NEON Systems and Software AG Partner to Provide High-performance Integration Solution For SQL Access To Adabas.

Business Editors & High Tech Writers

SUGAR LAND, Texas & RESTON, Va.--(BUSINESS WIRE)--Sept. 9, 2002

The Texas A&M University System to Use Combined Solution Across

Nine Universities and Eight State Agencies to Extend/Develop Mission

Critical Systems and Provide Simpler, Faster Data Access

NEON Systems, Inc. (Nasdaq: NEON), a leading provider of Software to Liberate the Mainframe(TM), and Software AG, Inc., a pioneer in XML technologies, today announced they have entered into a referral relationship that extends Software AG's integration solutions into mainframe data sources. Together, they can supply customers with integration solutions that provide high performance data access to Adabas, as well as other mainframe data and transaction sources.

NEON Systems' Shadow products provide a robust software solution for secure, scalable integration of distributed application platforms with mainframe data and transactional sources, such as Adabas, DB2, VSAM, IMS, and CICS/TS. Software AG's product portfolio includes an enterprise transaction platform with Adabas and Natural including a range of XML-based products for the development and integration of applications and processing and storage of data.

This relationship provides Software AG customers who are deploying application platforms, such as Web application servers, integration servers and other distributed computing platforms, with an immediate SQL access solution to Adabas and other supported mainframe data and transaction environments via industry standard APIs such as JDBC, JCA and ODBC.

Mutual customer, The Texas A&M University System will use the combined solution from NEON Systems and Software AG across nine universities, eight state agencies and its health science center to extend its investment in Adabas and Natural. With headquarters in College Station, The Texas A&M University System serves over 94,000 students and reaches more than four million people each year through its service mission. Through the integration of emerging technologies like Shadow, University officials will extend and develop critical applications for the business and payroll offices of the Texas A&M System administration and its employees.

"NEON Systems' innovative technology and solid history in the mainframe access and integration world, coupled with Software AG's great expertise of delivering reliable software for mission critical applications, makes for a great partnership between these two companies," stated Mark Schulz, project manager for the Texas A&M University System. "We are excited about the technological advancements made possible by this partnership and look forward to continued relationships with both of these companies."

"Most of Software AG's customers have a heterogeneous database environment, and a versatile solution such as NEON's Shadow will allow Software AG to help its customers solve a wide number of mainframe data integration problems," said Mike McDowell, Software AG, Inc.'s vice president of business development and channels. "NEON's Shadow product provides the key functions that our customers have been requesting, and we are confident that this marriage will clearly demonstrate our commitment to helping customers create business critical applications tailored to meet their needs."

"We're excited about working with Software AG because the two companies have so much in common. Our products are quite symbiotic and address business-critical computing on mainframe platforms," stated Mark Creswell, vice president and general manager of NEON Systems' Shadow Division. "This partnership strengthens NEON Systems' leadership position in the application platform to mainframe connectivity space and provides an excellent opportunity for an expanded partnership in the future that leverages our mutual commitment to XML."

About NEON Systems

NEON Systems, Inc. (Nasdaq: NEON) is a leading provider of enterprise software to help businesses get greater value out of their existing IT infrastructure. By improving application development and performance, maintaining the availability of critical data, and creating secure, real-time communications between IT service management systems and personnel, solutions from NEON Systems help you be more responsive to customer and business needs. Whether the technology is Shadow(R), the market leader in application platform to mainframe integration or iWave Integrator(R), the leading integration solution for IT service management, NEON provides out-of-the-box value and high return on investment. For more information, visit www.neonsys.com or call 800-505-NEON.

About Software AG, Inc.

Based in Reston, Va., Software AG, Inc. is a wholly owned subsidiary of Software AG. Founded in 1969, Software AG continues to be Europe's largest and a leading global provider of system software and services enabling enterprise data integration and management. Software AG's products control the central IT processes of thousands of renowned companies worldwide including Delta Airlines, Morgan Stanley, Citibank, Merck, DaimlerChrysler, and Sony. Software AG develops products and solutions that support the XML (Extensible Markup Language) standard. XML simplifies the exchange of documents and data as well as the integration of cutting-edge Web applications into traditional IT architectures. According to IDC, Software AG is the worldwide leader in the XML database market thanks to its Tamino XML Server. Software AG's B2B solutions offering focuses on XML-based integration (e.g. Web services) and enterprise content management systems. Software AG's portfolio of 300-plus distribution and technology partners includes IBM, Sun, Microsoft and Hewlett-Packard and solutions vendors like BEA and Stellent. In 2001, the corporation achieved 589 million euros in total revenue. Software AG has offices in over 70 countries and currently employs a staff of 3,200. Software AG is listed on the Frankfurt Stock Exchange (MDAX, security id number 724264/SOWGn.F). For additional information go to: www.softwareagusa.com.

NEON, Shadow and ShadowDirect are registered trademarks and ShadowConnect, iWave Helpdesk Integrator, iWave, and the NEON logo are trademarks of NEON Systems, Inc. in the USA and in other select countries. Software AG and Adabas are trademarks of Software AG All other trademarks are the property of their respective owners.

Software AG and/or all Software AG products are either trademarks or registered trademarks of Software AG. Other product and company names mentioned herein may be the trademarks of their respective owners.