AXS-One, MessageGate to Offer Highest Level of Compliance, Archive Categorization and Policy Enforcement for Electronic Records Management

Rutherford, NJ and Bellevue, Wash. - 5 December 2006

Sophisticated categorization technology enhances records compliance management capabilities just as changes to key regulations mandate faster and more cost-effective access to information

AXS-One Inc. (AMEX: AXO), a leading provider of high-performance Records Compliance Management (RCM) software solutions, and MessageGate , Inc., a leader in e-mail governance solutions, today announced an agreement to offer a broad-based and cost-effective solution that addresses the current market need for enhanced electronic records life cycle management.

The partnership, which combines AXS-One's market-leading RCM software with real-time policy management and archive categorization capabilities developed by MessageGate , comes just as the business need for these capabilities is peaking in the United States . Changes to the Federal Rules of Civil Procedure (FRCP), which went into effect December 1, 2006 , require companies to be able to make relevant information available with greater speed and accuracy than ever before.

Enterprise Strategy Group research estimates organizations will archive 7,000 petabytes of e-mail over the next four years as the volumes of messages considered to be a business record grows exponentially. “Organizations need intelligent, integrated message management solutions that can identify, categorize, and archive the appropriate e-mails to retain,” said Brian Babineau, analyst with Enterprise Strategy Group. “Combining AXS-One's records compliance management technology with MessageGate 's policy-based categorization helps meet the market need for proactive management and control of email as business records. Without integrations such as these, customers risk saving all messages forever, an unmanageable and unrealistic task for IT departments.”

A new survey from the Business Performance Management Forum (BPM Forum), sponsored by AXS-One, illustrates just how difficult it will be for many companies to meet this requirement. The study, titled “CEE The Future: The Compliance-Enabled Enterprise,” surveyed more than 400 senior executives, including 250 CEOs, on just this issue. Among the top-line findings:

• Nearly 40 percent say their company's IT executives don't understand current regulations well enough to effectively implement compliance technologies and policies
• Only 40 percent feel their companies are effectively enforcing the electronic records management policies that actually are in place
• About 36 percent, say their companies have no technologies or policies whatsoever to manage a legal discovery order involving electronic records

Through real-time analysis and integration with the AXS-One Compliance Platformâ„¢, MessageGate Archive Categorization and MessageGate Policy Enforcement enables companies to apply consistent metadata tagging to messages before they enter the archive. With this joint offering, corporate users can:

• Improve litigation preparedness by adding metadata for categorization and tagging to e-mail records in the archive through enriched search and retrieval processes
• Reduce discovery costs by proactively segmenting archived e-mail records in review and production activities using the added categorization and tagging metadata
• Decrease storage costs by differentiating high-value, business critical e-mail from low-value, non-business related traffic

“Every partnership we have is designed specifically to offer our customers high-performance technology that complements the feature set in the AXS-One Compliance Platform, and MessageGate fits very well into that strategy,” said Danielle Hooper, vice president, alliances at AXS-One. “In addition to greater functionality, scalability and value-added ROI, the combination of high-quality records compliance management software with sophisticated archive categorization and policy enforcement sets a new standard for ensuring compliance.”

“AXS-One is solidifying its position as the email archiving market leader by embracing policy-based archive categorization for its Compliance Platform product,” said Robert Pease, vice president of marketing for MessageGate. “The combined offering delivers a scalable and comprehensive archiving tool, enabling real-time analysis and enhanced retrieval capabilities.”

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