Leading Furniture Retailer Upgrades to Appliance Computing with Neoware

Raymour & Flanigan Standardizes on Neoware's Eon Thin Client Appliances and ezRemote Manager Software

KING OF PRUSSIA, Pa., June 25, 2002 (PRIMEZONE) -- Neoware Systems (Nasdaq:NWRE), the leading supplier of award-winning software, services, and solutions for the server-based Appliance Computing market, today announced that Raymour & Flanigan Furniture, the largest and fastest-growing furniture retailer in the Northeast, has standardized on Neoware's Eon family of thin client computing appliances and ezRemote Manager software. Raymour & Flanigan is the latest addition to the growing list of retail organizations that have standardized on Neoware's Appliance Computing architecture.

Headquartered in Liverpool, N.Y., Raymour & Flanigan has 53 remote locations, comprised of showrooms, customer service centers, and distribution centers throughout Connecticut, Massachusetts, New Jersey, New York, and Pennsylvania. Raymour & Flanigan's commitment to value, service, and convenience is continually spurring additional growth, as it provides brand name home furnishings and accessories to the New England and the Mid-Atlantic Regions.

Neoware's Eon thin client appliances have enabled Raymour & Flanigan to modernize its network infrastructure, replacing outdated green-screen terminals and upgrading its network to link the growing number of locations. Utilizing the servers already in place, a newly installed IP-based Frame Relay network, and Neoware's thin client appliances, the furniture giant is able to run virtually any application, without the administration cost and overhead of personal computers. The remote locations connect to Microsoft Windows-based servers located at Raymour & Flanigan's headquarters to run Microsoft Office programs and the Eon's built-in terminal emulators enable these users to run the GERS point-of-sale application. Additionally, a local Web browser is included to access Intranet and Internet applications.

Coupled with Neoware's ezRemote Manager software, a powerful suite of centralized management tools, the Eon thin client appliances in the remote stores are centrally managed from Raymour & Flanigan's headquarters, driving down administration costs. With Neoware's ezRemote Manager, system administrators can remotely discover, configure, upgrade, and maintain thin client appliances without traveling from desk-to-desk or location-to-location as would be necessary if PCs were used. Neoware thin client appliances are updated and configured from headquarters, resulting in significant savings in time and money for large enterprises such as Raymour & Flanigan.

Neoware's Eon thin client appliances provide the flexibility and simplicity that Raymour & Flanigan require, along with robust centralized management, cost-efficiency, and minimal downtime. Raymour & Flanigan will have deployed nearly 1,000 Eon appliances throughout the organization by the end of this year at the completion of the initial rollout phase, and will install additional Eon units as needed to accommodate growth.

"Neoware's Eon thin client appliances allow us to run all of our existing applications and deliver new applications to our remote users with lower total-cost-of-ownership," stated Brian Dewey, Network Engineer at Raymour & Flanigan. "In addition, Neoware provides us with excellent support. The combination of Neoware's powerful central management software and the flexibility of the Eon platform is enabling Neoware to exceed Raymour & Flanigan's needs as we continue to expand and grow our business."

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 www.neoware.com or via email at info@neoware.com 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 delivery 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, risks associated with foreign operations in the U. S. and internationally 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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