Air Canada Improves Reliability and Leverages Existing Systems with Neoware Thin Client Appliances and Software

Available through IBM, Neoware Products Integrate New Technology with Legacy Systems at a Cost Far Lower Than PCs


KING OF PRUSSIA, Pa., Feb. 9, 2004 (PRIMEZONE) -- Neoware Systems (Nasdaq:NWRE), the leading supplier of award-winning software, services and thin client appliances, today announced that Air Canada has standardized on Neoware thin client appliances at its passenger, cargo and operational facilities, as well as reservation centers in North America, Europe and Asia. The deployment has allowed Air Canada to replace an aging architecture of green-screen terminals with faster, more reliable desktops provided by Neoware's thin client appliances.

"Neoware's thin client appliances allow us to extend our commitment to customer service at a much lower cost than deploying PCs, while allowing us to protect our investment in legacy systems and software," says Grant Fengstad, Director of IT Architecture and Strategy at Air Canada. "Our internal analysis of Neoware's thin client appliances showed that not only are they less expensive to buy upfront, but they also are more cost effective over the long term. The centralized administration of thin client appliances reduces ongoing maintenance demands, while offering a longer useful life."

Previously, Air Canada relied on an aging technology infrastructure based on multiple communication standards and limited green-screen terminals that were not upgradeable. "It was critical to maintain access to existing legacy systems while migrating our IT infrastructure," says Fengstad. "Neoware was able to customize a solution that included our Java-based emulator software."

Before using Neoware thin client appliances, when green screen terminals failed, "Our desktops were difficult and costly to maintain, with many of the parts no longer being manufactured," says Fengstad. Compared to personal computers, thin client appliances have no moving parts to wear out or break. The end result is greater reliability and responsiveness that improves productivity in both passenger services and air cargo operations. "Our Neoware thin client appliances never go down, and they are quicker to boot up- providing 'always on' service capabilities to our customers."

At the same time, the flexibility and upgradeability of Neoware thin client appliances allow for constant service improvements. Air Canada, for instance, plans to add Web connectivity, and when it does, the upgrade can be made through a single centralized administrator-rather than technicians in the field. The key is Neoware's ezRemote Manager software-a powerful tool that simplifies desktop management and vastly reduces the cost of network administration.

"More and more, customer service is the ultimate product differentiator among airline competitors," says Michael Kantrowitz, Chairman and CEO of Neoware Systems. "The threshold to that service is often the reliability of technology. Air Canada's decision to choose Neoware thin client appliances has given the company a less expensive, more reliable alternative - saving money while protecting decades of investment in legacy systems and software."

IBM's Global Services Division is managing Neoware's thin client appliance deployment for Air Canada. IBM sells Neoware products as part of a strategic sales and marketing alliance between the two companies. IBM customers can purchase Neoware products directly from IBM and via IBM Business Partners, gaining the benefits of Neoware's products at the same time that they purchase other IBM hardware, software and services.

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: Air Canada's plans to deploy our thin client appliances; 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 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 Air Canada's acceptance of our thin client 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, adverse changes in general economic conditions in the U.S. and internationally 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 and Form 10-Q for the quarter ended September 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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