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Neoware expands Capio line delivering advanced thin client
and software functionality at entry level pricing

Bracknell, April 23, 2003 - Neoware Systems, (Nasdaq: NWRE), the leading
supplier of award-winning software, services and managed thin client
appliances, today introduced Microsoft's Windows XP Embedded operating
system to its Capio thin client family. This latest Capio thin client
provides more features than any other competitive thin client offering.

Capio is Neoware's family of fast, easy and affordable thin client
appliances, designed for customers who value superior performance and
ease-of-use, as well as low up-front and ongoing costs. Capio is a complete
family of thin client appliances that connect to Windows, UNIX, mainframes,
midrange systems and the Internet with central management and greater
security than desktop personal computers. Capio is available to customers
exclusively through the reseller channel and is available via distributors
to hundreds of qualified, knowledgeable resellers worldwide.

This new capability of Neoware's Capio family comes on the heels of a new
report from IDC, which found that the thin client market is experiencing
robust growth and that Neoware is the fastest growing player in thin client
computing. According to IDC, the thin client market grew at more than
thirteen times the rate of the PC market in 2002 and now represents
approximately one percent of the overall desktop market. Neoware's unit
shipments grew at nine times the rate of the market, dramatically outpacing
competitors and placing Neoware in the number two position in US, Europe and
worldwide.

"Neoware's Capio thin client appliance with Microsoft Windows XP Embedded is
an important addition to our fast, easy and affordable line of Capio thin
client appliances," said Peter Bolton, VP of European Sales and Marketing at
Neoware. "With the thin client industry growing, we are not only offering
new and innovative products, but we are raising the bar by providing a
complete family of thin client appliances with superior quality and the
features that people actually need."

Neoware Capio family is based on industry-standard, open technology, which
allows customers to select from Capio models with Linux, Windows CE, Windows
NT and Windows XP Embedded operating systems and even migrate from one
operating environment to another at any time. The fact that Neoware uses
industry-standard operating systems provides customers with access to the
latest software applications much more quickly than competitors who utilise
proprietary operating systems. Like all of Neoware's thin client
appliances, Capio comes complete with Neoware's enterprise-class management
solution, ezRemote Manager, which provides the ability to remotely discover,
secure, manage and upgrade thousands of thin clients, including those from
Neoware, IBM, NCD and Boundless on local and wide-area networks. Capio's
thin client hardware platform offers superior reliability and includes all
of the features that users need, including serial and parallel ports for
connection to printers and other devices.

Capio, featuring Microsoft Windows XPe, is available now with a street price
of £499 through Neoware's existing channel of authorized distributors and
resellers. Other Capio models feature prices beginning at £199.

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.

This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including statements
regarding: the growth of the thin client market; our position as the fastest
growing player in the thin client computing market; 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 preserve capital investment and 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 our ability to continue to lower our costs, our timely development and customers'
acceptance of our Appliance Computing 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, our ability to identify and successfully consummate and integrate future acquisitions, adverse changes in customer order patterns, adverse changes in general economic conditions in the U.S. and internationally, risks associated with foreign operations 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, 2002
and Form 10-Q for the quarter ended December 31, 2002
Neoware is a registered trademark of Neoware Systems, Inc. All other names
products and services are trademarks or registered trademarks of their
respective holders.


Natasha Staley
Senior Account Executive
éclat Marketing
natasha@eclat.co.uk

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