AXS-One Announces Technology Development and License Agreement With Sun Microsystems to Deliver End-to-End Solution for Global Regulatory Compliance and Governance Requirements

AXS-One Compliance Platform(TM) to Be Integral Part of Sun Compliance and Content Management Solution Sold and Supported by Sun Worldwide

RUTHERFORD, NJ, Jan. 19, 2005 (MARKET WIRE via COMTEX) -- AXS-One Inc. (AMEX: AXO), a leading provider of records compliance management software solutions, today announced a wide-ranging technology development and license agreement with Sun Microsystems, Inc. Under the terms of the agreement, Sun will license the AXS-One Compliance Platform and integrate it as a key component of the Sun Compliance and Content Management Solution, a customer-ready system built around Sun's portfolio of storage and compliance products, its client solutions organization and the Solaris Operating System. The AXS-One Compliance Platform, an integrated product designed to securely capture, index, archive, search, supervise and manage the retention and disposition on all electronic records, including e-mail and Instant Messages, has been optimized for and integrated with 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.

AXS-One and Sun recently completed a full-scale joint testing project to verify the scalability of the Sun Compliance and Content Management Solution, as well as to establish implementation and best practices recommendations for customers. The results show that the solution successfully scales to meet the requirements of large global organizations. This has been achieved as a result of optimization and integration of the component parts to ensure full interoperability and maximized performance.

"We are delighted with the vote of confidence that Sun, a global technology leader, has given AXS-One by choosing to extend our business and technology relationship," said Jerry Vendome, executive vice president of Business Development at AXS-One. "Our teams have closely collaborated to optimize our technology for the Sun Solaris platform, and together we have trained Sun Microsystems Product Architects, Professional Services, Support and Sales people in over 10 countries on the Sun Compliance and Content Management Solution. With positive initial feedback from a number of Fortune100 companies and our own extensive testing, AXS-One is confident that significant additional business can be generated as a result of this agreement."

"In a market where issues surrounding corporate governance have taken center stage, the need for Records Compliance Management technology is going to escalate," said Andrew M. Schroepfer, president of Tier 1 Research. "AXS-One was already positioned to be a key solution provider in this space, and we believe the new initiative with Sun will give the company unprecedented momentum."

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 Content Infrastructure System powered by Sun StorEdge SAM-FS software for automated tiered archiving. The solution also leverages the expertise of Sun's Content and Compliance Client Solutions Practice.

"To restore investor confidence, senior executives are held personally responsible for regulatory compliance under a complex array of worldwide regulations," said Ed Valdez, vice president of Integrated Solutions at Sun Microsystems, Inc. "The Sun Compliance and Content Management Solution addresses this challenge with world-class technology from both Sun and AXS-One."

The new solution, with the AXS-One Compliance Platform, will replace Sun's current e-mail archiving solution, Infinite Mailbox. The two companies are collaborating on developing additional features to ensure that the new offering seamlessly provides existing and future customers with a single, scalable framework that can archive and manage all electronic records, including e-mail, while addressing storage, compliance, and content management challenges.

The Sun Compliance and Content Management Solution is available today worldwide. The solution is sold, serviced and supported by Sun worldwide and will be showcased next week at Lotusphere 2005 (January 23-27, booth number 423-428) in Orlando, Florida.

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