Gateway has landed a deal with Tesco to sell computers at Tesco stores in Eastern Europe.

Gateway will sell products in Tesco stores in the Czech Republic, Hungary and Slovakia. Gateway already sells PCs at some of Tesco's UK retail stores.

The move into Eastern Europe builds on the success Gateway has had in retail stores in other international markets, the company said.

But Gateway has seen sharp declines in its US business. For the second quarter, Gateway saw a drop in PC shipments, down to 965,000 PCs from 1.04 million machines during the same quarter of 2006, according to statistics released earlier this month by market analyst IDC.