Neoware and Matrox Collaborate on Multi-Display Solutions

Neoware, Inc. (Nasdaq:NWRE), the leading supplier of thin client software and devices, today announced integration with Matrox EpicA series of multi-display graphics cards, developed by Matrox Graphics, Inc., the leading manufacturer of graphics solutions for professionals. This integration gives Neoware thin client users the ability to connect up to four monitors simultaneously to a single Neoware thin client device. This extends the security, reliability, and affordability of Neoware thin client computing to data-intensive environments, such as financial services, medical services and research, and document management.

"The Matrox EpicA series of graphics cards addresses the requirements of Neoware thin client users for higher display resolutions, superior image quality, and increased support for multiple analog and digital displays," said Martin Niemer, Neoware product manager. "This integrated solution is available with the Neoware e140 thin client, further extending the security and reliability of Neoware thin clients to demanding, multi-display environments."

The Neoware e140 is a high-performance thin client that offers DVI (Digital Video Interface) support. It has easily upgradeable flash and/or RAM, offering easy migration from one operating system to another, and includes an optional PCI slot, enabling the integration of the Matrox EpicA series multi-display graphics cards. It is available with the Matrox EpicA series for the Linux and Microsoft(r) Windows(r) XPe operating systems.

Matrox EpicA comprises both hardware and software technology. EpicA hardware includes three multi-display PCI cards: TC4, TC2, and TC2-Lite. All are passively cooled (no fan) and low power consumption. With 128 MB of memory, the EpicA TC4 supports up to four monitors with a combined resolution of up to 6,400 x 1,200 pixels. The EpicA TC2 and TC2-Lite are both dual-display (DualHead(r)) graphics cards. The TC2, with 64 MB of memory, can support up to 3,840 x 1,200 pixels (digital), while the TC2-Lite has 32 MB of memory and can output up to 2,560 x 1,024 pixels (digital).

The Matrox and Neoware solution also integrates the EpicA software suite. Designed for remote desktops, PowerDesk EpicA enables multi-monitor window management and PowerSpace EpicA software allows for the creation and layering of virtual desktop workspaces. The EpicA software suite is easily set up on the server and is compatible with leading remote connection technologies.

More information about Neoware thin clients can be found at www.neoware.com/products.

More information about Matrox EpicA hardware and software can be found at http://www.matrox.com/graphics/corp/epica/hardware.cfm

About Neoware, Inc.

Neoware, Inc. (Nasdaq:NWRE) provides enterprises throughout the world with thin client computing devices, software that turns PCs into thin clients, and services that adapt thin client technology to virtually any enterprise computing environment. Neoware's software powers, manages and secures thin client devices and traditional personal computers, enabling them to run Windows(r) and Web applications across a network, stream operating systems on demand, and connect to mainframes, mid-range, UNIX and Linux systems. Headquartered in King of Prussia, PA, USA, Neoware has offices in Australia, Austria, China, France, Germany, and the United Kingdom. Neoware's products are available worldwide from select, knowledgeable resellers, as well as via its partnerships with IBM, Lenovo and ClearCube. Neoware can be reached by email at info@neoware.com.

About Matrox Graphics, Inc.

Matrox Graphics Inc. is the leading manufacturer of graphics solutions for professionals and has been delivering high-quality, innovative 2D/3D and graphics hardware since 1976. Creator of the multi-display phenomenon, Matrox combines its proven graphics chip designs, reliable software development, and dependable card manufacturing expertise to produce products that are reputed worldwide for their superior image quality, practical ingenuity and unwavering stability. Matrox Graphics designs and supports graphics solutions optimized for utility, empowering professionals to see more and do more. A privately held company headquartered in Montreal, Canada, Matrox has international offices in the United States, the United Kingdom, Ireland, Germany, Italy and Hong Kong. For more information, visit www.matrox.com/graphics.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including a statement regarding Neoware's intent to collaborate with Matrox Graphics, Inc. to integrate Matrox's graphics cards with Neoware devices. Factors that could cause actual results to differ materially from those predicted in such forward-looking statements include: our ability to maintain our relationship with Matrox; timely development and customers' acceptance of our devices integrated with the Matrox graphics cards; pricing pressures; rapid technological changes in the industry; increased competition; 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, 2005 and our quarterly reports on Forms 10-Q for the quarters ended September 30, 2005, December 31, 2005 and March 31, 2006.

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

Matrox Graphics, Matrox Electronic Systems, and Matrox are registered trademarks of Matrox Graphics Inc. and/or Matrox Electronic Systems Ltd. Other company, product and service names and/or logos indicated above may be trademarks or service marks of such other companies.

CONTACT: Neoware, Inc.

Baker Egerton

(610) 277-8300 ext. 1742

Baker.Egerton@neoware.com

Matrox Graphics, Inc.

Nadia Marrone

(514) 822-6000 ext. 7237

Nadia.Marrone@matrox.com

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