HDS Network Systems, Inc. (NASDAQ: HDSX), has announced a series of new features that gives the company's @workStation(TM) NC new local desktop capabilities, making the @workStation the first fully functional alternative to costly and difficult-to-manage PCs in business environments.

The HDS @workStation is a low-cost desktop that runs Windows(R) applications on a central server, and also includes local capabilities such as Java(TM), the Navigator web browser, 32 terminal emulators and email capability.

In its most recent additions, HDS has added Windows printing, Windows floppy drive access, Windows multimedia, and support for CIFS (Common Internet File System), the Windows file system that allows PCs to share files with other PCs. The new capabilities significantly extend HDS's technical lead over other NC vendors and allow HDS's @workStation to be used as a true PC alternative, with lower cost of ownership. Significantly, HDS is offering these capabilities today in a Network Computer that includes Microsoft-endorsed technology for accessing Windows applications on a Windows NT server.

With these additions, which work in conjunction with Insignia Solutions' NTRIGUE(TM) multi-user Windows NT operating system, an enhanced version of Citrix WinFrame, @workStation users can connect any printer that is supported under Windows NT to the @workStation's serial or parallel ports, and transparently print from any Windows 95, NT or 3.1 application. In contrast, many other NCs can only use printers connected directly to an NT server or via a UNIX computer.

A floppy disk drive can be added to the @workStation as an option, and the NTRIGUE operating system will automatically recognize it and configure it as the user's A: drive, allowing NC users to utilize PC floppy disks to move files to other computers. Many other NCs on the market today do not offer floppy disk drives as an option, which makes them less flexible for users who have more than one computer, or a computer at home.

HDS @workStation users can now use Windows multimedia applications that play sounds and display full motion video. The sound and video are sent across a local area network to the @workStation, where they provide the rich multimedia experience that users expect from today's desktop computers. In contrast, most Network Computers offered by other manufacturers cannot play Windows multimedia files, making those NCs unusable in markets and applications that require Windows multimedia.

Additionally, @workStation NCs can now transfer files to and from personal computers using the standard Windows file system, called CIFS (Common Internet File System), or SMB (Server Message Block). This makes the @workStation a true peer in Windows networks and avoids the need to use UNIX(TM) protocols like FTP, TFTP or NFS, which other Network Computers require.

HDS believes that it is the first Network Computer company to introduce support for CIFS, which makes its NCs easier for PC system administrators to manage, and offers faster network performance than FTP and TFTP.

Most Network Computers offered by other leading NC vendors, including those from Sun and IBM, may allow users to run Windows applications, but they do not allow NC users to utilize floppy disk drives, play audio files, print to desktop printers, or share files using a native Windows protocol. In addition, HDS is the only company currently offering the ICA protocol in a true Network Computer that includes the Navigator browser, Java and email capability. Microsoft recently endorsed Citrix's ICA protocol as a method to connect non Windows-based desktops like the @workStation to Windows NT servers.

Network Computers like the @workStation NC are designed to save significant costs when compared to traditional personal computers. According to the Gartner Group, a Network Computer like the HDS @workStation can save up to 39% of the PC's total cost of ownership -- nearly $1.7 million over five years for a company with as few as 100 desktop machines.

"Since June 1996, HDS has led the NC industry with a vision of a new desktop computer that solves the cost and administrative problems of personal computers, yet allows people to use any PC application," said Mike Kantrowitz, executive vice president of HDS. "With these new additions, our @workStation NC is the first true PC alternative, with native PC performance, plus Windows floppy support, printing, multimedia and a native Windows file system. The fact that we're offering these capabilities today - months ahead of the release of Microsoft's own products - yet compatible with the technology that they've licensed from Citrix, is significant for our customers."

HDS was the first company to ship a Network Computer that meets the NC Reference Profile, a standard for Internet desktops developed by Apple, IBM, Netscape, Oracle and Sun. In addition, the HDS @workStation includes the Navigator web browser, email capability, a suite of 32 terminal emulators, and full support for Java -- capabilities that few other NC vendors yet offer at all. With today's announcement, HDS is extending its lead over other NC vendors by making the @workStation NC the first true alternative to the PC, with multimedia, floppy drive access, CIFS support, and local Windows printing.

HDS's lead in the NC market has been widely recognized by customers and in the industry press. Network Computing Magazine recently awarded the @workStation NC its coveted Editor's Choice award, saying the @workStation Network Computer "offers the best combination of features, performance and ease-of-use."

Network World Magazine recently called the @workStation "the real threat to the PC" in a review of network computers from a variety of manufacturers. Customers such as AARP Pharmacy Services and Burlington Coat Factory are deploying HDS @workStation NCs in volume. AARP has deployed more than 1,000 @workStation Network Computers and the NTRIGUE operating system for a sophisticated, mission-critical customer management application.

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(TM) operating system. HDS was first to add Java, the Navigator web browser, email, video-conferencing, the ICA protocol and a full suite of terminal emulators. Many of these capabilities were added to the HDS @workStation in a matter of weeks, while 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; Email: info@hds.com.)

HDS is a sponsor of NC News.