Corporate Profile

AXS-One Inc., incorporated in 1978, is a software company providing robust, secure business solutions that allow an organization to reduce the inherent risks associated with retaining and managing corporate records, as well as to achieve efficiency in its business processes and to extend those efficiencies to its customers, suppliers and business partners. The Company designs, markets and supports records compliance management solutions that include digital archiving, business process management, electronic document delivery and integrated records disposition and discovery for e-mail, instant messaging, images, other corporate records, as well as financial management applications and scheduling and time and expense solutions for professional services organizations. AXS-One also offers consulting, implementation, training, technical support and maintenance services in support of its customers' use of its software products.

AXS-One Records Compliance Management Solutions

The AXS-One Compliance Platform is an integrated solution that enables organizations to securely capture, index, archive, share, search, supervise and manage the retention and disposition of all electronic records, including e-mail and Instant Messages, images, voice, office documents, ERP-generated data, such as SAP and electronic print reports. These products have been developed and optimized to address global issues of regulatory compliance, corporate governance, supervision, legal discovery and privacy as they relate to the retention and disposition of electronic records.

During 2004, AXS-One completed significant development on the AXS-One Compliance Platform, launching Version 3.0 at the end of the year that included a number of key enhancements as well as new integrated functionally-AXS-One Retention Manager. In addition, AXS-One completed significant scalability and performance testing with Sun Microsystems to test and optimize the AXS-One Compliance Platform solution for the Sun platform.

Integrated product components are available for COLD archiving; electronic presentment; e-mail archival and management for Microsoft Exchange, Lotus Notes, Bloomberg Mail and other message types; Instant Messaging archival, with specific connectors for products from FaceTime and IMlogic; SAP archival; supervision; electronic records management; legal discovery, and active case management.

AXS-One Enterprise Financials

AXS-One Enterprise Financials provide a suite of financial management products designed to address accounting, financial reporting, time and expense management, performance management and corporate governance requirements across the enterprise. AXS-One Enterprise Financials enable organizations to effectively manage and audit entire process lifecycles with transactional applications and templated and automated process workflow. By leveraging AXS-One's Web Services architecture, solutions can be rapidly deployed and integrated. They can also be deployed and integrated with other third party applications. For instance, AXS-One Enterprise Financials have been successfully deployed within hosted Internet solutions, such as those provided by an Internet-based property management solution in Australia.

The Company's Enterprise Financials continue to be one of the primary back office applications of world-class organizations, including customers in Financial Services, Life Sciences and State and Local Government. During 2004, AXS-One pre-announced Enterprise 9.0-Compliance Edition to its customers. General Availability of Version 9.0 is scheduled for 2005, as well as, including customer-requested enhancements to existing components, Enterprise 9.0-Compliance Edition includes new functionality designed to help customers more easily comply with the requirements of Sarbanes-Oxley, including sections 404, 103 and 802. Integrated product components are available for General Ledger, Accounts Payable, Accounts Receivable, Purchasing, Fixed Assets, Time and Billing, Encumbrance Accounting and Workflow.

Client Services

The global support center infrastructure has been optimized to allow for an effective and efficient follow the sun 24 x 7 customer support strategy. Annual maintenance contracts are generally required for the first year of a customer's use of the Company's products, and are renewable on an annual basis. Maintenance contracts entitle the customer to hot-line support and all unspecified product upgrades released during the term of the maintenance contract. Upgrades include any and all unspecified patches or releases related to a licensed software product.

AXS-One also provides management overview and product information bulletins on an ongoing basis as well as a customer-accessible knowledge base and periodic informational updates about installed products. The bulletins generally answer commonly asked questions and provide information about new product features. The Company also provides services for the development of customized documentation about the customer's system to reflect, among other things, user-defined modifications and specific business logic and processes.

AXS-One offers assistance in developing interfaces with third party software or legacy systems. These services are designed to enable the development of additional client-specific functionality and to integrate with other mission critical systems. AXS-One also provides network troubleshooting and assists its customers in deploying Internet systems, relational database management systems software and operating systems.

AXS-One's consulting services organization provides project assurance, business systems review, technical design, functional design, business modeling, system tailoring, system certification, change management and ongoing project support in connection with a customer's implementation of the Company's products. Similar services are also provided for upgrades to later versions of the software and migrations to different operating platforms. AXS-One frequently works with third-party consultants and system integrators to provide customers with a full range of installation, customization and project management services.

AXS-One provides education services worldwide through its Knowledge Transfer organization. This group is responsible for the development and delivery of training courses designed to familiarize users with AXS-One's products, and to train AXS-One staff and partners in product installation, implementation and technical support. In addition to scheduled classroom training, this group delivers standard courses at customer locations, as well as working with customers to create classes tailored to their specific requirements.