| SUGAR LAND, Texas, Nov. 8 /PRNewswire/ -- NEON(R) Systems, Inc. (Nasdaq: NESY), a leading provider of Enterprise Access and Integration,
 Security, and Subsystem Management software products, today announced that the
 company was awarded a U.S. General Services Administration (GSA) Federal
 Supply Contract, number GS-35F-0439.  The NEON Systems contract will be active
 until May 11, 2004.  Under the GSA Federal Supply Contract with NEON Systems,
 Federal Government agencies, department, and contractors working under the
 auspices of a government contract can purchase any NEON Systems product.
 NEON Systems is a leading provider of Enterprise Access and Integration
 software products with the Shadow(R) Product Family.  Shadow Direct(TM),
 Shadow OS/390 Web Server(TM), and Shadow VM Web Server(TM) offer direct,
 transparent access to System/390(R) IMS, CICS(R), VSAM, ADABAS, or DB2(R) data
 and transactions from the Internet or distributed computing environments.  The
 Shadow Product Family offers a production-quality environment for n-tier
 and/or Web application development; revitalization of System/390 applications;
 and System/390 information sharing for e-initiatives such as e-commerce,
 enterprise application integration, and business-to-business integration.
 NEON Systems also offers a Enterprise Subsystem Management Product Family
 of IMS and CICS tools to increase the performance of System/390 subsystems to
 allow quick availability to and control of mission-critical data 24 hours a
 day, seven days a week.  The NEON Systems Enterprise Subsystem Management
 product family includes high performance management utilities for tasks such
 as indexing, unloading, loading, and partitioning.
 For progressive organizations leveraging the power of the Internet with
 e-initiatives such as e-commerce, e-procurement and more, it is crucial to
 protect valuable information from getting into the wrong hands.  The NEON
 Enterprise Security Management Halo(TM) Product Family guards information with
 encryption/decryption technology for the Internet and bi-directional account
 synchronization for heterogeneous computing environments.
 About GSA
 Headquartered in Washington, DC with eleven regional offices, General
 Services Administration (GSA) is one of the three central management agencies
 in the Federal Government.  This agency provides expertly managed space,
 supplies, services, and solutions, at the best value, to enable Federal
 employees to accomplish their missions.  In support of this mission, GSA
 provides workspace, security, furniture, equipment, supplies, tools,
 computers, and telephones.
 About NEON Systems
 NEON Systems, Inc. is a leading provider of Enterprise Access and
 Integration, Security, and Subsystem Management software products for all
 industries. Headquartered in Sugar Land (Houston), Texas, NEON has sales,
 support, and distributor offices covering 25 countries around the world.
 NEON's website can be visited at www.neonsys.com.
 NEON and Shadow are registered trademarks and ShadowDirect, Shadow OS/390
 Web Server, Shadow VM Web Server, and Halo are trademarks of NEON Systems,
 Inc.  All other trademarks are the property of their respective owners.
 SOURCE  NEON Systems, Inc.
 -0-                             11/08/1999
 
 /CONTACT:  Susan Allen Farrell of NEON Systems, Inc., 281-634-8225, or
 fax, 281-242-3880, or email, sfarrell@neonsys.com/
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 /Web site:  neonsys.com
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