Mansfield, MA -- August 14, 2003 - Axeda Systems Inc. (Nasdaq: XEDA), the world's leading provider of device relationship management (DRM) enterprise software and services, today announced that it was selected to The FocalPoint 40™, a unique group of forty North American companies that is shaping the market for machine-to-machine (M2M) communications. The list, just released by the industry analyst firm The FocalPoint Group, recognizes the innovative companies that are championing device enablement and connectivity to foster new automated services and commerce between intelligent machines and devices.

"Axeda is a pioneer that has systematically expanded into markets with ever-broadening expertise and product offerings. What is perhaps more important to Axeda's success has been its clear understanding of the business implications of M2M-based remote services, and its relentless drive to educate the market about them," said Ian Barkin, managing director of The FocalPoint Group. "Axeda will continue to be one of the clear leaders in the M2M market as more enterprises begin to demand continuous remote access and control of their intelligent assets."

Axeda was selected as a FocalPoint 40 company because it is an established leader in developing and deploying innovative technologies and services that heighten interaction between machines, environments, and end users, and because of its demonstrated success with customer implementations.

"Axeda is focused on helping businesses operate more efficiently by tapping the wealth of information that will soon be streaming from M2M-enabled intelligent devices around the world," said Robert M. Russell Jr., chairman and CEO, Axeda Systems. "We believe that M2M will become one of the next major technology growth markets, and we are very pleased to be recognized by The FocalPoint Group as one of the leaders shaping this new industry."

Axeda develops and markets the Axeda Device Relationship Management System™, an enterprise software system that lets equipment manufacturers and their service providers remotely monitor, manage, and service intelligent devices deployed at customer sites anywhere in the world -- cost effectively and in real time. The Axeda DRM System allows the secure transmission of device data via M2M communication networks from remote equipment to service representatives, alerting them if a device is operating outside preset performance standards. It 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. The Axeda DRM System also enables new, high-value managed-service offerings such as automated consumable replenishment, system software upgrades and pay-for-use billing programs.

For more information about Axeda DRM, visit www.axeda.com or call +1-508-337-9200. To learn more about the M2M market and the FocalPoint 40, download The FocalPoint Group's new industry primer at www.m2mpoint.com/M2M_Players.htm.

About The FocalPoint Group
The FocalPoint Group was formed by industry analysts who realized the potential of the M2M arena. Located in San Francisco, the team has worked with many of the leading suppliers and incorporators in the space, looking at how device networking technologies and solutions are being implemented across diverse market environments. For more information, contact the company at info@thefpgroup.com or visit the Web site at www.thefpgroup.com.

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 include Global 2000 companies in many markets including Medical Instrument, Enterprise Technology, Printer and Copier, and 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