Neoware Systems reported preliminary operating results for the fiscal third quarter ended March 31, 2003 and provided a preliminary revenue outlook for its fiscal fourth quarter ending June 30, 2003. The Company also announced that it intends to release earnings for the quarter ended March 31, 2003 on April 29, 2003 after the close of the market. The Company noted that, based upon preliminary estimates, revenues for the quarter ended March 31, 2003 are expected to exceed $13.3 million, an increase of more than 59% from the prior year quarter. Gross margins for the quarter are expected to exceed management guidance of 40% to 42%. The Company expects to report income from operations in excess of $2 million for the quarter. In addition, the Company expects to report a non-operating impairment charge of $300,000 from an investment in Boundless Corporation in June 2000 related to the Company’s purchase of the Capio product line, as a result of Boundless’s Chapter 11 bankruptcy filing, and a provision for income taxes of approximately 36%. The Company also expects to report an increase in cash in excess of $2 million for the quarter and expects to report more than $26 million in cash at the end of the quarter.