Business 2.0 Magazine Names Neoware One of America's 100 Fastest Growing Technology Companies

June 9 2006

Neoware, Inc. (Nasdaq:NWRE), the leading supplier of thin client software and devices, today announced that Business 2.0 magazine, published by The FORTUNE/MONEY Group of Time Inc., has named Neoware one of America's 100 fastest growing technology companies.

Neoware is "hot," according to Business 2.0, because "sales of 'thin client' PCs that offload processing to central servers are growing 23 percent a year." A thin client is a lower cost computer that connects to the network and runs applications on servers. As a result, the cost of managing desktop devices is much lower, and security is much higher, because applications and data are on the server, not the desktop device.

"Being recognized in Business 2.0's Top 100 Fastest Growing Tech Companies validates the trend towards our model of thin client computing, and is a result of the rapid adoption of Neoware products," said Michael Kantrowitz, Chairman and CEO of Neoware. "Neoware customers are increasing their security and lowering their costs."

Neoware, the fastest growing thin client company, is focusing its research and development resources on software innovation -- a strategy that Kantrowitz believes will continue to accelerate thin client adoption. "Companies are realizing that with Neoware software they can have the security benefits of thin clients on their existing PCs," said Kantrowitz. "Every day there are news stories about how losing a PC can mean the loss of vitally important corporate and personal information. Our thin client products help enterprises finally solve these significant security problems."

Neoware was selected as one of Business 2.0's 100 Fastest Growing Tech Companies from more than 2,000 technology companies that have been publicly traded on a U.S. stock exchange for at least three years, have a market capitalization of at least $50 million, and have had a positive operating cash flow over the past 12 months. Final selection criteria were growth in revenue, profit, and operating cash flow during the past three years, and 12-month stock return as of December 31, 2005.

Business 2.0's 100 Fastest Growing Tech Companies article can be found in the June 2006 issue of Business 2.0 magazine, and online at http://money.cnn.com/magazines/business2/.

About Neoware

Neoware, Inc. (Nasdaq:NWRE), provides enterprises throughout the world with thin client computing devices, software that turns PCs into thin clients, and services that adapt thin client technology to virtually any enterprise computing environment. Neoware's software powers, manages and secures thin client devices and traditional personal computers, enabling them to run Windows(r) and Web applications across a network, stream operating systems on demand, and connect to mainframes, mid-range, UNIX and Linux systems. Headquartered in King of Prussia, PA, USA, Neoware has offices in Australia, Austria, China, France, Germany, and the United Kingdom. Neoware's products are available worldwide from select, knowledgeable resellers, as well as via its partnerships with IBM, Lenovo and ClearCube. Neoware can be reached by email at info@neoware.com.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding: our company being the fastest growing thin client company; our focus on software innovation; and our belief that our software-focused strategy will continue to accelerate thin client adoption. Factors that could cause actual results to differ materially from those predicted in such forward-looking statements include: our timely development and customers' acceptance of our products; pricing pressures; rapid technological changes in the industry; growth of overall thin client sales through the capture of a greater portion of the PC market; our ability to maintain our partnerships; our dependence on our suppliers and distributors; increased competition; our continued ability to sell our products through Lenovo to IBM's customers; adverse changes in general economic conditions in the U.S. and internationally; risks associated with foreign operations; and political and economic uncertainties associated with current world events. These and other risks are detailed from time to time in Neoware's periodic reports filed with the Securities and Exchange Commission, including, but not limited to, our annual report on Form 10-K for the year ended June 30, 2005 and our quarterly reports on Forms 10-Q for the quarters ended September 30, 2005, December 31, 2005 and March 31, 2006.

Neoware is a trademark of Neoware, Inc. All other names, products and services are trademarks or registered trademarks of their respective holders.

CONTACT: Neoware, Inc.

Baker Egerton

(610) 277-8300 x1742

baker.egerton@neoware.com