KING OF PRUSSIA, Pa and SEATTLE, Wa, April 30, 2004 -- Neoware Systems (Nasdaq:NWRE), SEATTLE - Cedar Systems, Inc, today announced that Neoware Systems has completed the acquisition of Cedar Systems, thus gaining a further foothold in the thin-client marketplace. With million-dollar sales figures, Cedar Systems leaves Neoware with an abundance of opportunities to gain new customers and gain market share.

Neoware Systems, with a market value of over a quarter-billion dollars last year, believes that its acquisition of Cedar Systems further expands the company's thin-client market share, and will drive additional revenue and profit growth. This announcement builds upon Neoware's growth strategy in the appliance and server-based computing market. With these corporate developments, Neoware believes that it has significantly expanded its market share, market presence and its access and commitment to customers.

Although terms of the cash transaction are not being disclosed, employees in the Seattle office of Cedar Systems will be helping in the transition phase to ensure a seamless transfer for all of Cedar Systems customers and technology. During this time, Cedar Systems will ensure the products are supported and customer's needs are met through software upgrades utilizing TCOSoft's Remote Management Windows CE solution. Neoware gains both Cedar Systems core Microsoft Windows CE.NET embedded technology along with an existing large customer base for expanding its Eon product line. Due to the wide range of Neoware thin-client solutions, the Nutshell product line will be phased out and transitioned to the Neoware Eon platforms.

"This acquisition of Cedar Systems continues and accelerates Neoware's strategy of growing our business profitably, both organically and through carefully targeted acquisitions," according to Michael Kantrowitz, president and CEO of Neoware. "For our customers, this means continued development and support of quality products and services from a company that is committed to leadership in the server-based computing market."

"This is a wonderful opportunity for Neoware and for our customers," stated Jack Ross, Founder and Chief Executive Officer of Cedar Systems. "By combining our brand and customer base, we intend to further build Neoware as an recognized leader in the fast-growing server-based computing market. We are glad to be selling to an innovator in the thin-client market space."

About Neoware

Neoware provides software, services, and solutions to enable Appliance Computing, a proven Internet-based computing architecture targeted at business customers that is designed to be simpler and easier than traditional PC-based computing. Neoware's 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 alternatives to personal computers used in business 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 multi-user Windows servers, Linux servers, mainframes, minicomputers, and the Internet. Computing appliances that run and are managed by Neoware's software offer the cost benefits of industry-standard hardware and software, easier installation, and have lower up-front, maintenance, 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 invest@neoware.com. Neoware is based in King of Prussia, Pa.

About Cedar Systems

Cedar Systems was a high-tech firm, headquartered in the Seattle area, dedicated to creating a future in thin-client computing. By selling superior products at a low price, the company helped make thin-client computing catch on sooner or later. It excelled in creating fault tolerant Windows-based terminals for fortune 1000 companies and other large organizations. Additional company and product information is available on the World Wide Web at www.cedarsystems.com.