Is The Personal Computer About to be Eclipsed by Thin Client Appliances in Major Enterprises?

Independent Survey of 1,624 IT Professionals Reveals That Thin Client Appliances are More Affordable, Secure, Manageable and Reliable than Personal Computers


KING OF PRUSSIA, Pa., Nov. 03, 2003 (PRIMEZONE) -- An independent research survey of 1,624 IT professionals conducted by QNB Intelligence-the primary research division of Quocirca, one of Europe's most authoritative independent business analyst organizations, found that thin client appliances offer significant advantages over personal computers for major enterprises.

The survey entitled, "The Use of Server Based Computing and Thin Client Technology" found that on every major criterion, thin client computing delivers greater value, security, manageability and reliability than PCs. In fact, the survey found that on initial investment alone thin clients are a smarter option. A whopping 81% of thin client users indicated that the initial investment in thin clients save their companies at least 10-20% compared to PCs, including server deployment. And 50% of these same respondents said that their corporations save 30% or more when thin clients are deployed instead of PCs.

The benefits do not end there. While only 26% of the respondents term PC administration a minor task, 78% of thin client appliance users consider thin client appliance administration a minor task.

Thin client appliances were also deemed more reliable. For example, 17% of respondents believe their PCs will last 5 years or more. That compares to 58% of respondents who believe their thin client appliances will last more than 5 years-double the life span of a PC according to 60% of the respondents.

Thin client appliance users also benefit from better security. In fact, 52% of PC administrators reported installing more than 20 security patches over the last year; only 4% had installed none. In comparison, 55% of thin client appliance administrators had installed none.

"On every major criterion, IT professionals reported that thin clients provide significantly greater value than personal computers," stated Michael Kantrowitz, Chairman and CEO of Neoware Systems. "The extent of this value-in cost savings, security, manageability and reliability-suggests that IT decision makers at every level of the corporation must evaluate thin client appliances as a smarter alternative to networked personal computers.

Neoware Systems (Nasdaq:NWRE), the leading supplier of award-winning software, services and thin client appliances that enhance security, reliability, and manageability, lower costs, and provide on-demand access to legacy systems, sponsored the survey, which was concluded on October 7, 2003.

"Thin client products, such as those developed by Neoware, have proven to be cost effective options for companies who are seeking to deliver information on demand to users across their organization," said John-Marc Clark, director of World Wide Market Research and World Wide Analyst Relations for Citrix Systems, the global leader in access infrastructure solutions. "By centralizing applications and information, IT can be run as a computing utility, reducing its complexity, simplifying the administration of resources, enhancing security. All of these factors are tremendously positive for our customers."

"This research alleviates some of the myths around thin client computing," says Dale Vile, Service Director of QNB Intelligence. "Respondents utilized both thin client appliances and personal computers and their experience clearly demonstrates that organizations can receive significant benefits in cost savings, security, manageability and reliability by deploying thin client solutions."

To view a full copy of "The Use of Server Based Computing and Thin Client Technology" survey, please visit www.neoware.com/report.

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 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, 2003.

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



            

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