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Innovative Software Application Protects Investment in PCs by Providing a Bridge to Thin Client Computing

Bracknell, 6 May, 2003 - Neoware Systems, Inc. (Nasdaq: NWRE), the leading supplier of award-winning software, services and managed thin client appliances, announced today the introduction of ThinPCTM, a software application which enables customers to extend the benefits of thin client
appliance computing to personal computers. The new software provides access to server-based applications with no additional investment in desktop hardware by transforming PCs into centrally managed thin clients.

ThinPC is a natural extension of Neoware's strategy of providing dependable, easy to use, secure, cost effective thin client solutions to improve the manageability of an organisation's PCs with minimal impact on existing corporate infrastructure. ThinPC significantly expands Neoware's market
opportunity into a larger market, with a product that has appeal to more than 50 million server-based computing users worldwide.

ThinPC is ideal for customers seeking the benefits of thin client appliances, but have significant investment in PCs. ThinPC delivers all the user and system administration benefits of managed thin client appliance computing, including dramatically reducing enterprise computing costs by
enabling companies to run applications on servers, not the desktop, allowing centrally managed application deployment and upgrades, strengthened security, and dramatically reduced ongoing administration costs. In addition, ThinPC allows for the use of any Microsoft Windows supported
device or the local execution of any Microsoft Windows application.

Neoware customers are already seeing the benefits of the ThinPC solution. According to Michael Seymour, Information Technology Director at the Forsyth County Day School, "Neoware's ThinPC is a cost effective way to initially deploy a thin client solution. With the new Windows 2003 operating system, we have the ability to map local drives such as floppy and CD-ROM."

ThinPC demonstrates the strength of Neoware's unique business model, enabling customers to protect their investments in their existing hardware. Investment protection is inherent in ThinPC, allowing customers to extend the use of personal computers by converting them into secure, centrally
managed thin clients.

According to Michael Kantrowitz, Chairman and Chief Executive Officer of Neoware, "ThinPC is an important addition to our product line and a valuable tool that provides a secure environment to businesses and organisations with PC-based networks.

Kantrowitz said ThinPC represents an opportunity for Neoware to introduce server-based computing to businesses while allowing them to retain their existing PC desktops. "With this new and exciting solution," he said, "our market opportunity is dramatically larger." He added, "ThinPC is an
excellent entry point for us. By introducing new customers to thin client computing in a low-impact, low-cost fashion, we can now function as a partner in customers' migration to server-based computing, and develop long-lasting relations as these customers transition from traditional
desktop hardware to thin client appliances."

With ThinPC's minimal desktop hardware requirements and no additional costs for memory or hard disk space, companies can leverage their exiting PC desktops to deliver a managed thin client, server-based solution. ThinPC offers Neoware access to new markets and customers, businesses and other
organisations can now access the flexibility and efficiencies associated with thin client computing. These include:

· Enhanced Network Administration. ThinPC offers

administrators the opportunity to capitalize on centralized management.

Converted PCs become immune to unauthorised changes by end users, and this
centralisation of control makes everything from uniform application
deployment to security easier and faster.

· Reduction of Desktop Hardware Ownership Costs. The
estimated annual difference in ownership costs between PCs and thin clients
is approximately $4,500, according to leading analysts. With the
application of ThinPC, organisations with PC-based networks can now begin to
realise this cost saving without acquiring new hardware.

* Preservation of Desktop Investment. Although PC-based networks
present security and administrative challenges, the capital invested in
their development precludes rapid or wholesale change. With ThinPC,
businesses can extend the life of their investment in desktop hardware as
they migrate to a network-based architecture.

Kantrowitz concluded, "ThinPC is a win, win. Neoware wins with new markets
and new clients. Businesses win with more flexibility, lower costs, and if
they choose to take it, a clear migration path to thin client appliance

Central management is achieved through ezRemote Manager, Neoware's
enterprise management solution that provides central management of Neoware,
Boundless, NCD, IBM thin clients, and now personal computers running ThinPC.
ezRemote Manager further reduces costs by enabling system administrators to
locate, manage, secure and upgrade thousands of thin clients and PCs running
ThinPC without leaving their desk.

Pricing for ThinPC and ezRemote Manager is £89.00. Through an introductory
promotion ThinPC and ezRemote Manager are available for £69.00 through July
31, 2003.

For further press information, please contact:

Natasha Staley
0118 989 5600

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
<> or via email at
. 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 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; the
benefits of our software-focused business model allowing customers to
preserve capital investment and lower ongoing costs of ownership; and the
growing adoption rate of thin client technology. 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 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

Tel: 0118 989 5600

Mob: 07899 957022

Fax: 0118 989 5656


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