MANSFIELD, MA -- October 7, 2002 - Axeda Systems Inc. (Nasdaq: XEDA), the leading provider of device relationship management (DRM) enterprise software and services, today announced that a global, multibillion-dollar, broad-based health care company has licensed the Axeda DRM™ system to enable their service operations to remotely monitor, manage, and service several lines of medical diagnostic instruments such as immunoassay systems and hematology analyzers. With Axeda DRM, instrument users will benefit from improved instrument uptime and performance, while the company will benefit from real-time access to critical instrument status and performance information, enabling them to provide better customer service at lower costs and offer new automated pay-for-use programs.

"Axeda continues to gain momentum as the leading provider of DRM systems in the medical and scientific instrument markets, adding this win to a list of agreements with leading companies such as Beckman Coulter, Varian Medical, and Applied Biosystems," said Robert M. Russell Jr. chairman and CEO of Axeda Systems. "We believe that major device manufacturers in the medical industry are now recognizing that adopting device relationship management technology is a question of "when", not "if". And the growth in our customer base demonstrates that Axeda DRM 3, our third-generation DRM system, is becoming the clear choice to help them tap the value of real-time information to revolutionize their customer service and business operations."

The Axeda DRM system is a distributed enterprise software solution that lets service organizations proactively monitor, diagnose, repair, and re-supply intelligent devices when remotely deployed at customer sites. The system ensures the secure transmission of instrument data via the Internet from remote instruments to service representatives, alerting them if an instrument is operating outside preset performance standards. Axeda DRM helps minimizes 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. DRM also enables new, high-value managed-service offerings such as automated consumable replenishment, system upgrades and pay-for-use billing approaches such as cost-per-reportable programs. Ultimately, Axeda DRM enables full-lifecycle feedback that can be used to benefit multiple parts of the business including product development, marketing, sales, operations, and manufacturing.

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™, 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 Medical Instrumentation, High-technology, Enterprise Storage, Industrial and Building Automation, Office Automation and Semiconductor Equipment industries. Axeda has sales and service offices in the US, Europe 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, 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.

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