PRNewswire/  --  Netgateway,  Inc. (OTC Bulletin  Board:
NGWY.OB - news) announced  today that it has signed a definitive  agreement with
King  William,  holder of a $2.5 million  convertible  note, to convert the note
into common stock of Netgateway,  a $400,000 unsecured  non-convertible  note of
Netgateway  and a one time  payment of  $100,000.  King William will forgive the
$400,000 promissory note upon the satisfaction of certain conditions.

Under the new agreement,  King William will be issued  approximately 2.8 million
additional  shares of  Netgateway,  bringing its total holdings in Netgateway to
approximately  10%. If 2.8 million shares are issued the transaction would value
them at  approximately  $.75 per share.  The exact number of shares to be issued
will be based on the total number of shares of Netgateway  that are  outstanding
at the time of the  conversion.  Consummation  of the  agreement is subject to a
number of conditions.  Completion of the conversion is presently  anticipated on
or before August 7, 2001.

Said Netgateway  Chairman and Chief Executive,  Don Danks, "I am excited to have
the opportunity to eliminate this debt and believe that this agreement speaks to
the growing confidence our debt holder has in the future of Netgateway.  I think
this makes clear they see  Netgateway  as a viable  company with a great deal of
potential  for future  growth.  They will now join fully  Netgateway's  existing
shareholders  as  equity  stakeholders  and the  company  believes  they will be
supportive of management's  efforts to grow the company and seek  recognition by
the market of its full value."

Danks added,  "This agreement creates a definitive  capital structure and should
bring a greater  level of stability  and  certainty  to the value of  Netgateway
stock  because  the  risk of  substantial  dilution  through  conversion  of the
debenture will be eliminated. This is a terrific development for the company and
all of its shareholders, including King William. This agreement should also make
it easier for the company to obtain additional capital to finish cleaning up its
balance sheet and for working capital.  We can now redouble our efforts to build
revenues,  become even more  profitable and broaden the market for the Company's
stock."


About Netgateway

Netgateway is a leading technology and training company delivering  eServices to
small businesses and entrepreneurs.  Netgateway  provides eServices and training
to over 100,000 customers annually. Netgateway enables companies of all sizes to
extend  their  business to the  Internet  quickly,  effectively  -- with minimal
investment.  Netgateway develops,  hosts, licenses, and supports a wide range of
Internet  applications.   Netgateway  (www.netgateway.com)  is  located  at  754
Technology Ave.,Orem, UT 84097.

Information  included within this press release  describing the projected growth
and future results and events,  including the consummation of the aforementioned
agreement,  forgiveness  of the  $400,000  promissory  note and the  anticipated
benefits of the agreement,  constitute  forward-looking  statements,  within the
meaning of the Private Securities Litigation Reform Act of 1995. Such statements
involve known and unknown risks,  uncertainties and other factors that may cause
the  actual  results  to  be  materially  different  from  any  future  results,
performance or achievements  expressed or implied by such  statement,  including
without  limitation,  continued  demand  for  and  acceptance  of the  company's
products and services and the company's ability to raise additional capital. Any
forward-looking  statements should be considered in light of these factors.  The
Company  undertakes  no  obligation  to  publicly  release  any  forward-looking
information to reflect  anticipated  or  unanticipated  events or  circumstances
after the date of this press release.