HDS Network Systems, Inc. Introduces the World's First Network Computers to Provide Access to the Internet and All Enterprise Applications- Starting at $750

June 11, 1996, King of Prussia, PA -- The HDS @workStation, a $750 first-of-its-kind Network Computer that combines integrated Internet access, Java and the ability to run PC, UNIX and mainframe applications, was unveiled today by HDS Network Systems, Inc. (NASDAQ--HDSX).

With its unique combination of Internet, PC and legacy connectivity, the HDS @workStation is the first real alternative to a personal computer for running PC and enterprise applications, running Java applets and developing Web pages.

"While other vendors are talking about products that only allow people to run Java and browse the web, HDS is ready to ship the first low-cost, Internet-enabled PC alternative that does all of that, plus runs every existing application t hat companies have ," said Arthur Spector, President and CEO of HDS. "The HDS @workStation, however, is much more than a Web PC. Unlike other Network Computers, the HDS @workStation doesn't require companies to throw out all of their existing software, because it allows users to run Windows, UNIX and legacy applications in addition to Java and the Web."

Many industry analysts agree that a single-function Internet device is not practical, especially for corporate environments. "Network computing and NCs won't be real until there is a modestly-priced, easy to use, secure desktop device that can provide access to the Internet, corporate intranets, PC office productivity apps and legacy apps residing on mainframes and minicomputers," said Eileen G. O'Brien, an analyst at International Data Corp. HDS believes it is the first to offer a low-cost desktop device with this combination of capabilities.

In addition to running all types of applications, the HDS @workStation's Internet capabilities empower customers to take full advantage of the explosive growth of online computing. It includes: A Java Virtual Machine -- to run Java applets from any network. A Netscape-compatible Web browser, with technology licensed from Spyglass, for easy Internet navigation An HTML interface -- enabling a user simply to point and click to launch any application, access the Internet or configure the HDS @workStation. The HTML user interface is easily customizable so that companies can build their own menu of services for easy user access.

All of these features are enabled by the HDS netOS, an HDS-developed operating system which, unlike PC operating systems, is specifically designed for network computing environments. The HDS netOS, which is based on industry standards and able to run on any platform, is extremely compact, requiring only 300KB of memory.

The HDS netOS operating system runs the Java Virtual Machine, supports Internet protocols, and has built-in networking. HDS has announced it is willing to license the operating system to other manufacturers to enable them to manufacture Network Computers .

In addition to its Internet/intranet capabilities, the HDS @workStation supports low-cost, powerful multimedia options, including full-motion video and stereo sound, making it an ideal platform for activities such as creating Web pages, monitoring a television program in one window while working on a document in another, or performing Internet-based communications, including videoconferencing. The full suite of multimedia options costs about $600.

Unlike PCs -- which are expensive, difficult to configure in networks and may become obsolete within months -- the HDS @workStation Network Computer is low-cost, network-ready and useful for years since upgrades can simply be made to the network or server, without any changes to the desktop. As an example of this, HDS also released a version of its netOS operating system for every X terminal the company has shipped since 1991, allowing those products to function as Network Computers wit h exactly the same performance and functionality as the new HDS @workStation.

Importantly, the five-year cost of ownership of a Network Computer is between $ 5,000 and $8,000, compared to more than $40,000 for a PC including administration and end user support, according to the Gartner Group, a leading computer industry consulting firm.

The HDS @workStation is also an inexpensive and easy to use desktop for schools , organizations and individuals which have been shut out of the information revolution because of the cost and complexity of PCs, Spector said.

The HDS @workStation is available with a lead time of 2-3 weeks ARO, starting a t $750. The base configuration includes 4MB RAM, HDS netOS operating system, keyboard, mouse, a 17-inch grey-scale monitor, Ethernet, one serial port and a parallel port. Networking options include Token Ring, wireless Ethernet and cable modem support. The HDS @workStation will be distributed widely through direct sales and a number of key strategic alliances, including system integrators, distributors and OEM licensing agreements.

With memory expandable to 128MB and a full range of supported PC peripherals and network interfaces, the HDS @workStation is designed to give users maximum flexibility. It ships with optional floppy and hard disk drives, and monitor choices that include grey-scale, color, Trinitron and LCD flat panel displays.

The flexibility of the HDS @workStation gives systems administrators the option to configure the desktop with as many or as few local computing resources as desired. Security-conscious administrators can deploy HDS @workStations with no floppy drives or hard disks, or they can be loaded with gigabytes of local storage for user convenience.

HDS Network Systems, Inc., based in King of Prussia, PA, is a leading international supplier of cost-effective solutions for the integration and delivery of information and applications to the desktop. The company's Network Computer is based on an open architecture, incorporating industry standards to enable seamless access to multiple forms of information, including text, graphics, audio, and video, on any type of network.

Telephone 610-277-8300.
FAX 610-275-5739.
Internet: http://www.hds.com.
email: info@hds.com.

HDS and @workStation are trademarks of HDS Network Systems, Inc. Java is a registered trademark of Sun Microsystems, Inc. Other trademarks are the property of their respective owners.

The statements in this press release relating to matters that are not historical are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those anticipated, including but not limited to, rapid technological changes in the industry, increased competition, timely introduction and customer acceptance of the new line of Network Computers and the netOS operating system. These risks and uncertainties are described in reports and other documents filed by HDS with the Securities and Exchange Commission.

For Immediate Release
Contact: Mary Schmidt
Director of Marketing
610.277.8300 ext. 114

Scott Friedman
Manning, Selvage & Lee
212-213-7172
sfriedma@mslpr.com


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