HDS Network Systems, Inc. (NASDAQ: HDSX) today announced across-the-board price reductions, unique new capabilities, and increased performance for its range of @workStation Network Computers.

HDS has reduced prices by as much as 25% while increasing performance by as much as 30%. The lower prices and higher performance are a result of advances in design and manufacturing processes, including and upgraded RISC processor and redesigned motherboard. The new entry level @workStation Basic, priced at $699 includes 8MB of RAM and offers 30% higher performance than the model it replaces. The @workStation Prima model had been reduced from $899 to $799. The @workStation Supra-66 model has been reduced form $1299 to $1099. All @workStation models with 21" high resolution monitors have been reduced by up to $800. New capabilities include high resolution models with 1600x 1200 resolution, increased from 1280x 1024 pixels, without any increase in price, and immediate availability of an IDE internal hard drive offering 630 MB of storage for $299.

HDS also announced lower pricing for the NTRIGUE(TM) multi-user Windows NT operating system which it sells and supports. NTRIGUE allows @workStation users to run Windows 95, NT and 3.1 at native Pentium Pro speeds. NTRIGUE is now available from HDS at a price of $200 per user when bundled with the HDS @workStation NC.

The HDS @workStation NC is designed for business environments as an alternative to the personal computer. Because Network Computers are significantly easier to install and administer than personal computers, they can provide significant cost savings when compared to traditional PCs. According to the Gartner Group, a Network Computer like the HDS @workStation can save up to 39% of the cost of ownership of a PC, or approximately $17,000 over five years. For a company with as few as 100 desktops, using the @workStation instead of PCs can result in savings of close to $1.7 million.

HDS has been first to market with virtually every new technology in the Network Computer industry because of the standards-based, open design of the HDS netOS operating system. Examples of technologies that appeared first in HDS @workStation Network Computers include: Java, the Navigator web browser, email, video-conferencing, the ICA protocol and a full suite of terminal emulators, including IBM 3270, 5250, DEC, Tandem, Data General, ICL, Wyse and others. Many of these capabilities were added to the HDS @workStation in a matter of weeks, while HDS's competitors have yet to offer them. HDS considers the ability to quickly add capabilities to its products to be a major competitive advantage in the fast-moving Internet market, and HDS plans to use this advantage to continue to maintain its lead in the NC market. HDS netOS, the operating system in the @workStation NC, is offered under license to OEMs for quick and easy deployment of application-specific Network Computers for a variety of markets.

HDS Network Systems, of King of Prussia, PA, is a leading international supplier of Network Computers and related software, which are cost-effective solutions for the integration and delivery of information and applications to the desktop. The company's netOS operating system 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. (Telephone: 610-277-8300; fax: 610-275-5739; Web site: http://www.hds.com. Email: info@hds.com.)