TARRYTOWN, NY and MANSFIELD, Mass -- February 4, 2004 - The Diagnostics Division of Bayer HealthCare LLC, a member of the Bayer Group (NYSE: BAY) and Axeda Systems Inc. (Nasdaq: XEDA) a leading provider of device relationship management (DRM) enterprise software and services, announced today that Bayer Diagnostics has licensed the Axeda's DRMTM system to enable proactive, remote servicing of its ADVIA Centaur® Immunoassay System and other laboratory instruments.

"By being able to offer customers proactive, remote service, we strive to reduce unnecessary time spent by the lab technician troubleshooting products," said Thomas Warekois, Vice President Marketing, Laboratory Testing Segment of Bayer Diagnostics. "With the addition of the Axeda DRM solution, the ADVIA Centaur System will provide proactive customer service and remote support capabilities, helping to extend its lead as one of the most productive and efficient immunochemistry platforms in the marketplace today."

"We are very pleased that Bayer HealthCare Diagnostics has selected Axeda for their remote service operations. Axeda DRM is rapidly gaining recognition as the most effective solution for remotely managing devices and reducing the high costs of downtime," said Robert M. Russell Jr., chairman and CEO of Axeda Systems. "Our field-proven products and demonstrated experience are making Axeda the solution of choice with leading medical instrument manufacturers worldwide."

The Axeda DRM system lets instrument manufacturers to monitor, manage, and service intelligent devices deployed at remote customer sites anywhere in the world -- cost effectively and in real time. The Axeda DRM system allows the secure transmission of instrument data via the Internet from remote equipment to service representatives, alerting them if a device is operating outside preset performance standards. Unlike telephone-based systems, Axeda DRM leverages patent-pending Firewall-FriendlyTM communications technology and existing network security within medical facilities. These and other features enable system compliance with regulations protecting patient information such as 21 CFR Part 11 and HIPAA.

Axeda DRM helps minimize support calls and time on the phone, reduces the number of costly, unscheduled, or unnecessary service visits, and increases device uptime to further enhance customer productivity and satisfaction. Axeda DRM also enables new, high-value managed-service offerings such as automated consumable replenishment, system software upgrades, and pay-for-use billing approaches such as cost-per-reportable programs.

The ADVIA Centaur system was rated one of the most productive and efficient immunochemistry platforms in the marketplace today by an independent U.S. customer survey. It provides testing for a broad range of conditions, including cancer, cardiovascular diseases, fertility, anemia, thyroid diseases, allergy, metabolic diseases, therapeutic drug monitoring, congenital and infectious diseases. Bayer plans to make the Axeda DRM available on the ADVIA Centaur system during 2004.

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.

About Bayer HealthCare Diagnostics
With approximately 7,000 employees worldwide and 2002 sales of $1.9 billion, Bayer HealthCare Diagnostics based in Tarrytown, New York, U.S.A., is one of the largest medical diagnostic businesses in the world. The organization supports customers in 100 countries through an extensive portfolio of central, self-testing, nucleic acid and near patient care diagnostics meters and services for use in the assessment and management of health, including the areas of cardiovascular and kidney disease, oncology, virology, women's health and diabetes. Bayer HealthCare Diagnostics' global headquarters in the United States operates as part of Bayer HealthCare LLC, a member of the worldwide Bayer HealthCare group. For more information, visit www.bayerdiag.com .

About Bayer HealthCare
Bayer HealthCare AG, a subgroup of Bayer AG with sales of approximately 9.4 billion Euro in 2002, is one of the world's leading, innovative companies in the health care and medical products industry.

The company combines the global activities of the divisions Animal Health, Biological Products, Consumer Care, Diagnostics and Pharmaceuticals. More than 34,000 people are employed by Bayer HealthCare worldwide.

Our aim is to discover and manufacture innovative products that will improve human and animal health worldwide. Our products enhance well-being and quality of life by diagnosing, preventing and treating disease.

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 include Global 2000 companies in many markets, including the Medical Instrumentation, Enterprise Technology, Industrial and Building Automation, Office Automation, and Semiconductor Equipment industries. Axeda has sales and service offices in the U.S., Europe, and Japan, and distribution partners worldwide. More information about Axeda is available at www.axeda.com .

Press Contact:
Erin Nolan Smith
+1 508-718-6351

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