For Proactive, Remote Support of VectorVision® Surgical Navigation System

Mansfield, MA -- July 12, 2004 - Axeda Systems Inc. (Nasdaq: XEDA), the world's leading provider of device relationship management (DRM) software and services, today announced that BrainLAB, a privately held developer and manufacturer of medical technology for radiosurgery, radiotherapy, orthopedics, ENT and neurosurgery has licensed the Axeda® DRM™ system to enable proactive customer support. BrainLAB will initially deploy Axeda DRM on their VectorVision and BrainSCAN™ workstations with future roll-outs planned for their integrated neurosurgical OR solution, BrainSUITE® and their radiotherapy product line. With more than 1300 systems installed in over 60 countries, BrainLAB is among the market leaders in image-guided medical technology.

"Providing the highest levels of service and support is critical to our company and our customers," said Jürgen Steinbach, director Customer Support, BrainLAB. By implementing the Axeda DRM system, with features such as remote screen sharing, proactive monitoring and automatic software updates, our support services become even more proactive, maximizing system uptime and giving BrainLAB a competitive edge."

"We are very pleased that BrainLAB has chosen to implement Axeda's patented technology to provide proactive support for their mission critical equipment. BrainLAB joins an extensive list of top medical instrument manufactures that have adopted Axeda DRM, the leading product in this growing DRM market," said Robert M. Russell Jr., chairman and CEO of Axeda Systems.

Axeda provides DRM remote service solutions to the key manufacturers of medical and scientific instruments including Abbott Laboratories, Applied BioSystems, Bayer Healthcare Diagnostics, Beckman Coulter, Elekta, and Varian Medical Systems.

The Axeda DRM™ system is a distributed software system that securely transmits status and usage data via the Internet from remote equipment to service representatives, alerting them if a device is operating outside preset performance standards. Axeda DRM leverages patented Firewall-Friendly™ communications technology and existing network security within medical facilities. These and other features enable life sciences companies to comply with regulations protecting patient information including 21 CFR Part 11 and HIPAA.

About Axeda®
Axeda Systems Inc. (NASDAQ: XEDA) is the world's leading provider of device relationship management (DRM) software and services. Our flagship product, the Axeda DRM System™ helps manufacturing and service organizations increase revenue while lowering costs by proactively monitoring and managing devices deployed at customer sites around the world. Axeda DRM® leverages patented Firewall-Friendly™ technology that utilizes the public Internet to enable Machine-to-Machine (M2M) communication. It is the most scalable, field-proven, and comprehensive remote management solution available on the market today. Axeda customers include Global 2000 companies in multiple markets including 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.

About BrainLAB
BrainLAB, a privately held company headquartered in Munich, Germany, was founded in 1989 and is specialized in the development, manufacture, and marketing of medical technology for radiosurgery / radiotherapy, orthopedics, neurosurgery, and ENT. Among the products developed by BrainLAB are software and hardware components for image-guided surgery, components for linear accelerators in radiotherapy as well as integrated systems for stereotactic radiosurgery. With about 1300 systems installed in over 60 countries, BrainLAB is among the market leaders in image-guided medical technology. Having achieved revenues of 126 million USD in FY 2003 BrainLAB now has 15 offices across Europe, Asia, North and South America.

For more information, visit BrainLAB at www.brainlab.com.

® registered trademark of BrainLAB AG in Germany and/or the US
™ trademark of BrainLAB AG, registration pending


Press Contact:
Erin Nolan Smith
Corporate
+1 508-718-6351
enolan@axeda.com