Axeda Automates Software Release Management for Remote Devices.

Business Editors/High-Tech Writers

MANSFIELD, Mass.--(BUSINESS WIRE)--Jan. 6, 2003

Axeda Systems Inc.(NASDAQ:XEDA):

Axeda DRM(TM) Extended To Support Cost-Effective, Mass Distribution

and Retrieval of Software and Files, Enabling Better

Customer Service at Lower Cost

Axeda Systems Inc. (NASDAQ: XEDA), the leading provider of device relationship management (DRM) enterprise software and services, today announced the Axeda Software Management(TM) application, a new addition to its proven Axeda DRM(TM) system.

This new application is specifically designed to enable original equipment manufacturers (OEMs) and their service providers to automate the process of software release and file management for high-value, intelligent devices deployed remotely at customer sites. The first of its type to be integrated within a full DRM system, the Axeda Software Management application will allow customer support organizations to improve levels of customer service and satisfaction while reducing cost of operations.

The Axeda Software Management application enables the efficient, secure, reliable and cost-effective mass distribution of software modules such as application and operating system updates, patches, documentation and help files via Axeda patent-pending Firewall-Friendly(TM) Internet communications technology. It also allows the rapid retrieval of key files, such as log, data and configuration files from deployed devices.

More than just transferring files, Axeda Software Management lets users automate complex, remote installation and retrieval procedures by encapsulating sequences of device and configuration instructions with the files. Together these capabilities enable customer service organizations to:

-- Reduce the cost and complexity of software distribution and installation

-- Off-load error-prone software and file management burdens from customers

-- Ensure deployed devices are at the latest revision level

-- Remotely retrieve log and configuration files to streamline customer support

-- Enable remote delivery of new managed services and software features

"As increasing numbers of leading device manufacturers have adopted Axeda DRM, we have received tremendous demand to expand our applications capability to manage not just live device data but also the software, applications, and files contained within those devices. The addition of Axeda Software Management represents our ongoing commitment to providing the most robust and comprehensive DRM system available on the market today. It extends both the power of our core system and our leadership position in the device relationship management market," said Richard MacKeen, senior vice president of Research and Development, Axeda Systems. "It is our objective to exploit DRM to improve every method of creating value for our customers. This now includes automating device software release management which is estimated to be the cause of more than one third of all support issues."

The Axeda DRM system is a distributed software solution that enables manufacturers and service providers to utilize the Internet to remotely monitor, manage and service intelligent devices such as instruments, equipment, machines, appliances, facilities, computers and more. The Axeda Software Management application leverages the proven Axeda DRM distributed platform with its intelligent agents and advanced user and data security features for fast, reliable, scalable and cost-effective software delivery and retrieval.

Axeda Software Management features a wizard-driven, Web-based interface for ease of use and, by surrounding files for downloading or uploading with any number of commands, the user is able to control exactly what is to happen during the installation process. This offers full control over the entire software configuration process with or without the physical presence of a local system administrator.

The Axeda Software Management application can operate in batch mode on all devices or devices in a particular region or group, as well as on individual devices. The application gives the user the option of deploying an upgrade or requesting file retrieval immediately or at a future date and time. This flexibility allows all parties to optimize their network, file server and web server resources, to minimize the impact to the organization. Other performance optimizations include bandwidth consumption control and intelligent failure recovery to resume transmission.

Users can track all software management activities throughout the distribution and deployment process to ensure that tasks are completed as specified. The product's deployment manager allows you to view the progress of installations at any time, and see their status as pending, started, complete, failed or aborted. The status and configuration of an individual device can be viewed at any time so support staff knows in advance of customer calls what software revision level is installed at their site. The Axeda DRM system supports the Code for Federal Regulations (CFR) Part 11, which requires that electronic records and transactions will be fully secure and auditable - the Axeda system encrypts all transmissions and tracks everything that happens in a tamper-proof audit log.

More information on Axeda and Axeda Software Management is available today from Axeda Systems Inc. and its authorized distributors. Contact Axeda at www.axeda.com or call [phone] for more information.

About Axeda

Axeda Systems(TM) Inc. (NASDAQ: XEDA) is the world's leading provider of device relationship management (DRM) enterprise software and services. Axeda helps businesses become more competitive by using the Internet to extract real-time information hidden in their intelligent devices. The company's flagship product, the Axeda Device Relationship Management System(TM), is a distributed software solution that lets businesses remotely monitor, manage and service intelligent devices, deployed around the world, allowing them to optimize their service, development, sales and manufacturing operations. Axeda customers are Global 2000 companies in many markets including Medical Instrument, Enterprise Technology, Printer and Copier, Industrial and Building Automation, and Semiconductor Equipment industries. Axeda has sales and service offices in the US, Europe and Japan, and distribution partners worldwide. More information about Axeda is available at www.axeda.com.

About Device Relationship Management

Everyday intelligent devices such as copiers, elevators, vending machines, building control units, medical devices, computers and storage systems, and industrial machines are an important new source of business information. Device relationship management systems allow companies to tap into this valuable information anytime anywhere. Pioneered by Axeda, device relationship management technology provides a distributed information management system that leverages the Internet to allow timely, accurate, and unbiased information to be communicated automatically between intelligent devices, wherever they are deployed around the world, and service personnel or enterprise business systems. Device relationship management helps turn reactive businesses into proactive businesses providing new sources of revenue, increased operational efficiency and lower costs, with an ROI that is often measured in months.

(C) 2003 Axeda Systems. All rights reserved. Axeda, Axeda Systems, Axeda DRM, Axeda Device Relationship Management System, Axeda Agents, Axeda Applications, Axeda Enterprise, Axeda Software Management, Axeda Supervisor, Automatic eCommerce, Firewall-Friendly, and Access. Insight. In Real Time. are trademarks of Axeda Systems. DRM Leadership Alliance, DRM Leadership Forum, DRM Leadership Council, and DRM Integration Program are service marks of Axeda Systems. The Axeda logo and stylized bitstream design are trademarks of Axeda Systems. All other trademarks are either property of Axeda Systems or property of their respective owners.

This press release may contain certain forward-looking statements that relate to Axeda's future performance. These forward-looking statements include, but are not limited to, those regarding Axeda's products and markets, product functionality in future installations and benefits derived therefrom, and may include implied statements concerning market acceptance of Axeda's products and its growing leadership role in the DRM market. Such statements are subject to a number of risks and uncertainties that may cause the actual events or future results to differ from those discussed herein. Such factors include, among others: Axeda's customers' ability to implement or integrate Axeda's DRM solutions successfully and in a timely fashion, receive expected functionality and performance, or achieve benefits attributable to Axeda's DRM solutions; uncertainties in the market for DRM products and the potential for growth in the DRM market; the long sales cycle for DRM products; limited distribution channels; the difficulty of protecting proprietary rights; present and future competition; and Axeda's ability to manage technological change and respond to evolving industry standards. Investors are advised to read Axeda's Annual Report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission, particularly those sections entitled "Factors Affecting Operating Results" and "Risk Factors" for a more complete discussion of these and other risks and uncertainties. Axeda assumes no obligation to update the forward-looking information contained in this press release.