Actions taken earlier this year and reception for new products produced results 

RUTHERFORD, NJ, October 31, 2001 – AXS-One Inc. (AMEX:AXO) today announced results for the three and nine months ended September 30, 2001. 

Revenue for the three months and nine months ended September 30, 2001 was  $9.5 million and $30.7 million, respectively, compared to $13.3 million and $37.5 million for the corresponding periods last year.  The Company reported operating income, net income, and diluted net income per share for the quarter ended September 30, 2001 of $0.7 million, $0.5 million, and $0.02 per share respectively, compared to operating income, net income, and diluted net income per share of $1.0 million, $0.9 million, and $0.03 per share respectively, for the same period in 2000.  In addition, for the nine months ended September 30, 2001, the Company reported operating losses, net losses, and diluted net loss per share of $(5.0) million, $(5.5) million, and $(0.22) per share respectively, compared to operating income, net income, and diluted net income per share of $1.1 million, $0.9 million, and $0.03 per share respectively, for the same period in 2000.  Reflected in the results of the nine months of 2001 are restructuring and other costs of $0.9 million, which includes a reduction of $166,000 in these costs for the three months ended September 30, 2001. 

"Our expense reductions in Q2, combined with continued strength in the reception for our e-CelleratorÔ solutions, maintenance revenue and an upturn in consulting, permitted us to turn a profit," commented John Rade, CEO and President, AXS-One Inc.  "We are pleased that acceptance of our new e-Cellerator solutions remains strong within our installed base.  With approximately 60 corporations already signed up for e-Cellerator solutions, it is clear that our product strategy and direction to extend the reach of the finance function beyond the back office into true collaborative commerce across a corporation's value chain is paying off," concluded Rade. 

About AXS-One Inc.

AXS-One (AMEX: AXO) is a provider of e-Business solutions for global 2000 companies, professional service organizations (PSOs) and financial managers. AXS-One, formerly Computron Software, Inc., has implemented high-volume, scalable and secure business solutions for hundreds of customers across the globe. AXS-One has approximately 300 employees in offices worldwide, including Asia, Australia, Canada, United Kingdom, United States and South Africa.  AXS-One was founded in 1978, and is based in Rutherford, New Jersey.  For further information on AXS-One, visit the AXS-One web site at http://www.axs-one.com/.

Company Contact: 

Investor Relations
William G. Levering III
wlevering@axsone.com
AXS-One Inc.
(201) 935-3400

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This press release contains forward-looking statements. Such statements are only predictions and actual events or results may differ materially. All forward-looking statements involve risks and uncertainties, including, without limitation, the risks detailed in the company's documents and reports filed from time to time with the Securities and Exchange Commission.   

AXS-One, "Access Tomorrow Today", e-Cellerator, AXSPoint, AXS Desk and Tivity are trademarks of, and TransAXS is a registered trademark of, AXS-One Inc., in the U.S. All other company and product names are trademarks or registered trademarks of their respective companies. 

AXS-ONE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 The unaudited consolidated financial information included in this document is intended only as summary provided for your convenience, and should be read in conjunction with the complete consolidated financial statements of the Company (including Notes the thereto, which set forth important information) contained in its Reports on Form 10-K and 10-Q filed by the Company with the U.S. Securities and Exchange Commission (SEC). Such reports are available on the public EDGAR electronic filing system maintained by the SEC.

Contact:

     AXS-One Inc., Rutherford
     William G. Levering III, 201/935-3400, wlevering@axsone.com