RUTHERFORD, N.J. & JOHANNESBURG, South Africa--(BUSINESS WIRE)--Jan. 20, 2004--AXS-One (Pty) Ltd., a wholly owned South African subsidiary of AXS-One Inc. (AMEX: AXO), today announced that it was awarded a multi-million dollar contract with Siemens Business Services (SBS) during December 2003. The contract includes one component for license fees for its Web Services architected financial applications and another component for professional services to be provided over the next eight years.

In 2002, the Department of Labour (DoL) entered into a groundbreaking 10-year information and technology partnership with SBS to improve service delivery. The Public Private Partnership (PPP) provides a vast range of IT solutions and services - including hardware, software, maintenance and support. Through this partnership, SBS assumes responsibility for the design, building, operation and maintenance of the Department's IT systems and for the technology risks associated with a project of this size. In order to contribute towards achieving the IT objectives of this partnership mandated under the PPP, AXS-One have been contracted to supply their Web Services product line, AXS-One(R) Enterprise version 8w, to enhance the functionality of the existing financial software modules currently being utilised and to provide integration technology between the core modules and other line of business systems.

"The contract underpins the value of our financial products that were originally implemented by the Unemployment Insurance Fund and the Compensation Fund and their appropriateness to today's environment, as well as confirming AXS-One's ability to keep abreast of new technologies through innovation," commented Al Clegg, Managing Director of AXS-One (Pty) Ltd.

Mr. Clegg continued, "The second component of this contract, estimated at US$5.6 million (36 million Rand based on exchange at date of contract signing), calls for AXS-One (Pty) Ltd to act as a sub-contractor to SBS for the remainder of the PPP outsourcing initiative, which spans a period of approximately eight years. This contract provides for the supply of services around the AXS-One products in use at the DoL and includes enhancements, maintenance and business improvement benefits that can be derived from new technology that will be introduced over the duration of the PPP. This services contract is an important milestone for us in that it also justifies our investment in the government-assisted graduate training program announced two years ago, thereby enabling us to now meet both our own and SBS/DoL's empowerment objectives."

"We realise that AXS-One is a global leader in the provision of Web enabled financial products and are delighted for them to be partnering with us in this DoL initiative," added Adrian Overberg, SBS Contract Manager for the PPP agreement. "The contract with AXS-One allows us to share both risks and rewards associated with the extensive financial processing requirements of the PPP agreement. Furthermore, we are continually looking at cutting cost while increasing IT enablement; this contract allows us to deliver more within currently allocated budgets."

"AXS-One is the global leader in the provision of Web Services and this major contract with SBS underscores that position," commented John Rade, CEO and President of AXS-One Inc. "We are delighted to partner with SBS in this very important endeavour, and look forward to a long and mutually beneficial relationship. Additionally, these contracts solidify our position in South Africa and provide long-term, predictable revenue for us in this important market."

AXS-One Enterprise version 8w, the first-to-market financial management application suite built on a web services architecture, can automate transactions between and among the organisation and its customers, partners and suppliers. The web services architecture allows an organisation to connect internal systems, integrate its trading partners and customer systems into its processes, easily describe, store and exchange information, and efficiently manage the entire supply chain.

Version 8w uses the Internet to network an organisation's financial value chain, making it easy to manage revenue and expenses, allocate resources in the face of changing business requirements, display financial information to those who need it, and leverage cost positions to improve bottom-line results. It easily interoperates with existing systems to preserve an organisation's investment in current technology. AXS-One announced AXS-One Enterprise version 8w, the Silver Anniversary edition of AXS-One's financial management solutions, in June 2003.

For further information, please contact Marisa Bennett, AXS-One (Pty) Ltd, (011) 802-4998, e-mail mbennett@axsone.com or Carrie Gray, Siemens South Africa, (011) 652-2145, e-mail carrie.gray@siemens.com.

About AXS-One Inc:

AXS-One (AMEX: AXO - News) is a provider of supply chain management solutions for service industries that extend the finance function and allow organizations to work collaboratively with their partners, suppliers, employees, and customers while preserving investments in existing systems. AXS-One has implemented high-volume, interoperable, scalable and secure business solutions for the global 2000. Its Web Services-based technology has been critically acclaimed as best of class. AXS-One has approximately 250 employees in offices worldwide, including Australia, Canada, Singapore, United Kingdom, United States, and South Africa. AXS-One was founded in 1978, and is based in Rutherford, New Jersey, U.S.A. For further information, visit www.axsone.com.

About Siemens Business Services:

Siemens Business Services is an internationally leading IT services and solutions provider. This Siemens Group offers services all along the IT service chain from a single source - from consulting to systems integration, right through to the management of IT infrastructures. Thanks to comprehensive know-how and sector-specific expertise, the company provides measurable added value for its customers. With regard to outsourcing and IT maintenance, Siemens Business Services is among the top ten providers worldwide. Siemens Business Services, Southern Africa, boast a turnover in excess of ZAR 700 million for fiscal year 2003 (ending 30 September 2003). With a black economic empowerment shareholding of 37.6%, Siemens Business Services is the only global IT Company with such credentials. The company currently has approximately 560 employees in the southern African region. Further information visit www.siemens.co.za/sbs.

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

CONTACT: AXS-One Inc.
Company Contact:
Bernard Cassidy, 201-372-6231
bcassidy@axsone.com
or
Hayden Communications, Inc.
Agency Contact:
Matthew Hayden, 760-487-1137
matt@haydenir.com

SOURCE: AXS-One Inc.