CARNEGIE, PA -- May 7, 2003 -- NeuralWare, WISCO-ICC, the Instrumentation and Control Company of Wuhan Iron and Steel (Group) Company, and Hitachi Engineering, Ltd. (HEC) have executed a Memorandum of Understanding (MOU) to explore ways to combine NeuralWare's neural network-based data mining and predictive modeling technologies with WISCO-ICC instrumentation and system expertise and Hitachi Engineering Parallel Blade computers and simulation and supply chain software. The three organizations will initially focus on applications related to steel production, supply chain management, and environmental monitoring and modeling.

   In announcing the signing of the MOU, Jack Copper, CEO of NeuralWare noted that "This three-way international cooperation is an extension both of the Technology License Agreement between NeuralWare and WISCO-ICC and NeuralWare's growing penetration of the high technology market in Japan, and is yet another indicator of the strength of the long-standing sister city relationship between Wuhan China and Pittsburgh." Kunio Yamanaka (Executive Managing Director, HEC), Jack Copper (CEO, NeuralWare), Wang Wei Ping (General Manager, WISCO-ICC) after signing the MOU in Wuhan, China.

About NeuralWare
   NeuralWare, a privately-held company based in Pittsburgh Pennsylvania in the USA, is a leading supplier of business intelligence and analytic empirical modeling technology and solutions. NeuralWare flagship products, NeuralWorks® Professional II/PLUS and NeuralWorks Predict® are comprehensive modeling and deployment platforms used to create applications ranging from finance, marketing, and CRM to inspection systems and industrial quality control.

About WISCO-ICC and WISCO
   WISCO-ICC is the Instrumentation and Control Company of the Wuhan Iron and Steel (Group) Company (WISCO), based in Wuhan China. WISCO-ICC provides enterprise software development and engineering support services to WISCO operating divisions as well as to third party organizations. WISCO ranks second overall, and first in the metallurgical industry, in R&D capabilities in China.

About Hitachi Engineering Company, Ltd.
   Hitachi Engineering Company, Ltd. is a subsidiary of Hitachi, Ltd., a global supplier of industrial, medical, and commercial, and consumer technology. HEC offers a wide range of software and hardware solutions to customers world-wide, including advanced simulation and sensor technologies, and a Supply Chain Management system optimized for use on HEC Parallel Blade computers.

Contact: Jack Copper (NeuralWare)
   412-278-6290
   Email: jack.copper@neuralware.com