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Press Release
AXS-One Strengthens Focus on Federal Government and Public Sector Market
    RUTHERFORD, N.J.--(BUSINESS WIRE)--Sept. 1, 2004--

  AXS-One Formalizes Federal Operations Practice and Taps Recognized
   Industry Expert to Lead Government and Public Sector Sales of the
                    AXS-One(R) Compliance Platform

AXS-One Inc. (AMEX: AXO), a leading provider of records compliance management solutions, today announced it has strengthened its sales focus on the Government and Public Sector Market. Legislation affecting freedom of information and national security as well as e-Government initiatives continue to drive the need for secure, scalable and enforceable retention, supervision, electronic delivery and disposition for all records generated and managed by government institutions.

The AXS-One Compliance Platform is a powerful, multi-platform solution that enables government and public sector organizations to capture, manage, electronically deliver and archive their electronic records, including e-mails and instant messages (IM), in order to fulfill strict regulatory requirements while realizing cost-effective operational enhancements.

Industry expert Mark Meaders has joined AXS-One to lead this strategic initiative. Serving as the Director of Federal Operations, Mr. Meaders will lead worldwide government and public sector sales of the AXS-One Compliance Platform. He is a life member and president of the Philadelphia Chapter of AFCEA (Armed Forces Communications and Electronics Association).

Mr. Meaders' career has been marked by success in sales, marketing and technical operations in a number of technical and management positions at fast-paced technology companies and federal organizations. Prior to joining AXS-One, Mr. Meaders served in various leadership and technical positions at IXOS Software Inc., including, lastly, director of Federal Systems. While there, he spearheaded the company's continual growth within the market, securing marquee contracts with leading government organizations including the Department of Defense, Department of Health and Human Services, and Department of Treasury.

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AXS-One Strengthens Focus on Federal Government and Public Sector Market, Page 2,

"The federal government and public sector markets offer significant growth opportunities for AXS-One as our Compliance Platform delivers the flexibility organizations require as they strive to keep up with regulatory guidelines, streamline their operations and deploy their e-Government initiatives," commented Bill Lyons, CEO of AXS-One. "We are very confident that Mark, who is highly regarded in this industry, is the leader AXS-One needs to successfully implement the company's aggressive government-focused sales program."

About AXS-One Inc.

AXS-One (AMEX: AXO) is a leading provider of Records Compliance Management solutions. AXS-One's compliance software solutions provide a platform for regulatory compliance, corporate governance and operational efficiency. Its Web Services-based technology has been critically acclaimed as best of class and its high-volume, interoperable, scalable and secure business solutions have been implemented by the global 2000. Founded in 1979, and headquartered in Rutherford, NJ, today AXS-One has offices worldwide, including in the United States, Australia, Singapore, United Kingdom and South Africa. For further information, visit the AXS-One web site at http://www.axsone.com.

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, AXS-Link 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.
             Marie-Charlotte Patterson, 201-372-6243
             mpatterson@axsone.com
             or
             Springboard Public Relations
             Brian McManus, 732-863-1900 x 103
             bmcmanus@springboardpr.com

    SOURCE: AXS-One Inc.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding AXS-One Inc's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.