-New Neoware Linux OS features ezConnect 2.0, a new Linux user interface, and
ez Snap, a new software distribution mechanism- 

Las Vegas, NV  - Neoware Systems (NASDAQ: NWRE), the leading supplier of
award-winning software and solutions for the emerging Appliance Computing
market, today introduced NeoLinux 2.0, the latest version of its embedded Linux
operating system, at Comdex Fall 2000, taking place this week in Las Vegas.
Neoware's products are on display in the National Semiconductor Pavilion, Booth
#L1909, in station NS404.

NeoLinux is an embedded version of the industry-standard Red Hat (NASDAQ: RHAT)
Linux operating system, targeted at computing appliances. Unlike traditional
versions of Linux, which run on desktops or servers, NeoLinux is streamlined
and optimized to power a new generation of Internet-connected computing
devices, including thin clients, firewalls, routers, security devices, web
kiosks, email stations and more.

NeoLinux 2.0 features a newly designed, customizable user interface designed
specifically for desktop computing appliances. Called ezConnect 2.0, this new
Neoware-designed user interface lets users and administrators easily create
connections to run Microsoft Windows applications on servers, UNIX applications
via the XWindow protocol, terminal connections to mainframes and minicomputers,
Netscape Navigator Internet connections for applications such as kiosk
deployments, and custom connections to launch virtually any Linux application.
Using ezConnect, administrators can easily lock down the user interface to
prevent unauthorized modifications. Unlike traditional Linux interfaces,
ezConnect requires no Linux programming experience, and can be customized
without training to completely tailor the Linux desktop, automatically launch
new applications at startup, and create custom computing appliances for a wide
variety of markets.  

Also included with NeoLinux 2.0 is a software distribution capability called
ezSnap, which allows new software features to be added to appliances across a
network, without the need to update the entire operating system. Used in
conjunction with Neoware's Remote Manager software, ezSnap allows system
administrators to create "snap-ins" which  provide added software features to
appliances running NeoLinux 2.0. These snap-ins can be added to individual
appliances or to groups of appliances with a single mouse click, simplifying
administration in complex network environments.  Administrators can mix and
match snap-ins to custom-configure appliances with specific software features.
Neoware is making snap-ins available for a wide variety of add-in capabilities,
including wireless Ethernet, floppy disk drivers, high-resolution video cards,
Adobe Acrobat, RealPlayer, and Macromedia Flash.

These two new "ez" features - ezConnect and ezSnap - are additions to Neoware's
unique Linux technologies that are included with the NeoLinux operating system.
These features include ezCompress, which streamlines the Linux operating
system, allowing it to operate in small devices without hard drives, fans or
other moving parts; ezOff, which allows an appliance running NeoLinux to be
powered down simply by pressing the on/off switch; ezSecure, which allows the
Linux operating system to run "read-only," securing it from viruses or other
unauthorized changes; and ezManage, which allows large numbers of
NeoLinux-powered appliances to be discovered across the net, as well as
centrally managed, configured and updated in groups.

"With NeoLinux 2.0, Neoware is introducing an entirely new user interface that
shields users from the complexity of the Linux operating system," said Michael
Kantrowitz, Neoware's president and CEO. "Neoware ezConnect 2.0 allows people
with no Linux experience to customize a Linux appliance and to launch virtually
any application on a server or the Internet. Our new ezSnap feature lets
administrators easily add new software features to large numbers of appliances,
across the net." 

Neoware, awarded PC Magazine Editors' Choice Award for its computing appliance
products for the past two years, will demonstrate NeoLinux 2.0 as well as the
latest versions of its Windows CE-based software and devices for appliance
computing at Comdex, and will provide insight into upcoming products at the
show.  Neoware's NeoLinux software enables and manages computing appliances - a
new breed of smart devices which are designed to be simpler to use and easier
to manage than today's personal computers. Computing appliances running
Neoware's software can launch Windows applications on centrally managed
servers, plus allow users to connect to the Internet, mainframes, and
minicomputers.  Instead of storing and running applications on complex personal
computers which require significant administration, businesses can use
simple-to-manage computing appliances which have no hard drives, fans or other
moving parts.  Neoware's computing appliances are targeted at small, medium and
large enterprises and at the Application Service Provider (ASP) market, in
which computer applications are run on central servers, not the desktop.
NeoLinux 2.0 is available immediately, bundled at no additional cost with
Neoware's Eon family of computing appliances, and is available as a no-cost
upgrade to Neoware customers with Full Advantage upgrade service. As a
stand-alone product NeoLinux 2.0 is available for $60 per appliance with one
year of technical support and upgrades.

About Neoware

Neoware provides software and solutions to enable Appliance Computing, a new
Internet-based computing architecture that is designed to be simpler and easier
than traditional PC-based computing. Neoware's infrastructure software and
management tools power and manage a new generation of smart computing
appliances that utilize the benefits of open, industry-standard technologies to
create new alterna tives to personal computers and a wide variety of
proprietary business devices.  Neoware's products are designed to run local
applications for specific vertical markets, plus allow access across a network
to Linux servers, the Internet and Windows-based applications running on
multi-user Windows servers. Computing appliances that run and are managed by
Neoware's software offer the cost benefits of industry-standard hardware,
easier installation and lower up-front and administrative costs than
proprietary or PC-based alternatives. More information about Neoware can be
found on the Web at http://www.neoware.com or via email at info@neoware.com.
Neoware is based in King of Prussia, PA.