New Technologies, Showcased at Lotusphere 2006, Take On Broad Range of Compliance, Legal Discovery, Corporate Governance Issues

RUTHERFORD , NJ , Jan. 23 , 2006 -- AXS-One Inc. (AMEX: AXO), a leading provider of high-performance records compliance management software solutions, today announced a major step forward in addressing the needs of the booming compliance market by unveiling new functionality for Lotus Notes environments within the AXS-One Compliance Platform. The technology enhancements, which are being showcased at Lotusphere 2006, will also be available in the upgraded Sun Compliance and Content Management Solution ™, the customer-ready set of technology and services launched by Sun Microsystems last year that leverages the AXS-One Compliance Platform. The recent innovations offer users of Infinite Mailbox, Sun's Lotus Notes e-mail archiving product, a seamless migration path to both existing features and additional capabilities within the AXS-One Compliance Platform.

The new benefits include processing improvements that enable Lotus Domino users to continue to reduce infrastructure (especially storage and associated management) and backup costs with greater reliability and efficiency, as well as mitigate corporate e-mail liability and enable e-discovery. Users can now set “soft” quotas for e-mail, facilitating better control of messaging thresholds. The newly combined platform also includes many automatic archiving features and enhanced offline support for mobile users. Infinite Mailbox users who opt to migrate to the new release will benefit from a single, scalable framework that can archive and manage not just Lotus Domino records but all electronic content, such as desktop documents, instant messaging, transactional data, voice records, and other binary files with associated meta-data, At the same time, the platform helps address regulatory compliance, retention, disposition and legal discovery issues for all information stored within the archive.

"The relationship between Sun Microsystems and AXS-One offered the opportunity to set higher standards for functionality and effectiveness in compliance records management, and we continue to meet and surpass those standards,” said Bill Lyons, CEO of AXS-One. "For the past year we've been working together not only on delivering functionality that's important for today's market, but on interesting client engagements around the world. These enhancements prove that we're still raising the bar in this dynamic field, and we look forward to working with Sun to deliver top-level technology and services with the best TCO for many years to come.”

“We specifically collaborated with AXS-One not only because of the breadth of features offered for managing electronic records, but also to help transition users of Infinite Mailbox to a new platform that offers even greater functionality—now, and well into the future,” said Nancy Hurley, Senior Director, Storage Software Marketing at Sun Microsystems.

The AXS-One Compliance Platform is an integrated product designed to securely capture, index, archive, search, supervise, manage retention and disposition and provide legal discovery on all electronic records, including e-mail and Instant Messages. It has been optimized for the Sun environment to deliver an end-to-end platform that enables organizations to address compliance and governance requirements while helping to lower operational, administrative and storage costs.

The Sun Compliance and Content Management Solution is an integrated hardware, software and services solution that features multiple options to architect the most appropriate storage infrastructure based on each customer's unique compliance requirements. It includes the Sun StorEdge™ Compliance Archiving System for non-rewritable "WORM" disk capabilities and advanced security, and the Sun StorEdge SAM-FS software for automated tiered archiving and management.

The Sun Compliance and Content Management Solution is available today, worldwide. and will be showcased at Lotusphere 2006 (January 22-26, booth number 229) in Orlando, Florida.

About AXS-One Inc.

AXS-One Inc. (AMEX: AXO) is a leading provider of Records Compliance Management solutions. The AXS-One Compliance Platform enables organizations to implement secure, scalable and enforceable policies that address records management for corporate governance, legal discovery and industry regulations such as SEC17a-4, NASD 3010, Sarbanes-Oxley, HIPAA, The Patriot Act and Gramm-Leach Bliley. AXS-One's technology has been critically acclaimed as best of class and delivers digital archiving, business process management, electronic document delivery and integrated records disposition and discovery for e-mail, instant messaging, images, SAP and other corporate records. Founded in 1979, and headquartered in Rutherford , NJ , 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 AXS-One Compliance Platform, AXS-One Retention Manager, "The Records Compliance Management Company," 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.

" 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.