MANSFIELD, MA -- June 11, 2003 - Axeda Systems Inc. (Nasdaq: XEDA), the world's leading provider of device relationship management (DRM) enterprise software and services, announced today that it has been selected as an IBM Life Sciences Device and Diagnostics Partner. IBM Life Science Solutions provides the IT infrastructure that developers in biotechnology, pharmaceutical research, genomics, proteomics, and healthcare need to turn data into scientific discovery and new treatments for disease. Axeda is the market leader in providing DRM remote service solutions to manufacturers of medical and scientific instruments. Together, the two companies will collaborate to enable IBM Life Sciences Business Partners with automated remote monitoring, management, and service solutions.

"Today more than 50 of the world's leading analytical instrument and tools companies are using IBM middleware, server platforms and services to develop comprehensive solutions for the life sciences marketplace. The depth and breadth of our technology portfolio makes IBM uniquely positioned to help manufacturers bring the most complete capabilities to this fast-growing industry," said Scott Jenkins, Ph.D., Devices & Diagnostics segment executive, IBM Life Sciences. "As complexity grows, more manufacturers are turning to automated, remote service solutions to ensure maximum instrument uptime. By teaming with Axeda, we are helping make it fast, easy and profitable for IBM Business Partners to take advantage of the latest in Device Relationship Management technology."

"As articulated by their autonomic computing initiative, IBM executives understand the value of self-managing systems for IT environments. Our Axeda Device Relationship Management System is now bringing similar benefits to medical instruments," said Robert M. Russell Jr., chairman and CEO, Axeda Systems. "Many of the world's most successful instrument manufacturers have already selected Axeda to enable proactive, remote service capabilities and our products are today deployed in hundreds of hospitals and labs. Together with IBM, we are well positioned to bring these benefits to more manufacturers, faster --ultimately enabling their customers to focus on helping people rather than managing their equipment."

Axeda and IBM Life Sciences will collaborate on a range of joint marketing, sales, and educational programs designed to accelerate the adoption of their solutions. The Axeda® Device Relationship Management System™ lets instrument manufacturers monitor, manage, and service intelligent devices deployed at remote customer sites anywhere in the world -- cost effectively and in real time. They rapidly gain competitive advantage by increasing their operating efficiency and profitability while simultaneously increasing customer satisfaction and retention.

The Axeda DRM™ system allows the secure transmission of instrument data via the Internet from remote equipment to service representatives, alerting them if a device is operating outside preset performance standards. Unlike telephone-based systems, Axeda DRM leverages patent-pending Firewall-Friendly™ communications technology and existing network security within medical facilities. These and other features enable life sciences users to comply with regulations protecting patient information such as 21 CFR Part 11 and HIPAA.

Axeda DRM helps minimize 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. Axeda DRM also enables new, high-value managed-service offerings such as automated consumable replenishment, system software upgrades and pay-for-use billing approaches such as cost-per-reportable programs.

IBM Life Sciences and its business partners offer clinical development solutions to help improve the efficiency of clinical trial management. Combined with IBM's core strength in providing robust technology and global services, the IBM Life Sciences business unit delivers innovative, scalable infrastructure solutions that are unique to the life sciences industry. These solutions include scalable, rugged workstations for laboratory instrumentation, high performance computing systems, knowledge management products, secure e-business infrastructure, and comprehensive, disaster-tolerant open storage solutions. IBM Life Sciences products are backed by IBM Global Services trained professionals who provide the technical expertise to ensure successful development and integration.

Please contact Axeda at info@axeda.com or call +1-508-337-9200 in the USA or visit www.axeda.com for more information.

About IBM Life Sciences
IBM Life Sciences brings together IBM resources, from research, services and e-business expertise to data and storage management and high-performance computing, to offer new solutions for the healthcare and life sciences markets. The fastest way to get more information about IBM Life Sciences is through its Web site, http://www.ibm.com/lifesciences.

About Axeda®
Axeda Systems Inc. (NASDAQ: XEDA) is the world's 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 Instrument, Enterprise Technology, Printer and Copier, Industrial and Building Automation Equipment. 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
Today's "intelligent" devices - such as medical instruments, computers and storage systems, printers and copiers, energy systems, building control units, and industrial equipment - are an important new source of business information. Device Relationship Management (DRM) systems allow companies to tap into valuable device performance and usage information any time, anywhere. Pioneered by Axeda, DRM technology provides a distributed information management system that leverages the Internet to allow timely, accurate and unbiased information to be communicated directly and automatically between intelligent devices, wherever they are deployed around the world, and service personnel or enterprise business systems. DRM helps turn reactive businesses into proactive businesses operating with increased efficiency at lower costs and generating new sources of revenue, with an ROI that is often measured in months.

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