Axeda Device Relationship Management Licensed by Network Appliance; Enterprise Storage Leader Selects Axeda DRM for Enhanced Customer Support.

Business/Technology Editors

MANSFIELD, Mass.--(BUSINESS WIRE)--Oct. 24, 2002

Axeda Systems Inc. (NASDAQ: XEDA), the leading provider of device relationship management (DRM) enterprise software and services, today announced that Network Appliance (NASDAQ: NTAP) has licensed the Axeda DRM(TM) system. Axeda DRM extends Network Appliance's award-winning services with new proactive customer support capabilities for its full-line enterprise storage solutions.

"Today's enterprise demands fast, continuous data access to power business applications, making reliable storage a mission-critical need," said Mark Santora, senior vice president of Network Appliance. "Our commitment to high-quality and responsive customer support is known across the industry. Axeda's advanced DRM solution helps us to be even more responsive with automated, proactive service offerings. This helps meet our customers' objectives of maximum system uptime and minimum total cost of ownership."

"We are extremely pleased to be selected by Network Appliance, a leader not only in enterprise storage systems but also in advanced customer service techniques," said Robert M. Russell Jr., chairman and CEO of Axeda Systems. "In today's market, overburdened IT personnel are dealing with dramatically greater complexity and are looking for new ways to increase their productivity. Axeda Device Relationship Management is enabling service experts at enterprise technology developers like Network Appliance to extend their reach securely into their customers' installations to remotely provide better support with faster response."

The Axeda DRM system is a distributed enterprise software solution that lets support organizations proactively monitor, diagnose, repair, and administer intelligent devices when remotely deployed at customer sites. The system ensures the secure transmission of device data and commands via the Internet from remote equipment to support personnel. Axeda DRM enables remote log file management, desktop sharing, software configuration management, and automatic alerts to technicians if a device is operating outside preset performance standards. This helps minimize support calls and time on the phone, speeds the diagnostic process, reduces the number of costly on-site visits, and increases device uptime - all enhancing customer productivity and satisfaction. Ultimately, Axeda DRM enables full-lifecycle feedback from real-world device usage that can be leveraged to benefit multiple parts of the business including product development, marketing, sales, operations, and manufacturing.

About Network Appliance

Network Appliance is a world leader in open network storage solutions for today's data-intensive enterprise. Since its inception in 1992, Network Appliance has provided technology, product, and partner solutions that continue to drive the evolution of storage.

About Axeda

Axeda Systems Inc. (NASDAQ: XEDA) is the 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 Industrial and Building Automation, Enterprise Storage, High-technology, Medical Instrumentation, Office 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) 2002 Axeda Systems. All rights reserved. Axeda, Axeda Systems, Axeda DRM, Axeda Device Relationship Management System, Axeda Enterprise, Axeda Applications, Axeda Agents, Axeda Connector, Axeda Gateway, Axeda Supervisor, Axeda Builder, Axeda Time-Lens, Automatic eCommerce, Firewall-Friendly, DRM Leadership Forum, 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 our products, and our growing leadership role in the 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: our customer's 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.