+--------+ | FORM 4 | U.S. SECURITIES AND EXCHANGE COMMISSION +--------+ WASHINGTON, D.C. 20549 [_] Check this box if no longer subject STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP to Section 16. Form 4 or Form 5 Filed pursuant to Section 16(a) of the Securities obligations may Exchange Act of 1934, Section 17(a) of the continue. See Public Utility Holding Company Act of 1935 or Instruction 1(b). Section 30(f) of the Investment Company Act of 1940 (Print or Type Responses) -------------------------------------------------------------------------------- 1. Name and Address of Reporting Person* Schaeffer Peter -------------------------------------------------------------------------------- (Last) (First) (Middle) 2918 Autumn Run Circle -------------------------------------------------------------------------------- (Street) Sugar Land TX 77479 -------------------------------------------------------------------------------- (City) (State) (Zip) 2. Issuer Name and Ticker or Trading Symbol NEON Systems, Inc. (NESY) ----------------------------------- 3. I.R.S. Identification Number of Reporting Person, if an entity (voluntary) -------------- 4. Statement for Month/Year January 2002 --------------------------------------------------- 5. If Amendment, Date of Original (Month/Year) --------------------------------- 6. Relationship of Reporting Person(s) to Issuer (Check all applicable) [x] Director ___ Officer ___ 10% Owner ___ Other (give title below) (specify below) ---------------------------------------------------------------- 7. Individual or Joint/Group Filing (Check Applicable Line) [x] Form filed by One Reporting Person ___ Form filed by More than One Reporting Person Table I--Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

~~FORM 4 (CONTINUED) TABLE II~~ -- ~~DERIVATIVE SECURITIES ACQUIRED, DISPOSED OF, OR BENEFICIALLY OWNED (e.g., PUTS, CALLS, WARRANTS, OPTIONS, CONVERTIBLE SECURITIES)~~ ------------------------------------------------------------------------------------------------------------------------------------ 1. Title ~~of Derivative~~ 2. ~~Conver~~Trans- 3. Trans- 4. ~~Trans-~~Securities Acquired (A) 5. ~~Number~~Amount of 6. ~~Date Exer~~Owner- 7. ~~Title~~Nature ~~and~~of ~~Amount 8. Price Security sion or~~ action action ~~Derivative~~or ~~cisable~~Disposed ~~and~~ of ~~Underlying of~~ (~~Instr. 3~~D) ~~Exercise Date Code~~ Securities ~~Ac-~~ship ~~Expiration~~of ~~Securities Deriv~~In- ~~Price~~Security ofDate ~~(Month/~~Code (Instr. 8)3, ~~quired~~4 (Aand 5) orBeneficially ~~Date~~Form: direct (Instr. 3 ~~and 4~~) ~~ative Deriv- Day/ Disposed of~~ (~~D) (~~Month/~~Day/~~ ~~Secur- ative Year)~~ (Instr. ~~3, 4, Year~~8) ~~ity~~Owned ~~Security~~at ~~and~~Direct 5)Bene- ~~(Instr.~~Day/ 5) ----------------------------------- ~~Date Expira~~- ~~Amount or~~ -----------~~---------------~~ ~~Exer-~~End ~~tion~~of ~~Title~~(D) ~~Number~~or official Year) Month Indirect Owner- Code V Amount (A) or Price (Instr. 3 and 4) (I) ship (D) ~~cisable~~(Instr. ~~Date~~4) ~~Shares~~(Instr. ~~------------------------------------------------------------------------------------------------------------------------------------~~4) ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ~~------------------------------------------------------------------------------------------------------------------------------------~~Common ~~------------------------------------------------------------------------------------------------------------------------------------~~Stock 1/18/02 G V 15,000 D 379,335 D ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ 9. Number of 10. Ownership 11. Nature of Derivative Form of Indirect Securities Derivative Beneficial Beneficially Security: Ownership Owned at End Direct (D) (Instr. 4) of Month or Indirect (I) (Instr. 4) (Instr. 4) ------------------------------------------------------------------------------------------------------- -----------------------------~~--------------------------------------------------------------------------~~ ------------------------------------------------------------------------------------------------------- -----------------------------~~--------------------------------------------------------------------------~~ ------------------------------------------------------------------------------------------------------- -----------------------------~~--------------------------------------------------------------------------~~ ------------------------------------------------------------------------------------------------------- ~~Explanation of Responses: /s/ Peter Schaeffer 7/2/01 **Intentional misstatements or omissions of facts constitute Federal Criminal Violations.~~ ------------------------------- -------- See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). **Signature of Reporting Person Date *As Attorney-In-Fact Note: File three copies of this Form, one of which must be manually signed. Page 2 If space is insufficient, see Instruction 6 for procedure. SEC 1474 (3-99) Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB number.

Table II--Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)

Table II--Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)

Explanation of Responses: /s/ Peter Schaeffer 02/08/2002 ------------------------------- ----------------- **Signature of Reporting Person Date Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. * If this form is filed by more than one reporting person, see Instruction 4(b)(v). ** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). Note: File three copies of this Form, one of which must be manually signed. If space provided is insufficient, see Instruction 6 for procedure.

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