Dutch Rijkswaterstaat Selects Axeda DRM for Bridge and Lock Management.

Business/Technology Editors

Axeda Systems Inc. (NASDAQ: XEDA), the pioneer of the growing market for device relationship management (DRM) enterprise software and services, announced today that Rijkswaterstaat (RWS), a Directorate-General of the Dutch Ministry of Transport, Public Works and Water Management responsible for bridges, roads, dikes and water locks, has selected the Axeda Supervisor(TM), a component of the Axeda Device Relationship Management System(TM), to remotely manage and control critical bridge systems and to continuously monitor the amount of salt water that is being introduced into rivers of the Province of Zeeland. The Directorate-General of Public Works and Water Management is responsible for protection against floods, clean water and sufficient supplies thereof, and the management and construction of highways and waterways.

"The Axeda DRM System enables us to streamline our critical bridge and water operations with real-time automation and remote monitoring of vital system components," said Jan Bosland, Manager of Planning Engineering Inspection -- Computers & Electronics (PWI-C&E) at RWS. "The continuous, remote monitoring of water quality helps us to maintain a good supply of freshwater for farming and irrigation."

"We are very pleased that RWS has selected Axeda's technology for Web-based data management and control of remote critical equipment," said Robert M. Russell Jr., chairman and CEO of Axeda. "By providing all the capabilities required to deploy high-performance Internet-based control systems, we are enabling RWS to streamline their operations and provide real-time automation and remote monitoring of vital system components."

RWS is using the Axeda Supervisor for managing and controlling 25 devices (systems of water locks and moveable bridges of various size and complexity), remotely monitoring status and safety, sounding alarms, and other tasks linked to asset security and environmental management. As part of this RWS program, the system will also manage the amount of salt water that is being introduced into the rivers of Zeeland by monitoring the sea water and river water ratio at one of these devices, the Krammer locks, built in 1986. One of RWS's key challenges is to keep the two water systems separate so that no salt water escapes into the agricultural areas.

The Axeda DRM System allows enterprises to leverage the Internet to remotely monitor, manage and service intelligent devices, automating the real-time management of critical business and operational information. A component of Axeda DRM, the Axeda Supervisor suite provides a comprehensive Internet-based decision support solution for managing devices, facilities and automation systems. It incorporates the latest device relationship management technology to give customers the benefits of supervisory control, sophisticated scheduling, multiple remote access options, secure Firewall-Friendly(TM) communications, rapid application development and connectivity with enterprise databases and applications.

The Netherlands is located in a low-lying delta. The history of the country has been determined by the struggle against water. In 1953 the southwestern part of the Netherlands was struck by huge floods, in which 1853 people drowned. The Dutch population was devastated. Shortly after the disaster the Delta Plan was drawn up containing measures to prevent such disasters. RWS's actions are part of an ongoing evolutionary process begun in the 1950s to protect the Netherlands against the sea, which includes the building, maintenance and management of critical assets such as the Krammer locks and many other devices.

About Axeda

Axeda Systems Inc. (NASDAQ:XEDA) is the pioneer in the growing market for 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 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, High-technology, Medical Instrumentation, Office Automation and Semiconductor Equipment industries. Axeda has sales and service offices in the US, Europe, Israel 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, and even automobiles are an important new source of business information. Device Relationship Management is a growing new market that allows companies to tap into this valuable information anytime anywhere. Pioneered by Axeda, Device Relationship Management 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.

About Rijkswaterstaat (RWS)

Rijkswaterstaat (RWS), or the Directorate-General of Public Works and Water Management, is a division of the Dutch Ministry of Transport, Public Works and Water Management responsible for protection against floods, clean water and sufficient supplies thereof, and the management and construction of highways and waterways. The most extensive task of RWS, which is currently managed by Director-General H. Prins, is the execution of Ministry policy for dikes, water quality and quantity, roads, waterways and traffic safety.

(c)2002 Axeda Systems. All rights reserved. Axeda, Axeda Systems, Axeda DRM, Axeda Supervisor, Axeda Device Relationship Management System, Axeda Enterprise, Axeda Applications, Axeda Agent, Wizcon, Automatic eCommerce, Firewall-Friendly, and Access. Insight. In Real Time. are trademarks 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 business and financial performance. Such statements are subject to a number of risks and uncertainties that may cause the actual events of future results to differ from those discussed herein. Such factors include, among others: the potential for growth in the pervasive computing market; Axeda's limited operating history, fluctuating quarterly operating results, expectation of future losses, dependence on current product lines, dependence on a small number of customers, lack of long-term commitments with customers, dependence on manufacturers and strategic relationships, and product delays; uncertainties in the market for DRM products; the long sales cycle for DRM products; limited distribution channels; the difficulty of protecting proprietary rights, the ability to manage growth and attract and retain additional personnel; the potential for defects in products; risks from international operations; Axeda's ability to raise capital in the future; competition; Axeda's ability to manage technological change and respond to evolving industry standards; and government regulation. Investors are advised to read Axeda's Annual Report on Form 10-K and quarterly reports on Form 10-Q and Forms 8-K 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.