MANSFIELD, MA -- October 22, 2002 - Axeda Systems Inc. (Nasdaq: XEDA), the leading provider of device relationship management (DRM) enterprise software and services, today announced that it has enhanced its Axeda DRM™ 3 system to enable intelligent remote support of complex devices in the enterprise technology market such as servers, software, network attached storage, and storage area networks. In addition, Axeda has extended its multi-vendor product support capability and has partnered with industry leaders including Brocade, EMC, Inrange Technologies, and QLogic to DRM-enable their popular products.

"Enterprise technology manufacturers are spending millions of dollars per year on support in order to shorten call resolution times and maximize uptime and performance of their products," said Dale Calder, president and founder, Axeda Systems Inc. "Increasingly IT customers expect device manufacturers to take more responsibility for the routine operation and performance of their deployed products. What's more, enterprise technology vendors are now expected to diagnose and solve operational issues not only for their own products, but also for those of other manufacturers' installed devices, 24 hours a day, anywhere in the world. Market leaders are turning to the Axeda DRM system to provide the immediate and direct remote access to deployed devices - providing better customer support while at the same time reducing their operational costs."

With increasing competition and margin pressure, enterprise technology manufacturers are looking for new ways to maximize uptime through innovative service offerings. At Axeda's inaugural DRM Leadership ForumSM on October 7, 2002, Navi Radjou, senior research analyst, Forrester Research, discussed how many manufacturers today have no way of gaining real-time visibility into how their products are performing in the field. He outlined the course of the next wave of the Internet - the X Internet - in which digital assets are completely linked with physical assets to enable a service-driven supply network. Mr. Radjou expects smart companies to leverage these connections to convert raw data into insight that will allow them to continuously tune their upstream activities such as design, sourcing, manufacturing and sales. He projects that there will be 14 billion devices, including those involved in enterprise technology, connected to the Internet by 2010, representing an investment of $3 trillion dollars by that time in X Internet-enabling technology.

The Axeda DRM system revolutionizes the way enterprise technology manufacturers provide customer service by letting them leverage the Internet to establish automated, two-way, Firewall-FriendlyTM connections to products deployed at their customer sites. Now, rather than requiring expensive and insecure phone lines or hard to administer VPN connections, Axeda DRM lets vendors use the low cost Internet connections enterprises already have in place to enable new automated support and services.

Axeda DRM is a distributed enterprise software solution consisting of intelligent device agents, enterprise application servers, and Web browser-based applications. These elements work together to provide a powerful tool to help service operations minimize support calls and time on the phone, speed the diagnostic process, reduce the number of costly on-site visits, and increase device uptime - all enhancing customer productivity and satisfaction.

Now in its third generation, the Axeda DRM 3 system offers a wealth of new features including enhancements for the support of enterprise technology products. To enable debugging of complex IT environments, the system enables correlated monitoring and analysis of multiple types of devices simultaneously. Any type of enterprise software or device can be connected through Axeda DRM's open, multi-protocol agents. Axeda Agents automatically discover and monitor devices utilizing SNMP and other communication standards.

Once connected, Axeda DRM continuously monitors software and device operation, enabling proactive identification of problems before customers experience downtime. When problems are detected, log files can be automatically transferred to support teams from malfunctioning devices for rapid diagnosis. Technicians have direct access and control of remote devices with secure desktop sharing and remote command line control with both Windows® and Unix computers. Device configuration changes are tracked and software updates are downloaded to repair problems.

All these capabilities are delivered within a secure environment for both device manufacturers and their customers. With Axeda DRM, devices operate from behind the safety of existing customer firewalls. Data to and from devices is encrypted and authenticated and sophisticated privilege-based user access control lets only authorized support technicians access specific devices.