Mansfield, MA -- October 21, 2004 - Axeda Systems Inc. (Nasdaq: XEDA), the world's leading provider of device relationship management (DRM) software and services, announced that a global, market-leading telecommunications equipment manufacturer, specializing in network-based multimedia enhanced communications services, has licensed the Axeda® DRM system to remotely monitor, repair, and upgrade their deployed systems at customer sites around the world.

"We are pleased to have been selected by a world leader in telecommunications infrastructure. The company will utilize Axeda's DRM technology to enable their service teams to remotely manage and service their systems, securely, via the Internet. We view this as an important step for Axeda's entry into the telecommunications market," said Robert M. Russell Jr., chairman and CEO of Axeda Systems.

As discussed on Axeda's 2nd quarter earnings call, the telecommunications industry depends on the highest levels of equipment uptime to ensure the continuous operation of their global networks. The proactive monitoring and remote repair capabilities of the Axeda DRM system is a natural match for the stringent uptime requirements of this industry and was a key factor in this award. In addition, software upgrades on complex telecommunications systems is a lengthy manual process that can take days. With the Axeda® Software Management application, the software upgrade process is automated, reducing the completion time to hours, while eliminating the potential for human error.

Key features of the Axeda DRM system that support the telecommunications industry include:

• Secure access through the Internet with local access control. The telecommunications industry requires the highest levels of security. Axeda DRM utilizes its patented Firewall-Friendly™ communication to enable a secure two-way connection between telecommunication equipment manufactures and network operators via the Internet. In order to meet stringent performance requirements, operators demand total control over their environment. Axeda® Policy Manager allows them to define their privacy policies and provides local auditing so that operators can leverage the expertise of the manufacturer to deliver even better customer service.
• Proactive monitoring for increased system uptime. Telecommunication system operators strive for five-nines (99.999%) of uptime, meaning less than six minutes of unscheduled downtime in a year. To achieve this level of performance, potential problems must be detected before they cause unplanned system downtime. Axeda DRM continuously monitors key system parameters, and notifies service personnel of any deviations so that proactive, corrective action can be taken.
• Detailed system inventory information for rapid problem resolution. Telecommunication systems are installed at carrier data centers with an inventory of all hardware and software components installed. These configurations change over time as additional features are added and software patches are applied. When troubleshooting problems, accurate system inventory is vital for rapid diagnosis and repair. Axeda snapshot technology collects all required inventory information in an easy-to-analyze tree structure with problem areas marked for quick identification. Historic inventory is maintained as well so that the effect of configuration changes can be monitored.
• Dynamic scripting to automate diagnosis and repair. Complex telecommunications systems have service manuals that describe detailed steps that must be taken to diagnose problems and make repairs. Axeda DRM scripting enables service technicians to write, publish and execute custom scripts on remote systems. This scripting capability allows virtually any operation previously performed locally to now be done remotely. Examples include automating a set of system administration steps, or capturing and parsing complex system parameters and logs. Deployment of scripts to devices is centrally managed and access is controlled through the security mechanisms built into the Axeda DRM system. Execution of scripts can be scheduled at regular intervals, triggered by events, or initiated on demand.
• Central distribution of software patches and updates to ensure optimal configuration. Telecommunications systems are driven by embedded software, with a single installation containing multiple processors, and many times running on multiple operating systems. Because of this complexity, software upgrades can take days. The Axeda® Software Management application automates the process of delivering and installing software en mass to complex systems deployed in the field. Through efficient delivery via the Internet, checking of dependencies, and detailed scripting of the installation process, software installation time is reduced from days to hours.
• Remote application access for hands-on troubleshooting and operator training. Many times, the most efficient way to troubleshoot a problem is to have direct access into the system console. Axeda® Access provides remote connection via a terminal interface, or desktop if available into these telecommunication systems, which are typically built on UNIX® or other embedded operating systems. In both cases, control can be shared with a local user to provide training on usage and administrative tasks.

The sum of these features in the Axeda DRM system provide telecommunication equipment manufactures with the tools required to provide better service, at lower cost, with higher service margins.

About Axeda®
The Company's 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 is a highly scalable, field-proven, and comprehensive remote management solution that leverages its patented Firewall-Friendly™ technology to enable Machine-to-Machine (M2M) communication by utilizing the public Internet. Axeda customers include Global 2000 companies in many markets including Medical Instrument, Enterprise Technology, Office and Print Production Systems, and Industrial and Building Automation 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
Corporate
+1 508-718-6351
enolan@axeda.com