<PAGE>
<TABLE>
<CAPTION>
- -------- U.S. SECURITIES AND EXCHANGE COMMISSION ------------------------
FORM 3 WASHINGTON, D.C. 20549 OMB APPROVAL
- -------- ------------------------
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES OMB Number: 3235-0104
Expires: April 30, 1999
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Estimated average burden
Section 17(a) of the Public Utility Holding Company Act of 1935 or hours per response...0.5
Section 30(f) of the Investment Company Act of 1940 ------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
<S><C>
1. Name and Address of Reporting Person 2. Date of Event Re- 4. Issuer Name and Ticker or Trading Symbol
quiring Statement
Pate Don (Month/Day/Year) NEON Systems, Inc. (NESY)
- ------------------------------------------------- ------------------------------------------------------------
(Last) (First) (Middle) March 4, 1999 5. Relationship of Reporting Person 6. If Amendment, Date
----------------------- to Issuer (Check all applicable) of Original
3. IRS or Social Se- Director 10% Owner (Month/Day/Year)
curity Number of ---- ----
14100 Southwest Freeway, Suite 500 Reporting Person X Officer Other (specify ---------------------
- ------------------------------------------------- (Voluntary) ---- ----
(Street) (Give title below))
Sugar Land Texas 77478 Vice President-Worldwide Sales
- ------------------------------------------------------------------------------------------------------------------------------------
(City) (State) (Zip) TABLE I -- NON-DERIVATIVE SECURITIES BENEFICIALLY OWNED
- ------------------------------------------------------------------------------------------------------------------------------------
1. Title of Security 2. Amount of Securities 3. Ownership 4. Nature of Indirect Beneficial
(Instr. 4) Beneficially Owned Form: Direct Ownership (Instr. 5)
(Instr. 4) (D) or Indirect
(I) (Instr. 5)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. (Over)
(Print or Type Responses) SEC 1473 (8-92)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FORM 3 (CONTINUED) TABLE II - DERIVATIVE SECURITIES BENEFICIALLY OWNED (E.G., PUTS, CALLS, WARRANTS, OPTIONS, CONVERTIBLE
SECURITIES)
- ------------------------------------------------------------------------------------------------------------------------------------
<S><C>
1. Title of Derivative Security 2. Date Exer- 3. Title and Amount of Securities 4. Conver- 5. Owner- 6. Nature of Indirect
(Instr. 4) cisable and Underlying Derivative Security sion or ship Beneficial
Expiration (Instr. 4) Exercise Form of Ownership
Date Price of Deriv- (Instr. 5)
(Month/Day/ Deri- ative
Year) vative Security:
-------------------------------------------------- Security Direct
Amount (D) or
Date Expir- or Indirect
Exer- ation Title Number (I)
cisable Date of (Instr. 5)
Shares
- ------------------------------------------------------------------------------------------------------------------------------------
Employee Stock Options (Rights to Buy) (1) 11/1/06 Common Stock 52,750 $ 0.20 D
- ------------------------------------------------------------------------------------------------------------------------------------
Employee Stock Options (Rights to Buy) (2) 12/23/08 Common Stock 60,000 $ 12.35 D
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(1) 1/4 options vest on 11/1/97, 11/1/98, 11/1/99, and 11/1/00
(2) 1/4 options vest on 12/23/99, 12/23/00, 12/23/01 and 12/23/02
Explanation of Responses:
/s/ John S. Reiland* 3/4/99
------------------------------------- ----------------------
**Intentional misstatements or omissions of facts constitute Federal Signature of Reporting Person Date
Criminal Violations. SEE 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). *As attorney-in-fact
Note: File three copies of this Form, one of which must be manually signed. If space provided is insufficient,
SEE Instruction 6 for procedure.
Page 2
SEC 1473 (8-92)
</TABLE>
