Ardent Health Services Teams with IBM and Neoware to Upgrade Health Network

Health services provider replaces PCs with over 2,500 thin clients to enhance security and centralize software management


KING OF PRUSSIA, Pa., June 16, 2003 (PRIMEZONE) -- Neoware Systems (Nasddaq:NWRE), the leading supplier of software, services and thin client appliances, today announced that Ardent Health Services is deploying over 2,500 of Neoware's thin client appliances to simplify desktop management and keep pace with Ardent's rapidly expanding roster of health care facilities.

Ardent Health Services of Nashville, TN was looking for a cost-effective method to replace the aging PCs in its growing operation of 27 behavioral and acute care hospitals located in 12 states. Neoware partnered with IBM (NYSE:IBM) to upgrade the computing platform of three of Ardent's health care facilities. Ardent installed Neoware's thin client appliances and ezRemote Manager software, which provides a single interface for managing, installing, updating and securing software on thin client appliances.

Neoware's thin clients are being used at Ardent's facilities in the pharmacy, nursing stations, laboratories and business offices. Ardent selected Neoware's thin client appliances over PCs because they "lock down" the users' environment, preventing the introduction of unauthorized software and viruses. In addition, Neoware's thin client appliances are less expensive to purchase and administer than PCs because centralizing the management of software on the server means the IT staff does not have to go in the field to perform upgrades.

"As a rapidly growing company, we benefit tremendously from the repeatability of easily deploying Neoware's thin clients anywhere in our network -- whether it's in Baton Rouge or Albuquerque," said Geoff Roten, Ardent's assistant vice president of IT. "Using Neoware's hassle-free thin clients at 'point of care' locations enable our health care professionals to focus on what they do best -- take care of patients."

Neoware's thin client appliances, which do not have floppy drives or hard drives, offer enhanced protection of patient privacy as required by HIPAA regulations, since confidential records can not be copied and removed. The fact that applications run on servers, rather than desktop PCs, reduces support costs and also prevents staff from accessing the non-essential programs that ordinarily ships with PCs.

"Through Neoware's leading thin client technology and our cooperation with IBM, we were able to help Ardent reduce the technology burden on staff and enhance patient privacy," stated said Michael Kantrowitz, Chairman and CEO of Neoware Systems. "By moving the complexity of technology back to the data center, Ardent made the right diagnosis in selecting thin client computing."

Ardent Health Services represents the latest addition to the growing list of healthcare organizations that have put Neoware's thin client appliances and software to work in providing more efficient information access.

About Ardent Health Services

Ardent Health Services is a provider of health care services to communities throughout the United States. Ardent currently owns 27 hospitals in 12 states, providing a full range of medical/surgical, psychiatric and substance abuse services to patients ranging from children to adults.

About Neoware

Neoware provides software, services, and solutions to enable Appliance Computing, a proven Internet-based computing architecture targeted at business customers that is designed to be simpler and easier than traditional PC-based computing. Neoware's software and management tools power and manage a new generation of smart computing appliances that utilize the benefits of open, industry-standard technologies to create new alternatives to personal computers used in business and a wide variety of proprietary business devices.

Neoware's products are designed to run local applications for specific vertical markets, plus allow access across a network to multi-user Windows servers, Linux servers, mainframes, minicomputers, and the Internet. Computing appliances that run and are managed by Neoware's software offer the cost benefits of industry-standard hardware and software, easier installation, and have lower up-front, maintenance, and administrative costs than proprietary or PC-based alternatives.

More information about Neoware can be found on the Web at http://www.neoware.com or via email at invest@neoware.com. Neoware is based in King of Prussia, PA.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding: the growth of the thin client market; our position as the fastest growing player in the thin client computing market; our position as the leading supplier of software, products, services and solutions for the Appliance Computing market; and the benefits of our software-focused business model allowing customers to preserve capital investment and lower ongoing costs of ownership. These forward-looking statements involve risks and uncertainties. Factors that could cause actual results to differ materially from those predicted in any such forward-looking statement include our ability to continue to lower our costs, our timely development and customers' acceptance of our Appliance Computing products, pricing pressures, rapid technological changes in the industry, growth of the Appliance Computing market, increased competition, our ability to attract and retain qualified personnel, our ability to identify and successfully consummate and integrate future acquisitions, adverse changes in customer order patterns, adverse changes in general economic conditions in the U.S. and internationally, risks associated with foreign operations and political and economic uncertainties associated with current world events. These and other risks are detailed from time to time in Neoware's periodic reports filed with the Securities and Exchange Commission, including, but not limited to, its report on Form 10-K for its fiscal year ended June 30, 2002 and Form 10-Q for the quarter ended December 31, 2002

Neoware is a registered trademark of Neoware Systems, Inc. All other names products and services are trademarks or registered trademarks of their respective holders.


 From:                                For:
 Gregory FCA Communications, Inc.     Neoware Systems, Inc.
 27 W. Athens Ave.                    400 Feheley Drive
 Ardmore, PA  19003                   King of Prussia, PA  19406

 Contact:                             Contact:
 Tim Cifelli                          Sharon O'Shea
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 email: tim@gregoryfca.com            email: sharon.oshea@neoware.com