Mansfield, Mass -- May 11, 2004 - Axeda Systems Inc. (Nasdaq: XEDA), the world's leading provider of device relationship management (DRM) enterprise software and services, today announced the immediate availability of Axeda DRM 3.7. With more than 25 deployed global customers, some managing more than 100 million device transactions a day, this new product release reinforces Axeda's leading position as the most scalable, field-proven, DRM system available in the market today. Hundreds of improvements have been added throughout the product, enabling accelerated deployment within the existing customer base, and enabling new markets, such as photo kiosks and homeland security, to reap the benefits of Axeda DRM.

"The Axeda DRM 3.7 release is a clear leap ahead. The ability to organize devices into systems, and then organize the systems into hierarchies by locations, regions and organizations provides an intuitive way to navigate large quantities of data, providing our organization with the tools required to manage our systems remotely," said Steve Russell, senior manager of Technical Services and Training at Procket Networks. "The new release of Axeda DRM will accelerate our ability to provide PRO/Care support to our growing customer base."

Key features in Axeda DRM 3.7 include:

• Device Topology Display. Supporting millions of device transactions is only useful if users can quickly navigate to the information they need. The Axeda Service application adds a tree view that shows a flexible topology including any combination of customers, models, regions, organizations, locations and systems. Device status is aggregated, showing an overview of all device states at any point in the tree. The system supports an unlimited number of devices in an easy-to-use web interface.
• Server Managed Device Communication. Axeda DRM achieves massive scale by using a distributed architecture, with Axeda Agents™ continuously reporting data to the central Axeda Enterprise™ server. To scale in real world deployments, Axeda DRM uses server managed device communications to control peaks of traffic that result from situations such as Internet outages, or a scheduled maintenance shutdown of the central enterprise server, without losing a single device transaction.
• Automatic Archiving. As the number of monitored devices increases, the amount of data stored can expand to multiple terabytes. To maintain peak DRM system performance with both device transactions and user requests, the system archives older data to secondary storage, while maintaining recent data on-line. On user request, archived data can be restored to the on-line system.
• Axeda Policy Manager™. Axeda Policy Manager allows authorized security personnel at customer sites to establish and enforce security and privacy policies for data transfer and remote operation of devices and systems at their location. By providing customers control over the information sent to and from their facilities, vendors are able to accelerate the deployment of DRM, into even the most security conscious locations.
• Axeda Deployment™. When DRM is installed at a customer site, the Axeda Deployment application automatically discovers all devices and systems to be monitored. Through one simple application, an entire site can be set up in minutes. Connectivity parameters and important device information is collected, and all monitored assets are automatically registered with the DRM system.
• Out-of-the-box connectivity. Axeda DRM 3.7 includes out-of-the-box connectivity to standard hardware including PC's, servers, storage, and networking equipment. Protocols supported include WMI (Windows Management Instrumentation), JMX (Java Management Extensions), OPC (OLE for Process Control), ODBC (Open Database Connectivity) and expanded support for SNMP (Simple Network Management Protocol). Axeda DRM 3.7 supports these protocols and many others, making it easy for device vendors in multiple markets to quickly take advantage of Axeda DRM, to maximize customer satisfaction, provide better service support at lower cost, and increase revenue.

"Axeda DRM 3.7 is a major advancement in our suite of technology offerings. It is a result of collaboration between our team of technology experts and the valuable input of our customer base. DRM 3.7 has been built to assist our customers in accelerating their deployments and expand DRM throughout their organizations. This latest version of DRM will help promote Axeda's growth and assist in the horizontal reach of Axeda DRM," said Robert M. Russell Jr. chairman and CEO.

Additional Information
Axeda DRM 3.7 is available today from Axeda Systems and its authorized distributors. Please contact Axeda at sales@axeda.com or call +1-508-337-9200 for additional information.

The Company will host a web seminar to discuss the new benefits of Axeda DRM 3.7 on May 19, 2004. Registration information is available at www.axeda.com.

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 include Global 2000 companies in many markets including Medical Instrument, Enterprise Technology, Office And Print Production Systems and Industrial and Building Automation. 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 Device Relationship Management
Everyday intelligent devices such as copiers, 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
Corporate
+1 508-851-1251
enolan@axeda.com

Investor Contact:
Idalia Rodriguez
Investor Relations
+1 610-407-7345
investor_relations@axeda.com