Sugar Land, TX (July 15, 2004) - NEON® Systems, Inc. (Nasdaq: NEON) a leader in enterprise-class mainframe integration, today announced that it has closed its acquisition of InnerAccess Technologies Inc., a privately-held mainframe integration software company based in Toronto, Ontario with development resources in Quebec City, Quebec, effective as of July 14, 2004. The two companies announced on June 1, 2004, that they had entered into a definitive agreement for NEON Systems to acquire InnerAccess Technologies. In the acquisition, Neon Systems paid $2.4 million and issued 407,123 shares of its common stock to the shareholders of InnerAccess in exchange for all of the capital stock of InnerAccess. In connection with the acquisition, Jean-Daniel Begin, the President and CEO of InnerAccess, will join NEON Systems' executive management team as its Vice President of Product Management.
The acquisition reinforces NEON's position among the mainframe integration market leaders, enabling the company to provide customers with a single, unified platform for mainframe integration supporting both modern Service-Oriented Architectures and emerging Event-Driven Architectures. NEON's expanded, integrated product portfolio provides customers with a greater opportunity to lower total cost of ownership and reduce the risk associated with maintaining numerous point integration solutions.