Neoware Extends Relationship With IBM

Delivers Thin Console for IBM System i


KING OF PRUSSIA, Pa., July 25, 2006 (PRIMEZONE) -- Neoware, Inc. (Nasdaq:NWRE), the leading supplier of thin client software and devices, today announced that it has extended its existing relationship with IBM to provide Thin Console devices that will be available with the IBM System i(tm) business computing platform.

The IBM System i Thin Console enables IBM customers to manage their System i hardware and applications from a reliable, dedicated device. It is simple to install, immediately available, and offers the proven reliability of Neoware thin client software and devices to System i customers.

"Neoware is pleased to extend our relationship with IBM to provide the System i Thin Console," said Matt Wrabley, executive vice president of business development for Neoware. "Now, IBM System i customers can administer their systems and applications from a reliable, secure device that is simple to install and maintain."

"System i customers wanted an alternative to twinax-attached consoles that was easy to install, easy to use, and easy to administer," said Jim Herring, director of IBM System i products and business operations. "The Neoware Thin Console provides System i customers a cost effective solution directly from IBM."

The System i Thin Console was developed by Neoware in partnership with IBM, using Neoware's industry-standard thin client technology, Neoware Linux software, and IBM's 5250 terminal software.

The Thin Console is available to IBM System i customers through their IBM sales representative, or IBM System i business partner.

About Neoware

Neoware, Inc. (Nasdaq:NWRE), provides enterprises throughout the world with thin client computing devices, software that turns PCs into thin clients, and services that adapt thin client technology to virtually any enterprise computing environment. Neoware's software powers, manages and secures thin client devices and traditional personal computers, enabling them to run Windows(r) and Web applications across a network, stream operating systems on demand, and connect to mainframes, mid-range, UNIX and Linux systems. Headquartered in King of Prussia, PA, USA, Neoware has offices in Australia, Austria, China, France, Germany, and the United Kingdom. Neoware's products are available worldwide from select, knowledgeable resellers, as well as via its partnerships with IBM, Lenovo and ClearCube. Neoware can be reached by email at info@neoware.com.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding: the extension of our existing relationship with IBM. Factors that could cause actual results to differ materially from those predicted in such forward-looking statements include: our ability to maintain our relationship with IBM; timely development and customers' acceptance of our thin console devices; pricing pressures; rapid technological changes in the industry; increased competition; 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, our annual report on Form 10-K for the year ended June 30, 2005 and our quarterly reports on Forms 10-Q for the quarters ended September 30, 2005, December 31, 2005 and March 31, 2006.

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



            

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