SOURCE: NComputing, Inc.

September 17, 2007 04:00 ET

NComputing Changes Economics of PC Access Worldwide

Company Ships Over 500,000 Seats Less Than Two Years After Introducing Revolutionary Virtual PC Solutions; Rapid Adoption in Both Underserved and Business Markets Globally

REDWOOD CITY, CA--(Marketwire - September 17, 2007) - NComputing, Inc., provider of the world's most affordable solutions for PC access, today announced dramatic growth in adoption of its breakthrough systems for multi-user PC computing. With schools, government organizations and businesses worldwide turning to the company's new model for affordable, energy-efficient computing, NComputing has sold over 500,000 PC access terminals around the world -- less than two years after introducing its new technology to the marketplace.

NComputing fundamentally changes the economics of desktop computing, and thereby allows mass, underserved markets -- including education and developing countries -- to more fully participate in the benefits of PCs. Most experts agree there are approximately one billion people worldwide who currently do not have access to a PC, but would use one if it were more affordable. NComputing is gaining rapid adoption in these under-resourced markets. At the same time, the company's technology is providing an exciting new alternative for small and large businesses around the world.

"At NComputing, we envision a world in which every person and organization that wants 1-to-1 access to a PC can finally afford it," said CEO and President Stephen Dukker. "We believe the world's next billion users will only achieve this dream through multi-user solutions that dramatically reduce costs and complexity, while also delivering a complete computing experience. NComputing is at the forefront of the shift to multi-user PC computing. Customers who otherwise could not afford widespread access to PCs already use our virtual PC technology in more than 70 countries throughout North and South America, Eastern and Western Europe, Asia and Africa."

A Revolutionary Idea -- Share the Power

NComputing's rapid growth stems from its unique ability to resolve a fundamental contradiction in today's PC marketplace. While there are not enough individual computers to go around, there's a surplus of computing power on desktops worldwide. In fact, today's standard PC can run many basic applications and still utilize less than 10 percent of its capacity. NComputing's technology shares the tremendous power of today's PCs among multiple users via low-cost virtual PCs -- connected to standard monitors, keyboards, and mice -- at a cost of as little as $70 per seat. Both Windows and Linux operating systems are supported, and users get a rich, highly satisfying experience, including full-screen, full-motion video.

NComputing's X300 systems enable up to seven users to simultaneously share a single PC. The company's L-series supports up to 10 users on a PC, 30 on a basic server, and hundreds with a more powerful server. The systems are easy and low-cost to deploy and maintain, and are highly energy efficient. NComputing terminals consume only about 1 watt per user, versus 115 watts for a standard PC. Because fewer PCs are needed, support costs plummet, while the solid-state NComputing terminals themselves require little or no maintenance.

NComputing in Education

Schools, which represent a major underserved market for computers, have been at the forefront of NComputing system adoption. Thousands of schools in more than dozens of countries worldwide have purchased NComputing products over the past 18 months in order to give students greater individual access to PCs. More than 200,000 seats have been deployed in U.S. schools alone, multiplying access and accelerating computer education. In North Carolina, for example, NComputing systems are deployed in 19 districts, supporting more than 10,000 students at a net savings of $4 million.

Scott Smith, director of instructional technology for the Visalia Unified School District in Tulare County, California, is among many school educators and administrators who have experienced the advantage of multi-user PC access through NComputing technology.

"I had guarded expectations, but this is one of the few innovative products we have deployed that has gone by the book," said Smith. "Our students don't even know they're using a shared system because of the rich PC experience of NComputing."

NComputing also announced today that more than 80,000 NComputing workstation seats are being deployed in every public school throughout the Republic of Macedonia. Macedonia's so-called "Computer for Every Child" project is one of the most ambitious national undertakings ever to standardize every school around a single technology platform.

NComputing in the Developing World

NComputing technology is being deployed throughout the developing world to bring PC computing to schools, hospitals, libraries, government agencies, businesses, villages and large cities that otherwise would have difficulty affording them. Almost half of all NComputing systems sold have been deployed in developing countries.

South Africa's Western Cape School System, which serves more than one million children in its K-12 schools, is using NComputing systems to provide greater PC access and bridge the Digital Divide in their region. The district's ambitious "Khanya" project is designed to provide computer education to all students in the district. NComputing systems are being integrated into existing computer laboratories to provide far more workstations at a fraction of the cost.

In Istanbul, Turkey, the Avcilar Hospital uses NComputing to provide computing access to all doctors, nurses, and administrators. "We immediately saw that it could be installed quickly and simply. Maintaining the system was also easy. And of course the cost was significantly less than a regular PC," said Mr. Ersin Soygüzel, manager of Avcilar Hospital's computer department.

NComputing in the Enterprise

The value of NComputing's multi-user systems extends well-beyond schools and developing countries. Their ability to provide affordable access to computing resources, dramatically cut installation and maintenance costs, slash energy consumption, and also offer a full PC experience, has made NComputing a growing choice among businesses, both large and small.

Northern California's Valley Yellow Pages is the third largest independent publisher in the nation. When the company needed to provide computing access to more than 500 account executives working from sales offices throughout California, they turned to NComputing for general office and graphics applications, web access to email, and use of in-house sales management software. The NComputing system gave computing access to each account executive, ensuring a differentiated and competitive directory product. "The NComputing terminals are affordable, reliable, easy to deploy and add very little administrative overhead," said Bill Wynne, Technical Support, Supervisor at Valley Yellow Pages.

The World Trade Organization deployed 500 NComputing units with 200 PCs at its annual conference in Hong Kong. In total, 700 stations were available for 11,000 delegates meeting at the convention, enabling Internet and conference information access for organizers, delegates, and press. The system was installed quickly, functioned flawlessly and cut electrical use 95 percent -- saving 80 percent on computer acquisition costs for the organization.

Strong Management Team

NComputing is guided by CEO Stephen Dukker, the visionary former CEO of eMachines who propelled that company to nearly a $1 billion in revenue in its first year, making eMachines one of the largest manufacturers of personal computers in North America. NComputing shows a tremendous momentum of its own as it addresses a pent-up reservoir of global demand through both direct sales and a rapidly growing network of resellers and distributors. The company holds a powerful patent portfolio on its innovative hardware and software, maintaining product development centers in Korea, Germany, Poland and Russia. President and COO Young Song is continuing the successful relationship that began when he and Dukker co-founded eMachines. Klaus Maier, also a co-founder, is the innovator of the multi-user terminal architecture and concepts fundamental to NComputing products.

About NComputing, Inc.

Founded with the goal of making computing affordable for everyone, NComputing, Inc. is a privately held software and hardware technology design and manufacturing company with offices in Australia, Canada, China, Germany, India, Korea, Poland, Russia, the United Kingdom, and the United States. Headquartered in Redwood City, CA, the company's patented technologies drastically lower costs, improve manageability and reduce energy consumption. The current product lines deliver virtual PC computing solutions that are as low as $70 per user, affordable enough for even the smallest organization yet powerful enough for enterprise-scale applications.