Exhibit 99.1

Neoware Acquires Pericom Host Access Software Business

New Software Product Line to Provide Neoware Customers with a Broad Range of
Terminal Emulation Choices for PCs, Mobile Devices

King of Prussia, PA and Milton Keynes, UK, July 1, 2003 - Neoware Systems
(Nasdaq:NWRE) and privately-held Pericom Holdings PLC today announced that
Neoware has acquired the host access software product line and the business
currently operated under the name Pericom Software for approximately $9.8
million in cash. Under the terms of the acquisition, Neoware has acquired all
assets of the software business, including intellectual property and technology,
customer lists, customer contracts and distribution channels and a
non-competition agreement. Neoware expects to retain the employees involved in
the software business, which will be operated as Neoware's Host Access business
unit through a wholly-owned subsidiary of Neoware Systems, Inc. The new
operation is expected to be profitable immediately following the transaction.

Pericom Software markets a broad range of host access products that enable
global enterprises to provide employees, vendors and customers the ability to
run applications on mainframes, midrange, UNIX and Linux systems and is the
leading supplier of terminal emulation software to the thin client appliance
market. The acquisition of Pericom Software broadens Neoware's software product
offerings by enabling Neoware to provide its customers with desktop connectivity
software for PC and mobile platforms, as well as for thin clients. The new
Neoware software products will be marketed under the existing teemtalk, teemX
and teemworld brand names through Neoware's Host Access business unit, which
will be managed independently.

"With this acquisition, Neoware now supplies the most popular terminal emulation
software in the thin client business, and we can extend that leadership position
into personal computers and mobile devices. By offering additional software
products to the same customers through the same channels, we have the
opportunity to enhance our customer relationships, driving incremental revenue
and profits," stated Michael Kantrowitz, Chairman and CEO of Neoware. "We are
committed to the ongoing development of these host access software products and
intend to continue to make them available to other thin client suppliers. For
our customers, this means continued development and support of quality products
and services from a company that is committed to leadership in the server-based
computing market."

"Our new UK-based software development staff has been dedicated to the
development, distribution and support of advanced host access software in order
to facilitate seamless integration of PCs, thin clients and handheld devices
into multi-vendor enterprise environments," continued Mr. Kantrowitz. "We are
pleased to have John Stephenson, formerly Managing Director of Pericom Software,
join Neoware's host access business as Managing Director. We look forward to his
vision and leadership in guiding the continued growth of our host access
software business."

"I am pleased to join Neoware and look forward to leading the Company's host
access software business," commented John Stephenson, Managing Director of
Neoware's host access business. "Combining with Neoware - a profitable, growing
technology company - gives us the resources we need to continue our leadership
position in the industry and expand our level of commitment and service to our
OEM and direct customers, both of whom are central to our strategy moving
forward."




About Neoware

Neoware provides software, services, and solutions to enable Appliance
Computing, a proven Internet-based computing architecture targeted at business
customers that is designed to be simpler and easier than traditional PC-based
computing. Neoware's software and management tools power and manage a new
generation of smart computing appliances that utilize the benefits of open,
industry-standard technologies to create new alternatives to personal computers
used in business and a wide variety of proprietary business devices.

Neoware's products are designed to run local applications for specific vertical
markets, plus allow access across a network to multi-user Windows servers, Linux
servers, mainframes, minicomputers, and the Internet. Computing appliances that
run and are managed by Neoware's software offer the cost benefits of
industry-standard hardware and software, easier installation, and have lower
up-front, maintenance, and administrative costs than proprietary or PC-based
alternatives.

More information about Neoware can be found on the Web at http://www.neoware.com
or via email at invest@neoware.com. Neoware is based in King of Prussia, PA.

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

About Pericom, PLC

Formed in 1975, Pericom Plc provides a wide range of Terminal Emulation Software
products, Thin Client Computing, Networking and Cabling, PC Maintenance and
complete Internet solutions. Located in Milton Keynes, UK and its network of
regional offices in the US and Europe, Pericom offers a complete one-stop-shop
for all IT, software and computing needs. More information about Pericom, LLC
can be found on the Web at http://www.pericom.co.uk or
http://www.pericom-software.com.








This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including statements
regarding: the immediate profitability of the acquired Pericom business; our
broadened software product offerings; the extension of the product line's
leadership position into personal computers and mobile devices; the opportunity
for us to increase revenues and profits as a result of the acquisition; the
ongoing development of the teemtalk, teemX and teemworld products; our continued
development and support of quality products; our commitment to hold a leadership
position in the server-based computer market; the addition of new employees to
guide the growth of the business, including John Stephenson; our commitment to
our OEM and direct customers; the continued growth and profitability of our
business; the benefits of our business model; and our competitive advantage.
These forward-looking statements involve risks and uncertainties. Factors that
could cause actual results to differ materially from those predicted in any such
forward-looking statement include: our ability to successfully integrate the
Pericom host access software business, including the retention of Pericom's
existing customers; our timely development and customers' acceptance of our
products, including the former Pericom products; our ability to continue to
lower our costs; pricing pressures; rapid technological changes in the industry;
growth of the Appliance Computing and host access software market; increased
competition; our ability to attract and retain qualified personnel, including
the former Pericom employees; our ability to identify and successfully
consummate and integrate future acquisitions; 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, its
report on Form 10-K for its fiscal year ended June 30, 2002 and Form 10-Q for
the quarter ended March 31, 2003.