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1996-08-02
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<!DOCTYPE HTML SYSTEM "html.dtd">
<HTML><HEAD><TITLE>@workStation Press Release</TITLE></HEAD>
<BODY><CENTER><IMG SRC="../gif/@workStation.gif" ALIGN="BOTTOM"><BR><H2>HDS
Network Systems, Inc. Introduces the World's First Network Computers to Provide
Access to the Internet and All Enterprise Applications- Starting at $750</H2></CENTER>
<P><B>June 11, 1996, King of Prussia, PA </B>-- 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). <BR><BR>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.
<BR><BR>"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."
<BR><BR>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.
<BR><BR>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.
<BR><BR>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.
<BR><BR>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 .
<BR><BR>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.<BR><BR>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.
<BR><BR>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.<BR><BR>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.
<BR><BR>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.
<BR><BR>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.<BR><BR>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.<BR><BR>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. <BR><BR>Telephone 610-277-8300.
<BR>FAX 610-275-5739. <BR>Internet: http://www.hds.com.
<BR>email: info@hds.com.<BR><BR>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.
<BR><BR>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.
</P>
<P>For Immediate Release <BR>Contact: Mary Schmidt <BR>Director of Marketing
<BR> 610.277.8300 ext. 114<BR><BR>Scott Friedman<BR>Manning, Selvage &
Lee<BR>212-213-7172<BR>sfriedma@mslpr.com
</P>
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