City of Kenosha Lowers Costs with Neoware Thin Client Appliances and Software


KING OF PRUSSIA, Pa., June 14, 2004 (PRIMEZONE) -- Neoware Systems Inc. (Nasdaq:NWRE), the leading supplier of award-winning software, services, and appliances for thin client computing, today announced that the City of Kenosha, WI., with a population of over 100,000, has deployed Neoware thin client appliances and software to run virtually all of the City's software applications and public service programs.

With Neoware thin client appliances and server-based computing, applications run on servers, not the desktop. Users sit in front of a Neoware thin client appliance, a secure device with no hard drive that connects to servers via a wired or wireless network. Ongoing management is much easier than with personal computers, and performance can be improved by upgrading servers, without requiring the costly hardware upgrade cycle that is common with PCs. Because of this, Neoware's thin client appliances can last up to four times longer than a typical PC, providing significant ongoing cost savings.

The City of Kenosha previously used older Neoware products for over ten years. They then migrated to Neoware's latest thin client appliances to take advantage of Neoware's open Linux platform, the operating system environment for all of the City's servers and applications.

"Based on our previous experience with Neoware, we expect to have the majority of these Neoware devices still in use ten years from now. There's no way we could do that with a PC," said Ruth Schall, MIS Director for the City of Kenosha. "We have hundreds of Neoware desktops, and only two people managing them all-one full time, one half-time. There's no way we could have used PCs without increasing the number of personnel doing management and support."

Neoware officials say the City of Kenosha is a model for any organization interested in the cost savings benefits of thin client computing.

"The City of Kenosha is a great example of how thin client appliances can satisfy the most demanding requirements while lowering costs," says Michael Kantrowitz, Chairman and CEO of Neoware. "Neoware's software and thin client appliances are an excellent solution for enterprises looking to eliminate the management costs and obsolescence built into personal computers."

About Neoware

Neoware's software, services, and thin client appliances make computing more secure, manageable, reliable and affordable by enabling global enterprises to fully leverage server-based computing. By incorporating open, standards-based technologies and eliminating the obsolescence that is built into standard PC architectures, Neoware provides enterprises with increased flexibility and choice, as well as lower up-front and total costs.

Neoware's software products enable enterprises to gain control of their desktops, and to integrate mainframe, midrange, UNIX and Linux applications with Windows(r) and the web. Neoware's thin client appliances enable enterprises to run applications on servers, and display them across wired or wireless networks on secure, managed, reliable appliances that cost as little as one fourth the price of today's typical business PC. Neoware services enable corporations to benefit from server-based computing with training and end-to-end support.

Neoware's products are available worldwide from IBM, as well as from select, knowledgeable resellers. 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: our expectation of gaining market share as a result of our new product introductions; the growth of the thin client segment of the PC industry; our belief as to Open Management increasing thin client sales; and the benefits of our business model allowing customers to lower ongoing costs of technology 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 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 Forms 10-Q for the quarters ended September 30, 2003 and December 31, 2003.

Neoware, ThinPC and TeemTalk are trademarks of Neoware Systems, Inc. All other names products and services are trademarks or registered trademarks of their respective holders.



            

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