Axion Completes Compression Of Entire USGS Image Database; Partnership With Pixxures, Inc. Makes Imagery Accessible Online.

Business Editors, High-Tech Writers

EDMONTON, Alberta--(BUSINESS WIRE)--Dec. 4, 2001

Axion Spatial Imaging Inc. (Pink Sheets:AXON), a leader in software technology for display, distribution, and manipulation of geographic information, and Pixxures, Inc., one of the world's largest providers of digital mapping products, services and online delivery services, announced today they have completed the compression and online delivery of the entire USGS DOQQ Image Database.

This database of digital orthophoto quarter quads (DOQQ) totals more than 13 terabytes of data.

Compression of the DOQQ image library, consisting of 188,000 image tiles of 1 m pixel resolution, began last spring and was completed by Axion in 71 days. In order to complete the process and to serve these images on an ongoing basis on its online Image Library, Pixxures uses the compression technology developed by Axion to minimize disk storage space and significantly reduce retrieval time.

"Axion partnered with Pixxures because the high-volume of imagery the company was planning to produce demanded a robust compression strategy," said Markus Lemke, chief executive officer at Axion. "The compression of the USGS dataset is the first of many such projects in which we will be engaged. The unprecedented scope of the project made this very demanding, but the efficiencies and procedures in our processes allowed us to accomplish this is just over two months."

The imagery compressed using Axion's proprietary compression techniques, gives users a manageable, geometrically accurate product useful for many different applications. Pixxures calls these products QuickDOQQs, as the technique creates a file that is manageable in size and maintains the exact geometric accuracy of the traditional DOQQs. Each QuickDOQQ covers an area of 3.75 minutes of latitude by 3.75 minutes longitude (roughly 4 miles by 4 miles). The photography is georeferenced so that other digital map layers are overlaid. QuickDOQQs come in black and white, color, and color infrared.

Axion's advanced digital mapping technologies reduces processing time in Pixxures application by a factor of 100. Particularly significant for Axion is the fact that its proprietary ACE compressed file format was chosen as the basis for this system, outstripping its competitors in the growing field of extremely rapid, multi-user and multi-access image delivery systems.

"Axion's ability to compress this large dataset in a reasonable timeframe was important to our ability to generate product sales from it quickly," said Brian Webster, president and CEO of Pixxures. "In addition to using their compression services, the advantage of using Axion's technology are two-fold. First, no other compression technology that we have evaluated offers a decompression and retrieval as fast as this does. That's critical to the user experience online. Secondly, our analysis has shown that Axion's decompression maintains exact geometric accuracy of the original data, while providing less than a 2% loss of radiometric values for these data."

About Axion Spatial Imaging

Axion Spatial Imaging, Inc. provides leading-edge solutions for the fast-growing geographic information systems (GIS) market. The company's unparalleled suite of Advanced Digital Mapping Tools is designed to enhance users' ability to efficiently store, display distribute and transform geographic image data. Axion's solutions have been optimized for delivery over the Internet, intranets, and wireless communications (WAP). This, combined with their team of highly experienced GIS professionals, gives them the ability to provide their clients with a complete solution. For more information go online to http://www.axionspatial.com

About Pixxures, Inc.

Pixxures offers state-of-the-art online hosting and delivery of geospatial data content -- aerial photography, satellite imagery and mapping data. This allows businesses such as telecommunications, real estate, insurance, and federal and regional governments to purchase geodata online to plan, implement, and evaluate business decisions. The USGS data is available on Pixxures Image Library and can be ported directly into user applications. The Image Library boasts 20 terabytes of data content, the largest in the world, and offers datasets that cover t he entire United States.

Pixxures, Inc. is the world's largest provider of online mapping products and services. With offices in Arvada, Colo., and Calgary, Alberta, Canada, the company continues to pioneer the use of new technology to speed the delivery of mapping products, both online and through traditional channels. For more information please go online to http://www.pixxures.com.

Except for the historical information presented herein, the matters set forth in this press release are forward looking statements within the meaning of the "safe-harbor" provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These forward-looking statements speak only as of the date hereof. The Company disclaims any intent or obligation to update these forward-looking statements. Axion Spatial Imaging is a registered trademark of Axion Spatial Imaging, Inc. All other names and trademarks mentioned above are held by their respective owners and hereby acknowledged.