Boundless Technologies Enters Internet Appliances Market and Forms Appliance Products Group to Develop Internet Access Devices; New Technical Advisory Board To Be Established.

HAUPPAUGE, N.Y.--(BUSINESS WIRE)--May 10, 1999--

Boundless Technologies, Inc., a wholly-owned subsidiary of Boundless Corporation (NASDAQ: BDLS), is entering the explosive Internet appliances market with its new Appliance Products Group that will develop low-cost, easy-to-use and high performing Internet access devices suited for Application Service Providers and Internet Service Providers in the emerging application outsourcing and application rental markets.

The appliances also will be available to Internet Service Providers that wish to offer the easy-to-use, error-free general purpose devices for the consumer market.

According to International Data Corporation, the high-end ASP market is expected to grow 91 percent over the next four years, reaching $2 billion in sales by 2003. IDC also reported that by 2002, worldwide shipments of non-PC devices for Internet access will grow 75.6 percent, compounded annually.

"Boundless' aggressive pursuit of Internet appliances is targeted at the many businesses that demand easy and affordable access to the internet," said Clare Gillan, vice president of applications and information access research, International Data Corporation, a leading global provider of information technology data, analysis and consulting. "Boundless' early alignment with the exploding ASP marketplace is a very good move. The ASP model will only work if solutions are easy to deploy and manage. By addressing both ASP and end-user concerns in its strategy, Boundless has an opportunity to be a key enabling partner in the burgeoning ASP community."

Boundless Technologies, the largest U.S. manufacturer of text and Windows-based Terminals and other thin-client solutions, also plans to establish the Boundless Technical Advisory Board that will consist of senior information technology executives and researchers with expertise in various aspects of the high-tech industry, including Internet appliances.

"Boundless successfully has provided mainframe, Unix and Microsoft Windows access solutions for 30 years," said Kenneth East, chief operating officer and chief technology officer, Boundless Technologies, Inc. "Given the explosive growth of application deployment over the Internet and strong end-user demand for a simple to use, maintenance-free Internet access device, the next logical step for Boundless is to offer products and services that provide all this at a very low cost. Our technology, already undergoing tests in the field, will relieve end-users of the burden of software and PC maintenance as it delivers the PC-like Internet experience. Internet Service Providers are thrilled with our devices, which eliminate support headaches and build customer loyalty."

"We are pleased to see Boundless expand their ICA-based range of devices to encompass innovative, new form factors and information appliances," said Chris Phoenix, vice president and general manager, Internet Business Unit, Citrix Systems, Inc. (NASDAQ: CTXS). "Boundless' new appliance products based on Citrix' Independent Computing Architecture will help fuel the ASP market by allowing expansion into broader markets with innovative form factors that meet customer segment needs."

Initially, Boundless will employ an OEM sales strategy for IA products, according to Chad Gibbons, manager of the Boundless Appliance Products Group.

"Right now we're focusing on creating as much value as possible for ASPs and ISPs in this market," he said. "To better accommodate our customers, if an ISP or ASP wants its own company logo or corporate colors on the device, we'll provide it. We will accept orders with no minimum quantities and we will ship the products directly to their customers in one to three days. We are providing them with the ability to further extend their brands out to the corporate end-user and home consumer with little or no risk.

"Whether you're accessing applications, engaging in e-commerce, sending e-mail, or just plain browsing on the Internet, it should be as easy as flipping a switch and that's what we'll deliver with our Internet Appliance products," added Mr. Gibbons. He also said Boundless products will provide "one-click access to ICA, Java and HTML enabled applications, making it transparent to the end-user which technology is deployed on the back-end. All the end-user has to do with our device is just click and run."

Boundless is forming partnerships with strategic players in the ASP community that together will provide robust solutions for the ASP/ISP and end-users. Additional announcements concerning Boundless' Appliance Products Group and the Boundless Technical Advisory Board will be made during the months ahead.

ABOUT BOUNDLESS

Boundless is a profitable $90 million global technology company focused on developing, manufacturing and distributing hardware and software products that make accessing information on the Internet and centralized servers easy, fast and cost-effective. Core competencies include state-of-the-art ISO 9002 manufacturing facilities, build-to-order, same day shipping and customer specific customizations. Boundless offers in-house engineering expertise and an extensive design library to significantly decrease time-to-market for OEM customers, which include Lucent Technologies, Digital Equipment Corporation, IBM, Olivetti, NCR, the Tandem Division of Compaq Computer and Stratus Computer.

The Boundless theme of "Making Access Easy" extends into corporate intranets and extranets and to the mass market Internet. This is achieved by providing a wide range of specialized terminals and Internet-based information appliances and related software. Boundless' Windows-based Terminal, or thin-client, concept is revolutionizing the computing industry. Boundless sells products directly over the Internet in a manner complimentary to existing channels of distribution and has shipped over five million devices to date. Boundless Technologies headquarters are located in Hauppauge, New York, where it also has a manufacturing facility. In addition, Boundless has business offices in Austin, Texas, European headquarters in the Netherlands, and additional sales and distribution offices in Europe, Asia, Australia and Latin America. For more information, visit the Boundless web site web site at http://www.boundless.com, or call 1/800-231-5445.

Editors: All company/product names and service marks may be trademarks or registered trademarks of their respective companies.

Except for the historical information herein, the matters discussed in this news release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary significantly based on a number of factors, including, but not limited to, risks in product and technology development, market acceptance of new products and continuing product demand, the impact of competitive products and pricing, changing economic conditions and other risk factors detailed in the Company's most recent annual report and other filings with the Securities and Exchange Commission.