Neoware Introduces Powerful New Linux-powered Thin Clients

New Capio and Eon Proven Models Provide Advanced Thin Client and Software Functionality at Industry-leading Prices


KING OF PRUSSIA, Pa. , March 10, 2004 (PRIMEZONE) -- Neoware Systems, Inc. (Nasdaq:NWRE), the leading supplier of award-winning software, services and appliances for the thin client market, today introduced new thin client appliances that feature the power and flexibility of the Linux operating system, with prices beginning at $399.

Neoware's thin client products enable enterprises to run off-the-shelf Windows(R), UNIX, mainframe or Internet applications on solid-state appliances that have no hard drive, floppy, CD, fan, or other moving parts. Applications run on servers, and display on thin client appliances across a network with all the performance of a traditional personal computer, but with significantly enhanced security, reliability, and manageability, and at lower cost. Neoware offers a broad family of thin client appliances and software, including thin clients that run Microsoft(R) Windows(R) CE .Net, Windows XP Embedded, and Linux.

Neoware's new Linux-powered thin clients use the same hardware platform as Neoware's popular Capio and Eon Proven thin clients, which are also available with a choice of Windows CE, Windows XP, and an embedded version of the Linux operating system that only allowed users to run Windows applications from a server, and could not be customized. With the introduction of these new models, Capio and Eon Proven customers have a choice of two new full-featured thin client appliances with local web browsers, a full suite of terminal emulators, and the ability to embed local Linux applications. These new Linux-powered thin clients are available immediately at prices beginning at $399, more than $100 below previous Linux-powered thin client appliances from Neoware.

Capio is Neoware's fast, easy, affordable family of thin client appliances, which is available to customers exclusively through the distribution channel via hundreds of qualified, knowledgeable resellers worldwide. These new Linux-powered Capio models expand this award-winning product family beyond the current Windows offering at new, lower price points.

Eon is Neoware's customizable, upgradeable, expandable family of thin client appliances, and is available worldwide from IBM and qualified, select resellers. With these new product introductions, Eon customers can choose a single hardware platform, then choose the Windows CE .Net, Windows XP Embedded, or Linux operating system, add their own custom capabilities and manage it all with a single, remote management solution.

"These important new Neoware products offer customers more choice and flexibility, at prices that will save them money -- both up-front and over time -- compared with traditional personal computers," commented Michael Kantrowitz, Chairman and CEO of Neoware Systems. "Neoware thin client appliances improve our customers' security, enhance their ability to manage large numbers of desktops, and improve the reliability of their computing environments. These advantages help customers lower their ongoing costs, and are driving the acceptance of thin client technology by enterprise customers."

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: our position as the leading supplier of software, products, services and solutions for the Appliance Computing market; the adoption and reasons for adoption of thin client Appliance Computing by enterprises; 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 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
(610) 642-8253                        (610) 277-8300, ext. 1743
email: tim@gregoryfca.com             email: sharon.oshea@neoware.co

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