Neoware's Eon Platform Wins PC World's Highest Rating for Linux Appliances

Business Wire, May 10, 2000

Business Editors

KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--May 10, 2000

Neoware Systems, Inc. (NASDAQ: NWRE) today announced that its Eon Linux-based information appliance has received the highest rating by PC World Magazine in Denmark in a head-to-head comparison of Linux-based platforms from four leading vendors. PC World selected Neoware's Eon as their "Recommended" Linux-based information appliance.

In the review PC World calls the Eon a "small box with lots of possibilities" and commented that the Eon "is easy to set up and use." Commenting on the flexibility and versatility of Neoware's NeoLinux operating system, PC World states, "... as a developer you can make the changes you wish. (You can) change the embedded software, even if you would like to use the Eon as something other than a thin client." PC World also touted the Eon as a "good purchase."

Under "Advantages," PC World classifies the Eon as "user-friendly, with many upgrade possibilities." As for "Disadvantages" PC World lists "None." The Eon won a total of five points - the highest rating received by any of the tested products.

"We are very pleased that our new Eon platform has been recognized by PC World Magazine," stated Michael Kantrowitz, Neoware's president and CEO. "This exciting new Linux-based information appliance can be tailored for a variety of business focused applications including Web kiosks, routers, firewalls, point-of-sale stations, thin clients, e-mail stations and security devices. Being recognized by PC World reinforces Neoware's position as an innovator and leader in the emerging Linux-based information appliance market."

A summary of the article, which is in issue 08/00, can be found on PC World Denmark's Internet site is located at www.pcworld.dk

About Neoware

Neoware provides the software and infrastructure to allow the wide-scale deployment of information appliances in business environments. Neoware's software and management tools are designed to power a new generation of smart devices that bring the benefits of open, industry-standard technologies to a wide variety of proprietary business devices. Neoware's products are designed to run local applications for specific vertical markets, plus allow access to Linux servers, the Internet and Windows-based applications running on multi-user Windows servers. Neoware's infrastructure software powers and manages information appliances, which are designed as alternatives to

proprietary devices and general-purpose personal computers, offering the cost benefits of industry-standard hardware and software, easier installation, as well as lower up-front and administrative costs. More information about Neoware can be found on the Web at http://www.neoware.com or via email at info@neoware.com. Neoware is based in King of Prussia, PA.

This release contains forward-looking statements that are within the meaning of the Private Securities Litigation Reform Act of 1995, and relate to, the development of the Company's products and future operating results that are subject to certain risks and uncertainties that could cause actual results to differ materially from those in such forward looking statements. Forward looking statements include those concerning the Company's ability to become a leading supplier of software and infrastructure and the ability of its partners and customers to tailor Eon for a variety of applications. The words "believe", "expect", "intend", "anticipate", variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could affect the Company's actual results include risks associated with Neoware's new strategy as a supplier of software and infrastructure to enable deployment of information appliances, including the new Linux-based products, the Company's ability to obtain additional financing and strategic partnerships, customers' acceptance of Neoware's products, pricing pressures, the Company's ability to lower its costs, rapid technological changes in the industry, growth of the information appliance market and increased competition. Reference is made to the Company's Annual Report on Form 10-K for the year ended June 30, 1999 and the Prospectus Supplement dated February 16, 2000 filed with the SEC for a more detailed description of such factors. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of this release. The Company undertakes no obligation to update publicly any forward- looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.

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