FECI Selects NetManage's OnWeb to Speed Implementation of Web-Based Shipping System; OnWeb Enables New Online Service that Improves Customer Satisfaction While Reducing Costs.

Business Editors/High-Tech Writers

CUPERTINO, Calif.--(BUSINESS WIRE)--Jan. 28, 2003

NetManage, Inc. (Nasdaq:NETME), experts in host access and integration solutions, today announced that Florida East Coast Railway Company, a subsidiary of Florida East Coast Industries, Inc. (FECI), has joined the growing list of transportation providers using NetManage's OnWeb(R). OnWeb is a server-based software solution that allows companies to quickly Web-enable host applications and business processes, without the high cost of rewriting or changing back-end systems. FECI joins other transportation providers including Atlas Van Lines, Avis Rent-A-Car Europe, Mercedes-Benz and DAF Trucks NV, that use OnWeb to create value-added services, generate new revenue opportunities and leverage existing technology investments.

Web-Based Channel Boosts Service and Productivity

FECI is enhancing its customer service for rail transportation customers inquiring about shipment status. Using OnWeb Host Publishing capabilities, FECI is providing browser-based, self-service access to the company's IBM AS/400 shipping application. The new system allows FECI to repurpose existing technology assets to maximize its return on investment in legacy systems. The company was able to rapidly deploy the Web-based service channel without compromising FECI's secure network.

Customers benefit from anytime access to shipping status information. FECI benefits from reduced operating costs and improved productivity of service agents who no longer have to give status updates over the phone.

OnWeb Delivers with No Modifications to Legacy Systems

Prior to OnWeb, FECI customers were required to call the FECI Call Center, where agents would access the IBM "green screens" to locate customer information. FECI understood the power of the Web to transform their business, but like many companies in the mid-size AS/400 market, did not have the time or resources to over-haul its IT infrastructure. By the same token, costly and time-intensive integration solutions were not an option. FECI first tried limited-functionality Web access software, but it couldn't support customer expansion needs, and the process required customers to download software to their PCs. In OnWeb, FECI found a zero-footprint, full-featured solution with the scalability to support large numbers of concurrent users. When FECI learned that OnWeb required no modifications to legacy systems, and could be up and running in a matter of weeks, the decision was made.

"OnWeb was the final destination of a two-year search to reap the benefits of the Web without breaking the bank," said Jerry Underwood, vice president of information systems, FECI. "In a few weeks we had a new service that delighted our customers, increased the productivity of our staff, and best of all, we did it by leveraging what we already had in place."

"FECI's use of OnWeb offers a perfect example of how a mid-size company can enhance the services available to customers and drive bottom-line improvements by unlocking the maximum value from its existing resources," said Zvi Alon, president, chairman and CEO of NetManage. "In this challenging economy, there is no smarter move."

About OnWeb

NetManage's OnWeb is a server-based, host integration solution that allows companies to quickly access and extend host information, applications and business processes to customers, partners and employees in the presentation format and device of their choice. Using a simple drag-and-drop environment, OnWeb allows the integration of legacy data into Web applications from an extensive range of data sources, including IBM mainframes; AS/400, UNIX, VT, and Unisys systems; and major databases. Simple-to-use host publishing features enable companies to rapidly transform host screens into graphical Web pages with no programming. Companies can also integrate multiple data sources and powerful new business logic into a single user presentation.

About Florida East Coast Industries, Inc.

Florida East Coast Industries, Inc., headquartered in St. Augustine, Fla., conducts operations through two wholly owned subsidiaries, Flagler Development Company (Flagler) and Florida East Coast Railway, L.L.C. (FECR). Flagler owns, develops, leases and manages 6.8 million square feet of commercial and industrial space, including 471,000 square feet in the development phase, and owns approximately 1,026 acres of entitled land and 5,500 acres of additional Florida properties. FECR is a regional freight railroad that operates 351 miles of main line track from Jacksonville to Miami and provides intermodal drayage services at terminals located in Atlanta, Jacksonville and Miami. For more information, visit the Company's Web site at http://www.feci.com.

About NetManage

Founded in 1990, NetManage, Inc. (Nasdaq: NETME), experts in host access and integration solutions, provides software and consulting services to extend and maximize a company's investment in existing legacy systems and applications. NetManage offers a full range of application integration, Web publishing and host access software for mid-size and Global 2000 enterprises. NetManage has more than 30,000 customers including 480 of the Fortune 500. NetManage sells its products and services worldwide through its direct sales force, international subsidiaries, and authorized channel partners. NetManage is headquartered in Cupertino and has offices worldwide. For more information, visit www.netmanage.com.

Note to Editors: NetManage, the NetManage logo, the lizard-in-the-box logo, RUMBA, ONESTEP, ViewNow, SupportNow, and OnWeb are either trademarks or registered trademarks of NetManage, Inc., its subsidiaries, and affiliates in the United States and/or other countries. All other trademarks are the property of their respective owners.

This press release contains, in addition to historical information, forward-looking statements that involve risks and uncertainties, including statements regarding improvement in the Company's competitive position, improvement in financial results and business pipeline, the Company's positioning in the eBusiness market, and the progress and benefits of the Company's execution on its business plan. The Company's actual results could differ materially from the results discussed in the forward-looking statements. The factors that could cause or contribute to such differences include, among others, that the markets for the Company's products could grow more slowly than the Company or market analysts believe that current worldwide economic downturn could continue or worsen, that the Company is unable to position itself to take advantage of growth in the eBusiness market, that the Company is unable to integrate or take advantage of its acquisitions successfully, or that the Company will not be able to take advantage of growth in the Company's target markets. In addition, there is no assurance that the Company will not suffer increased competitive pressures; and that corporate buying decisions will not be influenced by the actions of the Company's competitors or other market factors; or that the Company will continue to progress in the execution of its business plan. Additional information on these and other risk factors that could affect the Company's financial results is included in the Company's Annual Report on Form 10-K, Forms 10-Q, Forms 8-K and other documents filed with the Securities and Exchange Commission.