Neoware CEO Michael Kantrowitz to Present AtNetWorld+Interop ASP Networks Conference.

Business Editors/Hi-Tech Writers

NetWorld Interop 2000

KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--May 5, 2000

Neoware Systems, Inc. (NASDAQ: NWRE) today announced that Michael Kantrowitz, the Company's CEO, will present Neoware's strategy and outlook for the ASP market

Neoware provides the software and infrastructure tools that enable ASP computing using a new generation of "thin client" information appliances. These smart devices are alternatives to personal computers that are targeted at enterprises and the burgeoning ASP market. Utilizing Neoware's information appliances, ASPs can provide access to virtually any hosted application on virtually any server, including Windows, UNIX and Linux-based servers. With Neoware's remote management infrastructure software these devices can be centrally managed and maintained over the Internet, a key cost-saving benefit in ASP environments.

"Neoware provides a powerful, easily managed platform for the deployment of ASP hosted applications in a wide variety of industries," said Michael Kantrowitz, president and CEO of Neoware. "We're pleased to present our vision of how thin clients provide the most manageable, lowest cost way to deliver ASP services."

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, future operating results and the development of partnerships 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. 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 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.

This release is available on the KCSA Public Relations Worldwide website at www.kcsa.com.