AXS-ONE ANNOUNCES AXS-ONE COMPLIANCE PLATFORM™ 3.5 FEATURING RAPID-AXS™

Performance leader in records compliance management solutions delivers breakthrough search capabilities

Watford, May 24, 2005 – AXS-One Inc. (AMEX: AXO), a leading provider of high-performance records compliance management software solutions, today announced AXS-One Compliance Platform 3.5, the newest version of its award-winning flagship product. The AXS-One Compliance Platform is an integrated solution designed to securely archive and manage virtually all electronic records, including e-mail and instant messages, regardless of originating platform. The new offering features patent-pending Rapid-AXS search technology that delivers ground-breaking “rapid access” search performance across massive volumes of archived data, leveraging low-cost commodity hardware. The release will be generally available in June, 2005.

"Compliance is a strategic priority for every financial services company, and we're no exception," said Janelle Briggs, Senior Vice President at Jefferies & Company Inc., a global investment bank and institutional securities firm. "Industry surveillance and archival requirements present a tremendous challenge, since so much of our business communication and transaction occurs via e-mail, all of which has to be securely stored and yet available for easy search and retrieval. The market needs enterprise technology that helps us do this with speed and accuracy. As a long-time user of the AXS-One Compliance Platform, we've had the opportunity to beta test the Rapid-AXS search component of version 3.5 and we were impressed by its performance. We look forward to all the new functionality that comes with this release."

AXS-One Compliance Platform 3.5 arrives just as one of the largest financial services organisations in the world is facing record damages in a highly publicised lawsuit with extensive legal discovery issues. In fact, increasingly aggressive compliance enforcement and litigation are forcing organisations in every industry to reconsider how they manage electronic records. Given consulting firm IDC’s estimate that the average number of e-mails sent each day worldwide will hit 36.2 billion in 2006, conventional archiving solutions fall far short. In this environment, capturing and storing electronic records—even with the compliance features offered by the first generation of archiving solutions—is no longer enough. Companies now need to be able to search through those massive volumes of data, locate the content that’s needed, and retrieve it with speed, accuracy and flexibility. AXS-One’s Compliance Platform 3.5 with Rapid-AXS was developed specifically to meet these new demands for records compliance management.

"Organisations across all verticals are focusing attention on managing their corporate content not only to meet compliance needs if regulated but also for governance, privacy and legal discovery, which is driving a huge demand for better electronic records management," said Peter Gerr, senior analyst with Enterprise Strategy Group. "With the increasing amount of content from various sources in multiple formats comes the challenge to quickly and consistently produce results when searching the corporate archive. Performance of search and retrieval requests will make a tremendous difference, and AXS-One’s Rapid-AXS can help companies enhance and improve their ability to address electronic records management."

Rapid-AXS was designed to take advantage of grid computing architecture to deliver fast and tunable search performance. The technology has demonstrated that it can search through 10 million e-mail records in 2-3 seconds, with no linear or exponential increase in search times with greater amounts of data. In addition, Rapid-AXS offers exceptional low cost of ownership through its ability to scale to deliver the performance required utilising only commodity hardware, rather than the high-cost proprietary servers usually necessary for enhanced performance.

In addition to the search management capabilities, AXS-One Compliance Platform 3.5 also features a number of improvements and new capabilities, including:

• Enhanced single-instance storage
• An enhanced Retention Manager that supports multi-server environments and has the ability to deliver one-to-many management over multiple archive servers
• Apache/Solaris support for Content Portal
• Support for new compliance storage devices and software from Sun Microsystems, Inc.
• New, easier and faster installation process
• Expanded platform support to include Windows and Sun Solaris

"Our customers have spoken: managing exponentially growing volumes of electronic records is a very serious business. Penalties for lack of compliance or botched discovery have gone from a slap on the wrist to hundreds of millions of dollars. As performance becomes more critical than ever, organisations are looking for Google-like search speeds across terabytes of data," said Bill Lyons, CEO, AXS-One. "Compliance Platform 3.5 with Rapid-AXS has been architected to ensure massive scalability and leverage the latest technologies such as Grid computing. We believe that our approach redefines the market for records compliance management and especially for search services."

Pricing and Availability:
The AXS-One Compliance Platform 3.5 is licensed according to the number of users supported, with scalable pricing reflecting the size of organisation. AXS-One will offer the solution to new and existing customers directly and through strategic partners. This release is targeted for general availability in June 2005.

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