Award-winning records compliance management solution continues to address high-volume performance requirements for large enterprises with major innovations in processing and archival architecture

RUTHERFORD, N.J., September 28, 2005 – AXS-One Inc. (AMEX: AXO), a leading provider of high-performance records compliance management software solutions, today extended its market leadership in price performance with significant innovations in the archival ingestion process in its award-winning technology. In response to market demand, the company has enhanced its architecture design for massively parallel archival and ingestion of electronic records. The extensions within the AXS-One Compliance Platform now enable archival processing to be granularly distributed into discrete and loosely coupled business components that can be linearly scaled to meet exponentially growing volume and faster time pressure for the ingestion of large volumes of legacy e-mail and other content.

Unlike competitive solutions that rely on monolithic processes with costly hardware to achieve comparable performance, the new innovations build on the proven and highly scalable architecture of the AXS-One Compliance Platform to distribute the workload across multiple tiers using commodity hardware. The result is linear scalability and the best price-performance ratio, with a ten-fold performance gain and an exceptionally low total cost of ownership.

The enhancements arrive as stricter enforcement of data retention regulations and heightened awareness of potential liability are accelerating demand in the e-mail archiving market. The AXS-One Compliance Platform, the only solution designed from its inception to address records compliance management issues, also continues to evolve in order to accommodate the need to effectively manage IT operating costs with solutions that offer the greatest price performance.

According to research firm Radicati, the market for e-mail archiving will grow from $465 million in 2005 to $4.4 billion in 2009. At the same time, customer needs are also changing. Growing concern about the potential risks associated with e-mail liability is causing larger enterprises in particular to look for solutions that not only archive new e-mail from the day of implementation but also efficiently archives legacy e-mail that’s currently stored on volumes of backup tapes, files and other storage media. In this context, the solution’s ability to effectively and efficiently deal with sheer volume becomes a significant factor, with some corporations needing to process and archive hundreds of terabytes of legacy e-mail.

“Huge financial sanctions against some well-known corporations, along with ongoing concerns over compliance and litigation readiness, have caused a fundamental shift in e-mail archiving priorities,” said Bill Lyons, CEO of AXS-One. “Large enterprises now want to ensure that all of their content, from new e-mails to relevant legacy documents, is processed and stored in a single, scalable, searchable archive that meets current compliance standards. AXS-One has been delivering compliant electronic archiving for more than 12 years, and the newest enhancements to our architecture, including the linear scalability, is further proof of our commitment to address the challenging requirements of this market. Today’s announcement continues to deliver on our value proposition of high performance matched with low total cost of ownership.”

Reflecting the rising importance of compliance issues and the need to continually innovate in order to address the higher-volume processing needs of the market, this is the second significant enhancement to the AXS-One Compliance Platform in just the past few months. In May, the company released AXS-One Compliance Platform 3.5, the latest iteration of the company’s signature offering, with Rapid-AXS, groundbreaking search technology that was designed to take advantage of a grid computing architecture to deliver fast and tunable search performance. Rapid-AXS has demonstrated that it can search through 10 million e-mail records in 2-3 seconds with industry-leading low cost of ownership. The newest enhancements offer a similar level of innovation and price-performance for high-volume processing and archival.

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