NCD Announces .NET Thin Client Strategy; Introduces New Windows-Powered Web Services Terminals.

Business Editors/High Tech Writers

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Dec. 5, 2001

Network Computing Devices, Inc., ((NCD) (OTC: NCDI.OB)), a leading producer of thin client solutions, today announced NCD's first ThinSTAR Web Services Terminals(TM), the NCD ThinSTAR(R) 332 and NCD ThinSTAR 500. These new Microsoft Windows Powered thin clients are the first products resulting from a joint development relationship between NCD and National Semiconductor, (NYSE: NSM), and are designed to provide full support for Microsoft .NET and other competing web services computing models. The new ThinSTAR Web Services Terminals offer a richer and more flexible thin client computing solution, utilizing both standard display protocols, as well as XML and HTML content from application portals and web services application servers. These capabilities will further reduce the total cost of ownership (TCO) of a thin client solution.

NCD's award-winning ThinSTAR Windows-based terminals are a total solution for network connectivity. Users can access all the Windows and legacy applications, network-based peripherals and resources they need. In addition, they can do all this easily and at high-performance on a Microsoft Windows Powered thin client. With the introduction of the new NCD ThinSTAR 332 and 500, NCD expands the ThinSTAR family by offering two distinct Windows-based terminals (WBTs) that meet both ends of the performance spectrum. The NCD ThinSTAR 332 delivers performance at a value price that is ideal for task-based user deployments, while the NCD ThinSTAR 500 delivers the ultimate in high performance, easy-to-manage access to enterprise applications.

The new NCD ThinSTAR products build on NCD's end-to-end ThinFrastructure, delivering hardware and software solutions for accessing, delivering and managing information over server- and web-based networks. An available PCI slot makes the products even more flexible for deployment in multiple application environments.

Also announced today is a new version of the industry-leading NCD ThinSTAR Operating System, NCD's server-based management tool. Available for use on the new products - as well as via upgrade for existing units in the field - this software incorporates the latest features available from a device that utilizes Windows embedded technology. Features include:

-- A local version of the Internet Explorer Browser - The NCD ThinSTAR is the
company's first WBT able to take advantage of the latest developments in web
services technologies from industry leading suppliers such as Oracle, IBM,
Microsoft and Citrix Systems.

-- Free terminal management software - NCD customers can download NCD ThinSTAR
Management Services free from the NCD web site in order to manage the software
image in the NCD ThinSTAR.

-- Centralized Management - Using this powerful product, additional software
features, such as security capability or drivers for new devices, are
straightforward to install. For large enterprise deployments, customers can
download the full NCD ThinPATH Manager product for trial prior to purchase.

-- NCD ThinPATH Software support - The NCD ThinSTAR 500 and ThinSTAR 332 are
supported by powerful NCD ThinPATH Software, which delivers enhanced
functionality to the desktop and simple local and remote management.

-- Microsoft Windows CE .NET ready - All customers who purchase the new
terminals can register on NCD.com, and NCD will provide an upgrade to Microsoft
CE .NET based thin client upon its release.

Windows CE .NET will enable a number of powerful new features

for WBTs, including the Internet Explorer browser V 5.5

delivering XML Services, and robust multimedia support.

The NCD ThinSTAR 500 and 332 use the National Semiconductor Geode(TM) GX1 integrated processor at 300MHz. Graphics resolutions are supported up to 1280 1024 at 16-bit color depth. Both models support a range of emulators for access to popular legacy systems and have a three-year warranty. Customers select between the two models based on their application environment and their future expansion needs.

"NCD is once again taking a lead in thin client computing by addressing the latest trends through this next generation of Windows-based terminals. NCD's new .NET strategy provides enterprises with a flexible solution that allows them to migrate to Microsoft .NET and the new web services computing models," said Mike Kruse, director of software strategy, NCD. "We are also pleased to partner with National Semiconductor in this new line of terminals. These latest chips have allowed us to produce a new family of products based on National's integrated solutions. National Semiconductor is an innovator in developing chip technology specifically for thin client computing, making the company an important strategic partner for NCD."

"Thin clients based on National's industry-leading Geode technology provide the best performance, power consumption and price points for enterprises, education, government, retail and healthcare, and other vertical markets," said Ziv Azmanov, director of the thin client business unit at National Semiconductor. "We are pleased that NCD chose National's Geode solution for its next-generation thin clients. NCD's software expertise combined with National's Geode technology provide customers with an optimal information access device."

About Geode Technology

National Semiconductor's Geode is a x86 technology, a methodology, microprocessor architecture and all the products including the Geode GX1, SCx2000 single-chip and GX2 that comprise National's information appliance strategy. This includes the semiconductors, the software and the overall system expertise National has developed, and will continue to develop, for its targeted information appliance market segments - set-top boxes, thin clients/point-of-sale terminals and personal access devices. The Geode technology is designed and optimized to provide the best combination of performance, power consumption and price for information appliances.

About National Semiconductor

National Semiconductor is the premier analog company driving the information age. Combining real-world analog and state-of-the-art digital technology, the company is focused on the fast growing markets for wireless handsets; information appliances; information infrastructure; and display, imaging and human interface technologies. With headquarters in Santa Clara, California, National reported sales of $2.1 billion for fiscal year 2001 and employs about 9,700 people worldwide. Additional company and product information is available on the World Wide Web at www.national.com.

About NCD

Founded in 1988, Network Computing Devices, Inc., supplies information access and management products that extend server-based computing to give customers a competitive edge and a better bottom line. Over 1 million NCD thin clients are installed with over 3 billion hours of operation. The company can be reached on the Internet at: www.ncd.com.

Note to Editors: Network Computing Devices, ThinSTAR and ThinPATH are registered trademarks of Network Computing Devices, Inc. ThinFrastructure is a trademark of Network Computing Devices Inc. Other trademarks are the acknowledged property of their respective holders.

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements regarding NCD's product offerings, market position and customer base, and growth in demand for multi-platform offerings, thin clients, and other products. No assurances can be given that the products announced herein will gain acceptance in the marketplace or as to its effect on NCD's business, results of operations and financial condition. These statements involve risks and uncertainty, and actual results could differ materially from those discussed in the forward-looking statements. Although the Company believes its expectations reflected in such forward-looking statements are based on reasonable assumptions, no assurances can be given that such expectations will prove correct. Further information on factors that could cause actual results to differ from those anticipated is included in filings made by the Company from time to time with the Securities and Exchange Commission, including but not limited to, the Form 10-K for the year ended December 31, 2000 and the Form 10-Q for the quarter ended September 30, 2001.