AXCESS Inc. Secures Round of Financing.

Business Editors & High Tech Writers

DALLAS--(BUSINESS WIRE)--Jan. 21, 2003

AXCESS Inc. (OTCBB:AXSI), a leading provider of advanced technology security and asset management systems, announced today the approval by the company's Board of Directors of a round of financing to support AXCESS' working capital and growth needs in 2003. The convertible-debt instrument was similar to the type of financing closed in July of 2002.

"Despite our financing difficulties over the past several months, we have been able to operate and even fulfill a substantial level of orders with the help of some very dedicated people. In addition to those here at AXCESS, we received tremendous support from our suppliers and customers," commented Allan Griebenow, President & CEO of AXCESS. "This financing will help us purchase the inventory necessary to work down our backlog and concentrate on growing a very exciting business."

AXCESS supplies two best-of-breed solutions that dramatically reduce the cost, and increase the coverage of video surveillance and asset protection systems. The Prism Video(TM) video surveillance system is network-based from end to end, making the video immediately available anywhere, and including network-based digital video recording. The ActiveTag(TM) wireless tagging solution includes an embedded battery, which enables economic and reliable automatic identification of people, vehicles, and assets, improving the security and throughput at gated areas and building access, as well as securing critical IT assets.

The company has been active in solving a number of new, real world problems in security such as in homeland defense at airports where video is made available over the network to a remote, central location for recording and for rapid response to security events. Fuel trucks at airports are tagged and managed via video to control the access and track the whereabouts of fuel trucks. Various government and military sites have installed the tags on vehicles to provide automatic identification thereby improving the security of gated access, while not impacting throughput. Enterprises are now tagging laptop computers to prevent the theft of the assets and resident intellectual property, as well as placing their surveillance video on the network to reduce overall cost and increase coverage.

About AXCESS Inc.

AXCESS Inc., headquartered in greater Dallas, Texas, provides advanced security and asset management systems that locate, identify, track, monitor, count, and protect assets. Its network-based systems provide application solutions that can reduce loss and liability, and boost productivity in areas that provide significant value for the customer. In security, the Company's solutions extend traditional system coverage through the use of the corporate network or Internet. A particular focus on automatic incident detection, recording, and notification, all of which can increase productivity and effectiveness. Beyond traditional security, the Company's solutions automatically locate, track, monitor and protect assets, which can maximize utilization of critical assets, such as computers, inventory, people, and vehicles, and improvement of business operations. The main applications are security video (CCTV), personnel and vehicle access control, and automatic asset tracking and protection. The Company provides solutions in the recently identified homeland security markets such as air and ground transportation, water treatment facilities, oil and gas, power plants, as well as in the markets for data centers, retail and convenience stores, education, and corporate offices. AXCESS utilizes two patented and integrated technologies: network-based radio frequency identification (commonly referred to as RFID) and tagging and streaming video. Both application and browser-based software options deliver critical real-time information tailored to each end user via the enterprise network or Internet, also providing custom alerts in the form of streaming video, e-mail, or messages delivered to wireless devices. AXCESS is a VennWorks LLC partner company.

This news release contains "forward-looking statements" within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including changes from anticipated levels of sales, future national or regional economic and competitive conditions, changes in relationships with customers, access to capital, difficulties in developing and marketing new products, marketing existing products, customer acceptance of existing and new products, and other factors disclosed in the Company's Annual Report on Form 10KSB for the year ended Dec. 31, 2001 and all of the Company's subsequent Quarterly Reports on Form 10QSB, especially in the "risk factors" sections of these annual and quarterly reports. Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company has no obligation to update the forward-looking information contained in this news release.