Neoware Systems Selects M-Systems for Flash-Based Local Storage Solution in Its New Line of Windows-Based Terminals

Business Wire, Jan 12, 2000

Business Editors and High-Tech Writers

FREMONT, Calif.--(BUSINESS WIRE)--Jan. 12, 2000

DiskOnChip Contributes to Superior Performance and Cost-Effectiveness

of NeoStation 2200 and NeoStation 2300 Series WBTs

M-Systems Flash Disk Pioneers Ltd. (Nasdaq:FLSH), the leader in flash based local storage solutions for the Internet Appliance (IA) and embedded markets, Wednesday announced that Neoware Systems Inc. (Nasdaq:NWRE) has selected M-Systems' DiskOnChip as the flash-based local storage solution for its new line of Windows-based terminals (WBTs) with built-in support for Microsoft (Nasdaq:MSFT) operating systems and Citrix (Nasdaq:CTXS) systems software.

M-Systems' DiskOnChip is now designed into the NeoStation 2200 Series and the NeoStation 2300 Series WBTs from Neoware. Neoware's NeoStation Series allows users to access applications running on multi-user Windows NT servers, as well as mainframes, minicomputers and the Internet.

Neoware's products are typically used in conjunction with multi-user Windows-based application servers running Microsoft Windows NT, Terminal Server Edition and Citrix MetaFrame(TM) server-based computing software.

The NeoStation 2300 Series comes with specially enhanced Windows CE WBT software to provide enhanced security and central administration. Both the NeoStation 2200 and 2300 can be configured with simple software additions to connect to virtually any type of computer or application.

"In addition to contributing to a faster time to market and ease of design and implementation, DiskOnChip provided us, and ultimately our customers, with many important advantages," said Jim Powell, product marketing manager of Neoware Systems Inc.

"With its integrated controller and single chip construction, it is cost-effective and reliable, contributing to our efforts to give the NeoStation superior performance at an aggressive price point. With all that and its Windows CE compatibility, DiskOnChip was the obvious choice for our NeoStation Windows-based terminals."

"We are very pleased to be a part of this award winning series of products," said Chuck Schouw, president, M-Systems Inc. "The NeoStation Series of Windows-based terminals has the same characteristics that our customers recognize in our DiskOnChip quality, innovation and value."

Windows-Based Terminals and the Thin Client Market

As recently reported by Zona Research, they predict a "coming boom" in thin clients, and believe that a major shift is underway involving how applications are deployed and accessed.

Zona predicts that this shift will provide users with access to powerful computer applications and information through inexpensive and easy to use information access devices (such as the NeoStation 2000 Series). In commercial applications, Zona has reported that thin client sales are already beginning to take off.

In its recent report "The Thin-Client Market -- 1999 and Beyond," Zona forecasts growth of the worldwide commercial market to over 2,250,000 thin client units by 2001. Zona's projections assume that, over the next three years, commercial thin clients will play a crucial role for access to mission-critical information and applications on the Internet or over company Intranets.

About Neoware

Neoware's products are "thin-client" Windows-based terminals designed to allow access to Windows-based applications running on multi-user Windows NT servers. They are designed as alternatives to dumb terminals or personal computers, offering lower up-front and administrative costs.

Neoware's products are designed primarily to run Windows applications via a server such as Microsoft Windows NT Server, Terminal Server Edition or Citrix WinFrame, plus connect to mainframes, minicomputers and the Internet. More information about Neoware can be found on the Web at http://www.neoware.com or via e-mail at info@neoware.com. Neoware is based in King of Prussia, PA.

About M-Systems Flash Disk Pioneers Ltd.

M-Systems Flash Disk Pioneers Ltd. (Nasdaq:FLSH) develops, manufactures and markets a broad range of flash data storage solutions using its patented TrueFFS technology. Leading the market for flash-based local storage applications, M-Systems is the first to bring the market a complete flash disk in a single die using its breakthrough DiskOnChip Millennium technology.

M-Systems products include DiskOnChip, Fast Flash Disk (FFD), CompactFlash, IDE Flash Disk and Flash PC Cards. For more information, contact M-Systems at 8371 Central Avenue, Newark, Calif. 94560, 510/494-2090, info@m-sys.com or on the Internet at http://www.m-sys.com.

The matters discussed in this news release contain forward-looking statements that are subject to risks and uncertainties, which may cause actual results to vary significantly. These risks include market and competitive factors, and other risks described in the company's most recent prospectuses and other periodic reports filed with the Securities and Exchange Commission. The company assumes no obligation to update the Information in this release.