NeoStation, the first Neoware-branded ultra-thin client, and netOS for WinTerminals will be unveiled at Internet World this week by HDS Network Systems, Inc. (NASDAQ: HDSX). HDS is becoming Neoware Systems, Inc. effective August 1, 1997.

On display this week at the Internet World "Java Pavilion," Booth No. 1814-17, the new NeoStation is housed in a sleek, vertically-oriented small footprint case that takes up less than 15 square inches of desktop space.

Additionally, several Java developers will demonstrate their applications on Neoware-brand Java-enabled Network Computers at Internet World. As the first company to ship a Java-capable NC, the company recently instituted a partners program with Java developers to cross promote Java solutions and ensure 100% compatibility. Following are some Java developers that have elected to partner with HDS:

Java developer:                    Product description:

Innotech, Corp.                    Java based search engine

Open Horizon Corp.                 Java based database access

Agile Software                     Digital signature authentication

Cereus Design Corp.                HotTea Java development tool

Triteal Corp.                      Soft NC

Thought Inc.                       Java development tool

Advanced Transition Technology     Java terminal emulation

Open Connect                       Web access for mainframes

NeoStation ships with a new version of the company's netOS(TM) operating system, called netOS for WinTerminals, to be sold under the Neoware brand. This new "ultra-thin" operating system allows NeoStation to connect with multi-user Windows NT computers across a network to run Windows 3.1, 95 and NT applications. Because the applications run on a central server, and not on the desktop, NeoStation is much simpler to use and administer than today's personal computers, yet it offers equivalent performance to today's fastest PCs.

Unique among "ultra-thin" clients, NeoStation is also upgradable with a simple series of software plug-ins that provide integrated Internet access with the Navigator browser, a Java Virtual Machine, UNIX(R), and enterprise system access including mainframes and AS/400 systems. NeoStation pricing starts at only $649, including keyboard and mouse.

NeoStation complements the existing @workStation line of Network Computers, introduced in June 1996 as the industry's first true Network Computer with Java, the Navigator and Spyglass browsers, email, and NC Reference Profile compliance.

According to the Gartner Group, thin clients like the NeoStation and @workStation can save up to 39% of the cost of ownership of a PC, or approximately $17,000 over five years. Using these numbers, a company with as few as 100 desktops, can save $1.7 million by deploying NCs instead of PCs.

The company's products were the first in the NC industry to include key technologies such as the ICA protocol, Java Virtual Machine, the Navigator and Spyglass web browsers, e-mail capability, Windows CIFS file system, videoconferencing, and comprehensive terminal emulation software. All these were added quickly and easily because of the standards-based, open design of the netOS operating system, which is offered under license to OEMs for quick and easy deployment of application-specific Network Computers for a variety of markets.

About HDS Network Systems, Inc.

HDS Network Systems, Inc. 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. Effective August 1, subject to shareholder approval, the Neoware brand and logo will replace the HDS Network Systems brand name and logo, and the company's stock exchange symbol will change to NWRE. The company's web site is already available at http://www.neoware.com .