Remote Product Service market accelerates and drives company success

Foxboro, MA - April 9, 2007 - Axeda Corporation, the secure remote service and support company, today announced that it achieved record license revenues in 2006, fueled by over 40 percent growth in software license bookings over 2005 (measured on a pro forma basis1). This marks the second straight year of such rapid growth and confirms that top-tier manufacturers are embracing high-value remote services as a key initiative and competitive differentiator.

"Due to increased pressure from asset owners/operators for higher uptimes, and longer product lifecycles, manufacturers across many industries are incorporating Remote Product Service (RPS) solutions into their sales and support strategy," said Amit Jain, research director at the AberdeenGroup. "Fully 70% of the best-in-class service organizations we recently surveyed are using RPS solutions; noting improvements such as 28% increase in first call resolution rate, and 23% increase in asset uptime. We expect RPS technology to continue to gain momentum."

Customer Success
In 2006 Axeda announced new customers including Diebold, Leica Microsystems, R2 Technologies, Transportation Security Administration, and Ventana Medical Systems.  These leading organizations join a growing list of companies who have licensed Axeda software to help grow revenues, reduce service costs, and increase customer satisfaction.  They represent strategic wins for the company in new markets such as ATM/self-service and homeland security.

In addition to new customer acquisition, Axeda's growth is fueled by more than 50 global customers who have launched or extended their remote service programs. Customer success highlights in 2006 include:

• Applied Biosystems boosted reagent sales through a 30 percent increase in instrument utilization
• Respironics reduced software distribution costs by $250,000 and won M2M Magazine's Gold Value Chain and Axeda's Remote Service Leadership awards
• Varian Medical Systems reduced mean time to repair by 50 percent
• VIASYS Healthcare reduced field service visits by 15 percent

Innovation & Security
Drawing on its deep experience in sectors with mission critical assets, including healthcare, financial services, life sciences, retail kiosks and IT storage, Axeda released Axeda® DRM 4.  This high-performance upgrade to the flagship product provides up to 10x performance enhancements versus competing technologies and sets a new standard for a superior user experience. Axeda also secured additional patents from the United States Patent and Trademark Office for key inventions relating to security and rapid deployment for remote service technology.

Axeda's solutions are deployed in some of the most secure environments in the world, including financial institutions, hospitals, telecoms, and government facilities. To ensure compliance with the most stringent security mandates and enable easy deployment, Axeda last year achieved the prestigious VeriSign® Security Certification - the only remote service application provider to obtain this enterprise-class accreditation.

"Product manufacturers and users all want the same things: maximum up-time, security, and lower operating costs," said Dale Calder, Axeda's president and CEO.  "We're making it happen - and the market is responding."

About Axeda
Axeda Corporation is the secure remote service and support company. Its solution helps Fortune 500 companies worldwide, including Abbott Laboratories, Cardinal Health and EMC, proactively service and support products to ensure optimal uptime at the lowest possible cost.  In 2006, Axeda became the first and only remote service application provider to receive the prestigious VeriSign® Security Certification. Axeda Corporation is a privately held and company headquartered in Foxboro, Mass. and can be reached at www.axeda.com.

1Axeda Corporation was formed in December 2005 in connection with the purchase of certain assets of the device management business from Axeda Systems Inc. Comparisons with financial results for previous periods set forth in this release are reported on an operational pro forma basis for the device management business.