Neoware Systems, Inc. (NASDAQ: NWRE) announced today that its network computer has been awarded the prestigious Best of Byte award by Byte Magazine in a comparison review of Network Computers from five thin client manufacturers. Neoware previously announced that it has won awards from other publications and industry groups including the Crossroads A-List, the Gold Award for Best Network Hardware from Computing magazine, an Editors Choice award from Network Computing, and the Top of the World Award from SCO Magazine.

In a head-to-head comparison of five Network Computers from Neoware, Boundless Technology, Network Computing Devices, Tektronix and Wyse Technology, Byte called Neoware's Network Computer "the best of the NC1 systems," the "top performing" NC tested, and "the best system for heterogeneous environments." In addition, Byte commented on " excellent price/performance," and noted that Neoware's NC "bested all the other NCs in our graphics tests." Byte awarded Neoware's NC five stars -- an "Outstanding" rating, the highest rating of any of the NCs tested, and the highest rating possible.

The article further commented on Neoware's "rich features set," pointing out that Neoware's network computers offer Windows connectivity via Citrix WinFrame, the Netscape Navigator and Spyglass browsers, a Java Virtual Machine, UNIX and X protocols, MPEG-1 video and display resolution of up to 1600x1200 pixels.

"We're very pleased that Neoware continues to be recognized as the industry leader in thin client performance and capabilities," stated Michael Kantrowitz, Neoware's executive vice president. "With thousands of thin clients in the field running mission-critical applications at companies such as DialAmerica Marketing, Burlington Coat Factory and AARP Pharmacy Services, Neoware has a solid understanding of customers requirements in the thin client market. We're committed to offering our customers superior products and real solutions to their business needs."

Neoware was the first company to offer a true network computer, with the ability to run Windows, Java, Internet and legacy applications from a simple-to-use desktop device. Today, Neoware continues to lead the industry with a full line of thin clients, including Windows-based terminals and Java-capable network computers. Neoware was the first network computer manufacturer to provide Java and the Navigator browser, giving users a low-cost, easy-to-manage NC almost a year ahead of its nearest competitor. Other capabilities of Neoware's thin clients include the ICA protocol for accessing Windows applications over the Internet, and a suite of 32 terminal emulators for access to legacy systems. Neoware's thin clients are available immediately world-wide from Neoware and its network of resellers.

About Neoware Systems Inc.

Neoware Systems, Inc. of King of Prussia, is a leading international supplier of thin client desktop computers, network computers and related network computing software. Neoware's products are cost-effective solutions that allow users to access any information from any type of computer via a network. Neoware's products allow users to utilize Windows, Java, mainframe, minicomputer, UNIX and Internet applications from an easy-to-use desktop machine that requires almost no administration. Neoware's netOS operating system, which is the basis of the company's thin clients and network computers, is based on an open architecture, incorporating industry standards to enable seamless access to multiple forms of information including text, graphics, audio, and video, on any type of network.

Neoware has been first-to-market with virtually every new technology in the Network Computer industry because of the standards-based, open design of the Neoware netOS operating system. Neoware was first in the NC industry to supply Java, the Navigator web browser, email, video-conferencing, the ICA protocol and a full suite of terminal emulators. Neoware netOS, the operating system in Neoware's thin clients, is offered under license to OEMs for quick and easy deployment of application-specific thin clients and network computers for a variety of markets.