Neoware Software and Products Selected by Lockheed Martin

KING OF PRUSSIA, Pa., June 13, 2002 (PRIMEZONE) -- Neoware Systems (Nasdaq:NWRE), the leading supplier of award-winning software, services and solutions for the Appliance Computing market, today announced that Lockheed Martin's Manassas, Va., Naval Electronics and Surveillance Systems-Undersea Systems facility has selected Neoware thin client appliances.

Lockheed Martin is a customer-focused, global enterprise principally engaged in the research, design, development, manufacture and integration of advanced technology systems, products and services for government and commercial customers. As an integrator of large, complex and consequential advanced technology systems, Lockheed Martin needed a seamless replacement within its current environment for obsolete X Window terminals. The units had to run the UNIX Common Desktop Environment (CDE), with access to compilers, editors, software control, spreadsheets and book-making applications including Gnu C++, XEmacs, ACC, Matlab, Applix, Ileaf and PCMS. The solution had to be fast and easy, both to install and maintain, and save Lockheed Martin money and time administering and maintaining its network. Additionally, and most importantly, the selected product was required to connect to multiple operating system servers, enabling users to access the necessary applications.

Lockheed Martin determined Neoware's Eon thin client appliances to be the best value, best performance solution for its requirements after reviewing industry publications and conducting product evaluations. Neoware's Eon appliances include built-in support for UNIX environments, as well as support for Windows, mainframe, midrange and Internet connectivity, providing a modern, more flexible alternative to older X Window terminals.

"We were up and running with Neoware's products in a matter of minutes, and are now able to remotely upgrade and maintain the Eon appliances, increasing our productivity and that of the whole staff," said Jesse Spittle, Systems Network Administrator for Lockheed Martin.

Neoware thin client appliances were chosen for three primary reasons: ease of administration, minimal maintenance and simplicity of use. Neoware's ezRemote Manager, an enterprise-class suite of software management tools designed to lower the time and cost associated with managing thin client appliances, eases administrative burdens. Troubleshooting can be done remotely as can updates to software applications. Unlike PCs, thin clients offer increased security, with users unable to add or delete programs or files, thereby increasing user productivity and computer virus protection. With Neoware thin clients, users at Lockheed Martin's facility are able to run CDE, quickly accessing all necessary applications and files from the server, and work is no longer interrupted for software upgrades since these occur on the server, not the desktop.

Total cost of ownership was an additional consideration for product selection. Savings associated with continuous uptime, lower administrative costs and a longer product life than seen with competitive products, result in ongoing cost savings over the long term.

"As an administrator I see many years of performance with the Eon appliances, and very little administration and maintenance. The users see a crisp and fast interface as they access virtually any application from the server," said Tony Schmidt, Systems Network Engineer for Lockheed Martin.

Neoware thin client appliances and software are fast, easy to configure and simple to update -- driving down ownership cost and providing a compelling return on investment.

About Neoware

Neoware provides software, services and solutions to enable Appliance Computing, an Internet-based computing architecture targeted at business customers that are 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 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 the cost benefits and other advantages of the Company's products. 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 statements include Neoware's timely development and customers' acceptance of Neoware's appliance computing products, pricing pressures, rapid technological changes in the industry, growth of the appliance computing market, increased competition, Neoware's ability to attract and retain qualified personnel, 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, 2001.

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


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