Neoware's Thin Client Virtualization Solution Continues to Gain Traction in Critical Vertical Markets.

Neoware Image Manager Seen as Key Component to Organizations' Overall Virtualization Strategies; Markets Such as Education and Corporate Training Lead Early Adoption

KING OF PRUSSIA, Pa. -- Neoware, Inc. (Nasdaq:NWRE), a leading provider of thin client computing solutions, today announced that Neoware Image Manager, Neoware's on-demand streaming software, is gaining adoption as an integral part of organizations ongoing virtualization strategies. By streaming operating system and applications, such as Microsoft[R] Windows[R] XP, directly to the virtual desktop, burdens on IT support are lifted as they manage a single desktop computing image. Seeking a more cost-effective and efficient computing solution, organizations use Neoware Image Manager to improve upon traditional server based computing and desktop virtualization by achieving greater security, reliability, affordability and manageability while extending the life of the desktop.

Industries with complex computing environments - especially those with audio and video requirements, such as education, corporate training centers, and call centers - find great value in Neoware Image Manager. In situations where large numbers of computers are spread across different locations, maintenance can become a costly burden. An east coast University with more than 150 multimedia classrooms located across its large campus has experienced significant cost and time savings due to the centralized management capabilities of Neoware Image Manager. The staff can now restart classroom computers remotely, as well as centrally manage all applications on the servers.

Another organization realizing the benefits of Neoware Image Manager is Evry University in Paris, France. With Neoware Image Manager, Evry University has reduced the total cost of ownership on all of their desktops by more than 50 percent. Centralized operations are necessary and more efficient, as their desktops are distributed among separate classrooms and buildings. They have realized huge savings during deployment, support, and maintenance.

"Being able to centrally manage and dynamically provision images is fast becoming a core need for organizations," said Bill Bredbenner, chief technology officer of Neoware. "Neoware Image Manager offers educational institutions and training centers a reliable, high performance, and easily manageable solution that helps to lower IT support and maintenance costs. When combined with our thin client technology, organizations realize the added benefit of increased security. We continue to expand our offerings by providing our customers with the best possible features and robust capabilities."

About Neoware

Neoware, Inc. (Nasdaq:NWRE), is a global provider of thin client computing solutions that allow organizations to reduce costs by centralizing desktop management, alleviating threats of security breaches and reducing energy consumption. Forward thinking companies enable their desktop virtualization strategies with Neoware's desktop, laptop and software offerings.

Headquartered in King of Prussia, PA, U.S.A., Neoware has offices in Europe and Asia. Its products are available worldwide from select resellers and partners, and it has technology partnerships with leading companies including Microsoft, IBM and Lenovo.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding: Image Manager gaining adoption as an integral part of virtualization strategies. Factors that could cause actual results to differ materially from those predicted in such forward-looking statement include: rapid technological changes in the industry; our success in implementing our product development and channel program initiatives and the rebuilding of our infrastructure within our planned timeframe; our ability to retain our newly-appointed key staff members and to maintain our relationships with our channel partners; insufficient resources to fund our virtualization initiatives; the lack of growth in thin client computing; our timely development, release and customer acceptance of our products; increased competition; adverse changes in customer order patterns; adverse changes in general economic conditions in the U.S. and internationally; risks associated with foreign operations; and political and economic uncertainties associated with current world events. These and other risks are detailed from time to time in Neoware's periodic reports filed with the Securities and Exchange Commission, including, but not limited to, our annual report on Form 10-K for the year ended June 30, 2006 and our quarterly reports on Form 10-Q for the quarters ended September 30, 2006, December 31, 2006 and March 31, 2007.

Neoware is a trademark of Neoware, Inc. All other names, products and services are trademarks or registered trademarks of their respective holders.