Mansfield, MA -- June 30, 2004 - Axeda Systems Inc. (Nasdaq: XEDA), the world's leading provider of device relationship management (DRM) software and services, today announced it has been awarded a patent by the United States Patent and Trademark Office for a key element of its Firewall-Friendly™ method of communication over the Internet. The patent protects one of Axeda's inventions relating to enabling remote "devices" -- machines, appliances, instruments, and computers -- to securely communicate their health and status to enterprise computer systems. Businesses utilize this real-time information to optimize business performance. This patented technology represents key innovations that enable Axeda to offer its customers Machine to Machine (M2M) communications leveraging the Internet without requiring costly and insecure dial-up or virtual private network (VPN) connections.

"Axeda has been an industry leader since its inception, and this patent offers critical validation of the Company's innovative solutions that enable businesses to realize the value of remote device intelligence," said Robert M. Russell Jr., chairman and CEO of Axeda Systems. "This patent is a significant milestone for the Company and provides intellectual property protection to core elements of the Company's DRM technology, solidifying Axeda's position as the DRM global leader."

Axeda's U.S. patent (#6,757,714) is titled "Reporting The State Of An Apparatus To A Remote Computer." In the Company's flagship product, the Axeda DRM System™, a remote device ("Apparatus") is monitored via the Axeda Agent™. The Axeda Agent monitors devices locally, based on specified criteria, and sends self-describing messages to an Axeda Enterprise™ server ("Remote Computer") located at a corporate service department or data center. Key elements of the Axeda invention enable this communication to occur even though devices remain securely hidden behind corporate firewalls. This agent-based architecture is critical to enabling wide scale use of DRM and has been widely emulated in the industry.

The Axeda patent awarded contains 59 claims. Highlights include:

• Monitoring of the state of a device that is not directly addressable from a remote computer. Monitoring is performed independently of communications from the remote computer.
• Generation of messages that are sent to the remote computer to report the state of the device, either periodically or in response to a monitored variable departing from an acceptable value or range of values indicative of an error condition.
•  Messages are generated in a self-describing language such as eXtensible Markup Language (XML).

This invention stems from Axeda's 14 years of experience in managing real time device information over networks. The specific patented technologies have been field proven in customer installations for over 3 years. Axeda has 11 additional patents pending in the United States and 10 international patents pending covering other aspects of the remote management of intelligent devices, a growing field, which is alternately referred to by vendors and analysts as Device Relationship Management (DRM), Intelligent Device Management (IDM), and Machine to Machine Management (M2M).

For additional information on the patent please visit the U.S. Patent website at http://patft.uspto.gov/netahtml/srchnum.htm and enter the patent number above.

The legal team of Fish & Richardson P.C., named the top patent litigation firm in the U.S. by IP Law & Business, provided patent prosecution and strategic counseling to Axeda for this award. The firm is one of the largest firms in the U.S. practicing intellectual property, litigation, and corporate law and has represented pioneering innovators and business entrepreneurs in all fields of emerging technology.

About Axeda®
Axeda Systems Inc. (NASDAQ: XEDA) is the leading provider of device relationship management (DRM) 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 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.

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 Smith
Corporate
+1 508-718-6351
enolan@axeda.com